Who counts as a Non-Resident Indian.
There is no single definition. For income tax, you are a non-resident for a tax year if you do not meet the day-count tests in Section 6. This is checked every year, purely on the days you spend in India.
For FEMA, the foreign exchange law that governs your bank accounts and investments, you become a "person resident outside India" as soon as you leave India to take up a job, run a business or live abroad for an uncertain period. Day count does not decide this; your purpose and intention do.
So in the year you move to the UK, you can be an NRI for FEMA from the day you leave but still be a resident for income tax for that year. Planning around this gap avoids problems with banks and the tax department.
"NRI" usually refers to Indian citizens living abroad. British citizens of Indian origin and OCI cardholders follow similar but separate rules. See Residential Status PIO/OCI.
Tax status and FEMA status side by side.
| Income-tax Act | FEMA | |
|---|---|---|
| What it governs | Which income India taxes | Bank accounts, investments, property and money transfers |
| How status is decided | Days in India in the year and earlier years | Purpose of stay: job, business or living abroad |
| When it changes | Checked for each tax year | From the day you leave or return |
| Main effect | Non-residents pay tax only on Indian income | Accounts must be NRE, NRO or FCNR; some investments are restricted |
| Learn more | Residential status | FEMA rules for NRIs |
Bank accounts an NRI can hold.
Under FEMA, an ordinary resident savings account must be re-designated once you become an NRI. These are the three account types NRIs use.
| NRE account | NRO account | FCNR (B) deposit | |
|---|---|---|---|
| Currency | Indian rupees | Indian rupees | Foreign currency, such as GBP |
| What goes in | Money earned abroad | Indian income: rent, dividends, pension | Money earned abroad |
| Interest in India | Tax-free while non-resident | Taxable, TDS at 30% | Tax-free while non-resident or RNOR |
| Repatriation | Fully repatriable | Up to USD 1 million a year with Forms 145 and 146 | Fully repatriable |
| Currency risk | Yes | Yes | No |
Moving money out of an NRO account needs a Form 145 and Form 146 filing, which we prepare. Interest on NRE and FCNR accounts is covered on our exempt income page.
What India taxes once you are an NRI.
Rent from Indian property
Taxed after a 30% standard deduction. Tenants must deduct TDS before paying you.
NRO interest and dividends
Taxable in India, with TDS. Treaty rates can reduce the Indian tax for UK residents.
UK salary and UK income
Income earned and received outside India is not taxed in India while you are a non-resident.
What NRIs can invest in.
FEMA allows NRIs to invest in most Indian assets, with a few restrictions.
- Residential and commercial propertyCan be bought freely, funded from NRE, NRO or FCNR accounts or remittances.
- Agricultural land and farmhousesCannot be bought by NRIs, but can be inherited.
- Listed sharesThrough the portfolio investment route, using a PIS-linked bank account.
- Mutual fundsAllowed, though some fund houses do not accept investors from certain countries.
- Government securities and bondsAllowed on a repatriable or non-repatriable basis.
- PPF and small savingsNo new accounts; existing PPF accounts can run until maturity.
What to update when you move to the UK.
Tell your banks
Convert resident savings accounts to NRO and open an NRE account for UK earnings you send to India.
Update demat and fund KYC
Change your status to non-resident with your broker, depository and fund houses.
Update your PAN details
Make sure your residential status and contact details are correct, so TDS is not deducted at higher rates.
Review rental and loans
Tell tenants you are now an NRI so they deduct the right TDS, and check your home loan terms.
File as a non-resident
From the first year you are non-resident, file your Indian return for Indian income only.
Common mistakes NRIs make.
Continuing to operate a resident savings account after moving abroad breaches FEMA rules.
Tenants who pay an NRI without deducting TDS can face interest and penalties, and the issue often reaches the owner.
Indian income is generally reportable in the UK once you are UK resident, even if tax was paid in India.
Why NRIs in the UK choose us for India tax.
We work with the India side of your tax while keeping your UK Self Assessment and treaty position in view.
Every computation is checked by a second Chartered Accountant before anything is filed.
A written scope and fee before work starts, with no surprise charges later.
Encrypted document sharing and e-verification, so nothing needs a trip to India.
Returns, TDS refunds, FEMA questions and property sales handled by the same team.
Clear explanations of what you owe, why, and what to keep for next year.
NRI advice for Indians throughout the UK.
We help Non-Resident Indians across the UK understand their status and keep their Indian bank accounts, investments and tax in order, from London and Leicester to Glasgow and Belfast.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Non-Resident Indian FAQs.
Not sure what your NRI status means for your money in India?
Tell us when you moved and what you hold in India. We will explain what to change and what to file.
This page is general guidance based on Indian income-tax and FEMA rules as they stand, including the Income-tax Act, 2025 that applies from 1 April 2026. It is not legal or financial advice for your situation. Rates, limits and deadlines can change, so please speak to us before acting on it.