Most NRI money mistakes come from four questions answered wrong: whether you are an NRI for tax at all, which bank account your money should sit in, how much tax the buyer holds back when you sell property in India, and what sending money home really costs. Each has its own page on PaisaTools with the rule and the official source; this guide puts them in the order you usually meet them.
1. Are you an NRI for tax this year?
For tax, NRI status is decided by the number of days you spent in India in the financial year, not by your passport or where you live. In general you are a non-resident if you were in India for fewer than 182 days that year, with a stricter rule for people with Indian income above ₹15 lakh, and an in-between status (RNOR) for some returning NRIs. Get the status wrong and India can tax your worldwide income.
Check your residential status for the yearHow NRIs are taxed in India: what's taxable, what's not2. NRE or NRO: where should the money sit?
The two accounts exist for different money. One is for what you earn abroad and bring in; the other is for income that arises in India, such as rent, dividends or a pension. They differ in how the interest is taxed and how freely the money can go back abroad, so the choice changes your tax bill, not just your paperwork.
NRE vs NRO: answer a few questions, see which account fitsNRE vs NRO account: which one does an NRI actually need?3. Selling property in India: why the TDS isn't 1%
The 1% TDS rule people remember applies only when the seller is a resident. When the seller is a non-resident, the buyer must withhold tax on the full sale price, not on the gain, under Section 393(2) of the Income-tax Act, 2025 (Section 195 under the old Act). That can lock up several times the tax you actually owe until you file your return. A lower or nil deduction certificate, applied for on Form 128 under Section 395, fixes it if you get it before the sale.
NRI property TDS calculator: what the buyer will deductTDS when an NRI sells property: the full rules and the certificate4. Sending money home: what it really costs
Transfer apps and banks often advertise zero fees, but the real cost hides in the exchange rate they give you. Compare the rupees that arrive, not the fee. The live rate for your currency is on our converter pages, so you can see how far a quote is from the market rate.
Cheapest way to send money to India: apps vs banksSend money to India: compare transfer options side by sideAll live rates: Saudi riyal, Kuwaiti dinar, Omani rial, Qatari riyal and moreFrequently asked questions
- How many days in India make me a resident for tax?
- In general, 182 days or more in the financial year makes you a resident. Fewer than that usually keeps you a non-resident, but a stricter 120-day rule applies to people with Indian income above ₹15 lakh, and some returning NRIs fall into the in-between RNOR status. Our residency checker walks through each rule.
- How much TDS does a buyer deduct when an NRI sells property?
- The buyer deducts on the full sale price at the non-resident rates, not 1% and not only on the gain. A lower or nil deduction certificate (Form 128 under Section 395 of the Income-tax Act, 2025) brings it down to the tax on your actual gain.
- Should an NRI keep money in an NRE or NRO account?
- Money earned abroad usually belongs in NRE; income that arises in India, such as rent or dividends, goes to NRO. The two are taxed differently and have different rules on sending money back abroad, so check which fits each kind of money.
- What is the cheapest way to send money to India?
- The option that delivers the most rupees for your amount. Fees are only part of it; the exchange-rate markup is usually the bigger cost, so compare the final amount received against the live market rate.