India–UAE Tax Residency Calculator
Five tools for Indians in UAE — Indian residency status, UAE TRC eligibility, DTAA treaty benefits, NRI income tax planning, and LRS remittance with TCS calculation.
Based on Income Tax Act 1961, FEMA, India–UAE DTAA, and Finance Act 2024. Indian Financial Year = April–March. Not legal or tax advice.
| Days in India — Current FY | — |
| Days in India — 4 preceding FYs (cumulative) | — |
| Days in India — 7 preceding FYs (cumulative) | — |
| Test 1: ≥182 days in current FY | — |
| Test 2: ≥60 days current FY + ≥365 in 4 preceding FYs | — |
| 120-day rule (if India income >₹15L and citizen, no foreign tax) | — |
| Deemed Resident — Section 6(1A) | — |
| RNOR: Resident for ≥2 of 10 preceding FYs | — |
| RNOR: ≥730 days in India in 7 preceding FYs | — |
| Residency Status | — |
| Global Income Taxable in India? | — |
| India-source Income Taxable in India? | Yes — always taxable |
| DTAA Available? | — |
| Days in UAE (calendar year) | — |
| UAE Residence Visa | — |
| 183-day Test | — |
| 90-day Test (with permanent home in UAE) | — |
| UAE-source Income | — |
| Centre of Vital Interests | — |
| UAE TRC Eligibility | — |
| DTAA Tie-Breaker (if dual residency) | — |
| UAE Personal Income Tax | 0% — No personal income tax in UAE |
| TRC Benefit (NRO interest: 30% → 10%) | — |
| Income Type | 🇮🇳 India (NRI, no TRC) | 🇮🇳 With TRC | DTAA Notes |
|---|---|---|---|
| UAE Salary | 0% | 0% | Art.15: Taxed only where employment exercised. Not taxable in India for NRI/RNOR. |
| Rental Income (India) | 30% TDS | ~20% (DTAA) | Art.6: India has primary right. 30% deduction for repairs. Municipal taxes deductible. |
| NRO Interest | 30% TDS | 10% TDS | Art.11: DTAA caps at 12.5% (practical rate 10%). MUST have TRC + Form 10F. |
| NRE/FCNR Interest | Exempt | Exempt | Exempt under Sec 10(4) of ITA as long as NRI status maintained. |
| Dividends (India co.) | 20% TDS | 10% TDS | Art.10: India taxes dividends. TRC reduces TDS from 20% to 10%. |
| STCG — Equity | 20% | 20% | Art.13: India has taxing right on Indian equity gains. No treaty exemption. |
| LTCG — Equity | 12.5% (above ₹1.25L) | 12.5% | Art.13: India taxes LTCG on Indian equities. Post Budget 2024 rate: 12.5%. |
| Property Gains | 20%/30% | 20%/30% | Art.13(1): India always taxes gains on Indian immovable property. |
| Royalties / FTS | 30% TDS | 10–15% | Art.12: DTAA rate ~10-15% with TRC. Domestic rate applies without TRC. |
| Business Income (UAE) | 0% | 0% | Art.7: Taxed only where PE located. UAE company income not taxable in India. |
| Income Type | — |
| Gross Amount (₹) | — |
| India Status | — |
| UAE TRC Held | — |
| DTAA Article | — |
| Tax Rate Without TRC | — |
| Tax Rate With TRC (DTAA) | — |
| Estimated Tax Payable (₹) | — |
| TRC Saving Annually (₹) | — |
| Form 10F Required? | — |
| Taxable in UAE? | No — 0% personal income tax in UAE |
| Gross Rental Income | — |
| Less: 30% Standard Deduction | — |
| Net Rental Income (taxable at slab) | — |
| NRO Interest (TDS 30% / 10% with TRC) | — |
| NRE/FCNR Interest — EXEMPT | — |
| Dividends (TDS 20% / 10% with TRC) | — |
| STCG — Equities (20% flat) | — |
| LTCG — Equities (12.5% above ₹1.25L) | — |
| Capital Gains — Property | — |
| Total Taxable India Income | — |
| Total India Tax (incl. 4% H&E Cess) | — |
| Approx TDS Already Deducted | — |
| Net Tax Payable / (Refund) | — |
| Annual TRC Benefit (tax saved) | — |
| Sender Type | — |
| Remittance Amount (₹) | — |
| Purpose | — |
| Base TCS Rate | — |
| ITR Filing Adjustment | — |
| Effective TCS Rate | — |
| TCS Amount (₹) | — |
| Net Remitted After TCS (₹) | — |
| Approx USD Equivalent | — |
| Approx AED Equivalent | — |
| Total LRS Used This FY (₹) | — |
| Remaining LRS Headroom (₹) | — |
| Form 15CA / 15CB Required? | — |
| TCS Adjustable Against ITR Refund? | Yes — TCS is tax credit, claim in ITR |
| Income Type | 🇮🇳 Rate (No TRC) | 🇮🇳 Rate (With TRC) | DTAA Notes |
|---|---|---|---|
| UAE Salary (UAE employer) | 0% | 0% | Art.15: Taxed only where employment exercised. Not taxable in India for NRI/RNOR. |
| Rental Income — India property | 30% TDS | ~20% (DTAA) | Art.6: India has primary taxing right. 30% standard deduction on gross rent for NRIs. |
| NRO Bank Account Interest | 30% TDS | 10% TDS | Art.11: DTAA caps at 12.5% (10% in practice). TRC + Form 10F required before interest credited. |
| NRE / FCNR Account Interest | Exempt | Exempt | Domestic exemption: Section 10(4). No DTAA needed. Exempt as long as NRI status maintained. |
| Dividends — Indian company | 20% TDS | 10% TDS | Art.10: India taxes dividends. TRC + Form 10F reduces TDS from 20% to 10%. |
| STCG — Listed equities (<12 months) | 20% | 20% | Art.13: India has taxing right on Indian equity gains. No treaty exemption. Post Budget 2024 rate. |
| LTCG — Listed equities (≥12 months) | 12.5%* | 12.5%* | Art.13: India taxes LTCG. 12.5% above ₹1.25 lakh exemption. No indexation. Post Budget 2024. |
| Capital Gains — Indian property | 20% / 30% | 20% / 30% | Art.13(1): India always taxes gains on Indian immovable property. LTCG 12.5% / STCG slab rates. |
| Royalties / Fees for Technical Services | 30% TDS | 10–15% | Art.12: DTAA rate ~10–15% with TRC. Domestic rate of 30% applies without TRC. |
| Business Income — UAE PE / company | 0% | 0% | Art.7: Taxed only where PE located. UAE company income not taxable in India (no India PE). |
Indian tax residency is determined under Section 6 of the Income Tax Act 1961 based on physical days spent in India in the financial year (April 1 to March 31). There are two primary tests:
Test 1: 182 or more days in India in the current financial year → Resident.
Test 2: 60 or more days in the current year AND 365 or more days across the preceding 4 financial years combined → Resident. However, for Indian citizens working abroad (including UAE), the 60-day threshold in Test 2 is raised to 182 days — meaning Test 2 can only be triggered by an Indian citizen abroad if they spent 182+ days in India in the current year, which is the same as Test 1. This makes it much easier for Indian citizens working in UAE to maintain NRI status.
There is also a 120-day rule for Indian citizens with India-source income above ₹15 lakh — they become resident if they spend 120 or more days in India AND meet the 4-year 365-day cumulative test. And the Deemed Resident rule (Section 6(1A)) can catch high-income NRIs regardless of days.
RNOR — Resident but Not Ordinarily Resident — is a transitional status that applies to individuals who have returned to India after extended overseas residence. You qualify as RNOR if you are a Resident in the current year but were a Resident in fewer than 2 of the preceding 10 financial years, OR spent fewer than 730 days in India across the preceding 7 financial years.
The key benefit is that an RNOR's foreign income is not taxable in India — UAE salary received abroad, UAE business income, and interest on foreign bank accounts are all outside the scope of Indian tax during the RNOR period. Only India-source income is taxable, just like for an NRI.
For an Indian who has lived in UAE for 5+ years and returns to India, RNOR status typically applies for 2 to 3 years after return. This is a critical planning window — returning Indians should use this period to convert NRO balances to NRE, restructure investments, and plan the wind-down of UAE income before full ROR (worldwide income taxation) status kicks in.
Section 6(1A), introduced by Finance Act 2020, deems an Indian citizen to be resident in India if they: (1) are not liable to tax in any other country or territory, AND (2) have India-source income exceeding ₹15 lakh in the financial year.
Since the UAE charges zero personal income tax, Indians in UAE satisfy condition (1) automatically. If their India-source income from NRO interest, Indian rental, dividends, or capital gains exceeds ₹15 lakh, they may be deemed resident.
A Deemed Resident is taxed similarly to an RNOR — India-source income is fully taxable but UAE salary and foreign income remains outside Indian tax. The key implication is that Deemed Resident status cannot be escaped by simply spending fewer days in India — the day-count tests become irrelevant once the income threshold is crossed.
Planning options include: keeping India-source income below ₹15 lakh, converting NRO deposits to NRE, deferring property sales to lower-income years, and obtaining legal tax residency in a country with actual income tax to satisfy condition (1). Consult a qualified CA immediately if you are at risk.
UAE TRC applications are made online through the UAE Ministry of Finance portal (mof.gov.ae). Processing typically takes 5–15 working days. The fee is approximately AED 2,000–4,000.
Required documents typically include: Valid UAE residence visa (not tourist visa); Emirates ID; Proof of UAE accommodation — tenancy contract or title deed registered with RERA/DLD; UAE bank statements showing financial activity during the year; Employment contract or trade licence / business registration (for self-employed); Recent utility bills or proof of physical presence.
The 183-day threshold is the standard requirement — 183 days physically present in the UAE in the calendar year. The 90-day threshold applies if you can evidence that UAE is your permanent home (habitual abode). Golden Visa holders typically have an easier TRC process due to the long-term, government-backed nature of the visa.
Once obtained, the TRC is valid for one calendar year and must be renewed annually. Immediately after receiving (or renewing) the TRC, file Form 10F on the Indian income tax portal and provide copies to each Indian bank and company that pays you income.
No — the India–UAE DTAA does not exempt NRIs from Indian capital gains tax on Indian assets. Article 13 of the DTAA gives India the right to tax gains from Indian immovable property under Article 13(1), and gains on Indian company shares under Article 13(4). There is no blanket DTAA exemption for capital gains on Indian assets for UAE residents.
Capital gains tax rates for NRIs in FY 2024-25 (post Budget 2024): STCG on listed equity — 20% flat. LTCG on listed equity (≥12 months) — 12.5% above ₹1.25 lakh exemption, no indexation. LTCG on property (≥24 months) — 12.5% without indexation or 20% with indexation (choose lower). STCG on property (<24 months) — taxed at slab rates.
For property sales, the buyer must deduct TDS at 20% (LTCG) or 30% (STCG) from the sale proceeds. If actual tax is lower, NRIs should apply for a Lower Deduction Certificate from the Assessing Officer before the sale to avoid overlocking funds in excess TDS. Section 54 and 54EC exemptions allow reinvestment of LTCG on property to reduce the tax liability.
NRO (Non-Resident Ordinary) account: Holds India-earned money — rental income, Indian salary, Indian dividends, and Indian pension. The principal can only be repatriated up to USD 1 million per financial year (after paying taxes and submitting Form 15CA/15CB). Interest on NRO accounts is taxable in India at 30% TDS, reduced to 10% with a valid UAE TRC and Form 10F. NRO accounts are in Indian rupees.
NRE (Non-Resident External) account: Holds money brought from abroad — UAE salary, foreign savings, and UAE investment proceeds. Interest on NRE accounts is completely exempt from Indian tax under Section 10(4) of the Income Tax Act — no TRC required, no TDS. Both principal and interest are freely repatriable to the UAE without any limit or regulatory approval. NRE accounts can be held as savings, current, or fixed deposit accounts.
The optimal strategy for Indians in UAE: route UAE salary to NRE fixed deposits to earn 6.5–7.5% p.a. completely tax-free in India. Minimise NRO balances — once a significant NRO corpus is built, repatriate it systematically to NRE accounts (with proper tax payment and CA certification) to convert taxable funds to tax-free, freely repatriable ones.
Under the Liberalised Remittance Scheme (LRS), resident Indians can remit up to USD 250,000 per financial year (approximately ₹2.09 crore) for permissible purposes. This limit resets on April 1 each year and covers all purposes combined.
TCS rates applicable from October 2023: General remittances (investment, maintenance of family, gifts) — 20%. Education funded by own funds — 5%. Education funded by Indian bank loan — 0.5%. Medical treatment abroad — 5%. Overseas tour package (booked through agent) — 20%. Note: the earlier ₹7 lakh TCS-free threshold was removed; TCS now applies from the first rupee.
ITR filing is critical: If you have not filed ITR for the preceding 2 years and your TDS/TCS exceeded ₹50,000 in each of those years, your TCS rate is doubled — general remittances would attract 40% TCS. File ITR promptly every year to maintain standard rates.
Remember: TCS is not a cost — it is a tax credit in Form 26AS, fully adjustable against tax liability or refundable via ITR. Always file ITR to recover excess TCS.
NRIs are required to file an Indian ITR if their India-source income exceeds ₹2.5 lakh in the financial year (₹3 lakh for those aged 60–80, ₹5 lakh for those over 80). India-source income includes rental income, NRO interest, dividends, and capital gains on Indian assets. UAE salary does not count.
Even if total India-source income is below the threshold, NRIs should consider filing ITR if: TDS has been deducted and they want to claim a refund; they have sold a property or made significant capital gains; they want to carry forward capital losses to offset future gains; or they need to demonstrate clean tax compliance for future visa, loan, or repatriation purposes.
The ITR due date is typically July 31 (extendable to December 31 with late fees). Filing is done on the income tax portal (incometax.gov.in). NRIs typically use ITR-2 (no business income) or ITR-3 (with business income). Refunds are generally processed within 3–6 months of filing. Form 26AS (available on the portal) shows all TDS/TCS credits and is the starting point for ITR preparation.