1. The Residency Tightrope
Your tax-free status depends entirely on the number of days you spend in India. The rules changed in 2020. Use the slider to see your status.
Status: Safe NRI
Your foreign income (UAE Salary) is 100% Tax-Free in India.
2. The "Deemed Resident" Trap
Section 6(1A) - Introduced Finance Act 2020
Since UAE has no personal income tax, you might be considered "not liable to tax" in any country. If you are an Indian Citizen and your Indian Income exceeds ₹15 Lakhs, you are "Deemed Resident" even if you spend 0 days in India.
The Criteria
- • Indian Citizen
- • Income from Indian Sources > ₹15 Lakhs
- • Not liable to tax in UAE (or any other country)
The Impact (RNOR)
You become RNOR (Resident but Not Ordinarily Resident).
Good News: UAE Salary remains tax-free in India.
Bad News: You lose pure NRI status, and global income *derived from a business in India* becomes taxable.
3. Income Stream Analyzer
Click to compare tax treatment in UAE vs India.
UAE Salary
💰Employment Income
NRE FD Interest
🏦Repatriable Savings
Indian Rent/NRO
🏠India-Sourced Income
Click cards to expand details
4. The DTAA Advantage (TRC)
Banks in India deduct 30% TDS on NRO interest/gains. The India-UAE Double Taxation Avoidance Agreement (DTAA) can lower this to 12.5%.
How to obtain a UAE TRC
- 1 Apply via Federal Tax Authority (FTA) portal in UAE.
- 2 Documents: Passport copy, Visa copy, Emirates ID, Tenancy Contract (Ejari), Bank Statement (6 months), Salary Certificate.
- 3 Fee: Approx AED 1,000 + Application fees.
- 4 Submit the TRC + Form 10F to your Indian Bank to lower TDS.
Impact on ₹10 Lakhs NRO Interest Income
5. Planning to Return to India?
When you finally move back to India, you don't become a full taxpayer immediately. You get a "Soft Landing" status called RNOR (Resident but Not Ordinarily Resident).
Duration
Usually valid for 2-3 years after returning.
Benefit
UAE assets/income remain TAX-FREE in India during this window.
Action
Convert NRE accounts to Resident Foreign Currency (RFC) accounts to keep dollar status.