“Are you required to pay or file taxes in any other countries?” How NRIs should answer

You open an account with a broker, a crypto exchange, a new bank or a fintech app. Somewhere in the onboarding, a screen asks:

Are you required to pay or file taxes in any other countries? Tell us about any other tax residencies you may have. Do not consider tax treaty rules.

For most people it’s a two-second click. For NRIs, it’s where confusion starts. We have income in India, we may file an Indian tax return, we hear “DTAA” constantly, and some of us hold a foreign passport or OCI card. So which box is right?

This guide explains what the question actually means, why “ignore tax treaty rules” matters, how NRIs in different countries commonly get it wrong, and how to answer for the most common NRI destinations.

What this question is really asking

This screen is a tax residency self-certification. It exists because of two international reporting regimes:

• CRS (Common Reporting Standard). More than 100 countries, including India, the UK, the UAE, Canada, Australia and Singapore, automatically exchange information about financial accounts held by each other’s tax residents.
• FATCA. The US’s own regime. The US does not participate in CRS. Instead, foreign institutions report US persons to the IRS under FATCA.

When you list a country here, the platform may report your account (balances, interest, dividends, sale proceeds) to that country’s tax authority. That’s the whole purpose: your answer decides who receives data about your account.

So the question is not “Do you have income from another country?” and it is not “Do you have a tax bill there?” It is:

Under each country’s own domestic law, are you treated as a tax resident there?

Tax residency vs tax treaty rules: the key distinction

This is the part most NRIs miss.

Tax residency (domestic law)

Every country decides for itself who its tax residents are, usually using days of physical presence, a home, family ties, or (for the US) citizenship. These rules don’t coordinate with each other. It is perfectly possible to be a tax resident of two countries at the same time under their respective domestic laws.

Example: you live and work in London, but spent 190 days in India this year caring for a parent. Under UK law you may still be UK resident. Under Indian law, 182+ days in the tax year makes you Indian resident. You are a dual resident.

Tax treaty rules (DTAA)

A Double Taxation Avoidance Agreement (DTAA) between two countries steps in after you’ve become a dual resident. Its residency article (usually Article 4) contains a tie-breaker that decides which country you are treated as resident of for the purposes of that treaty. The tests run in order:

1. Where do you have a permanent home available?
2. If both or neither: where is your centre of vital interests (family, economic ties)?
3. If still unclear: where is your habitual abode (where you actually spend more time)?
4. Then nationality.
5. Failing all that, the two tax authorities decide by mutual agreement.

The treaty then allocates taxing rights and gives you relief from double tax (via exemption or credit). The DTAA estimator shows how income is shared.

Why the form says “ignore treaty rules”

The treaty tie-breaker does not cancel your residency under domestic law. It only affects how tax is shared between the two countries. A bank or broker isn’t in a position to apply a treaty tie-breaker for you, and CRS is built on domestic residency. So the form asks you to report every country whose domestic law treats you as resident, even if the treaty would ultimately favour one of them.

Rule of thumb:

How NRIs see themselves, and where it goes wrong

These are the most common ways NRIs reason through this screen, and what’s actually correct.

“I’m an NRI, so I’m only resident where I live.” Usually the right answer, but for the wrong reason. “NRI” is a status you must re-qualify for every Indian tax year, based on days in India and (for higher earners) Indian income. A long stay in India can quietly make you Indian resident for that year.

“I file an ITR in India, so I must tick India.” No. Filing a return because you have Indian rent, FD interest or capital gains doesn’t make you an Indian tax resident. Non-residents file Indian returns all the time. What matters is your residential status for the year, not whether you file.

“The DTAA makes me UK resident, so I’ll say No.” The form explicitly tells you not to apply the treaty. If you were Indian resident under Indian law for the year, you list India even if the treaty tie-breaker would point to the UK.

“I live in Dubai and pay no income tax anywhere, so I’m not a tax resident anywhere.” Two problems here. First, the UAE has had formal tax residency rules since 2023, and you are very likely a UAE tax resident even though there’s no personal income tax. Second, India’s deemed residency rule can apply to Indian citizens who aren’t liable to tax in any other country (see the India section below).

“I’m a British or American citizen of Indian origin, so India doesn’t concern me.” Correct for India if you’re non-resident there. But if you’re a US citizen or green card holder, the US always counts, wherever you live.

“I’ll just tick India too, to be safe.” Over-declaring isn’t “safe”. It sends your account data to a tax authority that has no claim on it, can trigger requests for an Indian TIN, and creates mismatches if you later file as a non-resident. Answer accurately, not defensively.

“Indian bank forms are the same question, reversed.” Exactly right. When your Indian bank or mutual fund asks for your FATCA/CRS declaration, you list your country of residence abroad (UK, US, UAE…) and its tax ID. Indian institutions report that data abroad, just as foreign ones report Indian residents to India.

Step 1: Are you an Indian tax resident this year?

India determines residency afresh for every tax year (1 April to 31 March). The Income-tax Act, 2025, in force from 1 April 2026, kept the same residency tests as the 1961 Act. The NRI day tracker counts your days against them.

You are Resident in India for the year if:

• you are in India for 182 days or more in the tax year, or
• you are in India for 60 days or more in the year and 365 days or more over the previous four years.

For Indian citizens and Persons of Indian Origin (including OCI holders) who live abroad and visit India, the 60-day leg is relaxed:

• If your Indian income (excluding foreign income) is ₹15 lakh or less, only the 182-day test applies.
• If your Indian income is above ₹15 lakh, the 60 days becomes 120 days (plus the 365-day four-year test). Residents under this route are treated as RNOR (Resident but Not Ordinarily Resident).

Deemed residency: an Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country by reason of residence or domicile is deemed resident (RNOR) in India, even with zero days in India. This is mainly relevant to NRIs in countries without personal income tax, such as the Gulf states. CBDT has clarified that for such deemed residents, income earned outside India isn’t taxed in India unless it comes from an Indian business or profession. But the residency itself is still relevant for forms like this one.

If you are Resident or RNOR under Indian law for the year, India is a tax residency to declare. Use your PAN as the TIN. The RNOR tracker shows where you stand.

Step 2: Country-by-country guide for key NRI destinations

The rules below are simplified summaries of each country’s domestic tests. They are a starting point, not a full analysis.

Step 3: Which box do I tick?

Work through these in order for the country whose form you’re filling in.

1. Are you a US citizen or green card holder? → Yes. List the US (unless the form is from a US institution, where you’re already a US person).
2. Were you Indian resident or RNOR this Indian tax year? This means 182+ days in India, the 120/365-day test with Indian income over ₹15 lakh, the 60/365-day test if you’re not a visiting citizen/PIO, or deemed residency. → Yes. List India with your PAN.
3. Did you meet any other country’s domestic residency test this year? This could be days, home, family ties, or a residence permit plus a home or job. → Yes. List that country.
4. None of the above? → No. Your only tax residency is the country you already declared.

Ignore at every step: where you have income, whether you file a return somewhere, which country the DTAA tie-breaker favours, and your FEMA/banking status. The 180-day rule explainer separates the tax and FEMA tests.

Quick answers

I’m a UK resident NRI with Indian rental income and I file an ITR every year. Do I tick Yes? No, provided you’re a non-resident under Indian law for the year. Filing an ITR doesn’t create residency.

I spent 5 months in India this year. Does that change anything? Possibly. Five months is roughly 150 days, which is under 182. But if your Indian income exceeds ₹15 lakh and you have 365+ days in India over the past four years, the 120-day test can make you RNOR, and you’d tick Yes for India.

The treaty says I’m UK resident. Why should I declare India? Because the form asks about domestic residency, and the treaty doesn’t remove it. The treaty matters when you file your returns and claim relief, not on this form.

I live in Dubai with no income tax. What do I declare? On a non-UAE form, list the UAE as a tax residency. Then check whether India’s deemed-residency rule catches you (Indian citizen, Indian income above ₹15 lakh, not liable to tax elsewhere). If it does, India may also need to be declared.

Do I need a TIN for India? Yes. Your PAN is your Indian TIN.

What if my situation changes later? Update the platform. Most require you to re-certify within a short period after a change in circumstances, such as moving countries or a long stay in India.

What happens if I get it wrong? Your data goes to the wrong tax authority (or misses the right one), mismatches can surface in India’s or your host country’s data matching, and knowingly false self-certifications can attract penalties under local CRS laws. If you’ve already answered incorrectly, correct it with the platform.

The bottom line

• This screen asks about tax residency under each country’s own law, not about income, filing, or citizenship (except for the US).
• DTAA rules decide how you’re taxed, not what you declare here.
• Your Indian status is re-tested every year, so a long visit can change it.
• Gulf NRIs: no income tax ≠ no tax residency, and watch India’s deemed-residency rule.

This article is general information, not tax advice. Residency rules have exceptions and depend on your facts. If you’re close to a threshold, are a dual resident, or have significant Indian income, get advice from a qualified adviser in each country.