File your Indian return
TaxBuddy can help prepare your Indian ITR with TDS reconciliation and DTAA computations. There is no UAE-side filing for personal income tax.
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Updated October 2026
Zero tax in the UAE, but not in India
The UAE has no personal income tax, no capital gains tax on personal investments and a 5% VAT on goods and services. Zero tax in the UAE does not mean zero tax everywhere. If you have income, assets or investments in India, you have Indian tax obligations.
What India taxes
An NRI is taxed in India only on income earned or accruing in India. TDS rates are before surcharge and cess (as of FY 2025-26):
| Income | Taxable in India? | TDS rate |
|---|---|---|
| Salary for services performed in India | Yes | Slab rates |
| Rent | Yes | 30% |
| NRO FD interest | Yes | 30% |
| NRE FD interest | No | Nil |
| Property capital gains | Yes | 12.5% long-term, slab rate short-term |
| Listed equity capital gains | Yes | 12.5% long-term, 20% short-term |
| Dividends | Yes | 20% |
Your UAE salary is not taxable in India while you remain an NRI. The usual test is fewer than 182 days in India in the financial year, but the exceptions matter if your Indian income is above ₹15 lakh. The NRI day tracker applies them.
The deemed-resident rule
An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country is treated as resident in India, however few days they spend here. The UAE taxes no personal income, so this can apply to UAE-based NRIs. A deemed resident is treated as not ordinarily resident, so foreign income stays outside Indian tax, but the person is no longer an NRI for that year. A UAE tax residency certificate does not automatically settle the point, so take advice if your Indian income is near or above ₹15 lakh.
Using the India-UAE treaty
The India-UAE double taxation agreement is simpler than the UK or US treaties, because the UAE taxes no personal income. Its main uses for NRIs:
- Lower withholding on interest. The treaty caps tax on interest at 12.5% in most cases, and at 5% on bank loans, instead of the 30% TDS rate. To claim it, give your bank a UAE tax residency certificate and Form 10F.
- Evidence of residence. If the tax office questions whether you are a non-resident, a UAE certificate is strong support. This matters if you travel often between India and the UAE.
- Capital gains. India keeps the right to tax gains on Indian assets, so the treaty gives little relief there.
Getting a UAE tax residency certificate
The certificate is issued by the UAE Federal Tax Authority, and you apply through its portal. An individual generally qualifies with 183 days in the UAE in a 12-month period, or with 90 days if you hold a UAE residence visa and have a home or job there. Typical documents are a residence visa, a tenancy contract or title deed, a UAE bank statement and a passport copy.
The fee is AED 1,000 for the certificate plus a small submission charge, and issue takes about ten working days (as of 2026). The certificate is valid for a year, so renew it annually. Give it to your Indian bank to reduce TDS on FD interest, and attach it with Form 10F to treaty claims on your Indian return. A long stay in India can leave you short of the UAE day count.
Filing your Indian return
Use the income tax portal, which is fully online, or a platform that supports NRIs. The due date is 31 July of the assessment year, the same as for residents. Keep your Form 26AS and TDS certificates, as excess TDS on rent, interest or a property sale is refunded only through the return.
Accounts and investments from the UAE
- NRE account: for sending dirham earnings to India, with tax-free interest and full repatriability.
- NRO account: for Indian income such as rent, dividends and sale proceeds.
- FCNR deposit: held in USD or another foreign currency, with no rupee risk.
- Direct equity: needs a portfolio investment scheme (PIS) account to trade on Indian exchanges.
- Property: NRIs can buy residential and commercial property, and rent goes to the NRO account.
The AED-INR corridor is one of the busiest in the world, so compare rates before each transfer with the remittance comparison . The NRI banking guide explains the accounts, and the DTAA estimator compares the UAE with other countries.
Common mistakes
- Keeping resident accounts instead of converting them to NRO, which FEMA requires.
- Ignoring TDS of 30% on NRO interest and not claiming a refund when your real tax is lower.
- Not getting a tax residency certificate, which blocks treaty benefits.
- Assuming “tax-free” means no Indian filing when Indian income is above the threshold.
- Missing the deemed-resident rule once Indian income passes ₹15 lakh.
Key deadlines
| What | When |
|---|---|
| Indian ITR | 31 July of the assessment year |
| Advance tax, if applicable | 15 June, 15 September, 15 December, 15 March |
| UAE tax residency certificate renewal | Yearly from the date of issue |
| NRI status check | End of each Indian financial year (31 March) |
NRIWallah does not provide tax advice. This guide is general information, so consult a qualified tax adviser about your situation. Rules change, so check the current position with the Indian Income Tax Department and the UAE Federal Tax Authority.
