
Login


	Home About Firm About Us Team How We Do It Industries Firm Services Accounting and Bookkeeping Taxation Audit & Assurance Risk & Governance Transfer Pricing Concurrent Tax Compliances NBFC NBFC Registration Takeover Due Diligence Annual Compliance Appeal Against NBFC Registration Cancellation Microfinance Company Registration Asset Reconstruction Company Central KYC Registry in India Core Investment Company Financial Intelligence Unit in India Housing Finance Company Registration NBFC Account Aggregator Compliance NBFC Legal Support P2P Lending License in India Bookkeeping Peer Review Auditor Startup Setup a Liaison Office Setup Company Outside India Proprietorship Partnership One Person Company Corporate Financial Advisory Limit Liability Partnership Corporate Laws Consultants Private Limited Company Section 8 Company Trust Registration Indian Subsidiary Foreign Subsidiary Company Setup Registrations Startup India PAN Registration ICEGATE Registration Import Export Code Professional Tax Registration 12A and 80G Registration Darpan Registration Digital Signature Shop Act Registration Legal Entity Identifier Registration RERA Consultant For Buyers For Agents For Developers FCRA GST Registration Return Filing By Accountant Annual Return Filling (GSTR-9) E-Invoicing Software Lut Form Notice Registration for foreigners invoicing Revocation GSTR-10 Compliance FDI Filing with RBI FLA Return Filing Professional Tax Return Filing Partnership Compliance Proprietorship Compliance Local Resident Director Service in India MCA Company Compliance LLP Compliance OPC Compliance DIN eKYC Filing Name Change-Company Registered Office Change ADI-1 Filing DPT-3 Filing Dormant Status filing MOA Amendment AOA Amendment Authorized Capital Increase Share Transfer Dematerialisation of Shares Commencement of Business Non-Resident Indian Repatriation Of Assets Liberalized Remittance Scheme Gifts US Tax Implications and Reporting Requirement TDS and Tax Liability in India Inheritance Clubbing of Income Double Taxation Avoidance Agreements Estate Planning Careers Chartered Accountant CA Article Assistant Blog Contact Us

TDS and Tax Liability in India | ND Savla & Associates

TDS and Tax Liability in India

Understanding Tax Liability Based on Residential Status

The taxability of income in India is primarily determined by an individual’s Residential Status under the Income-tax Act, 1961, read with the applicable Double Tax Avoidance Agreement (DTAA), if any.

The scope of total income chargeable to tax in India varies depending on whether a person qualifies as Resident and Ordinarily Resident (ROR), Resident but Not Ordinarily Resident (RNOR), or Non-Resident (NR).

Note: A person qualifying as a Deemed Resident of India is treated as RNOR, and their scope of income is determined accordingly.

Scope of Taxable Income Based on Residential Status

Sr. No	Particulars	ROR	RNOR	NR
1	Income earned from any source in India Interest from investments, capital gains/dividend, income from immovable property in India	Taxable	Taxable	Taxable
2	Any other income earned or received in India	Taxable	Taxable	Taxable
3	Income earned outside India from business controlled or profession set up in India	Taxable	Taxable	Not Taxable
4	Income earned outside India	Taxable	Not Taxable	Not Taxable

Key Points to be Kept in Mind

If the same income is taxed in India and also in another country, relief or credit can be claimed under the applicable DTAA.
DTAA provisions help avoid double taxation by granting exemption, concessional rates, or foreign tax credit.
Slab rates applicable to Non-Residents should be referred separately under the relevant FAQs.
Applicable withholding tax rates (TDS rates) for Non-Residents depend on the nature of income and DTAA provisions.

TDS Advisory

Correct determination of TDS rates for NRIs under domestic law and DTAA.

DTAA Evaluation

Comparison of Indian tax law vs treaty provisions to ensure optimal tax outcome.

Tax Compliance

Support with tax filings, refunds, and compliance for NRIs and RNORs.

Need Clarity on TDS or Tax Liability in India?

ND Savla & Associates assists NRIs and residents with residential status analysis, TDS planning, DTAA benefits, and end-to-end tax compliance.

Contact ND Savla