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Key takeaways
- Non-resident if in India less than 182 days in the year (employment abroad).
- Re-designate savings to NRO, open NRE, convert demat; update MFs, EPF, NPS, SGBs and insurance.
- Only Indian-source income is taxed in India; file a return to recover excess TDS.
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1. Your residential status
- An Indian citizen who leaves India for employment abroad is a non-resident for a financial year if in India for less than 182 days in that year. The year you leave is usually still a resident year if you spent 182 days or more in India before leaving.
- There is a deemed-residency rule for Indian citizens with high Indian income who are not taxed anywhere else. The CBDT has said it is not meant to catch citizens who are bona fide workers in other countries, such as in the UAE, where there is no personal income tax. Keep your UAE employment contract and Emirates ID.
- Count your days with the residential status calculator.
2. Bank accounts (FEMA)
- Tell each bank you are now non-resident. Resident savings accounts must be re-designated as NRO accounts; banks generally expect this promptly after you leave.
- Open an NRE account for money you earn abroad: balances and interest are repatriable and NRE interest is tax-free in India.
- Indian income such as rent, dividends and interest goes into the NRO account. You can send up to USD 1 million a financial year abroad from NRO balances, with Forms 145 and 146 (formerly 15CA and 15CB) where required.
3. Investments, one by one
| Holding | What to do |
|---|---|
| Shares and demat (for example Zerodha) | A resident demat cannot continue as is. Convert to an NRI demat and trading account linked to your NRE (repatriable, through PIS) or NRO (non-repatriable) bank account, and transfer the holdings. |
| Mutual funds and SIPs | Update your tax status to NRI with each fund house or registrar, update your bank mandate to an NRE/NRO account, and complete NRI KYC. UAE residents can generally continue investing. |
| Smallcase and other broker platforms | Follow the broker’s NRI process once your demat is converted; some products are not open to NRIs. |
| EPF | Your account can stay. Update your status and bank details; check the tax on interest and the rules before withdrawing. |
| NPS | NRIs can continue NPS. Update your status, address and bank account with your NPS provider. |
| Sovereign Gold Bonds | Bonds bought while resident can be held until early redemption or maturity. Interest (2.5% a year) is taxable in India. Check the capital gains position before selling. |
| ULIPs and life insurance | Update your residential status and address with the insurer; premiums can be paid from NRE or NRO accounts. Check the tax on maturity for high-premium policies. |
| Crypto (for example CoinDCX) | Check whether the exchange allows NRI accounts. Gains on crypto are taxed at 30% in India, and TDS applies on transfers. |
Nothing needs to be sold just because you moved. The aim is to re-paper each holding so it stays compliant and you can bring the money out later.
4. Indian tax from now on
- As a non-resident, only income earned or received in India is taxable in India: interest, rent, dividends, capital gains on Indian assets. Your UAE salary is not taxed in India.
- Banks, brokers and fund houses will deduct TDS at NRI rates, often higher than your actual tax. File an Indian return to claim refunds; see ITR for NRIs.
- The India–UAE tax treaty can lower tax on some income; you will need a UAE tax residency certificate.
- Your PAN stays valid; NRIs are not required to link PAN with Aadhaar, but update your status with the tax department so your PAN is not treated as inoperative.
The order to do it in
- Confirm your residential status for the year.
- Re-designate bank accounts and open NRE/NRO.
- Convert demat and trading accounts.
- Update mutual funds, EPF, NPS, insurance and SGB records.
- Check each platform you use for NRI eligibility.
- Plan your first NRI tax return.
Related: NRI tax services, a CA for Indians in Dubai and NRI taxation guide.
Sources
- Consulate General of India, Dubai: CBDT clarification on deemed tax residency (Feb 2020)
- RBI: Foreign Exchange Management (Deposit) Regulations, 2016 (NRE/NRO)
- IDFC FIRST Bank: impact of residential status on Indian investments
Frequently asked questions
What should I do with my Indian bank account after moving to Dubai?
Tell the bank you are now non-resident and have your resident savings account re-designated as an NRO account. Open an NRE account for money earned in the UAE; NRE balances are repatriable and the interest is tax-free in India.
Can I keep my Zerodha account after becoming an NRI?
Not as a resident account. You need to convert it to an NRI demat and trading account linked to an NRE account (repatriable, through PIS) or an NRO account (non-repatriable), and move your holdings across.
Can an NRI in the UAE continue mutual fund SIPs?
Generally yes. Update your tax status to NRI with each fund house, complete NRI KYC and change the bank mandate to an NRE or NRO account. Some fund houses restrict investors in certain countries, but the UAE is usually accepted.
Can I keep Sovereign Gold Bonds after becoming an NRI?
Yes. Bonds bought while you were resident can be held until early redemption or maturity. The 2.5% interest is taxable in India.
Is my UAE salary taxed in India?
No, not once you are a non-resident. Non-residents are taxed in India only on income earned or received in India, such as Indian interest, rent, dividends and capital gains.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.