Foreigners can get tax refunds in India for both personal income tax (if tax was over-deducted) and on Goods and Services Tax (GST) for specific items purchased as tourists. Tourists can claim GST refunds on goods taken out of the country via airport counters, while non-resident earners can file an Income Tax Return (ITR) to claim refunds.
Foreign nationals visiting India on tourist visas can claim refunds of IGST paid on their purchases of goods in India. The eligibility criteria for such refunds of IGST are: The person claiming the refund must be an international tourist as per Section 15 of the IGST Act.
Eligibility Criteria for the Income Tax Refund
If the self-assessment tax is greater than the actual tax payable. If the Tax Deducted At Source from your salary, interest on securities, dividends etc., is more than the tax liability.
Non-resident Indians (NRIs) are taxed on income earned or collected in India. This could be from sources like property rent, share dividends, and investment and savings capital gains, if over a specified limit. Income earned outside India is not taxable in India.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.
Living and working in India means you may also have to pay Indian income tax, depending on your residency status and the source of your income. Residency matters: If you spend 182 days or more in India in a tax year, you're generally considered an Indian resident for tax purposes.
The "90-day rule" for non-residents typically refers to two different concepts: in U.S. immigration, it's a guideline for determining if a non-immigrant misrepresented their intent by engaging in certain activities (like unauthorized work or immediate marriage) within 90 days of arrival, leading to visa fraud or inadmissibility. In Canadian tax law, the 90% rule allows non-residents to claim full federal tax credits if 90% or more of their world income is from Canadian sources, otherwise, credits are prorated.
New rules for NRIs in India focus on stricter tax residency criteria from April 2026, increasing the stay threshold to 120 days for high-income NRIs (over ₹15 lakh Indian income) to become Resident but Not Ordinarily Resident (RNOR) and introducing "deemed residency" for high-income Indians in tax havens; also, higher TCS thresholds for LRS remittances (to ₹10L) and removal of TCS for education loans are recent changes from Budget 2025-26, alongside increased reporting of foreign assets.
Understanding TDS Refund on Salary
A TDS refund is applicable when the tax deducted at source (TDS) by your employer exceeds your actual tax liability for the financial year. For example, if your total tax payable is ₹20,000 but your employer deducts ₹25,000, you are eligible for a TDS refund of ₹5,000.
If you have already paid more taxes in the form of TDS or advance tax than required, you will receive a refund on duly filing ITR. You can check the refund status through NSDL portal by entering your PAN and assessment year. For income tax refund queries, you can contact 1800 103 0025, 1800 419 0025.
Expatriates working in India are subject to the country's taxation laws, which can be intricate due to varying factors such as residential status, income sources, and international agreements. Understanding these nuances is essential for expats to ensure compliance and optimise their tax liabilities.
Nonresident Alien Tax Withholding
If we determine that you meet the substantial presence test for a year in which SSA has withheld nonresident alien tax, you may request a refund. SSA can refund taxes erroneously withheld in the current tax year.
If you're not UK resident, you will not have to pay UK tax on your foreign income. If you are UK resident, you'll normally pay tax on your foreign income.
As a foreign resident, you must lodge a tax return in Australia. You must pay tax on all Australian-sourced income, except for income that has already been correctly taxed (such as interest, unfranked dividends and royalties).
2. A “resident and ordinarily resident” pays tax in India on his entire world income, wherever accrued or received. 3. A “non-resident” pays tax only on his taxable Indian income and his foreign income (earned and received outside India) is totally exempt from Indian taxes.
India has no specific retirement visa for US citizens but there are several visas that will allow you to stay for extended periods. The visa is valid for 10 years for US citizens, or you can use an e-tourist visa, which varies in validity.
Personal deductions