23 May 2026

DTAA India-UK: How NRIs Avoid Double Taxation 2026

India-UK DTAA: Overview

The Double Taxation Avoidance Agreement between India and the United Kingdom was signed in 1993 and comprehensively covers income from employment, business, dividends, interest, royalties, capital gains, and pensions. For UK-based NRIs with financial ties to India — property, NRE/NRO accounts, rental income, or investments — this treaty is essential to understand.

Key Benefits for UK NRIs

  • UK salary: Not taxable in India if you qualify as NRI (under 182 days in India)
  • Rental income from Indian property: Taxable in India; UK tax credit available to avoid double taxation
  • Capital gains on Indian property sale: Taxable in India; UK provides foreign tax credit
  • Interest from NRO accounts: TDS deducted in India at 30% (reducible with TRC + Form 10F)
  • Pension income: Generally taxable only in the country of residence under the treaty

NRI Status for UK Residents

UK-based Indians are typically NRIs if they spend fewer than 182 days in India per financial year. However, the 2020 amendment introduced a deemed residency rule for Indian citizens earning over ₹15 lakhs from Indian sources who spend 120+ days in India. UK NRIs should monitor their India visits carefully.

How to Claim India-UK DTAA Relief

  1. Obtain a Certificate of Residence from HMRC (UK tax authority)
  2. Submit this as your Tax Residency Certificate (TRC) to Indian income payers
  3. File Form 10F with your PAN details
  4. File ITR-2 in India and claim DTAA relief under Section 90

Property Sale by UK NRIs — TDS & DTAA

When a UK NRI sells property in Kerala, the buyer must deduct TDS at 20% (long-term capital gains) or 30% (short-term). The NRI can apply for a lower TDS certificate from the Income Tax Officer. After filing ITR, excess TDS can be claimed as a refund. The UK then provides a foreign tax credit for Indian tax paid, avoiding double taxation.

NRI Home Loans for UK-Based NRIs

UK-based NRIs are eligible for NRI home loans in Kerala. Lenders consider GBP income for eligibility. Blueberry FM facilitates multi-lender NRI home loans up to ₹10 Crores for UK NRIs buying property in Kerala.

NRI Home Loan Kerala | NRI Tax Planning Kerala | Settle in Kerala from UK