When it comes to paying tax, different rules are applicable for an Indian and an NRI. If you are an NRI, then you might be aware of it. After you become a non-resident Indian, for your every income you earn in India, you will be charged with tax which will be deducted at source. Moreover, the TDS rates for Indians and NRIs are different from each other.

However, tax will be charged only over the incomes which are liable to tax in India. There will be no TDS on the incomes which are tax free in the country, such as: long term capital gains from equity shares. Always remember that you have to be an NRI while receiving your income in this country.

For example: while you were an Indian resident, you may have gone for purchasing a long term debenture of any company, but the interest that you get after becoming a non-resident Indian, it will be subject to tax deduction.

There are two types of accounts which are free from TDS, such as: Non Resident External accounts and Foreign Currency Non Resident accounts. But, the interest rate earned on Non Resident Ordinary Account is subject to 30 percent TDS. No basic exemption limit is available here. For instance: the interest received by Indian residents from bank comes under TDS over the limit of 10000 rupees. But these types of restrictions are not applicable for NRIs.