Declaration of Indian Trading Income in the UK for Non-Resident Indian (NRI)
Living in the UK while investing in Indian stocks, running business or earning rental in India? You’re not alone, and yes, it can make your tax situation a bit complex—especially with India being one year ahead of the UK in terms of tax filing. But don’t worry—I’ve got you covered. Let’s break down everything you need to know about managing your finances across both countries, so you can stay compliant and make informed decisions.

📆 Timeline of Tax Obligations

Worldwide Income Reporting
- As a Non-Resident Indian (NRI) Residing in the UK:
- You must declare your worldwide income, including trading, business dividends, rental, bank accounts, stocks, on your UK Self Assessment tax return.
- Report this income under the foreign income section of the tax return.
- The Double Taxation Avoidance Agreement (DTAA) between the UK and India helps prevent double taxation.
- To claim relief under the DTAA in India, you need to provide a Certificate of Residence from the UK tax authorities (HM Revenue & Customs) to the Indian tax authorities.
- When to Apply to HMRC:
- Apply for the Certificate of Residence at least 4-6 weeks before filing your Indian Income Tax Return to account for processing time.
- You can request it through your HMRC online account or by sending a letter with your details and the reason for the request.
- Include your National Insurance Number, Unique Taxpayer Reference (UTR), and specify that it’s needed for DTAA relief.
- Supplying to Indian Tax Authorities:
- Submit the Certificate of Residence when filing your Indian Income Tax Return, typically before 31 July 2025.
- Attach it along with Form 10F and any other required documents.
- Relation to Self Assessment:
- Ensure you have the Certificate of Residence handy before completing your UK Self Assessment if you plan to claim foreign tax credits.
- Although the certificate is primarily for Indian tax purposes, having it ensures consistency in your records.
Worldwide Income Obligations:
- In the UK:
- As a UK resident, you must declare all global income, including earnings from India and other countries.
- This is done through the Self Assessment system, with the deadline on 31 January 2025 for the 2023-2024 tax year.
- In India:
- NRIs are taxed only on income earned or accrued in India.
- Income earned outside India is not taxable in India for NRIs.
- If deemed a resident due to the 183-day rule, you’ll need to declare your worldwide income in India.
Timeline:
- UK Tax Dates:
- Self Assessment Tax Return Deadline:
- 31 January 2025 for the tax year ending 5 April 2024.
- Payment Deadlines:
- First payment on account: 31 January 2025.
- Indian Tax Dates:
- Financial Year:
- 1 April 2024 to 31 March 2025.
- Income Tax Return Filing Deadline:
- 31 July 2025 for individuals (Assessment Year 2025-2026).
- Self Assessment Tax Return Deadline:
Claiming DTAA Relief in India
To avoid double taxation, you can claim relief under the DTAA in India.
Obtain a Certificate of Residence from HMRC
- Purpose: Proves UK tax residency to the Indian tax authorities.
- When to Apply: By May or June 2025, allowing 4-6 weeks for processing before filing your Indian tax return.
- How to Apply:
- Online: Through your HMRC online account.
- By Letter: Send a request to HMRC including:
- Full Name.
- National Insurance Number.
- Unique Taxpayer Reference (UTR).
- Purpose: State it’s for DTAA relief in India.
- The relevant article for your income is typically Article 23 (Other Income) of the UK-India Double Taxation Agreement.
Submitting to Indian Tax Authorities
- When: Before 31 July 2025, alongside your Indian Income Tax Return.
- Documents:
- Certificate of Residence from HMRC.
- Form 10F: Provides additional required information.
- Submission: Must be filed electronically on the Indian Income Tax portal.
Understanding the 183-Day Rule
Your residency status in India affects your tax obligations.
- Resident:
- If you stay in India for 183 days or more in a financial year (1 April 2024 – 31 March 2025).
- Tax Implication: Must declare worldwide income in India.
- Non-Resident Indian (NRI):
- Stay in India for less than 183 days.
- Tax Implication: Taxed only on income earned or accrued in India.
Tip: To maintain NRI status and avoid declaring worldwide income in India, limit your stay to less than 183 days per financial year.
Next Steps
- Apply for the Certificate of Residence from HMRC
- When: May or June 2025.
- How:
- Online: Via your HMRC account.
- By Mail: Include full name, NI number, UTR, and purpose.
- Prepare and File Your Indian Income Tax Return
- Deadline: 31 July 2025.
- Include:
- Certificate of Residence.
- Form 10F (filed electronically).
- Complete Your UK Self Assessment Tax Return
- Deadline: 31 January 2025.
- Actions:
- Report foreign income accurately.
- Claim foreign tax credits if applicable.
- Consult a Tax Professional
- Why:
- Navigate complex tax laws and DTAA provisions.
- Optimize tax liabilities.
- Ensure compliance in both jurisdictions.
- Why:
Tax Slabs in UK and India

Comparison of NRO and NRE PIS Trades and Tax Calculation

Conclusion
Balancing tax obligations between the UK and India requires careful planning and awareness of both countries’ tax systems. By understanding key dates, documentation requirements, and the implications of your residency status, you can effectively manage your tax responsibilities.