Can a US citizen with a valid OCI card pay taxes in India

One important point is that the rules changed with the new Income Tax Act framework for tax years beginning on or after April 1, 2026, so I'd be careful with older forum answers.

The Income Tax Department's current guidance says residential status is determined separately for each tax year. For individuals, the rules consider factors such as days spent in India, with specific provisions for Indian citizens and persons of Indian origin visiting India.

For someone who is a US citizen and OCI holder, I would therefore keep track of every India entry and exit date.

Also, don't assume that paying Indian tax means you are no longer a US tax resident. US citizens generally have separate US tax filing obligations, so cross-border income can involve both countries.

For anything involving rental property, investments, foreign tax credits or the India-US tax treaty, I'd verify the current rules with a qualified tax professional.

I had a similar situation with rental income from India while living in the US.

My understanding was initially that because I was an OCI holder and not an Indian citizen anymore, I didn't have to deal with Indian taxes unless I became a resident. That turned out to be too broad.

Indian tax rules can tax income that is received or arises in India even when the individual is a non-resident. The residential status mainly determines the scope of income taxable in India. The Income Tax Department specifically says residential status is assessed separately for each tax year.

I ended up keeping records of my days in India, Indian bank interest, property income and other Indian-source income.

I would not use OCI status alone to decide whether you need to file. Look at your actual income and residential status for the relevant tax year.

Yes, a US citizen who holds an OCI card can have an Indian income-tax liability.

From what I understand, OCI status and Indian tax residency are separate issues. The Income Tax Department determines residential status based largely on your stay in India and the applicable tax rules for that year.

So if you live in the US and only visit India occasionally, you may remain a non-resident for Indian tax purposes. That doesn't mean Indian-source income is automatically tax-free, though.

For example, rental income from property in India and certain Indian bank interest can be taxable in India even when the person is living abroad.

I have an OCI myself and found it much easier to think about it as two separate questions: What is my residential status for Indian tax purposes? and What income do I have from India?

The fact that you're a US citizen doesn't by itself prevent you from filing an Indian tax return or paying Indian tax.