NRI Taxation India —
Filing, Planning & Compliance
Complete NRI tax services for Indians living abroad — ITR filing, DTAA relief, residential status determination, NRO/NRE accounts, property sale, Schedule FA (foreign assets), FEMA compliance and Budget 2026 NRI changes. CA-assisted. 100% online.
Residential Status — NRI, RNOR or Resident?
Your residential status determines what income is taxable in India. It is determined by days of physical presence in India — not citizenship, passport or employment type.
Non-Resident Indian
Taxed only on Indian income. Foreign salary, NRE interest and foreign assets are exempt from Indian tax.
- Stay in India < 182 days in FY, AND
- Does not meet 60-day + 365-day rule
Resident but Not Ordinarily Resident
Taxed only on Indian income and foreign income derived from India. Transitional status for returning NRIs. No Schedule FA required.
- NRI in 9 of last 10 years, OR
- Total stay ≤ 729 days in last 7 years
Ordinarily Resident
Taxed on global income. Foreign income + Indian income both taxable. Schedule FA (foreign assets) disclosure is mandatory.
- Stay ≥ 182 days in FY, OR
- Stay ≥ 60 days in FY AND ≥ 365 days in last 4 years
| Type of Income | NRI | RNOR | ROR (Resident) |
|---|---|---|---|
| Salary / income earned in India | Taxable | Taxable | Taxable |
| Foreign salary / income earned abroad | Exempt | Exempt | Taxable |
| NRE / FCNR account interest | Exempt | Exempt | ⚠ Taxable* |
| NRO account interest | Taxable (30%) | Taxable | Taxable |
| Foreign bank interest / investments | Exempt | Exempt | Taxable |
| Schedule FA (foreign asset disclosure) | Not Required | Not Required | Mandatory |
*NRE interest becomes taxable when the holder becomes a Resident (ROR). Convert NRE account to Resident account promptly.
NRI Income Tax Return (ITR) Filing Services
CA-assisted NRI ITR filing with DTAA claim, TDS refund, Schedule FA and full compliance. Filed on incometax.gov.in. 100% online — no India visit required.
NRI Salaried / Income ITR-2
NRO interest, Indian salary, rental income, capital gains from Indian assets. DTAA claim for TDS reduction. 87A rebate not available — tax computed from slab rates.
NRI Property Sale – Capital Gains
Sale of Indian property: LTCG at 12.5% (budget 2024, without indexation) or 20% with indexation. 54/54EC exemption planning. TDS certificate for lower deduction application.
Schedule FA – Foreign Asset Disclosure
Mandatory for ROR taxpayers: disclose all foreign bank accounts, ESOPs, RSUs, mutual funds, immovable property abroad. Failure attracts ₹10 lakh penalty under Black Money Act.
RNOR – Returning NRI ITR
Returning NRIs enjoy 2–3 years of RNOR status after return. Foreign income remains exempt. Plan the optimal year to convert accounts, declare assets and switch regimes.
NRI TDS Refund Filing
Bank deducts TDS at 30% on NRO interest. DTAA can reduce effective rate to 10–15%. File ITR to claim the excess TDS as refund. Refunds typically in 30–90 days.
NRI Tax Notice Handling
Notices under Sec 143(1), 143(2) scrutiny, 148A reassessment related to NRO income, undisclosed foreign assets or FEMA violations. CA representation. FAST-DS 2026 available for small inadvertent omissions.
How NRI ITR Filing Works — 4 Steps
WhatsApp Your Documents
Send PAN, Aadhaar (or passport), NRO/NRE bank statements, Form 26AS, residential status details, and any Indian income statements. Our CA confirms what is needed.
CA Reviews & Applies DTAA
We determine your residential status, apply the correct DTAA treaty, compute Indian tax liability, and identify all TDS refund claims. You receive a full computation sheet.
You Review & Approve
Review the tax computation and ITR draft. Ask questions via WhatsApp. Pay the filing fee only after approval.
Filed & Verified
We file on incometax.gov.in. You receive ITR-V acknowledgement instantly. E-verify via Aadhaar OTP, net banking, or send signed ITR-V to CPC Bengaluru within 30 days.
DTAA — Double Taxation Avoidance Agreements
India has DTAA with 90+ countries. DTAA ensures the same income is not taxed twice. NRIs can claim treaty relief to significantly reduce Indian tax on NRO interest, capital gains and other income.
Key DTAA Benefit: NRO Interest TDS
| Country | Without DTAA | With DTAA |
|---|---|---|
| 🇺🇸 USA | 30% | 15% |
| 🇬🇧 UK | 30% | 15% |
| 🇨🇦 Canada | 30% | 15% |
| 🇦🇺 Australia | 30% | 15% |
| 🇦🇪 UAE | 30% | 12.5% |
| 🇸🇬 Singapore | 30% | 15% |
| 🇩🇪 Germany | 30% | 10% |
DTAA rate applies to gross NRO interest. TDS deducted at 30% by bank — file ITR to claim refund of the difference.
How to Claim DTAA Relief
Obtain TRC from your country of residence tax authority. This is mandatory to claim DTAA benefits in India.
File Form 10F with your Indian bank. Bank will then deduct TDS at the lower DTAA rate going forward.
Even if bank has already deducted TDS at 30%, file an ITR to claim DTAA relief and get refund of excess TDS. Schedule 90A in ITR-2.
UAE / Bahrain / Qatar NRIs: These countries have zero income tax. DTAA still applies to reduce Indian TDS. However, the Deemed Resident rule (Sec 6(1A)) taxes Indian citizens in zero-tax countries if Indian income exceeds ₹15 lakh and they are not liable to tax anywhere else.
NRO, NRE & FCNR Accounts — Tax Treatment
Choosing the right account type and understanding taxability is crucial for NRI financial planning.
NRO Account
NRE Account
FCNR Account
On returning to India and becoming a Resident (ROR): You must convert your NRE and FCNR accounts to Resident accounts (or RFC accounts) within a reasonable time. If not converted, the continued NRE interest exemption does not apply and interest becomes taxable from the date of becoming ROR.
NRI Property Sale & Capital Gains Tax
Selling property in India as an NRI involves TDS by the buyer, capital gains computation, DTAA claim and potentially Sec 54/54EC exemption. Planning in advance saves significant tax.
TDS Rates on Property Purchased from NRI
NRI can apply for Lower TDS Certificate (Form 13) from Income Tax Dept before sale to reduce buyer's TDS obligation to actual tax liability.
Capital Gains Exemptions for NRIs
LTCG from sale of one residential house exempt if invested in another Indian residential house. Must buy 1 yr before or 2 yrs after sale; or construct within 3 yrs.
Invest LTCG in specified bonds (NHAI/REC) within 6 months of sale. Max ₹50 lakh. Lock-in 5 years. Exempts capital gains up to investment amount.
LTCG from sale of any capital asset (not residential house) exempt if entire net sale consideration invested in a new residential house. NRI eligible.
Worked Example — NRI Property Sale
Apply for Lower TDS Certificate (Form 13) before the sale to instruct the buyer to deduct TDS at 12.5% instead of 20%, reducing upfront TDS burden.
FEMA Compliance & Foreign Asset Disclosure
Foreign Exchange Management Act (FEMA) governs NRI investments in India and remittances abroad. Non-compliance attracts penalties up to 3× the amount involved.
NRI Investments Allowed in India
- Residential & commercial property (not agricultural)
- Listed equity via NRE/NRO demat (Portfolio Investment Scheme)
- Mutual funds (equity & debt)
- Government securities, bonds
- FD, NRE, NRO, FCNR deposits
- PPF (existing accounts can continue, new not allowed)
NRI Restrictions Under FEMA
- Cannot hold resident savings account (must convert to NRO)
- Cannot purchase agricultural land, plantation or farmhouse
- Cannot open new PPF account
- Cannot invest in NSC (new) or Post Office Savings Account
- NRI joint demat in secondary position only (not primary)
Schedule FA — Foreign Asset Disclosure (ROR Only)
Mandatory in ITR-2 for all Resident (ROR) taxpayers. Disclose:
- Foreign bank accounts
- ESOPs / RSUs from foreign employer
- Foreign mutual funds, stocks
- Immovable property abroad
- Foreign trusts, beneficial interest
Non-disclosure penalty: ₹10 lakh under Black Money Act.
FAST-DS 2026 — Voluntary Disclosure (New)
Budget 2026One-time voluntary disclosure for NRIs and returning residents who inadvertently missed disclosing foreign assets — dormant foreign bank accounts, old ESOPs, foreign mutual funds.
- Part A: Assets below ₹1 crore — limited immunity
- ₹20L threshold — prosecution relief for small assets
Budget 2026 — NRI-Specific Changes
Union Budget 2026-27 (presented 1 Feb 2026) introduced several NRI-friendly measures. Tax slabs remain unchanged.
TCS on LRS Cut to 2%
TCS on LRS education / medical remittances reduced from 5% → 2%. Overseas tour package TCS: 5%/20% → flat 2%. Effective 1 Oct 2026. Big relief for students and travellers.
5-Year Global Income Exemption for Foreign Experts
Non-resident experts working in India under notified schemes exempt from Indian tax on global (non-India) income for up to 5 years. Aimed at attracting top international talent.
FAST-DS 2026 — Foreign Asset Disclosure
One-time voluntary disclosure window for NRIs with inadvertently undisclosed small foreign assets (below ₹1 crore). Limited immunity from Black Money Act prosecution. Date to be notified.
No TAN for Property Buyers (from Oct 2026)
Indian buyers purchasing property from NRI sellers no longer need to obtain a TAN. TDS deducted using buyer's PAN only. Effective 1 October 2026. Simplifies process significantly.
Black Money Act — ₹20L Small Asset Threshold
Prosecution under Black Money Act will not be initiated for non-disclosure of non-immovable foreign assets if total value does not exceed ₹20 lakh. Relief for NRIs with small dormant accounts.
NRI Tax Slabs — Unchanged
Budget 2026 made no changes to NRI tax slabs. NRIs continue to pay slab rates from the first rupee of Indian income. Section 87A rebate (₹12L zero-tax) remains unavailable to NRIs.
NRI Tax — Frequently Asked Questions
NRI Tax Filing — CA-Assisted, 100% Online
From ₹1,499* (indicative minimum). DTAA, NRO interest, Schedule FA, property TDS refund — all handled. No India visit needed.
indiantaxplanning.in · CA-verified · Updated March 2026 · *Indicative minimum charges
