NRI services in India - taxation and compliance simplified

NRIs are required to file an income tax return in India if their India-sourced income exceeds the basic exemption limit (₹2.5 lakh for individuals below 60, ₹3 lakh for senior citizens, ₹5 lakh for super senior citizens). Even if income is below the limit, filing is recommended to claim TDS refunds and carry forward losses.

For NRIs, only India-sourced income is taxable in India. This includes: income from a business or profession in India, salary earned in India, rental income from Indian property, capital gains from Indian assets (property, stocks, mutual funds), and interest from Indian bank deposits. Foreign income is not taxed in India for NRIs.

Resident: stays in India 182+ days in FY - taxed on global income. Non-Resident (NR): stays less than 182 days - taxed only on India-sourced income. RNOR (Resident but Not Ordinarily Resident): a special category where individuals are taxed like NRIs (only India-sourced income) despite meeting the 182-day stay threshold.

DTAA (Double Taxation Avoidance Agreement) is an agreement between India and 130+ countries to prevent the same income from being taxed in both India and the NRI's home country. Under DTAA, you can claim credit for taxes paid in India against your home country tax liability, or claim a reduced withholding tax rate in India depending on the DTAA provisions.

TDS (Tax Deducted at Source) is deducted at higher rates for NRIs compared to residents. For example, rental income has 30% TDS for NRIs (vs standard rates for residents). Interest on NRO accounts has 30% TDS. NRIs often have excess TDS deducted and can claim refunds by filing returns. We can also apply for lower TDS certificates to reduce the deduction rate.

Yes. NRIs can file their income tax return (ITR-2/ITR-3) and claim a refund of excess TDS deducted on their India-sourced income. The refund process takes 2-4 months from the date of e-verification. We handle the complete refund process, including responding to any IT department queries.

ITR-2 is the income tax return form for individuals with income from more than one source - salary, house property, capital gains, and other sources. NRIs who have salary + rental income + capital gains must file ITR-2. ITR-1 (Sahaj) is only for residents with simple income up to ₹50 lakh.

Transfer pricing rules apply when an NRI or foreign company has cross-border related-party transactions with an Indian entity - e.g., buying goods from the Indian subsidiary, paying royalties, or providing services. The prices must be at arm's length (fair market value). Mandatory documentation (Form 3CEB) must be maintained and filed.

Yes, capital gains from the sale of Indian property are fully taxable in India regardless of your residential status. Short-term capital gains (property held less than 2 years) are taxed at your applicable slab rate. Long-term capital gains (held 2+ years) are taxed at 20% with indexation benefits or 10% without indexation (for properties acquired after 31 July 2004).

The standard TDS rate on NRI rental income is 30% (plus applicable surcharge and cess). However, NRIs can apply for a lower TDS certificate under Section 197 from the Income Tax Department if the actual tax liability is lower. We assist with applying for these certificates to reduce the cash outflow.

From FY 2020-21, individuals with total income exceeding ₹15 lakh who stay in India between 120 and 365 days are classified as Resident but Not Ordinarily Resident (RNOR). RNORs are taxed only on India-sourced income (like NRIs) with some exceptions. This rule specifically targets wealthy NRIs who spend significant time in India.

Yes, NRIs can invest in Indian mutual funds and stocks through the Portfolio Investment Scheme (PIS) of RBI. Gains from these investments are taxable in India - equity gains are taxed at 15% (short-term) or 10% (long-term above ₹1L). DTAA benefits may apply to reduce withholding tax on dividends and interest.

A TRC is a certificate issued by the tax authority of your home country confirming that you are a tax resident of that country. It is required to claim DTAA benefits in India. Without a valid TRC, you cannot claim reduced tax rates under DTAA provisions. We help you obtain the TRC and file Form 10F.

If you have no India-sourced income and no TDS deductions, you are not legally required to file an NRI return. However, we recommend filing a nil return to maintain a clean tax record, establish your non-resident status, and avoid future scrutiny. A nil NRI return is simple and quick to file.

RNOR (Resident but Not Ordinarily Resident) is a hybrid status. While RNORs are classified as Residents in India, they are taxed like NRIs - only on India-sourced income and not on foreign income. The key difference from NRI is that RNORs have some specific exceptions (e.g., certain investment income may be taxed differently). You qualify as RNOR if you have been a non-resident in 9 out of 10 previous years.