NRI Taxation Services in India

EzyBiz India Consulting LLP provides comprehensive NRI Taxation Services in India for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), returning Indians and overseas individuals having income, property, investments, bank accounts or other financial interests in India.

Our Chartered Accountants assist NRIs with residential-status analysis, Indian income-tax returns, DTAA benefits, property transactions, capital gains, lower or nil TDS certificates, NRE/NRO taxation, shares and mutual funds, foreign remittances, repatriation, FEMA matters, income-tax notices and related compliance.

NRI taxation is rarely limited to filing an income-tax return. A property sale may involve capital gains, TDS, a lower deduction certificate and repatriation. Bank interest can involve NRE/NRO classification and DTAA. Returning to India can change the tax treatment of foreign income and assets. Our approach therefore combines Indian income-tax advice with FEMA, RBI, banking and cross-border considerations.

NRIs residing outside India can obtain our services remotely through email, video meetings and secure electronic document sharing without requiring a visit to India.

NRI Taxation Services in India – What We Cover

NRI Tax Advisory Beyond Income-Tax Return Filing

Our NRI tax advisory services are designed for individuals whose Indian financial affairs involve more than routine return filing. We review the complete transaction or income profile before determining the tax, TDS, DTAA, reporting and FEMA implications.

Looking only for return preparation and filing? Visit our dedicated NRI Income Tax Return Filing Services in India.

Who We Serve

Our services are available to NRIs, OCI cardholders, returning Indians, overseas professionals, global entrepreneurs, NRI property owners, investors, beneficiaries of Indian inheritances and individuals maintaining financial or family connections with India.

We also assist foreign nationals and global families where Indian-source income, Indian property, investments or cross-border transactions create Indian tax obligations.

Key NRI Tax Services at a Glance

Area	Our Assistance
Residential Status	NRI, Resident, RNOR and deemed-resident analysis
NRI Income-Tax Return	Income computation, AIS/Form 26AS review, TDS reconciliation and filing
DTAA	Treaty interpretation, TRC, Form 41 and withholding-tax review
Property Sale	Capital gains, TDS, lower deduction certificate and repatriation
Investments	Shares, mutual funds, dividends, interest and capital gains
NRE/NRO/FCNR	Tax treatment, account-related tax issues and FEMA coordination
Foreign Remittance	Taxability, Form 145/Form 146 and bank documentation
Returning NRIs	RNOR planning, foreign income, foreign assets and return-to-India planning
Tax Notices	Notice replies, assessment, reassessment and appellate support

Who Is an NRI for Indian Income-Tax Purposes?

Basic Residential Status Test

Residential status for Indian income-tax purposes is determined separately for each tax year. Citizenship, passport status or the fact that a person lives overseas does not by itself determine whether the person is non-resident for Indian tax purposes.

Under section 6 of the Income-tax Act, 2025, the basic residence conditions continue to consider the individual’s period of physical presence in India during the relevant tax year together with the prescribed look-back conditions.

The Income Tax Department confirms that the fundamental individual-residency tests have not changed under the Income-tax Act, 2025. NRIs should therefore maintain reliable travel records and calculate their Indian stay before determining their tax status.

See the official Income Tax Department guidance for Non-Residents.

Special Rules for Indian Citizens and Persons of Indian Origin

Special residential-status rules can apply to Indian citizens leaving India for employment and to Indian citizens or Persons of Indian Origin visiting India.

For specified visiting Indian citizens and PIOs having prescribed levels of Indian income, a 120-day threshold can become relevant instead of the ordinary 60-day limb, subject to the statutory conditions.

Residential status should therefore be calculated from the actual travel history and income profile rather than applying a simple 182-day rule in every case.

Deemed Resident and RNOR Status

The law also contains a deemed-residency rule for certain Indian citizens who have prescribed Indian income and are not liable to tax in another country by reason of domicile, residence or similar criteria.

Resident but Not Ordinarily Resident (RNOR) status is particularly important for returning Indians because it can affect the Indian taxation of certain foreign income and overseas interests.

Each year’s status should be determined independently.

Income-tax Act, 2025 – Important Changes for NRIs From April 2026

Which Income Tax Act Applies?

The Income-tax Act, 2025 applies to tax years beginning on or after 1 April 2026. Tax years beginning before that date continue to be governed by the Income-tax Act, 1961 under the applicable transition and saving provisions.

Accordingly, NRIs may continue to encounter both old and new section numbers and forms depending upon the tax year and transaction involved.

Form 41 for DTAA Claims – Earlier Form 10F

Under the current framework, Form 41 is used by a non-resident for furnishing the prescribed information required for claiming treaty relief under section 159 of the Income-tax Act, 2025.

A Tax Residency Certificate and other prescribed information may be required depending upon the treaty claim.

Refer to the official Form 41 User Manual.

Form 128, Form 145 and Form 146

The new statutory framework has also introduced updated form numbers for important NRI transactions.

• Form 128 – application for a lower or nil deduction certificate under section 395(1), corresponding broadly to the earlier Form 13 process.
• Form 145 – information relating to applicable payments to non-residents, replacing Form 15CA for remittances governed by the new framework.
• Form 146 – Chartered Accountant certificate for applicable remittances, replacing Form 15CB under the new framework.

For detailed remittance assistance, see our Form 145 and Form 146 Filing Services in India.

Income-Tax Residence vs FEMA Residence for NRIs

Income-Tax and FEMA Use Different Tests

An individual can encounter different concepts of residence under income-tax law and the Foreign Exchange Management Act (FEMA).

Income-tax residence principally determines the scope of taxable income. FEMA residence influences matters such as bank accounts, investments, property transactions, borrowing, remittances and other foreign-exchange transactions.

The two should not be treated as interchangeable.

Why the Difference Matters in Practice

A person leaving India may need to reconsider existing resident bank accounts, investment structures and FEMA classifications even though the income-tax residential-status analysis is conducted separately.

This distinction is particularly relevant for NRE/NRO accounts, property ownership, investments and remittances.

For FEMA assistance, see our FEMA & RBI Advisory Services in India.

What Income Is Taxable in India for an NRI?

Indian-Source Income

A non-resident’s Indian tax liability generally depends upon the scope-of-income provisions applicable to income received, accruing, arising or deemed to accrue or arise in India.

Common forms of Indian income earned by NRIs include:

• salary relating to services performed in India;
• rental income from Indian property;
• interest from Indian deposits and NRO accounts;
• dividends from Indian investments;
• capital gains from property, shares and securities;
• business or professional income connected with India;
• pension or other Indian-source income; and
• income arising from specified Indian investments.

Foreign Income and Global Income

A person who remains non-resident in India is not automatically taxed in India on every item of income earned outside India. The correct treatment depends upon the source, receipt, statutory provisions and applicable DTAA.

The position can change substantially when an individual becomes RNOR or Resident and Ordinarily Resident after returning to India.

NRI Income Tax Return Filing Services

When an NRI May Need to File an Income-Tax Return

An NRI may need to file an Indian income-tax return where taxable Indian income, capital gains or other statutory conditions make filing applicable.

Return filing can also be important where the NRI wishes to claim a refund of excess TDS, carry forward eligible losses, correctly report property or investment transactions or claim treaty relief.

Our dedicated return-filing service is available at NRI Income Tax Return Filing Services in India.

AIS, Form 26AS and TDS Reconciliation

Before filing, we generally compare the information supplied by the NRI with AIS, Form 26AS and available TDS records.

This can identify discrepancies relating to property transactions, bank interest, securities, TDS, high-value transactions or other information reported to the Income Tax Department.

Correct ITR and Disclosure Review

The appropriate income-tax return depends upon the NRI’s income profile and the law applicable to the relevant tax year.

We review capital gains, house property, investments, foreign tax relief, business/professional income where applicable and relevant disclosure requirements before selecting and preparing the return.

For general filing support, see our Income Tax Return Filing Services in India.

DTAA Benefits for NRIs

Using the More Beneficial Treaty Position

India has entered into Double Taxation Avoidance Agreements with numerous countries. A DTAA can allocate taxing rights between India and the NRI’s country of residence and may provide exemption, restricted source-country taxation or foreign tax credit depending upon the particular treaty article.

Different treaty articles apply to income such as interest, dividend, immovable property, capital gains, salary, pension, royalty, technical services and business profits.

NRIs should therefore examine the treaty income-by-income rather than assume that a DTAA automatically makes Indian income tax-free.

India’s treaties can be reviewed through the official Income Tax Department DTAA portal.

Tax Residency Certificate and Form 41

A non-resident claiming treaty relief should review the prescribed documentation, including the Tax Residency Certificate issued by the country of residence and Form 41 under the current framework.

Documentation should ideally be arranged before a payment is processed where a reduced treaty withholding rate is being requested.

Read our detailed guide on DTAA Benefits for NRIs.

Foreign Tax Credit and Double Taxation

Where income is taxed in both India and another country, relief may be available under the applicable treaty or domestic law.

The mechanism depends upon which country is the country of residence for tax purposes, the type of income, the treaty and taxes actually paid or withheld.

We can assist with the Indian tax analysis and coordinate with the client’s overseas tax adviser where the foreign-country tax position also requires review.

NRI Property Taxation in India

Sale of Property and Capital Gains

The sale of Indian immovable property is one of the most common high-value tax events for NRIs.

Important issues can include:

• determination of acquisition cost;
• period of holding;
• capital-gains computation;
• stamp-duty valuation;
• eligible reinvestment or exemption;
• TDS by the buyer;
• lower deduction certificate;
• income-tax return and refund claim; and
• repatriation of sale proceeds.

See our detailed guide on Sale of Property by NRI – Tax, TDS and Other Implications.

TDS When an NRI Sells Property

A buyer purchasing property from an NRI should determine the applicable withholding requirement under the provisions governing payments to non-residents.

The applicable tax deduction is not necessarily determined merely by applying the resident-property TDS mechanism. The purchaser should identify the seller’s residential status and obtain appropriate professional advice before making payment.

Rental Income and Property Ownership

NRIs owning Indian property may also have tax obligations in relation to rental income, deductions, TDS, income-tax return filing and remittance of rental income outside India.

Property transactions can additionally involve FEMA restrictions depending upon the nature of property and manner of acquisition or transfer.

Lower or Nil TDS Certificate for NRIs

When a Lower Deduction Certificate Can Help

Tax deducted from an NRI’s payment can sometimes be materially higher than the ultimate Indian tax liability.

This is particularly relevant in property sales where withholding is based on the payment framework while the final tax liability is determined after computing the actual taxable capital gain and eligible relief.

Where permitted, an NRI may apply for a certificate authorising deduction at a lower rate or nil rate.

Form 128 Under the Income-tax Act, 2025

For the current framework, an application for a lower or nil withholding certificate is made in Form 128 under section 395(1), subject to the prescribed conditions and supporting documentation.

The application may require transaction documents, computation of expected income and tax, past tax returns, PAN, residential-status information and other supporting evidence.

The Income Tax Department’s current guidance on lower or nil withholding certificates can be reviewed in its Income Tax Forms FAQs.

NRI Taxation of Shares, Mutual Funds and Securities

Taxation Depends on the Investment

There is no single tax rate or holding-period rule for every investment owned by an NRI.

The treatment can differ for listed equity shares, unlisted shares, equity-oriented mutual funds, specified mutual funds, debt-oriented investments, bonds and other securities.

Dividend, Interest and Capital Gains

NRI investment income can involve dividend tax, interest, short-term capital gains, long-term capital gains and TDS.

The final liability depends upon the nature of investment, period of holding, applicable statutory provision, Securities Transaction Tax conditions where relevant, and the DTAA position.

See our detailed guide on Taxation of Shares and Mutual Funds for NRIs in India.

Excess TDS and Refund Claims

Tax deducted by a company, mutual fund, bank, broker or other payer may exceed the NRI’s final Indian tax liability.

Where the final tax computation, treaty benefit or available losses result in a lower liability, the excess credit may be claimed in the income-tax return subject to the applicable provisions.

NRE, NRO and FCNR Accounts – Tax and FEMA Considerations

Tax Treatment of NRE, NRO and FCNR Accounts

The tax treatment of interest depends upon the type of account and satisfaction of the applicable statutory conditions.

Interest on a qualifying NRE account can be exempt in India where the prescribed conditions are met, whereas interest earned through an NRO account is generally taxable in India.

FCNR deposits also require review of the applicable exemption conditions and the account holder’s status.

Can DTAA Reduce Tax on NRO Interest?

Where NRO interest is taxable in India and the NRI is resident in a treaty country, the applicable DTAA should be reviewed to determine whether a restricted treaty rate is available.

A valid TRC, Form 41 and other prescribed documentation may be required for the treaty position.

FEMA and Redesignation of Bank Accounts

When a person becomes non-resident under FEMA, existing Indian banking arrangements may need review and redesignation in accordance with applicable banking regulations.

The RBI publishes guidance on the major accounts available to persons resident outside India, including NRE, NRO and FCNR(B) accounts.

See the RBI guidance on Accounts in India by Non-Residents and our detailed guide on NRI Bank Accounts in India.

NRI Foreign Remittance and Repatriation Services

Repatriating Income and Funds From India

NRIs may need to remit funds from India arising from rental income, property sale proceeds, investments, inheritance, gifts, deposits, NRO balances, dividends or other legitimate sources.

Before processing the remittance, the source of funds, tax paid or payable, FEMA eligibility and authorised-dealer bank documentation should be reviewed.

Form 145 and Form 146 for Applicable Remittances

For remittances made on or after 1 April 2026 and governed by the Income-tax Act, 2025, the applicable foreign-remittance reporting framework uses Form 145 and, where required, Form 146.

Form 145 replaces the earlier Form 15CA for applicable remittances, while Form 146 is the Chartered Accountant certificate corresponding to the earlier Form 15CB.

Form 146 is relevant to prescribed taxable remittances where the applicable conditions and threshold are satisfied.

See the official Form 145 guidance, Form 146 guidance and our Form 145 & Form 146 Filing Services.

Property Sale Proceeds, NRO Balances and Inheritance

Repatriation requirements differ depending upon the source and manner in which the funds or assets were acquired.

NRO balances and certain sale proceeds or inherited assets may be remittable within the FEMA framework, subject to the applicable limits, taxes, documentation and satisfaction of the authorised dealer bank.

Tax compliance and FEMA eligibility should be reviewed together before initiating the remittance.

Gifts, Inheritance and Family Transfers Involving NRIs

Tax Treatment of Gifts Received by an NRI

The Indian tax treatment of a gift can depend upon the relationship between the donor and recipient, nature and value of the asset, circumstances of receipt and applicable exemptions.

FEMA should also be considered where money, securities or property move between residents and non-residents.

For significant gifts, appropriate documentation such as a gift deed, relationship evidence, bank transfer record and source-of-funds documentation should be maintained.

Inheritance and Subsequent Sale or Repatriation

Receipt of an asset by inheritance and the later sale of that asset are separate events for tax purposes.

An inherited property or investment may subsequently create capital-gains, TDS, banking and repatriation implications.

We assist with documentation review, cost and holding-period analysis, capital-gains computation, return filing and remittance-related coordination.

NRI Returning to India – RNOR and Tax Planning

Transition From NRI to RNOR or Resident

A returning NRI should calculate residential status for each tax year based upon the applicable law and actual travel pattern.

Depending upon the individual’s prior residential history and physical presence in India, RNOR status may apply for one or more years where the statutory conditions are satisfied.

Foreign Income and Overseas Assets After Return

As residential status changes, the Indian taxation and reporting of foreign salary, overseas investments, foreign bank accounts, pensions, rental income, business interests, stock options and other foreign assets can also change.

Once an individual becomes Resident and Ordinarily Resident, worldwide-income taxation and foreign-asset reporting can become materially more important, subject to the applicable law and treaty provisions.

Pre-Return Tax Planning

Planning before relocation can help identify issues relating to overseas investments, retirement plans, bank accounts, stock options, capital gains, timing of income, remittance of funds and foreign tax credit.

Read our detailed guide on NRI Returning to India – Tax Planning and RNOR Benefits.

NRI Income Tax Notices, Assessments and Appeals

Why NRIs Receive Income-Tax Notices

NRIs can receive tax notices for reasons including:

• non-filing of an income-tax return;
• AIS or Form 26AS mismatches;
• property purchase or sale;
• capital gains not correctly reported;
• incorrect residential status;
• NRE/NRO interest reporting;
• excessive or incorrect exemption claims;
• high-value bank or investment transactions;
• TDS credit mismatches;
• foreign remittance information; or
• information available to the Department from third-party reporting.

Assessment and Litigation Support for NRIs

We assist NRIs with notice replies, scrutiny assessment, faceless assessment, reassessment, rectification, penalty proceedings, stay of demand and eligible appellate matters.

Where the dispute involves residential status, DTAA, property, capital gains, TDS or foreign remittances, we coordinate the underlying tax analysis with the assessment or appellate strategy.

See our Income Tax Assessment and Litigation Services in India.

NRI Tax Services for NRIs Living Around the World

NRIs Living in the USA and Canada

Indian citizens and former residents living in the USA or Canada may continue to have Indian property, investments, bank accounts, rental income, capital gains or family assets.

Our engagement focuses on the Indian tax, DTAA and FEMA aspects. Where foreign-country reporting is involved, we can coordinate information with the client’s local CPA, accountant or tax adviser.

NRIs Living in the UK, UAE and Middle East

NRIs residing in the UK, UAE and Middle East frequently require assistance with Indian property, NRO/NRE accounts, investments, DTAA documentation, remittance of funds and return filing.

The treaty position should be examined with reference to the actual country of tax residence and relevant income.

NRIs Living in Singapore, Australia, Europe and Other Countries

Our India-side NRI tax services are available remotely to clients across Singapore, Australia, Europe, Asia and other jurisdictions.

We can review Indian income, investments and transactions and provide documentation that can be shared with the client’s overseas advisers where cross-border coordination is required.

How EzyBiz Handles NRI Tax Matters

Initial Diagnostic Review

We first understand the client’s country of residence, Indian travel history, sources of Indian income, bank accounts, property, investments, remittance requirements and pending tax matters.

This allows us to identify whether the matter primarily involves income tax, DTAA, FEMA, TDS, return filing, repatriation or a combination of these areas.

Tax and FEMA Action Plan

Once the facts and documents are reviewed, we identify the applicable tax and regulatory requirements and prepare a practical action plan.

Depending upon the assignment, this may include income computation, treaty review, lower TDS application, tax-return filing, remittance documentation, FEMA review or response to tax authorities.

Typical NRI Matters We Handle

Examples of matters commonly handled by our team include an NRI selling property and seeking a lower TDS certificate; an overseas taxpayer claiming excess TDS refund; a client seeking to repatriate NRO funds; an NRI requiring DTAA documentation; a returning Indian evaluating RNOR status; or an NRI responding to a tax notice relating to property, bank deposits or investment transactions.

Why Choose EzyBiz as Your NRI Tax Consultant in India?

Integrated Income-Tax, DTAA and FEMA Approach

NRI transactions frequently cross multiple areas of law. We therefore evaluate Indian income tax, treaty relief, FEMA and banking documentation together rather than treating them as unrelated assignments.

Partner-Led Remote Support

Our NRI engagements can generally be managed remotely. Documents and information can be shared electronically, discussions can be conducted by video or telephone and most filings can be completed online.

This is particularly useful for clients who do not intend to travel to India merely for tax compliance.

Continuity From Transaction to Compliance

Where required, we can support a transaction throughout its lifecycle—for example, from property-sale tax planning and lower TDS application through return filing, refund claim, repatriation and response to a subsequent tax notice.

Experienced Chartered Accountant Review

EzyBiz India is led by experienced Chartered Accountants with more than two decades of professional experience in taxation, international transactions, regulatory advisory and business matters.

For broader direct-tax assistance, see our Direct Tax Advisory Services and International Tax and Transfer Pricing Services.

Frequently Asked Questions and Related NRI Services

Do NRIs Need to File an Income-Tax Return in India?

Not every NRI is automatically required to file an Indian income-tax return. The requirement depends upon the relevant tax year, taxable Indian income, capital gains and other statutory filing conditions.

Even where return filing is not otherwise expected, filing may be relevant for claiming an eligible refund of excess TDS or reporting particular transactions.

Can an NRI file the return without visiting India?
Yes. Most NRI income-tax returns can be prepared and filed electronically, subject to availability of the required documents and completion of the applicable verification process.

Can an NRI Claim DTAA Benefits or a TDS Refund?

Yes, where the applicable treaty and documentation requirements are satisfied, an NRI can examine whether DTAA provisions provide a more beneficial tax position.

A valid Tax Residency Certificate, Form 41 and other information may be required depending upon the claim.

Where tax deducted in India exceeds the final Indian tax liability, the eligible excess may generally be claimed by filing the appropriate income-tax return.

Does DTAA mean no Indian tax is payable?
No. A DTAA does not automatically exempt every category of Indian income. The relevant treaty article must be examined for each type of income.

Can EzyBiz Assist With Property, Lower TDS and Repatriation?

Yes. We assist NRIs with capital-gains computation, lower deduction certificate applications, property-sale TDS, income-tax return filing, refund claims, Form 145/Form 146, NRO remittances and repatriation-related tax documentation.

FEMA eligibility and authorised-dealer bank requirements should also be reviewed before funds are remitted overseas.

Related NRI and Tax Services

• NRI Income Tax Return Filing Services in India
• Sale of Property by NRI – Tax, TDS and Other Implications
• DTAA Benefits for NRI
• NRI Returning to India – Tax Planning and RNOR Benefits
• NRI Bank Accounts – NRE, NRO and FCNR
• Taxation of Shares and Mutual Funds for NRIs
• Form 145 and Form 146 Filing Services
• Income Tax Assessment and Litigation Services
• International Tax and Transfer Pricing Services
• FEMA & RBI Advisory Services
• Direct Tax Advisory Services
• Tax and Regulatory Advisory Services in India
• Contact EzyBiz India

Official Resources

• Income Tax Department – Non-Resident Guidance
• Income Tax Department – Double Taxation Avoidance Agreements
• Income Tax Department – Form 41 User Manual
• Income Tax Department – Income Tax Forms FAQs
• Income Tax Department – Form 145 Guidance
• Income Tax Department – Form 146 Guidance
• Reserve Bank of India – Accounts in India by Non-Residents

Reviewed By
CA Anil Agrawal
Founder, EzyBiz India Consulting LLP
Chartered Accountant with 20+ years of professional experience in Indian taxation, international taxation, NRI taxation, FEMA, cross-border transactions and regulatory advisory.

Last Updated: September 2026

Disclaimer:
The information provided on this page is intended for general informational and educational purposes only and should not be construed as tax, legal, investment, FEMA, banking or regulatory advice for any particular person.

NRI taxation depends upon the individual’s residential status, travel history, citizenship, country of tax residence, nature and source of income, transaction structure, applicable Double Taxation Avoidance Agreement, FEMA status and supporting documentation.

The Income-tax Act, 2025 applies to tax years beginning on or after 1 April 2026. Tax years and transactions relating to earlier periods may continue to be governed by the Income-tax Act, 1961 and the corresponding rules and forms applicable to those periods.

Tax rates, TDS provisions, forms, DTAA provisions, FEMA regulations, RBI directions and banking requirements can change from time to time. The latest applicable law and official guidance should therefore be reviewed before undertaking a property transaction, making an investment, claiming treaty relief, applying for a lower deduction certificate, remitting funds outside India or filing an income-tax return.

Professional advice should be obtained based on the specific facts before taking or refraining from any action. EzyBiz India Consulting LLP does not accept responsibility for action taken solely on the basis of the general information contained on this page without a specific professional review.