NRI Taxation Services in India

EzyBiz India Consulting LLP provides comprehensive NRI Taxation Services in India to Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Persons of Indian Origin (PIOs), returning Indians and overseas individuals having income, property, investments or financial interests in India.

Our Chartered Accountants assist with NRI income-tax return filing, residential status, DTAA benefits, foreign tax credit, property sales and capital gains, lower or nil TDS certificates, NRE/NRO tax matters, foreign remittances and repatriation, Form 145 and Form 146 compliance, income tax notices, assessments and regulatory compliance.

We combine Indian income-tax advice with FEMA, RBI and banking requirements so that NRIs can manage their Indian tax and regulatory obligations through a coordinated advisory process, including remote assistance for clients residing outside India.

Comprehensive NRI Tax Advisory and Compliance Support

NRI taxation often involves a combination of Indian income-tax provisions, tax treaties, banking regulations and FEMA requirements. A transaction that appears simple may create tax deduction, reporting or remittance obligations.

We assist clients in identifying their tax exposure, evaluating available exemptions and treaty relief, preparing the required documentation and completing tax filings within the prescribed timelines.

Our NRI taxation services cover:

• residential status and scope of taxable income;
• filing of income-tax returns in India;
• taxation of salary, rent, interest and investment income;
• sale and purchase of immovable property;
• capital gains computation and exemption planning;
• lower or nil TDS certificate applications;
• DTAA benefits and foreign tax credit;
• tax implications of gifts and inheritance;
• foreign remittances, repatriation of funds and Form 145/Form 146 compliance;
• income-tax notices, assessments and appeals; and
• coordination of income-tax and FEMA compliance.

Who Is Considered an NRI for Indian Income-Tax Purposes?

A person’s residential status under the Income-tax Act is determined separately for each financial year. It generally depends on the number of days spent in India and the conditions prescribed under the applicable tax provisions.

A person may be classified as:

Resident and Ordinarily Resident

A Resident and Ordinarily Resident may generally be taxable in India on worldwide income, subject to applicable exemptions and treaty benefits.

Resident but Not Ordinarily Resident

A Resident but Not Ordinarily Resident may have limited taxation in India in respect of certain foreign income, depending upon the nature and source of that income.

Non-Resident

A Non-Resident is generally taxable in India on income received, accrued, deemed to accrue or deemed to be received in India, subject to the Income-tax Act and the applicable DTAA.

Determining the correct residential status is the first step in evaluating an individual’s Indian tax liability. It affects the scope of taxable income, disclosure requirements, foreign asset reporting and availability of treaty relief.

Residential Status Advisory for NRIs

We assist NRIs, returning Indians and expatriates in determining their residential status under Indian tax law.

Our review may include:

• number of days spent in India;
• past residential history;
• citizenship and immigration position;
• employment or business outside India;
• income earned or received in India;
• foreign income and overseas assets;
• applicability of special residency provisions; and
• possible transition from NRI to RNOR or resident status.

We also advise returning Indians on the tax implications of becoming resident in India, including the possible taxation and disclosure of foreign income and overseas assets.

Scope of Taxable Income for NRIs in India

The taxability of an NRI depends on the nature of income, the place where it accrues or arises, the place of receipt and the applicable tax treaty.

Common sources of Indian income for NRIs include:

Salary Income

Salary may be taxable in India where employment services are performed in India or where the relevant provisions deem the income to arise in India.

Rental Income

Rental income from property situated in India is generally taxable in India. Eligible municipal taxes, standard deductions and interest on borrowed capital may be considered subject to applicable conditions.

Interest Income

Interest earned on NRO accounts, fixed deposits, bonds and other Indian investments may be taxable in India. Interest from qualifying NRE accounts may be exempt where the prescribed conditions are satisfied.

Capital Gains

Capital gains may arise from the sale of property, shares, mutual funds, securities or other capital assets situated in India. The applicable tax rate depends on the nature of the asset and the period of holding.

Business or Professional Income

Income from a business connection, permanent establishment, profession or commercial activity in India may become taxable in India depending on the facts and applicable treaty provisions.

Dividend and Investment Income

Dividend income and income from Indian investments may be taxable in India and may also be subject to tax deduction at source.

NRI Income-Tax Return Filing Services

An NRI may be required to file an income-tax return in India depending on the nature and amount of income taxable in India and the applicable filing requirements.

NRI tax return filing may be required for income from property, capital gains, investments, interest, salary or other Indian sources. Filing may also be necessary to claim a refund of excess TDS, claim eligible DTAA benefits, report capital gains or respond to income-tax compliance requirements.

EzyBiz assists NRIs with review of Form 26AS and AIS, computation of taxable income and capital gains, reconciliation of TDS, DTAA claims, foreign tax credit, preparation and filing of the income-tax return and follow-up with the Income Tax Department where required.

Looking specifically for NRI return filing assistance? Learn more about our NRI Income Tax Return Filing Services in India.

Taxation of Property Transactions for NRIs

Property transactions are among the most common tax matters faced by NRIs in India. The tax implications may arise at the time of purchase, ownership, rental or sale of immovable property.

We assist NRIs with:

• taxation on purchase and sale of property in India;
• computation of capital gains;
• determination of cost of acquisition and indexed cost;
• tax deduction at source on property transactions;
• lower TDS certificate applications;
• exemption planning under the Income-tax Act;
• reporting of rental income;
• treatment of inherited or gifted property;
• remittance of sale proceeds outside India; and
• response to notices relating to property transactions.

Purchase of Immovable Property by an NRI

An NRI may purchase certain categories of immovable property in India subject to applicable FEMA and RBI regulations.

Before completing the transaction, it is important to review:

• eligibility to purchase the property;
• nature and location of the property;
• source and mode of payment;
• payment through permitted banking channels;
• applicable tax deduction requirements;
• registration and stamp-duty implications;
• ownership structure; and
• future repatriation of sale proceeds.

Where property is purchased jointly, the contribution of each co-owner and the ownership percentage should be properly documented.

Sale of Property by an NRI

When an NRI sells immovable property situated in India, the resulting capital gains may be taxable in India.

The buyer may also be required to deduct tax at source under the applicable provisions. The TDS obligation in an NRI property sale is different from the procedure generally followed for purchase of property from a resident seller.

We assist sellers and buyers with:

• review of the sale agreement;
• determination of the seller’s residential status;
• classification of the capital gain;
• computation of taxable capital gains;
• identification of eligible exemptions;
• calculation of estimated tax liability;
• lower TDS certificate applications;
• compliance by the buyer;
• filing of the NRI’s income-tax return; and
• claim of refund where excess tax has been deducted.

Capital Gains on Sale of Property

The tax treatment of capital gains depends on the period for which the property was held and the provisions applicable in the relevant financial year.

The computation may require examination of:

• original purchase price;
• stamp-duty value;
• cost of construction or improvement;
• brokerage and transfer expenses;
• inherited or gifted ownership history;
• fair market value, where applicable;
• indexation benefit, where permitted;
• joint ownership;
• reinvestment in another property; and
• investment in specified assets.

Accurate documentation is important because the Income Tax Department may compare the transaction with information available in the Annual Information Statement, registration records and tax deduction statements.

Capital Gains Exemption Planning

Subject to fulfilment of prescribed conditions, an NRI may be eligible to claim exemption by reinvesting the capital gains or sale consideration in specified assets.

The availability of exemption depends on:

• nature of the asset sold;
• period of holding;
• amount reinvested;
• type of new asset;
• timing of purchase or construction;
• restrictions on transfer of the new asset;
• deposit under the Capital Gains Account Scheme; and
• compliance with the relevant statutory conditions.

We assist clients in evaluating the available exemption options before completion of the transaction so that the documentation and timelines can be planned properly.

TDS on Sale of Property by an NRI

A buyer purchasing property from an NRI may be required to deduct tax at source at the rates prescribed for payments to non-residents.

The tax may be deducted on the consideration payable unless the seller obtains a lower or nil deduction certificate from the Income Tax Department.

The buyer may need to:

• obtain a Tax Deduction Account Number;
• deduct tax at the appropriate rate;
• deposit the tax within the prescribed period;
• file the applicable TDS return; and
• issue the TDS certificate to the seller.

Failure to comply may result in interest, late filing fees, penalty or recovery proceedings.

We assist in coordinating the tax deduction process for both NRI sellers and resident buyers.

Lower or Nil TDS Certificate for NRIs

In many property transactions, the amount of tax deductible on the gross sale consideration may be significantly higher than the seller’s actual tax liability.

An eligible NRI may apply to the Income Tax Department for a certificate authorising deduction of tax at a lower rate or at nil rate.

A lower TDS application may require:

• sale agreement or draft agreement;
• purchase deed;
• ownership documents;
• computation of capital gains;
• details of improvement expenses;
• proposed exemption claim;
• PAN and passport;
• travel and residential status details;
• previous income-tax returns;
• tax payment information;
• bank details; and
• supporting documentary evidence.

We assist with preparation of the application, capital gains computation, supporting documents and responses to queries raised by the tax authorities.

Refund of Excess TDS

Where tax has been deducted in excess of the final tax liability, the NRI may claim a refund by filing an income-tax return in India.

The refund claim may involve:

• verification of Form 26AS;
• reconciliation with the Annual Information Statement;
• reporting of the property transaction;
• computation of capital gains;
• claim of eligible exemption;
• adjustment of advance tax or self-assessment tax; and
• validation of the Indian bank account for refund.

The processing time depends on the accuracy of the return, availability of TDS credit and whether the return is selected for verification or assessment.

Rental Income from Property in India

Rental income from property situated in India may be taxable in the hands of an NRI.

The taxable income may be determined after considering:

• gross rent received or receivable;
• municipal taxes actually paid;
• standard deduction;
• interest on borrowed capital;
• co-ownership share;
• vacancy allowance, where applicable; and
• applicable treaty provisions.

The tenant may also have a TDS obligation where rent is paid to an NRI.

We assist with computation of rental income, TDS reconciliation, tax return filing and claim of eligible deductions.

DTAA Benefits for NRIs

India has entered into Double Taxation Avoidance Agreements with various countries. A DTAA may provide relief where the same income is taxable both in India and in the country of residence.

Treaty benefits may apply to income such as:

• salary;
• pension;
• interest;
• dividend;
• royalty;
• fees for technical services;
• capital gains;
• business income; and
• rental income.

The applicable treatment depends on the wording of the relevant treaty, domestic tax provisions and the facts of the case.

Tax Residency Certificate and Form 10F

To claim treaty benefits, an NRI may be required to obtain and furnish prescribed documentation, including:

• Tax Residency Certificate issued by the foreign tax authority;
• Form 10F;
• declaration regarding residential status;
• passport and address proof;
• details of foreign tax identification number; and
• supporting documents relating to the income.

We assist in reviewing treaty eligibility and preparing the required documentation for claiming the benefit.

Foreign Tax Credit

Where income has been taxed in India as well as outside India, relief may be available through foreign tax credit, subject to applicable conditions.

The claim may require:

• foreign tax return;
• tax payment certificate;
• withholding tax statement;
• proof of foreign income;
• applicable DTAA provisions;
• conversion of foreign currency amounts; and
• filing of prescribed forms within the required timeline.

We assist clients in reconciling foreign income and foreign taxes, evaluating the available credit and making the appropriate claim in the Indian income-tax return.

Taxation of Interest Income for NRIs

NRIs commonly earn interest from:

• NRE accounts;
• NRO accounts;
• fixed deposits;
• savings accounts;
• bonds;
• debentures;
• loans; and
• other financial investments.

The tax treatment varies according to the nature of the account, the individual’s residential status and the conditions prescribed under the tax law.

Interest from a qualifying NRE account may be exempt where the applicable conditions are satisfied. Interest from an NRO account is generally taxable in India and may be subject to tax deduction at source.

We assist with classification of interest income, TDS reconciliation, treaty relief and tax return reporting.

Taxation of Shares, Mutual Funds and Securities

NRIs investing in Indian shares, mutual funds, bonds or other securities may be liable to tax on:

• dividend income;
• interest income;
• short-term capital gains;
• long-term capital gains; and
• income from redemption or transfer of investments.

The tax treatment may depend on:

• type of security;
• period of holding;
• listed or unlisted status;
• mode of transaction;
• securities transaction tax;
• applicable special tax provisions;
• DTAA eligibility; and
• tax deducted at source.

We assist with review of capital gains statements, reconciliation of broker reports and preparation of the income-tax return.

Taxation of Gifts Received by NRIs

Gifts received by an NRI may have different tax implications depending on:

• identity of the donor;
• relationship between the donor and recipient;
• nature of the gift;
• value of the gift;
• occasion on which the gift is received;
• location of the asset; and
• applicable FEMA provisions.

Certain gifts received from specified relatives may be exempt under the Income-tax Act, subject to proper documentation.

For substantial gifts, it is advisable to maintain:

• gift deed;
• donor’s identity proof;
• recipient’s identity proof;
• relationship evidence;
• bank transfer records;
• source-of-funds evidence; and
• declarations confirming that the gift is voluntary and without consideration.

Inheritance by NRIs

Receipt of property, money or investments by way of inheritance is generally treated differently from income earned through a normal transaction.

However, later sale, transfer or repatriation of the inherited asset may create tax and FEMA implications.

We assist with:

• tax treatment of inherited property;
• determination of cost of acquisition;
• previous owner’s holding period;
• capital gains computation;
• documentation of inheritance;
• transmission of shares and investments;
• sale of inherited assets; and
• remittance of proceeds outside India.

NRI Foreign Remittance and Repatriation Services in India

NRIs may need to remit or repatriate funds outside India from sources such as property sale proceeds, rental income, inheritance, gifts, investments, fixed deposits, NRO accounts, dividends or other Indian income.

Foreign remittance from India may involve compliance with Indian income-tax provisions, applicable DTAA provisions, FEMA and RBI regulations and the documentation requirements of the authorised dealer bank.

EzyBiz assists NRIs with review of the source and nature of funds, determination of taxability in India, TDS and DTAA analysis, preparation of remittance documents, repatriation of property sale proceeds, remittance from NRO accounts and coordination with the authorised dealer bank.

For remittances made under the current tax framework, we also assist with Form 145 filing and Form 146 Chartered Accountant certification, where applicable. These forms replace the earlier Form 15CA and Form 15CB respectively.

For detailed filing, certification and foreign remittance assistance, learn more about our Form 145 & Form 146 Filing and CA Certification Services in India.

FEMA and RBI Advisory for NRIs

NRI tax matters often overlap with FEMA and RBI regulations. We coordinate tax and regulatory advice in relation to:

• NRE, NRO and FCNR accounts;
• purchase and sale of property;
• inward and outward remittances;
• repatriation of sale proceeds;
• gifts between residents and non-residents;
• inheritance;
• investments in Indian entities;
• transfer of shares;
• return to India; and
• change in residential status.

The tax treatment and FEMA treatment should be reviewed separately because compliance under one law does not automatically ensure compliance under the other.

NRI Tax Notices, Assessments and Litigation Support

NRIs may receive income-tax notices relating to return filing, property transactions, capital gains, foreign remittances, TDS mismatches, high-value transactions or information appearing in the Annual Information Statement.

We assist clients in reviewing notices, identifying the underlying issue, preparing documentary evidence and submitting responses within the prescribed timeline.

Our support includes:

• response to income-tax notices;
• scrutiny assessment proceedings;
• faceless assessment proceedings;
• reassessment proceedings;
• verification of TDS and AIS information;
• rectification applications;
• penalty proceedings;
• stay of demand applications;
• appeals before the Commissioner of Income Tax (Appeals);
• appeals before the Income Tax Appellate Tribunal; and
• coordination with advocates for High Court and Supreme Court matters, where required.

For detailed support on assessments and appeals, click Income Tax Assessment and Litigation Services in India 

Common Reasons Why NRIs Receive Income-Tax Notices

An NRI may receive a notice for reasons such as:

• non-filing of an income-tax return;
• mismatch between return and Form 26AS;
• mismatch with Annual Information Statement data;
• sale or purchase of immovable property;
• substantial bank deposits;
• capital gains not correctly reported;
• claim of exemption without complete evidence;
• TDS deducted but not properly claimed;
• foreign remittance information;
• incorrect residential status;
• reporting of NRE or NRO interest;
• high-value investments;
• defective return; or
• reassessment based on information available with the department.

A timely and fact-based response can help avoid unnecessary additions, penalties and prolonged proceedings.

Rectification of Income-Tax Records

Where an order, intimation or demand contains an apparent mistake, an application for rectification may be filed under the applicable provisions.

Common rectification issues include:

• TDS credit not allowed;
• advance tax or self-assessment tax not considered;
• incorrect tax demand;
• mismatch in brought-forward losses;
• computational error;
• incorrect interest calculation; and
• refund adjustment issues.

We assist with review of the order, reconciliation of tax records and preparation of the rectification application.

Stay of Income-Tax Demand

Where a disputed tax demand has been raised, an NRI may require protection from recovery while an appeal or rectification application is pending.

We assist in preparing stay applications covering:

• background of the dispute;
• prima facie merits;
• financial hardship;
• amounts already paid;
• pending appellate proceedings;
• documentary support; and
• request for suspension of recovery.

Appeals Before CIT(A) and ITAT

Where an assessment or penalty order is adverse, an appeal may be filed before the appropriate appellate authority.

Our support may include:

• review of the assessment or penalty order;
• preparation of statement of facts;
• drafting of grounds of appeal;
• condonation of delay applications;
• additional evidence applications;
• written submissions;
• paper books;
• rejoinders;
• hearing preparation; and
• coordination for appellate representation.

For matters before the High Court or Supreme Court, we coordinate with experienced tax lawyers, advocates, senior counsel and advocates-on-record from our professional panel.

NRI Business Setup and India Market Entry Services

NRIs and overseas entrepreneurs may wish to establish, invest in or expand a business presence in India. We assist with entity selection, company incorporation, foreign investment structuring, FEMA and RBI compliance, tax registrations and ongoing regulatory requirements.

Where the proposed investment involves a wholly owned subsidiary, joint venture, branch office, liaison office or project office, our India Entry team can assist with the complete setup and compliance process.

For detailed assistance, see our India Market Entry Consulting Services.

Advisory for Returning Indians

A person returning to India may face a change in residential status and taxability.

Important matters may include:

• transition from non-resident to RNOR or resident;
• taxation of foreign income;
• disclosure of foreign assets;
• treatment of overseas bank accounts;
• foreign retirement benefits;
• stock options and investments;
• overseas business interests;
• foreign tax credit;
• remittance of funds to India; and
• restructuring of investments before return.

Early planning can help reduce avoidable compliance issues and ensure that available exemptions or treaty benefits are properly considered.

Taxation of Global Income for Returning NRIs

Once an individual becomes resident and ordinarily resident in India, worldwide income may become taxable in India, subject to the applicable provisions and treaty relief.

The analysis may cover:

• foreign salary;
• rental income from overseas property;
• dividend and interest income;
• capital gains;
• foreign pension;
• business income;
• stock option income;
• trust or estate distributions; and
• overseas investment income.

We assist with taxability analysis, foreign asset reporting, foreign tax credit and return filing.

Who We Serve

We provide NRI taxation and advisory services to:

• Non-Resident Indians;
• Overseas Citizens of India;
• Persons of Indian Origin;
• returning Indians;
• expatriates working in India;
• foreign nationals having income or assets in India;
• overseas entrepreneurs;
• global families with Indian property or investments;
• NRI property owners;
• NRI investors;
• beneficiaries of Indian estates or gifts; and
• foreign businesses entering the Indian market.

Our NRI Taxation Service Process

Initial Consultation

We understand the client’s residential status, income sources, property holdings, investments, remittance requirements and pending tax matters.

Document Review

We review passport and travel details, tax records, bank statements, property documents, investment records and other supporting information.

Tax and Regulatory Analysis

We evaluate the applicable provisions of the Income-tax Act, DTAA, FEMA and RBI regulations.

Recommendation and Compliance Plan

We explain the tax position, available relief, documentation requirements, filing obligations and recommended next steps.

Preparation and Filing

We prepare the return, application, form, response or submission and complete the required filing.

Follow-up and Representation

Where required, we respond to departmental queries, coordinate with banks or authorities and assist during assessment or appellate proceedings.

Why Choose EzyBiz India for NRI Taxation Services?

Managing tax affairs across multiple jurisdictions requires practical understanding of Indian tax law, tax treaties, FEMA regulations and banking procedures.

Our key strengths include:

• more than two decades of experience in tax and regulatory advisory;
• partner-led engagement;
• integrated income-tax and FEMA support;
• experience in property transactions and capital gains;
• assistance with lower TDS certificates;
• support for foreign remittances, Form 145 filing and Form 146 CA certification (earlier Forms 15CA and 15CB);
• representation in assessment and appellate matters;
• remote service delivery for overseas clients;
• coordinated India market entry and business setup support; and
• transparent communication and timely execution.

Frequently Asked Questions

Who qualifies as an NRI for Indian income-tax purposes?

Residential status is determined separately for each financial year based on the conditions prescribed under the Income-tax Act. It may differ from citizenship, visa or FEMA status.

Is an NRI required to file an income-tax return in India?

An NRI may need to file a return where taxable income exceeds the applicable threshold or where filing is mandatory under specified provisions. Filing may also be necessary to claim a refund or report capital gains.

Is interest from an NRE account taxable in India?

Interest from a qualifying NRE account may be exempt where the prescribed conditions are satisfied. Interest from an NRO account is generally taxable.

Is TDS applicable when an NRI sells property in India?

Yes. The buyer may be required to deduct tax at source under the provisions applicable to payments made to non-residents.

Can an NRI obtain a lower TDS certificate?

An eligible NRI may apply for a lower or nil deduction certificate, subject to the facts, estimated tax liability and supporting documentation.

Can an NRI claim DTAA benefits?

Yes, subject to the relevant treaty provisions and prescribed documentation, including a Tax Residency Certificate and Form 10F where applicable.

Can an NRI claim a refund of excess TDS?

Yes. Excess TDS may be claimed as a refund by filing an income-tax return and correctly reporting the income and tax credit.

Are gifts received by an NRI taxable?

The tax treatment depends on the relationship between the donor and recipient, nature and value of the gift and applicable exemptions.

Do you assist NRIs with Form 145 and Form 146 (earlier Form 15CA and Form 15CB)?

Yes. We assist NRIs with determining the taxability of foreign remittances, DTAA review, TDS computation, preparation and filing of Form 145, Form 146 certification where applicable, and coordination with the authorised dealer bank. Forms 145 and 146 replace the earlier Forms 15CA and 15CB respectively for remittances under the current tax framework.

Can you assist NRIs in setting up a business in India?

Yes. We assist with entity selection, company incorporation, FEMA and RBI compliance, tax registrations, India market entry planning and ongoing compliance.

Do you assist NRIs residing outside India?

Yes. Most advisory, tax filing, remittance and assessment support can be provided remotely through electronic communication.

What documents are commonly required?

Documents may include PAN, passport, travel history, bank statements, Form 26AS, AIS, property documents, investment statements, TDS certificates, Tax Residency Certificate and prior tax records.

Related Tax & Regulatory Services

• Tax & Regulatory Advisory Services
• International Tax & Transfer Pricing
• Income Tax Assessment & Litigation
• FEMA & RBI Advisory
• GST Advisory
• Corporate Secretarial Services
• Labour Law Advisory

Explore Our Other Practice Areas

• India Market Entry Services
• Corporate Finance Services
• Audit & Assurance
• Managed Business Services
• Global Business Expansion Services

Need Professional NRI Taxation Support in India?

Managing Indian tax obligations while living overseas can be complex. Whether you require assistance with NRI tax return filing, property transactions, capital gains, DTAA benefits, lower TDS certificates, foreign remittances, Form 145/Form 146 compliance or income-tax notices, our professionals can assist.

EzyBiz India Consulting LLP provides practical and coordinated NRI tax and regulatory support for clients residing in India and overseas.

Prepared By

Prepared and reviewed by Anil Agrawal, Chartered Accountant
Founder, EzyBiz India Consulting LLP
More than 20 years of experience in taxation, regulatory advisory and India market entry services.
Published: July 2026

Disclaimer

This page provides general information and does not constitute legal, tax or investment advice. The applicable treatment depends on the facts, relevant financial year, tax residency, documentary evidence and prevailing law. Professional advice should be obtained before acting on any transaction.