NRI Tax Filing Services in India –
ITR, DTAA, Capital Gains and FEMA Compliance
Living abroad does not end your tax relationship with India. Rental income, property sales, NRO accounts, and Indian investments all carry Indian tax obligations — and the Income Tax Department is now matching AIS and property registration data more closely than ever.
Overview
NRI Tax Filing — What You Need to Know
N D Savla & Associates provides comprehensive NRI tax filing and advisory services for Indians living in the USA, UK, UAE, Canada, Australia, and other countries. We handle income tax return filing, residential status determination, DTAA advisory, capital gains planning, repatriation of assets, and FEMA compliance.
Additionally, we manage income tax notices and 15CA-15CB filings for NRIs remitting funds abroad. NRIs who ignore India compliance are increasingly receiving notices — often years after the default — as the department tightens data matching between AIS, Form 26AS, and property registration records.
First Step in NRI Tax Planning
Understanding Your Residential Status – NRI, RNOR or Resident?
Your residential status under the Income Tax Act determines which income is taxable in India. Getting this right is the first step in NRI tax planning. India recognises three categories: Resident and Ordinarily Resident (ROR), Resident but Not Ordinarily Resident (RNOR), and Non-Resident (NRI). Each has a different tax scope.
| Parameter | NRI | RNOR | ROR (Resident) |
|---|---|---|---|
| Days in India (current year) | Less than 182 days | 182+ days but recently returned | 182+ days |
| Indian income taxable? | Yes | Yes | Yes |
| Foreign income taxable in India? | No | No | Yes — fully taxable |
| NRE account interest taxable? | Exempt | Exempt | Taxable |
| DTAA benefit available? | Yes | Yes | Limited |
| ITR form typically used | ITR-2 / ITR-3 | ITR-2 / ITR-3 | ITR-1 to ITR-7 |
What India Taxes
What Income Is Taxable for NRIs in India?
India taxes NRIs only on income earned or received in India. However, the definition is specific — and understanding it before filing determines the accuracy of the return and the extent of any refund claim.
Rental Income from Indian Property
Rental income from property in India is fully taxable for NRIs. The tenant must deduct TDS at 30% plus surcharge and cess before paying rent. However, the NRI can claim a 30% standard deduction and municipal tax paid.
A Lower Deduction Certificate under Section 197 can reduce the TDS rate where actual tax liability is lower than the standard deduction.
Capital Gains on Property and Shares
Capital gains on sale of Indian assets are taxable for NRIs. For property held more than 2 years, long-term capital gains apply at 20% with indexation. Short-term gains (up to 2 years) are taxed at slab rates.
For listed equity and mutual funds held over 1 year, LTCG above Rs. 1.25 lakh is taxed at 12.5%. Our Capital Gain services cover full computation and ITR filing. Reinvestment exemptions are covered on our Capital Gains Tax Exemptions on Reinvestment page.
Interest on NRO and NRE Accounts
Interest on NRO accounts and Indian fixed deposits is fully taxable. Banks deduct TDS at 30% plus cess on NRO interest automatically. However, interest on NRE accounts is completely exempt from Indian tax.
Structuring income between NRO and NRE accounts affects tax liability significantly. Transfers from NRO to NRE require FEMA compliance — see the Liberalized Remittance Scheme page for guidance.
Our Services
Our NRI Tax and Compliance Services
We provide end-to-end NRI tax management — from annual ITR filing to complex cross-border transactions involving property, investments, DTAA, and repatriation.
Income Tax Return Filing for NRIs
We file ITR for NRIs with income from rent, capital gains, interest, and dividends. Additionally, we handle RNOR status returns for returning Indians in the transition period. We apply all eligible deductions under Chapters VI-A to minimise tax, and claim TDS refunds where tax has been deducted in excess of actual liability.
ITR filing is mandatory if India-sourced taxable income exceeds Rs. 2.5 lakh in a financial year — and also required to claim TDS refunds, report capital gains, or carry forward losses. See our Filing Return of Income in India page for the complete requirements.
Residential Status Determination
Under Section 6 of the Income Tax Act, an individual is an NRI if they spend fewer than 182 days in India during the financial year — or fewer than 60 days in the year and fewer than 365 days in the preceding four years. Residential status is determined fresh every financial year. A person can be a resident in one year and an NRI the next.
We assess residential status at the start of every engagement and at each year-end — identifying RNOR eligibility for returning NRIs and ensuring the correct ITR form and tax scope is applied. See our Residential Status guide for detailed rules and examples.
DTAA Advisory and Relief Claiming
India has Double Taxation Avoidance Agreements with over 90 countries. These treaties prevent NRIs from paying tax on the same income twice — allowing either an exemption in one country or a tax credit for taxes paid in the other, depending on the specific treaty.
Claiming DTAA relief requires proper documentation — a Tax Residency Certificate (TRC) from the country of residence and Form 10F filing in India. We advise on treaty applicability, withholding rates, and credit mechanisms across multiple jurisdictions. Our dedicated DTAA advisory page covers country-specific provisions in detail.
Capital Gains Tax Planning and Filing
When an NRI sells Indian property, the buyer must deduct TDS at 20% on long-term capital gains (property held over 2 years) or 30% on short-term gains, plus surcharge and cess. The NRI can apply for a Lower Deduction Certificate under Section 197 if actual tax liability is lower than the TDS being deducted.
Our Capital Gain services cover accurate computation, ITR filing, and reinvestment planning under Sections 54 and 54F. For full conditions on reinvestment exemptions, see our Capital Gains Tax Exemptions on Reinvestment page.
FEMA Compliance and Repatriation of Assets
The Foreign Exchange Management Act governs how NRIs move money in and out of India. Repatriating property sale proceeds or inherited assets requires proper documentation — including CA certificates, tax clearance, and FEMA filings. Form 15CA and Form 15CB are required for most foreign remittances.
We handle 15CA-15CB filing, repatriation of assets, and FEMA compliance for full legal compliance across the remittance process. NRE funds are freely repatriable without FEMA clearance; transferring from NRO to NRE requires tax clearance and documentation.
Income Tax Notice Handling for NRIs
NRIs receiving income tax notices — typically for AIS mismatches, undisclosed property income, undeclared capital gains, or demands from prior years — face all the same legal consequences as resident taxpayers, with the added complexity of responding from abroad and managing documentation across jurisdictions.
We handle the complete notice response process for NRIs — verifying the notice, assessing liability, preparing documented replies, and managing scrutiny proceedings. For the full range of notices, see our income tax notices page.
Also See
Related NRI Services
Our NRI tax practice connects with a full set of cross-border financial and compliance services.
NRI Tax Filing Made Simple — Accurate, Timely, and Fully Compliant.
N D Savla & Associates handles every aspect of NRI tax compliance in India — from annual ITR filing and TDS refunds to DTAA claims, capital gains planning, and FEMA repatriation.
NRI with Indian income? Let us handle your compliance.
From ITR filing and DTAA claims to capital gains, repatriation, and notice response — complete NRI tax services in one place.
Get in TouchF.A.Q.
Under Section 6 of the Income Tax Act, an individual is an NRI if they spend fewer than 182 days in India during the financial year. Alternatively, they qualify as NRI if they are in India for fewer than 60 days in the year AND fewer than 365 days in the preceding four years. Residential status is determined fresh every financial year — a person can be a resident in one year and an NRI the next. Our Residential Status guide covers the complete rules with examples.
Yes — ITR filing is mandatory if India-sourced taxable income exceeds Rs. 2.5 lakh in a financial year. Additionally, filing is required even below this threshold to claim TDS refunds, report capital gains, or carry forward losses. The standard deadline is July 31 of the assessment year. See our Filing Return of Income in India page for the complete requirements.
NRIs pay tax in India only on income earned or received in India. This includes rental income, capital gains on Indian assets, interest on NRO accounts, and dividends from Indian companies. However, foreign income and NRE account interest remain outside India’s tax net. For the full list of exemptions, see our Exempt Income for NRIs page.
DTAA stands for Double Taxation Avoidance Agreement — India has signed them with over 90 countries. These treaties prevent NRIs from paying tax on the same income twice. However, claiming DTAA relief requires a Tax Residency Certificate and Form 10F filing. Our DTAA advisory service covers all treaty provisions in detail.
The buyer must deduct TDS at 20% for long-term capital gains (property held over 2 years) or 30% for short-term gains, plus surcharge and cess. However, the NRI can apply for a Lower Deduction Certificate under Section 197 if actual tax is lower. Additionally, reinvestment under Section 54 or 54F can reduce or eliminate capital gains tax. See our Capital Gains Tax Exemptions on Reinvestment page for full conditions.
An NRO account holds India-sourced income — interest is fully taxable at 30% plus cess, deducted by the bank. An NRE account holds foreign earnings remitted to India — interest is completely exempt from Indian tax. Furthermore, NRE funds are freely repatriable without FEMA clearance. Transferring from NRO to NRE requires tax clearance and documentation — see our Repatriation of Assets page
