TDS and Tax Liability in India

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TDS and Tax Liability in India for NRIs – N.D. Savla & Associates

For Non-Resident Indians (NRIs), income earned in India is subject to Tax Deducted at Source (TDS) and overall tax liability under the Income Tax Act. Whether it is rental income, property sale proceeds, dividends, or interest on deposits, TDS is deducted at specified rates before the income is credited. At N.D. Savla & Associates, we provide end-to-end support for NRI TDS compliance, tax computation, and refund claims, ensuring you pay only what is due and no more.

Overview

NRIs are taxed on income earned or accrued in India, such as salary received in India, rent from property, capital gains on property or shares, dividends, and bank interest. Buyers, tenants, and financial institutions are required to deduct TDS at source, which often results in higher deductions. Professional planning is essential to correctly compute tax liability and claim refunds through NRI income tax filing in India.

Features

  • Advisory on TDS rates applicable to NRIs for property sales, rent, and investments

  • Calculation of final tax liability after adjusting TDS

  • Support for lower TDS certificates under Section 197

  • Filing of NRI income tax returns in India to claim refunds

  • Assistance with advance tax payments to avoid penalties

  • Guidance on DTAA benefits for reducing tax burden

Documents Required

  • Passport & PAN card

  • Income proofs (rental agreement, salary slips, dividend vouchers)

  • Property sale deed (for capital gains transactions)

  • Bank account details (NRO/NRE)

  • TDS certificates (Form 16A, Form 26AS)

  • Investment details (shares, mutual funds, deposits)

Procedure

  1. Income Identification – Classify income type (rent, property sale, dividends, etc.).

  2. TDS Verification – Review TDS deducted by buyer, tenant, or bank.

  3. Tax Computation – Calculate total tax liability under Indian law.

  4. DTAA Application – Apply Double Taxation Avoidance Agreement benefits, if applicable.

  5. Return Filing – File NRI ITR to adjust TDS and claim refund if excess deducted.

  6. Refund / Clearance – Ensure timely receipt of refunds and provide tax certificates for repatriation.

Why This Matters

Many NRIs face excessive TDS deductions on property sales and rental income due to a lack of proper planning. Without professional guidance, this results in blocked funds and delays in repatriation. With N.D. Savla & Associates, your NRI TDS compliance and tax liability in India are managed efficiently, ensuring maximum refunds and full legal compliance.