—Personal, NRI & HNI Advisory
NRI Taxation & Return Filing
Determination of residential status, taxation of Indian income, treaty relief and return filing for NRIs.
Handled by a practising Chartered Accountant or Company Secretary.
Scope of work
Determination of residential status, taxation of Indian income, treaty relief and return filing for NRIs.
Key deliverables
- Filed return and tax computation
Governing law
Income-tax Act (1961 / 2025, as applicable to the period); DTAAs
Frequency
Annual
REGISTRATION ONLY
NRI Taxation & Return Filing
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- Filed return and tax computation
REGISTRATION + COMPLIANCE CARE
NRI Taxation & Return Filing + Compliance Care
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+ ₹9,599/yr for year-one ROC compliance
- Filed return and tax computation
- Financial statements in Schedule III format
- Board report and AGM notice
- Filed AOC-4 with SRN
- Filed MGT-7 / MGT-7A with SRN
- Board and AGM minutes
500+
Companies incorporated
100%
CA/CS-signed filings
4.8/5
Founder rating
—A closer look
Understanding NRI taxation
Everything below is written for non-resident Indians — which Indian income is taxable, how TDS works on NRI income, when you need to file a return, and how to claim treaty benefits and refunds.
What is NRI taxation and return filing?
Non-resident Indians are taxed in India only on income earned or received in India: rent from Indian property, interest on NRO deposits, capital gains on Indian shares, mutual funds or property, and income from Indian businesses. Salary earned abroad and foreign investment income aren't taxed in India while you're non-resident.
Much NRI income has tax deducted at higher rates, so many NRIs overpay and need to file a return to claim refunds. Others must file because their Indian income exceeds the basic exemption limit or they sold property or shares.
The key terms
What NRIs need to know:
- Residential status
- Determined each year by days in India — the 182-day test, and the 60/120-day tests with conditions for Indian citizens and persons of Indian origin.
- RNOR
- Resident but not ordinarily resident — a transitional status for returning NRIs, where foreign income generally isn't taxed.
- Deemed residency
- Indian citizens with Indian income above ₹15 lakh who aren't taxable in any other country can be deemed resident (as RNOR).
- NRE and NRO accounts
- NRE account interest is tax-free; NRO account interest is taxable, with TDS.
- TDS on NRI income
- Tax is deducted at higher rates on most payments to NRIs, including property sale proceeds.
- Lower deduction certificate
- A certificate from the tax department allowing TDS at a lower rate, often used on property sales.
- TRC and Form 10F
- Documents needed to claim tax treaty benefits.
A simple example
An NRI in Dallas owns a flat in Hyderabad that earns ₹3.6 lakh a year in rent, and has NRO fixed deposits. The tenant deducts TDS at the NRI rate on rent, and the bank deducts TDS on NRO interest. After the 30% standard deduction on rent and considering the basic exemption, their actual tax is much lower than the TDS. They file an Indian return, claim a refund, and report the same income in their US return, claiming foreign tax credit there for the Indian tax paid.
Why it matters
NRIs often overpay or under-report:
- Excess TDS
- High TDS rates mean refunds are often due.
- Property sales
- Buyers deduct TDS on the full price, not just the gain.
- Notices
- Unreported Indian income leads to notices matched from TDS and bank data.
- Residency changes
- Getting residential status wrong can make foreign income taxable.
- Treaty benefits
- Lower treaty rates need the right documents.
- Foreign tax returns
- Indian tax can often be credited abroad, if documented.
- Repatriation
- Tax compliance supports moving money out of India.
Who is this for?
- NRIs with rent, interest or capital gains in India
- NRIs selling property or shares in India
- NRIs with excess TDS to claim back
- People moving abroad or returning to India
- NRIs who received tax notices
Residency is decided year by year; we check it before preparing each return.
How residential status affects tax
What's taxable in India:
| Aspect | Non-resident | RNOR | Resident (ordinary) |
|---|---|---|---|
| Indian income | Taxable | Taxable | Taxable |
| Foreign salary | Not taxable | Generally not taxable | Taxable |
| Foreign investment income | Not taxable | Generally not taxable | Taxable |
| Schedule FA reporting | Not required | Not required | Required |
| NRE interest | Exempt | Exempt while the status continues | Taxable once redesignated |
What we'll need from you
- Travel dates
- Days in India for the year and earlier years.
- Income details
- Rent, interest, dividends and capital gains.
- TDS certificates
- Form 16A and Form 26AS / AIS.
- Bank statements
- NRE, NRO and FCNR statements.
- Sale documents
- Purchase and sale deeds for property sold.
- Treaty documents
- TRC and Form 10F if claiming treaty benefits.
Pricing depends on the income sources and whether capital gains are involved.
How we file NRI returns
Our approach:
- 1
Determine status
Residential status is determined from your travel dates.
- 2
Collect income
Indian income is compiled and matched with AIS and Form 26AS.
- 3
Compute tax
Tax is computed, applying treaty rates where beneficial.
- 4
Plan exemptions
Capital gains exemptions are considered where available.
- 5
File
The return is filed and verified.
- 6
Follow up
Refunds are tracked, and notices answered.
After filing
What comes next:
- Refunds
- Refunds go to a pre-validated Indian bank account.
- Foreign returns
- Use Indian tax details to claim credit abroad.
- Lower TDS
- Apply for a lower deduction certificate before future property sales.
- Bank records
- Update residency status with banks when it changes.
- Notices
- Watch the e-filing portal for communications.
- Next year
- Track days in India through the year.
Benefits and responsibilities
Benefits
- Correct residential status
- Refunds of excess TDS
- Treaty benefits applied
- Capital gains planned
- Documents for your foreign tax return
Responsibilities
- Share accurate travel dates
- Provide complete Indian income details
- Keep an Indian bank account for refunds
- Update banks on residency changes
- Share treaty documents where needed
- Tell us about property sales in advance
—FAQ
Questions NRIs actually ask us
If Indian income exceeds the basic exemption limit, or if you want to claim a refund or carry forward losses, yes. Having capital gains usually means filing.