Experience the Art of NRI Tax Planning - Charting Your Financial Future with PrecisionNRI Taxation Services: Expert Solutions for Non-Resident Indians

Navigate the complex Indian tax system with confidence and ensure compliance with our specialized NRI taxation services.

NRI TaxationBy Charting Your Financial Future with Precision - Experience the Art of NRI Tax Planning

As one of the dynamic accounting firms in India, we offer specialized services for Non-Resident Indians (NRIs) to help them navigate the complex Indian tax system, ensure compliance with relevant regulations, and optimize their financial position. Our experienced Indian chartered accountants and tax advisers provide comprehensive guidance tailored to each client’s specific needs.

NRI TaxationNRI Taxation: A Comprehensive Overview

NRIs are required to pay taxes on their Indian-sourced income in compliance with Indian tax laws. Although income earned abroad is not taxable in India, NRIs have to pay tax on income earned from a business or profession set up in India, income from a property located in India, and any capital gains arising from the sale of assets in India.

At our firm, our NRI taxation services are provided by experienced and knowledgeable tax professionals who specialize in international tax issues. They conduct a comprehensive analysis of the client’s financial situation and goals, including investment portfolios and other assets, as well as potential tax implications related to their NRI status.

Identification of NRI

An individual is said to be a resident of India if he/she fulfils the following condition –
Has stayed in India for at least 182 days, during the previous year                                                  
Has stayed in India for at least 60 days, during the previous year AND has stayed in India at least 365 days, during four years preceding the relevant previous year. 

However there are some exceptions to this conditions:
If a person’s total Indian income exceeds INR 15 lakhs in a fiscal year and he or she remains for more than 120 days in the same fiscal year, Then he/she is considered to be an Indian resident.
An NRI is a resident of India if they are an Indian citizen with a total income (other than from foreign sources) of more than INR 15 lakhs. They are not subject to taxation in any other nation.

Taxable Income for NRIs

As an NRI, you are required to pay tax only on income earned in India or income that accrues or is deemed to accrue in India. Some examples of NRI taxable income include:

  • Salary received in India or for services rendered in India
  • Income from a property situated in India (rented or lying vacant)
  • Capital gains arising from the transfer of property or assets in India
  • Income from deposits in India, such as interest on fixed deposits
  • Capital gains on investments in India, including shares and securities

Tax Filing for NRIs

NRIs are required to file income tax returns in India if they have taxable income. Our team can assist you with the filing process, ensuring compliance with various tax regulations, obtaining a Permanent Account Number (PAN), and meeting other compliance requirements.

In the following situations an NRI is required to file Income Tax Return in India:

  • If your Gross Total Income before allowing any deductions under section 80 is more than Rs.2,50,000.
  • If you are seeking a refund from the department.
  • If you want to have the benefit of carrying forward of loss.

NRI Tax Rates and Deductions

The tax rates applicable to NRIs in India are the same as those for resident Indians. However, some deductions and exemptions available to resident Indians may not be available to NRIs. Our tax advisers can guide you through the available deductions and exemptions to help you minimize your tax liability.

NRI Tax Rates and Deductions

Available Deductions
  • Section 80C: An NRI can avail of the following deductions under this:
    Tuition payments for youngsters
    ULIPS Payment of a life insurance policy premium
    Principal repayments on a house loan under ELSS
  • Section 80D: A health insurance policy’s premium was paid.
  • Section 80G: Donations for charitable purposes.
  • House Property: NRIs can deduct income from house property in India, property tax, and interest income on home loans.
  • Section 80E: Earned interest on a student loan.
  • Section 80TTA: Interest income on savings bank accounts can be deducted up to Rs.10,000
Not Available
  • Section 80CCG investment under RGESS
  • Sections 80U, 80DD, and 80DDB provide for differently-abled individuals.
  • The following investments are not available to NRIs:
    Senior Citizen Savings Plan
    Certificates of Deposit (NSCs)
    5 Year Post Office Deposit Scheme

For instance, as a Non-resident, you still get the benefit of the basic exemption limit of Rs. 2,50,000 from your total income. However, If your total income in India consists of only short-term capital gains or long-term capital gains, then the benefit of the basic exemption limit is not available in respect of such gains. 
Moreover, NRIs are subject to TDS (Tax Deducted at Source) on certain types of income, including rental income, interest income, and capital gains. 


Our Comprehensive NRI Taxation Services

Tax Planning and Compliance

  • We help NRIs understand their tax obligations in India and plan their investments and other financial activities accordingly to minimize tax liability. We also assist with complying with various tax regulations in India, including filing income tax returns and obtaining PAN.

Advisory Services

  • Our advisory services cover various aspects of NRI taxation, including double taxation avoidance agreements (DTAA), transfer pricing, and tax treaties between India and other countries. We ensure you comply with DTAA provisions to avoid double taxation. By complying with DTAA provisions, they would be liable to pay tax in only one country and can avail the credit if same in filing their return in the other country.
  • The above provision provides two methods –
    • EXEMPTION METHOD: under some DTAA agreements, countries try to exempt a person from paying taxes in another country in relation to common taxable income. Thus, under this method, the assessee pays tax only in one country and is exempt in the other country.
    • TAX CREDIT METHOD: the other way of providing benefit, is by giving the credit of tax payment in one country, in filing return in another country, thus, the assessee will pay tax in one country, and can claim the credit of the same at the time of filing the return in other country.

Representation before Authorities

  • Our team can represent NRIs before Indian tax authorities in case of tax disputes, appeals, or assessments. We also assist in obtaining certificates for various tax purposes, including tax residency certificates and lower tax withholding certificates.

Wealth Management

  • We offer wealth management services to NRIs, including investment advice, portfolio management, and financial planning, taking into account tax implications.

Legal Assistance

  • Our team provides legal assistance to NRIs in matters related to taxation, property registration, transfer, and sale, ensuring compliance and minimizing legal risks.

KPC Egde

Expertise and Experience: Our deep understandingof the Indian tax system and extensive experience in handling NRI taxation matters ensures that you receive the best advice and solutions tailored to your unique situation.

  • Personalized Services: We understand that every NRI has a distinct financial profile and requirements. Our team takes the time to get to know you, your financial goals, and your concerns, enabling us to offer personalized solutions that meet your needs.
  • Transparent Communication: We maintain open and transparent communication with our clients, keeping them informed of their tax obligations, potential risks, and opportunities for optimization.
  • Comprehensive Services: Our wide range of NRI taxation services, including tax planning, compliance, wealth management, and legal assistance, means that we can offer end-to-end solutions to meet all your taxation needs.
  • Confidentiality and Security: We respect the confidentiality of our clients’ financial information and employ stringent security measures to protect their sensitive data.

Frequently Asked Questions (FAQs) about NRI Taxation Services

  1. What is the tax filing deadline for NRIs in India?
  • The tax filing deadline for NRIs in India is generally the 31st of July of the assessment year, following the financial year in which the income was earned. However, if your income tax return requires an audit, the deadline may be extended to the 30th of September.
  1. How can an NRI avoid double taxation on income earned in India?
  • NRIs can avoid double taxation on income earned in India by claiming relief under the provisions of a Double Taxation Avoidance Agreement (DTAA) between India and the country where they are residents. Our team can guide you through the process of claiming relief under DTAA provisions.
  1. Can an NRI claim deductions under Section 80C of the Income Tax Act?
  • Yes, an NRI can claim deductions under Section 80C of the Income Tax Act for specific investments made in India, such as life insurance premiums, contributions to the Public Provident Fund (PPF), and investments in certain tax-saving instruments. Our tax advisers can help you identify the deductions available to you and optimize your tax savings.
  1. Are there any special provisions for NRIs to repatriate sale proceeds of assets in India?
  • Yes, NRIs are allowed to repatriate sale proceeds of assets in India, subject to certain conditions and compliance with the Foreign Exchange Management Act (FEMA) regulations. Our team can assist you with understanding these regulations and ensuring compliance while repatriating funds.

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