Do NRIs have to file an income tax return in India?

Only if you have taxable Indian-source income, or if you want to claim a refund of TDS deducted, or you fall under specific higher-value transaction thresholds.

How is TDS different for NRIs selling property?

Buyers must deduct TDS at a much higher rate on the full sale value for NRI sellers, compared to resident sellers, unless a lower-TDS certificate is obtained in advance.

It's relief under a tax treaty between India and your country of residence that prevents the same income from being taxed twice - either by exemption or a foreign tax credit.

No. NRIs must use ITR-2 or ITR-3 depending on the nature of their income, even for straightforward cases.

What documents does a lower-TDS certificate application need?

Typically the sale agreement, purchase cost details, PAN, and computation of capital gains - we prepare the Form 13 application from these.

Is interest on an NRE account taxable in India?

Generally no, NRE account interest is tax-exempt for NRIs, while NRO account interest is taxable.

Do you have an office for NRI clients to visit?

No. NRI tax filing and advisory is coordinated fully online given that clients are typically based outside India; any authority-specific physical step, if required, is flagged before filing.

How long does a lower-TDS certificate take?

Timelines depend on the Assessing Officer's workload and document readiness; we share an estimated timeline after reviewing your case.

Service

NRI Tax Consultant India

NRI tax filing and advisory - Indian-income ITR, DTAA relief, lower-TDS certificates, and NRO/NRE repatriation guidance. Coordinated online with CA support.

Indian Tax Compliance for NRIs

NRI tax filing and advisory - Indian-income ITR, DTAA relief, lower-TDS certificates, and NRO/NRE repatriation guidance. Coordinated online with CA support.

Tax filing and advisory for NRIs - Indian income tax returns, DTAA relief, TDS on property sale, and repatriation guidance handled entirely online.

Indian income tax for NRIs, done right. Residential status checks, ITR filing, DTAA relief, and lower-TDS certificates for property sales - coordinated online.

Once you become a Non-Resident Indian, your Indian tax obligations don't disappear - they narrow. NRIs are taxed in India only on Indian-source income: rent from property, capital gains on shares or real estate, interest on NRO accounts, and any salary or professional income earned in India. Foreign income (salary abroad, foreign bank interest) is outside the scope of Indian tax for a genuine NRI.

The two situations that trip up most NRIs are selling property in India, where the buyer must deduct TDS at a high default rate unless a lower-TDS certificate is obtained in advance, and double taxation, where the same income gets taxed both in India and the country of residence unless relief is claimed under the relevant Double Taxation Avoidance Agreement (DTAA).

QuickTaxperts coordinates NRI tax filings and advisory online - residential status checks, ITR filing for Indian income, DTAA and Foreign Tax Credit claims, and lower-TDS certificate applications for property transactions.

Category: Taxation
Residential status depends on days spent in India, not citizenship or passport.
TDS on NRI property sale is typically deducted at a much higher rate than for resident sellers unless a Form 13 certificate is in place.
DTAA relief requires a Tax Residency Certificate from your country of residence.
NRIs cannot file the simplified ITR-1; NRO/NRE account interest is reported separately.
Residential status determination (Resident / NRI / RNOR) for the financial year
ITR filing for Indian-source income - rent, capital gains, interest, salary
DTAA relief and Foreign Tax Credit to avoid double taxation
Lower/nil TDS certificate (Form 13) for NRI property sales

Getting Residential Status Right

The starting point for every NRI tax question.

Day-Count Test: Based on days spent in India during the financial year and the preceding years, not on visa or citizenship status.
RNOR Transition: Returning Indians often qualify for Resident but Not Ordinarily Resident status, which keeps some foreign income out of Indian tax for a limited period.
Scope of Income: Once status is confirmed, we map exactly which income streams are taxable in India and which aren't.
Bank Account Classification: Guidance on re-designating resident accounts to NRO/NRE as required under FEMA once NRI status is confirmed.

TDS on Sale of Property by NRIs

The step most NRIs miss until the buyer asks for it.

Default TDS Rate: Buyers must deduct TDS at a significantly higher rate on payments to NRI sellers compared to resident sellers, on the full sale value.
Form 13 Application: Applying for a lower or nil TDS certificate from the Assessing Officer based on the actual capital gain, before the sale closes.
Repatriation Support: Guidance on moving sale proceeds abroad through an NRO account, including the CA certificate (Form 15CB) required by the bank.
Capital Gains Planning: Reviewing exemption options (Section 54/54EC) that can reduce the tax and TDS burden on the sale.

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

What NRIs Typically Need: Passport and visa copies to establish days spent in India.; PAN card and overseas address proof.; NRO/NRE bank account statements for the financial year.; Property purchase and sale deeds, if applicable.; Tax Residency Certificate from the country of residence (for DTAA relief).; Form 26AS / AIS showing tax already deducted in India.

Process and timeline

Status Check: Confirming residential status for the relevant financial year based on your travel history.
Income Mapping: Identifying all Indian-source income and the applicable DTAA relief or exemptions.
Certificate Application: Filing Form 13 for a lower-TDS certificate where a property or high-value transaction is involved.
Return Filing: Preparing and filing the ITR with foreign tax credit and treaty relief correctly claimed.
Repatriation Guidance: Coordinating the CA certification (15CA/15CB) your bank needs to remit funds abroad.

Expert review

NRI Tax Consultant India content is reviewed by QuickTaxperts Tax Team, NRI Taxation Specialists.

Checklist-led review
Document pre-verification
Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

Do NRIs have to file an income tax return in India?: Only if you have taxable Indian-source income, or if you want to claim a refund of TDS deducted, or you fall under specific higher-value transaction thresholds.
How is TDS different for NRIs selling property?: Buyers must deduct TDS at a much higher rate on the full sale value for NRI sellers, compared to resident sellers, unless a lower-TDS certificate is obtained in advance.
What is DTAA relief?: It's relief under a tax treaty between India and your country of residence that prevents the same income from being taxed twice - either by exemption or a foreign tax credit.
Can NRIs use ITR-1?: No. NRIs must use ITR-2 or ITR-3 depending on the nature of their income, even for straightforward cases.
What documents does a lower-TDS certificate application need?: Typically the sale agreement, purchase cost details, PAN, and computation of capital gains - we prepare the Form 13 application from these.
Is interest on an NRE account taxable in India?: Generally no, NRE account interest is tax-exempt for NRIs, while NRO account interest is taxable.
Do you have an office for NRI clients to visit?: No. NRI tax filing and advisory is coordinated fully online given that clients are typically based outside India; any authority-specific physical step, if required, is flagged before filing.
How long does a lower-TDS certificate take?: Timelines depend on the Assessing Officer's workload and document readiness; we share an estimated timeline after reviewing your case.