NRI Income Tax Return Filing in India — Rules, Obligations, and End-to-End Support
Your Indian income needs Indian compliance — done correctly from anywhere in the world
NRI income tax filing in India. Residential status, NRO/NRE account taxation, DTAA benefits, Form 67, and complete ITR support for non-resident Indians.
- 30% — TDS rate on NRO account interest — reduced via DTAA
- Section 6 — Determines your residential status for tax purposes
- Form 67 — Required before due date to claim DTAA benefits
Non-Resident Indians with Indian-sourced income — rental income from property in India, interest on NRO accounts, dividends from Indian investments, capital gains from stocks or real estate, or professional fees from Indian clients — are liable to file income tax returns in India. The rules governing NRI taxation are distinct and involve residential status determination under Section 6, DTAA benefit applications, TDS at higher rates on various income streams, and mandatory Form 67 filings for foreign tax credit claims. We handle end-to-end NRI ITR filing with full understanding of the regulatory landscape — irrespective of which country you reside in.
Related service: Tax Filing Services
Resident vs Non-Resident: What's Taxable in India
Your residential status under Section 6 decides the scope of Indian taxation
| Aspect | Resident | Non-Resident (NRI) |
|---|---|---|
| Global income | Taxable in India | Not taxable — only Indian-source income |
| Indian rental and NRO interest | Taxable | Taxable |
| NRE account interest | Taxable | Exempt under Section 10(4) |
| TDS on interest/rent | Standard rates with thresholds | Higher rates under Section 195 |
| Schedule FA disclosure | Mandatory for foreign assets | Not required |
| Section 87A rebate | Available | Not available |
Key Points to Understand
- Accurate Residential Status Determination: Tax residency in India is based on days spent in India — not citizenship or country of employment. We compute your exact residential status (Resident, NR, or RNOR) for the financial year based on your travel records, which determines what income is taxable in India.
- NRO Account Interest and TDS Management: Interest on NRO accounts is subject to 30% TDS. Under India's DTAA with countries like the US, UK, UAE, and Singapore, this rate can be reduced. We assess applicability, file Form 15G/15H where eligible, and reconcile TDS in your return.
- DTAA Benefits and Form 67 Filing: If your Indian income is also taxed in your country of residence, a Double Taxation Avoidance Agreement may allow you to claim tax credit in one country. We compute the benefit, file Form 67 before the ITR due date, and ensure the credit is correctly applied.
- Capital Gains on Indian Property or Investments: Sale of property in India by an NRI triggers capital gains taxable in India — often with high TDS by the buyer (20% for LTCG). We compute the actual gain after indexation, file for TDS refund if over-deducted, and handle the complete ITR.
- Rental Income from Indian Property: Rent received in India or credited to an NRO account is fully taxable in India. We report rental income correctly, claim deductions for municipal taxes and 30% standard deduction on property, and reconcile with TDS deducted by the tenant.
- Foreign Asset Disclosure (Schedule FA): Resident Indians (not NRIs) must disclose foreign assets and income in Schedule FA. We advise NRIs returning to India on their RNOR status and the limited foreign asset disclosure requirements applicable during the transition.
How It Works
- Determine Residential Status: Days in India are counted from your passport travel dates to classify you as Resident, Non-Resident, or RNOR under Section 6 — this decides everything downstream.
- Identify Indian-Source Income: Rental, NRO interest, dividends, capital gains, and Indian professional fees are compiled and matched against Form 26AS and AIS.
- Apply DTAA and Prepare Form 67: Where your country of residence has a DTAA with India, we assess reduced rates or foreign tax credit — filing Form 67 with your TRC before the due date.
- Compute Tax and Refund Position: High NRI TDS (30% on NRO interest, buyer TDS on property sales) is reconciled against actual liability — most NRI filings end in a refund claim.
- File and E-Verify From Anywhere: The return (usually ITR-2) is filed on the portal and e-verified remotely — no India visit needed at any step.
Who This Is For
- NRIs with Rental Income from Indian Property: Non-resident Indians who have let out their property in India and receive rent income
- NRIs with NRO Account Interest: Those with fixed deposits or savings in NRO accounts earning taxable interest in India
- NRIs Selling Indian Property or Stocks: Non-residents realising capital gains from sale of Indian real estate, shares, or mutual funds
- Returning NRIs Transitioning Residency Status: Individuals moving back to India who need to understand RNOR status and its tax implications
Complete Document Checklist
- PAN card (mandatory — apply online if not already holding one)
- Passport with travel date entries (to compute days spent in India)
- NRO/NRE account statements from Indian bank
- TDS certificates (Form 16A) from Indian income sources
- Form 26AS and AIS from the income tax portal
- Rental agreement and rent receipts for Indian property
- Capital gains details — property sale deed, purchase deed, cost of improvement
- Broker statement for Indian stock or mutual fund transactions
- Foreign tax payment proof for DTAA claim (Form 67)
- Tax Residency Certificate (TRC) from country of residence for DTAA benefit
Frequently Asked Questions
Does an NRI need to file ITR in India?
An NRI must file an ITR in India if: (a) income from Indian sources exceeds the basic exemption limit (₹2.5 lakh for general category, ₹3 lakh under new regime), or (b) there is any capital gain from Indian assets even if the amount is small, or (c) TDS has been deducted and you want a refund. Filing is also mandatory if you have Indian income above threshold even if there is no tax due.
How is rental income taxed for an NRI?
Rental income from Indian property is taxable for NRIs in India. The tenant must deduct TDS at 30% under Section 195. NRIs can claim deductions for municipal taxes paid and a standard deduction of 30% from the annual rental value. The net taxable income is then added to total Indian income.
Can an NRI claim the same deductions under 80C as a resident?
Yes, to a limited extent. NRIs can claim 80C deductions for specific investments: LIC premium, children's tuition fees, repayment of home loan principal, ELSS mutual funds, and NSC. However, PPF accounts cannot be opened by NRIs, and some other 80C instruments are restricted.
Can an NRI maintain an NRE account and is the interest taxable?
NRE (Non-Resident External) account interest is fully exempt from Indian income tax under Section 10(4) for as long as the account holder maintains NRI status. NRO account interest is taxable at 30% and subject to TDS. The distinction is important for filing.
I sold my flat in India while living abroad. The buyer deducted 20% TDS. How do I get a refund?
The buyer is required to deduct TDS at 20% (for LTCG) on the sale consideration. The actual capital gain is computed on the profit after deducting the indexed cost of acquisition and improvement. If the actual tax is lower than TDS deducted, the difference is refundable — but you must file an ITR to claim the refund.
What is a Tax Residency Certificate (TRC) and do I need it?
A TRC is a certificate issued by the tax authority of your country of residence confirming that you are a tax resident of that country. It is required when claiming DTAA benefits in India — for example, to get a reduced TDS rate on NRO interest. Without a TRC, the benefit cannot be applied.
How do I e-verify my ITR while living abroad?
Three practical routes: Aadhaar OTP (if your Aadhaar is linked to an Indian mobile number that can receive SMS), net banking login of your Indian bank account, or — if neither works — printing and signing the ITR-V and posting it to CPC Bengaluru within 30 days of filing. Most of our NRI clients e-verify through their Indian bank's net banking in minutes.
Do NRIs get the Section 87A rebate?
No. The Section 87A rebate — which makes tax effectively zero for taxable incomes up to ₹12 lakh under the new regime for FY 2025-26 — is available only to resident individuals. An NRI with the same income level pays tax from the first rupee above the basic exemption limit. This is a frequently missed difference when NRIs estimate their Indian tax using resident-oriented calculators.
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NRI Tax Filing Handled End-to-End From residential status to DTAA claims and capital gains — complete NRI ITR support, reviewed and filed on time. Book Expert Consultation or call +91 80493 67825.