CA Alok Kumar

Yes, NRIs must file ITR if their total Indian income exceeds ₹2.5 lakh (old regime) or ₹4 lakh (new regime for FY 2025-26). Filing is also mandatory to claim TDS refunds, carry forward capital losses, or if bank deposits exceed ₹1 crore. NRIs must use ITR-2 (for income without business) or ITR-3 (with business income). ITR-1 (Sahaj) is not available for NRIs. The due date is typically 31st July of the assessment year.

For long-term capital gains (property held more than 24 months), TDS is 12.5% plus surcharge and 4% cess — deducted on the full sale consideration, not just the profit. For short-term gains, TDS is at applicable slab rates (up to 30%). The buyer is responsible for deducting and depositing TDS. NRIs can apply for a Lower TDS Certificate under Section 197 to reduce excess deduction. We strongly recommend applying for this certificate before the sale to avoid cash flow issues.

Form 15CA is an online declaration filed by the remitter with the Income Tax Department before making any foreign remittance from India. Form 15CB is a Chartered Accountant's certificate certifying the nature, taxability, and DTAA applicability of the payment. Form 15CB is mandatory when remittance exceeds ₹5 lakh in a financial year. Banks will not process the transfer without these forms. The CA examines TDS compliance, applicable DTAA provisions, and issues the certificate — we handle the complete process end-to-end.

NRIs can claim lower TDS rates under the DTAA between India and their country of residence. For example, interest TDS can be reduced from 30% to 10-15% depending on the treaty. To claim DTAA benefits, NRIs must obtain a Tax Residency Certificate (TRC) from their country's tax authority and submit Form 10F to the Indian payor (bank, tenant, buyer). The DTAA rate applies only if it is more beneficial than the domestic rate. Surcharge and cess are not added to DTAA rates — a significant saving.

From NRO accounts, NRIs can repatriate up to USD 1 million per financial year after paying applicable taxes and obtaining Form 15CA/15CB from a CA. For property sale proceeds, repatriation of original investment (brought in as foreign exchange) is fully allowed; additionally, up to 2 residential properties' sale proceeds can be repatriated in a lifetime. NRE and FCNR accounts have no repatriation limits — principal and interest are freely repatriable. Interest on NRE accounts is completely tax-free in India.

RNOR (Resident but Not Ordinarily Resident) is a transitional tax status available to NRIs returning to India. An RNOR is taxed like an NRI — only on Indian income, not global income — for a period of 2-3 years after becoming a resident. This is a crucial tax planning window for returning NRIs. To qualify, the person should have been a non-resident in 9 out of 10 preceding years, or stayed in India for 729 days or less in the 7 preceding years. We help plan the transition to maximize this benefit.

No, interest earned on NRE (Non-Resident External) accounts and FCNR (Foreign Currency Non-Resident) accounts is completely tax-free in India under Section 10(4)(ii) and Section 10(15)(iv)(fa) respectively. These accounts are also fully repatriable. However, NRO (Non-Resident Ordinary) account interest is taxable at 30% plus surcharge and cess, with TDS deducted by the bank. DTAA benefits can reduce NRO interest TDS to 10-15% depending on your country of residence.

Yes, NRIs and OCIs can purchase unlimited residential and commercial properties in India without RBI approval. However, agricultural land, farmhouses, and plantation properties cannot be purchased — they can only be acquired through inheritance. Payment must be made from NRE/NRO/FCNR accounts or through banking channels. After purchase, Form IPI-7 must be filed with RBI within 90 days. Home loan is available from Indian banks with up to 80% financing. We handle the complete FEMA compliance for NRI property transactions.