NRI Income Tax Return Filing & Tax Planning

5.0 - 28 Google Reviews

NRI Income Tax Return Filing & Tax Planning

NRI ITR filing in India — rental income, capital gains, dividends, interest, and DTAA benefit claims. Expert NRI tax planning by CA Ankush Garg.

As a Non-Resident Indian, your tax obligations in India depend on your residential status — which itself depends on how many days you spent in India during the financial year. Getting your residential status wrong is one of the most common and costly NRI tax mistakes — it can result in worldwide income being taxed in India when only Indian-source income should be.

AAA Global LLP provides specialist NRI income tax services — correct residential status determination, NRI ITR filing under the appropriate form, DTAA benefit claims to avoid double taxation, and year-round tax planning to minimize your overall tax burden in India.

Determining Your Residential Status

Resident and Ordinarily Resident (ROR) Stayed in India for 182+ days in the FY. Taxable on global income.
Non-Resident (NR) Stayed in India for less than 182 days (or less than 60 days under alternative test). Only Indian-source income is taxable.
Resident but Not Ordinarily Resident (RNOR) Transitional status for returning NRIs. Taxable only on Indian income and income derived from a business controlled in India.

What Income is Taxable for NRIs in India?

Rental income from property located in India — taxable at slab rates after 30% standard deduction. TDS of 30% deducted by tenant (we help you get a lower deduction certificate).

Interest income on NRO accounts — taxable at 30% (TDS deducted by bank). NRE and FCNR account interest is tax-free in India.

Capital gains on sale of property, shares, or mutual funds in India — rates depend on holding period and asset type. DTAA may reduce the tax rate.

Dividends from Indian companies — taxable at applicable slab rate (previously exempt under dividend distribution tax regime).

Salary income earned in India — taxable regardless of where the salary is received if services are rendered in India.

DTAA Benefits for NRIs

India’s Double Tax Avoidance Agreements with 90+ countries allow NRIs to claim relief from double taxation — either by exempting income in India or by taxing it at a lower treaty rate. Common DTAA benefits for NRIs:

NRI ITR Forms

Tax Planning for NRIs

Choosing the right account type NRE for parking foreign earnings (tax-free interest, fully repatriable). NRO for India-source income. FCNR for foreign currency fixed deposits.

Section 54 exemption Capital gains on property sale can be reinvested in another property within India to claim exemption — same rules as residents apply.

Lower deduction certificate Form 13 application to reduce TDS rate on rental income or property sale proceeds — avoiding cash flow issues from excess TDS deduction.

Timing of return to India Days spent in India determine residential status each year — careful planning around return visits can preserve NRI status and tax benefits.

Frequently Asked Questions

01 Does an NRI need to file ITR in India if TDS has already been deducted?

Yes — if your total Indian income exceeds Rs. 2.5 lakh (Rs. 3 lakh for 60–80 year olds), ITR filing is mandatory regardless of TDS deduction. Filing is also necessary to claim TDS refunds when more tax has been deducted than is actually due.

02 Are NRI mutual fund investments in India taxable?

Yes — capital gains on redemption of Indian mutual funds are taxable in India for NRIs. Equity mutual funds: LTCG at 12.5% (above Rs. 1.25L), STCG at 20%. Debt funds: taxed at slab rate. DTAA may reduce the rate for certain NRI investors.

03 Can an NRI claim the standard deduction on rental income?

Yes — NRIs are entitled to the 30% standard deduction on rental income (net annual value) just like resident taxpayers. After this deduction and any home loan interest, the net rental income is taxable at slab rates.

04 What documents do I need to file my NRI ITR?

Form 26AS and AIS (from Income Tax portal), bank statements for all NRO/NRE accounts, sale deed and purchase documents for property transactions, broker statement for share/MF transactions, Form 16 if earning salary in India, and proof of residential status (passport with entry/exit stamps).

05 Do I need to visit India to file my ITR?

No — NRI ITR filing is completely remote. We handle everything online — document collection by email/WhatsApp, ITR preparation, and e-filing on the Income Tax portal. The ITR-V acknowledgement is downloaded and stored digitally.

5.0 - 28 Google Reviews