VRSV and Associates

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NRI Taxation Services

NRI Property Sale in India

LOWER RATE OF TDS

15CA-15CB FORMS FOR REMITTANCES

NRI Compliances & Disclosures

NRI Investment in India Consultancy

NRI Returning to India Consultancy

Estate Planning For NRI

Double Taxation Avoidance Agreement Consultancy

Types of Bank Accounts an NRI can open

Frequently Asked Questions

NRI Investment in India Consultancy

India’s rapid industrial growth and diverse investment opportunities have made it an attractive destination for Non-Resident Indian (NRI) investors. With sectors like Real Estate, Equities, Mutual Funds, Fixed Deposits, and Debt Funds offering lucrative returns, India is emerging as a profitable market for NRIs seeking wealth creation.

At VSRV and Associates, we understand the unique challenges NRIs face while managing investments, capital, and banking services from abroad. Our expert team provides personalized financial advice, helping clients choose investment products that align with their portfolios and long-term financial goals.

Our NRI Investment Services Include:

  • Real Estate Advisory: End-to-end assistance in the sale and purchase of properties, ensuring informed decisions and maximum returns on investments.
  • Strategic Partnerships: Collaborations with trusted underwriters and financial institutions to offer customized investment deals tailored to client needs.
  • Tax Advisory: Expert advice on the tax implications of investment options like Mutual Funds, Fixed Deposits, National Pension System (NPS), Public Provident Fund (PPF), and other tax-saving instruments.
  • Compliance Services: Assistance with regulatory disclosures such as FATCA, FINCEN, CRS, and WDF, ensuring seamless compliance with global tax laws.
  • Recovery Services: Support in reclaiming unclaimed shares, fixed deposit receipts (FDRs), and other lost financial assets.

At VSRV and Associates, we are committed to providing comprehensive, reliable, and transparent services that empower our NRI clients to make the most of their investments in India.

NRI Compliances & Disclosures

At VSRV and Associates, we offer comprehensive financial, legal, and regulatory services to Non-Resident Indians (NRIs), ensuring compliance with both Indian and international disclosure requirements. Our expert team assists clients in meeting various mandatory reporting obligations to maintain transparency, protect their interests, and adhere to regulatory frameworks.

FATCA/CRS Compliance

The Foreign Account Tax Compliance Act (FATCA) was introduced by the US government to prevent tax evasion by US citizens holding financial assets outside the country. India signed an Inter-Government Agreement (IGA) with the USA in 2015 to enforce FATCA regulations.

Any NRI residing in the USA or investing in Indian assets must comply with FATCA by providing self-declarations regarding their financial investments. This ensures transparency in cross-border transactions. Additionally, under Common Reporting Standard (CRS) rules, financial institutions are required to report information on non-resident account holders to the respective tax authorities.

Our team helps NRIs comply with:

  • FATCA self-declarations
  • Form 61B filing as per Rules 114F and 114H of the Income Tax Rules, 1962
  • Assisting with documentation for CRS compliance
  • End-to-end advisory and submission of FATCA and CRS disclosures

Worldwide Disclosure Facility (WDF)

The Worldwide Disclosure Facility (WDF) is a UK-based initiative allowing individuals to disclose tax liabilities related to offshore income or gains. It applies to any NRI who needs to report undisclosed UK taxes for income or capital gains earned abroad.

Though WDF does not offer concessional terms, timely disclosure helps avoid hefty penalties and legal consequences.

We assist clients with:

  • Assessing offshore tax liabilities
  • Preparing WDF disclosure reports
  • Submission of documentation to the relevant UK tax authorities
Lower Rate of TDS Services

Lower/NIL TDS for NRIs Selling Property in India

 

Under the provisions of Section 195 of the Income Tax Act, the sale of property in India by Non-Resident Indians (NRIs), Overseas Citizens of India (OCI), or Foreign Residents is subject to Tax Deducted at Source (TDS).

 

The applicable TDS rates are:

 

  • 20% of Sale Consideration for long-term capital assets (property held for more than 2 years)
  • 30% of Sale Consideration for short-term capital assets (property held for less than 2 years)

However, in most cases, the actual tax liability of the seller is significantly lower than the TDS amount, resulting in unnecessary blocking of funds with the income tax department. To address this, Section 197 of the Income Tax Act allows the seller to apply for a Lower/NIL TDS Certificate, enabling TDS deductions at a reduced rate based on the actual tax liability.

The certificate can be obtained by filing Form 13 online with the jurisdictional Income Tax Officer, along with the necessary documents.

 

Our Services Include:

  •  Preparation and filing of applications for Lower/NIL TDS Certificates
  •  Advisory on applicable lower TDS rates
  • Assistance in obtaining TDS exemption certificates under Section 197
  • Compliance support for NRIs purchasing property in India
  • Liaising with Income Tax Authorities
  • End-to-end guidance on TDS matters
15CA-15CB Forms for Remittances

CA Certificates for Remittance of Funds Outside India

 

At VSRV and Associates, we offer comprehensive assistance in filing Form 15CA and Form 15CB, which are essential for remitting money from India to non-residents or foreign entities.

 

What are Form 15CA and 15CB?

 

  • Form 15CA:  A declaration form submitted by the remitter (person making payment) to the authorized bank before making a payment to a non-resident. It contains:
  • Remitter’s details
  • Beneficiary’s details
  • Purpose of remittance
  • Amount of remittance
  • Tax Deducted at Source (TDS), if applicable
  • Form 15CB:  A certificate issued by a Chartered Accountant verifying that the payment is in accordance with the Income Tax Act, 1961 and the applicable Double Taxation Avoidance Agreement (DTAA). This certificate confirms:
  • Whether the payment is taxable in India
  • The applicable tax rate
  • Compliance with all regulatory requirements

Foreign Remittance Declaration (Form A2)

 

Form A2 is a mandatory document submitted to the authorized dealer (bank or financial institution) under the Foreign Exchange Management Act (FEMA) for any outward remittance of foreign exchange.

 

NRIs can repatriate up to USD 1 million per calendar year from their NRO accounts, provided they have paid applicable taxes.

 

Our Services Include:

  • Preparation and filing of Form 15CA & 15CB
  • Advisory on the correct TDS rates under DTAA
  •  Assistance in remitting funds from NRO to NRE Accounts
  • Help with remittances from NRO to Overseas Accounts
  •  FEMA Compliance Services
  • End-to-end support for foreign remittances
NRI Taxation Services

Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO) often have financial ties to India through properties, investments, businesses, or bank accounts. Understanding the tax implications on these assets under Indian tax laws is crucial.

 

At Atul Mangal & Co., we have been trusted partners in NRI Tax Planning Services for over two decades, offering personalized tax advisory services to help NRIs achieve their financial goals while ensuring full compliance with Indian tax regulations.

 

Why Choose Our NRI Taxation Services?

  • 20+ Years of Experience
  •  Expertise in Indian and International Tax Laws
  •  Personalized Tax Solutions
  •  Transparent Process
  •  Hassle-Free Documentation

Our NRI Taxation Services Include:

 

1. Income Tax Return Filing

  • Filing of Income Tax Returns for NRIs and OCIs
  • Claiming tax refunds on excess TDS deductions
  • Assistance in calculating capital gains tax on property sales

2. Capital Gains Tax Advisory

  • Expert guidance on Capital Gains Tax arising from the sale of property in India
  • Tax exemptions under Sections 54, 54F, and 54EC
  • Strategic tax planning to reduce tax liabilities

3. Double Taxation Avoidance Agreement (DTAA)

  • Advisory services to avoid double taxation
  • Assistance in claiming tax relief under DTAA agreements between India and other countries

4. Remittance Assistance

  • Advisory on remittances in and out of India
  • Certification services under FEMA
  • Assistance with Form 15CA & 15CB filing
  • Repatriation of up to USD 1 million per calendar year

5. Investment & Tax Planning

  • Investment advisory for tax-saving options under Section 80C
    • Public Provident Fund (PPF)
    • Life Insurance Policies
    • Fixed Deposits
    • Home Loan Repayment
  • Tax optimization strategies for NRIs

6. Representation Services

 

  • Representation before Income Tax Authorities
  • Handling income tax notices and scrutiny assessments
  • Appeals with CIT (A) and other appellate authorities

7. Allied Services

  • Application of PAN Card & TAN
  • Advance Tax Planning
  • Housing Loan Advisory
  • Investment Planning
  • Compliance with FEMA Regulations

Our Commitment

 

With a dedicated team of NRI tax experts, we ensure that your tax matters are handled with the highest level of professionalism and confidentiality, helping you achieve tax efficiency while complying with all legal requirements.

Reach out to Atul Mangal & Co. today and let our expertise guide you in managing your NRI taxation needs effortlessly!

 

 

NRI Property Sale in India

The Indian real estate market, particularly in growing cities, presents lucrative investment opportunities for both Resident Indians and NRIs. Many NRIs own residential and commercial properties in India for various purposes, including investment. However, selling property in India as an NRI comes with a unique set of rules, regulations, and taxation implications, making the process complex.

 

At CA Atul Mangal & Co., we specialize in providing comprehensive NRI Property Sale Services in India, offering personalized solutions to NRIs and individuals residing outside India to ensure seamless property transactions while meeting all legal and taxation requirements.

 

Why Choose Us for NRI Property Sale Services?

 

  • Act as the Authorised Representative for NRIs during the property sale registration process.
  • Assistance in Title Transfer of the property to the NRI’s name if not already done.
  • Documentation support, including drafting and reviewing agreements and preserving crucial documents.
  • Help in opening NRI Bank Accounts required to receive sale proceeds.
  • Aid buyers in meeting necessary compliance requirements for property purchases from NRIs.

Specialised Solutions for Different Scenarios

 

  • Sale of Property by NRI to another NRI
  • Sale of Property acquired by Inheritance
  • Sale of Property received as Gift
  • Sale of Agricultural Land or Farmhouse

Taxation on Property Sale by NRIs

 

Capital Gains Tax Calculation

 

  • Long Term Capital Gain (LTCG): Property held for more than 2 years, taxed at 20%.
  • Short Term Capital Gain (STCG): Property held for 2 years or less, taxed as per the applicable Income Tax Slab Rates.

Lower/NIL TDS Certificate for NRI Property Sale

Under Section 195 of the Income Tax Act, TDS on the sale of property by NRIs is deducted as follows:

  • 20% on LTCG
  • 30% on STCG
  •  

However, the actual tax liability is often lower than the TDS amount. To avoid excessive TDS deductions, we help NRIs obtain a Lower/NIL TDS Certificate (Form 13) from the Income Tax Department under Section 197.

 

Claiming TDS Refund

If the NRI is unable to obtain a Lower/NIL TDS Certificate, they can still claim a Refund of the excess TDS amount by filing an Income Tax Return (ITR) in India. Our team assists in computing tax liability and filing ITR to maximize refunds.

 

Tax Exemption Options for NRIs

Section 54

  • Exemption on LTCG from the sale of residential property if invested in:
    • Another residential property within 2 years of sale
    • Constructing a new property within 3 years

Section 54EC

  • Exemption on LTCG by investing in capital gain bonds from:
    • National Highway Authority of India (NHAI)
    • Rural Electrification Corporation (REC)
    • Power Finance Corporation Ltd. (PFC)

Section 54F

  • Exemption on LTCG from any capital asset other than residential property if the entire sale proceeds are invested in:
    • Residential property within 2 years or
    • Construction within 3 years

Remittance of Funds Outside India

 

NRIs can repatriate sale proceeds up to USD 1 million per financial year after paying applicable taxes. We assist in obtaining the required CA Certificates (Form 15CA & 15CB) to facilitate seamless remittance of funds.

 

Our Services Include:

  • Lower/NIL TDS Certificate Application
  • Capital Gains Tax Computation
  • Assistance in Title Transfers
  • Documentation & Compliance
  • Tax Planning & Exemption Advisory
  • Filing of Income Tax Returns
  • Remittance Certifications (Form 15CA & 15CB)
  • Representation before Tax Authorities

Let Us Simplify Your NRI Property Sale in India

 

At CA Atul Mangal & Co., our team of expert NRI tax consultants ensures a smooth property sale process while optimizing your tax liabilities. With more than two decades of experience, we provide end-to-end solutions to meet your financial goals.

  • Transparent Process
  •  Expert Advisory
  •  Personalised Solutions
  •  Hassle-Free Documentation

Contact us today to discuss your NRI property sale requirements

 

 

NRI Returning to India Consultancy

Indian citizens often move abroad for employment, becoming Non-Resident Indians (NRIs), and some acquire foreign citizenship, becoming Persons of Indian Origin (PIOs) or Overseas Citizens of India (OCIs). Many of these individuals, or their children, eventually plan to return to India due to personal, professional, or financial reasons. Returning to India involves several legal, tax, and financial implications, making it essential to comply with Indian regulations regarding Income Tax and Foreign Exchange

 

Laws.

 

At CA Atul Mangal & Co., we provide comprehensive NRI Returning to India Consultancy Services to ensure a seamless transition while minimizing tax liabilities and ensuring regulatory compliance.

 

Our Services for NRIs Returning to India

 

1. Pre-Return Tax Planning

  • Strategically plan the date and month of return to optimize tax residency status and minimize tax liability in the year of return (April to March).
  • Evaluate residential status under the Income Tax Act, 1961 and Foreign Exchange Management Act (FEMA) to determine applicable tax rates.

2. Bank Account Conversion

  • Conversion of NRE (Non-Resident External) and NRO (Non-Resident Ordinary) deposits into Resident Accounts.
  • Re-designation of FCNR (Foreign Currency Non-Resident) accounts to Resident Foreign Currency (RFC) accounts.
  • Assistance in opening Resident Foreign Currency (RFC) accounts for holding foreign income in foreign currency without converting to Indian Rupees.

3. Foreign Asset Repatriation

  • Guidance on repatriation of foreign assets and investments to India while complying with FEMA regulations.
  • Tax-efficient re-investment options for sale proceeds of foreign properties or assets.
  • Compliance with the Liberalised Remittance Scheme (LRS) and Foreign Exchange Laws.

4. Income Tax Compliance

  • Application for Permanent Account Number (PAN) if not already available.
  • Assistance in filing Income Tax Returns in India, including reporting of foreign assets and income.
  • Tax planning for income arising from:
    • Foreign pensions
    • Investments
    • Property rental income
    • Capital gains

5. Wealth & Investment Advisory

  • Reinvestment of proceeds from foreign asset sales into Indian investment options like Fixed Deposits, Mutual Funds, Real Estate, or other financial instruments.
  • Tax-efficient investment planning under Section 54 and Section 54EC.
  • Guidance on Double Taxation Avoidance Agreements (DTAA) between India and other countries.

Why Choose Us?

 

  • Personalized Tax & Investment Advisory
  •  Seamless Bank Account Conversion Process
  •  Expert Guidance on FEMA and Income Tax Act
  •  Assistance in Tax Compliance and Documentation
  •  Hassle-Free Repatriation and Investment Services

Documents Required for NRI Returning to India Services

  • Copy of Passport & Visa
  • Proof of Address in India
  • PAN Card
  • Bank Account Statements
  • Foreign Asset Details
  • Income Tax Returns from Abroad (if applicable)
  • Investment Portfolio

Start Your Journey Back to India with Confidence!

 

With CA Atul Mangal & Co., we ensure that your transition to India is financially and legally smooth. Let our expert team guide you through tax planning, asset management, and regulatory compliance.

 

Contact us today to discuss your personalized consultancy requirements!

Estate Planning for NRI

Estate planning is an essential yet often overlooked aspect of financial management, especially among Non-Resident Indians (NRIs). Studies show that over 82% of individuals do not have a professionally written will, mistakenly believing that estate planning is only for the wealthy. However, estate planning is crucial for ensuring that your hard-earned assets are distributed according to your wishes, minimizing legal complications and tax liabilities.

 

For NRIs, estate planning can be even more complex due to assets spread across multiple countries, making it vital to seek expert advice to avoid legal disputes and unnecessary delays.

 

What is Estate Planning?

 

Estate Planning is the process of legally structuring the transfer of your assets to your loved ones or chosen beneficiaries. It ensures that your wealth is distributed in the desired manner without unnecessary legal hurdles or tax burdens. Proper estate planning also helps eliminate uncertainties in the administration of a will, maximizes the value of your estate, and reduces taxes and other expenses.

 

Why is Estate Planning Important for NRIs?

 
  • Assets spread across India and abroad
  • Complex laws governing inheritance, taxation, and foreign assets
  • Legal formalities related to probate and succession certificates
  • Minimize tax liabilities on assets in both countries
  • Protection of minor children or special needs dependents

Our Estate Planning Services

 

1. Estate Planning Drafting & Reviewing

 

We help draft, redraft, and review various estate planning documents, ensuring that they align with your current financial position and future requirements.

 

Our Drafting Services Include:

 

  • Individual Will – A personalized will to outline how your assets will be distributed.
  • Couple Will – Joint will for spouses to ensure seamless asset transfer.
  • Family Trust Deed – For setting up family trusts to protect wealth and avoid legal complications.
  • Family Settlement Agreement – To avoid family disputes and distribute family wealth smoothly.
  • Trust Deed for Special Children/Minors – To secure the future of dependents with special needs or minor children.

2. Property Matters Drafting Services

 

Legal documentation for the smooth transfer of properties to the intended beneficiaries.

 

Drafting Services Include:

 

  • General Power of Attorney (POA)
  • Special Power of Attorney (POA)
  • Release Deed
  • Gift Deed

3. Advisory Services

 

Our experts provide comprehensive advisory services to simplify the estate planning process:

  • Advisory on Gift Compliances
  • Bereavement Advisory Services – Assistance for families dealing with the demise of a person without a will.
  • Succession Advisory Services for both Business and Personal Assets.

NRI Taxation & Compliance Support

 

We offer personalized services to help NRIs navigate the complex taxation laws governing their wealth in India and abroad. Our experts ensure complete compliance with Indian regulations and provide tax-efficient solutions.

 

 

Why Choose Us?

  •  
  •  Personalized Consultation
  •  Expert Legal Drafting
  •  End-to-End Estate Planning Services
  •  In-Depth Knowledge of Indian & International Tax Laws
  •  Hassle-Free Documentation & Advisory Services

Secure Your Legacy with Confidence

 

Don’t leave your family’s future to chance. Let CA Atul Mangal & Co. guide you through the complexities of estate planning, ensuring your wealth is protected and distributed according to your wishes.

 

 

Contact us today for a personalized estate planning consultation!

Double Taxation Avoidance Agreement (DTAA) Consultancy

International taxation can be complex, especially for Non-Resident Indians (NRIs) and Multinational Clients who earn income in more than one country. One of the most common challenges faced is Double Taxation, where the same income is taxed both in the country where it is earned (Source Country) and in the country where the individual resides (Residence Country).

 

For instance, if an NRI resides in the USA but earns rental income or interest from fixed deposits in India, they might be required to pay taxes on that income in both countries.

 

What is Double Taxation Avoidance Agreement (DTAA)?

 

The Double Taxation Avoidance Agreement (DTAA) is a treaty signed between two countries to provide relief to taxpayers from paying tax on the same income twice. The primary objective of the agreement is to:

 

  • Promote cross-border trade and investment
  • Eliminate tax barriers
  • Provide clarity on tax liabilities
  • Avoid fiscal evasion

How Does DTAA Work?

 

DTAA helps prevent double taxation through the following methods:

 

  1. Exclusive Right to Taxation
    One country is given the exclusive right to tax certain types of income, such as pensions or property income.

  2. Tax Limitation
    Both countries can tax the income, but a limit is placed on the rate of tax applied by the source country.

  3. Tax Credit
    The residence country provides credit for the taxes paid in the source country, reducing the overall tax liability.

Types of Income Covered Under DTAA

 
  • Salary Income
  • Interest Income
  • Dividend Income
  • Rental Income
  • Capital Gains
  • Royalties
  • Business Profits
  • Pensions

Our DTAA Consultancy Services

 

We at CA Atul Mangal & Co. offer comprehensive DTAA advisory and tax compliance services for both Indian and multinational clients, including NRIs.

 

Our Services Include:

  •  DTAA Interpretation & Advisory
  •  Tax Residency Certificate (TRC) Assistance
  •  Filing Tax Returns in India & Overseas
  •  Tax Credit Claim Filing
  •  Lower Tax Deduction Certificate Assistance (Form 13)
  •  Representation before Tax Authorities
  •  Cross-Border Tax Planning

 

Why Choose Us?

 

Deep understanding of Indian & International Taxation Laws

  • Personalized tax advisory based on your income sources
  • Assistance in obtaining Tax Residency Certificate (TRC)
  • Expert guidance on DTAA provisions across multiple countries
  • Timely and hassle-free tax compliance

Simplify Your Cross-Border Taxation with Experts

 

Don’t let double taxation impact your hard-earned income. Trust CA Atul Mangal & Co. to help you navigate DTAA provisions and maximize your tax savings.

 

Contact us today for a consultation on DTAA services!

 

 

 

 
 
Types of Bank Accounts an NRI Can Open

Non-Resident Indians (NRIs) can open and maintain different types of bank accounts in India with authorized banks that deal in foreign exchange. These accounts are designed to facilitate seamless transactions while complying with foreign exchange laws.

 

Below are the three primary types of NRI bank accounts:

 

1. Non-Resident (Ordinary) Rupee Account – NRO Account

 

The NRO Account is for managing income earned in India such as rent, dividends, pensions, or any other Indian-based earnings.

 

Key Features:

 
  • Can be opened as Savings, Current, Recurring, or Fixed Deposit Accounts
  • Allows joint holding with another NRI or Resident Indian
  • Interest is repatriable after payment of applicable taxes
  • Principal amount is not freely repatriable (except for current income like rent or dividends, after tax deductions)
  • Exposed to INR currency fluctuations

2. Non-Resident (External) Rupee Account – NRE Account

 

The NRE Account is for managing income earned outside India that is freely repatriable.

 

Key Features:

 
  • Can be opened as Savings, Current, Recurring, or Fixed Deposit Accounts
  • Joint account allowed with another NRI (not with Resident Indian)
  • Both Principal and Interest amounts are freely repatriable
  • Exposed to INR currency fluctuations
  • Tax-Free Interest in India

3. Foreign Currency Non-Resident (Bank) Account – FCNR (B) Account

 

The FCNR (B) Account is for NRIs who wish to maintain their deposits in foreign currency to avoid currency fluctuation risks.

 

Key Features:

 
  • Only Fixed Deposit Accounts
  • Joint account allowed with another NRI (not with Resident Indian)
  • Both Principal and Interest are freely repatriable
  • Protected against INR currency fluctuations
  • Interest is tax-free in India
  • Tenure ranges from 1 to 3 years

Comparison Table of NRI Bank Accounts

 
ParticularsFCNR (B) AccountNRE AccountNRO Account
Joint Account (Two NRIs)PermittedPermittedPermitted
Joint Account with Resident IndianNot PermittedNot PermittedPermitted
Currency DenominationForeign CurrencyIndian RupeesIndian Rupees
Repatriability (Principal)Freely RepatriableFreely RepatriableNot Repatriable (except current income)
Repatriability (Interest)Freely RepatriableFreely RepatriableFreely Repatriable
Foreign Currency RiskNo RiskHigh RiskHigh Risk
Type of AccountsFixed Deposit OnlySavings, Current, Fixed DepositSavings, Current, Fixed Deposit
Tax on InterestTax-FreeTax-FreeTaxable

 

Loan Facilities Against NRI Accounts

Loan TypeFCNR (B) AccountNRE AccountNRO Account
Rupee Loans in IndiaPermittedPermittedPermitted
Foreign Currency Loans Outside IndiaPermittedPermittedNot Permitted

Our Services for NRI Bank Accounts

 

At CA Atul Mangal & Co., we offer comprehensive consultancy services for:

  • Guidance on selecting the right type of bank account
  •  Assistance in account opening procedures
  •  Taxation advisory on interest earned
  •  Repatriation of funds
  •  Conversion of existing accounts into NRO/NRE Accounts
  •  Compliance with RBI regulations

Simplify Your NRI Banking Needs with Us!

 

We ensure that your financial needs are met with personalized and hassle-free services.

 

Get in touch with us today!
Let us help you navigate your NRI banking and taxation requirements.

Frequently Asked Questions

The Income Tax Act classifies individuals as:

  • Resident in India

  • Resident and Ordinarily Resident (ROR): Taxable on global income.

  • Resident but Not Ordinarily Resident (RNOR): Taxable only on Indian income.

  • Non-Resident (NR): Taxable only on income earned in India.

We assist in determining your residential status and tax planning.

An individual is Resident in India if they meet any one of the following:

  • Stayed in India for 182 days or more in the relevant year.
  • Stayed in India for 365 days or more in the last 4 years and 60 days or more in the relevant year.

Exceptions (182 days rule only):

  • Indian citizens leaving India for employment or as crew of an Indian ship.
  • Indian citizens or Persons of Indian Origin visiting India.

If such individuals earn more than ₹15 lakhs (excluding foreign income), they will be considered resident if they stayed:

  • 182 days or more in the relevant year, or
  • 120 days or more in the relevant year + 365 days or more in the last 4 years.

You are considered an NRI if you do not satisfy any of the conditions for being a resident of India.

A person is RNOR if they meet any of the following conditions:

  • Non-resident in 9 out of the last 10 years.
  • Stayed in India for 729 days or less in the last 7 years.
  • Indian citizen or PIO with income (excluding foreign sources) over ₹15 lakh and stayed in India for more than 120 days but less than 182 days.
  • An Indian citizen deemed resident under Section 6(1A).

If none of these apply, the person is considered Resident and Ordinarily Resident (ROR).

A PIO is a foreign citizen (excluding those from Bangladesh, Pakistan, or other specified countries) who:

  • Ever held an Indian Passport.
  • Has a parent or grandparent who was an Indian citizen under the Constitution of India or the Citizenship Act, 1955.
  • Is a spouse of an Indian citizen or PIO.

An OCI is a foreign national who:

  • Was eligible to become an Indian citizen on 26th January 1950.
  • Was an Indian citizen at any time after 26th January 1950.
  • Belonged to a territory that became part of India after 15th August 1947.

Minor children of such persons are also eligible. However, former citizens of Pakistan or Bangladesh are not eligible.

An Indian citizen with total income exceeding ₹15 lakhs (excluding foreign income) is considered a Deemed Resident if they are not liable to pay tax in any other country due to domicile, residence, or similar criteria.

However, this does not apply if the person is already a Resident of India under section 6(1).

An NRI must file an income tax return in India if their gross total income in India exceeds ₹2.5 lakh in a financial year. The due date for filing is 31st July of the assessment year or as extended by the government.

An NRI’s income tax in India depends on their residential status:

  • If Resident, global income is taxable in India.
  • If NRI, only income earned or accrued in India is taxable, such as:
    • Salary received in India or for services in India
    • Income from property in India
    • Capital gains on Indian assets
    • Interest on savings and fixed deposits

✅ Interest on NRE and FCNR accounts is tax-free.
❌ Interest on NRO accounts is taxable.

  • Residents: Taxed on their global income (income earned in India and abroad).
  • Non-Residents (NRIs): Taxed only on income earned in India or from Indian sources/activities.
  • You can authorize someone through a Power of Attorney (POA) to file your return. Attach a copy of the POA with the return.
  • Before leaving India, close all savings bank accounts or convert them into NRO accounts to manage income earned in India like rent, dividends, or pension. Some banks allow re-designation of accounts into NRE accounts as well.

  • Yes, DTAA (Double Tax Avoidance Agreement) prevents double taxation on income earned in one country and taxed in both. It ensures you don't pay taxes twice on the same income. Check if your destination country has a DTAA with India.

  • Yes, if an NRI's tax liability exceeds ₹10,000 in a financial year, they must pay advance tax. Failure to pay will attract interest under Section 234B and Section 234C.

  • NRIs/OCIs can pay for immovable property (excluding agricultural land, plantation property, or farmhouses) using:

    • Funds received through inward remittance via normal banking channels.
    • Debit from NRE, FCNR (B), or NRO accounts.

    Payments cannot be made using traveller’s cheques, foreign currency notes, or any other method not specified.

  • NRIs can avail loans such as:

    • Housing Loan
    • Car Loan
    • Rupee Loan against NRO, NRE, and FCNR (B) fixed deposits
    • Foreign Currency Loan against FCNR (B) accounts
    • Loan against shares, securities, or immovable property
    • Rupee Loan against assets other than shares and immovable property

  • No, there is no limit on the number of beneficiaries or amount NRIs can remit to India. However, restrictions may apply in the NRI's country of residence.

  • Funds are fully repatriable if the account holder regains NRI status. For RNOR or resident Indian status, repatriation follows resident Indian regulations.

Funds that can be deposited in an NRO account include:

  • Transfers from Resident Indian, NRE, NRO, or FCNR (B) accounts
  • Fresh remittances from abroad through banking channels
  • Personal cheques drawn on foreign accounts
  • Foreign currency or traveller's cheques (above USD 5000 or USD 10,000 require a Currency Declaration Form)
  • Interest, dividends, and maturity proceeds of non-repatriable investments made in India
 

The following table highlights the tax incidence for different residential statuses:

Nature of IncomeROR (*)RNOR (*)NR (*)
Income which accrues or arises in IndiaTaxedTaxedTaxed
Income which is deemed to accrue or arise in IndiaTaxedTaxedTaxed
Income which is received in IndiaTaxedTaxedTaxed
Income which is deemed to be received in IndiaTaxedTaxedTaxed
Income accruing outside India from a business controlled from India or from a profession set up in IndiaTaxedTaxedNot taxed
Income other than above (i.e., income which has no relation with India)TaxedNot taxedNot taxed

Note:

  • ROR: Resident and Ordinarily Resident
  • RNOR: Resident but Not Ordinarily Resident
  • NR: Non-Resident

We offer personalized NRI taxation services with 20+ years of expertise in handling Non-Resident clients.

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