NRI Taxation & Repatriation Advisory
Non-Resident Indians navigating financial assets, inheritance, real estate sales, and investments in India face complex tax provisions. We offer structured tax advisory for NRIs to ensure full compliance with the Income-tax Act, 1961 and Foreign Exchange Management Act (FEMA).
What This Service Entails
NRI taxation involves determining residential status under Section 6 of the Income-tax Act, managing TDS under Section 195 on sale of property, applying for Lower TDS Certificates (Form 13), filing NRI Income Tax Returns, reporting income from NRO bank accounts, mutual funds, and assisting in repatriation of funds through Form 15CA/CB under the RBI USD 1 Million Scheme.
Who Needs This Service?
- NRIs selling ancestral or acquired residential/commercial real estate in India
- Indian professionals relocating overseas needing residential status planning
- NRIs with rental income, pension, or mutual fund dividends originating in India
- Individuals repatriating funds from NRO accounts to overseas bank accounts
- Returning NRIs evaluating tax implications on foreign assets (RNOR status planning)
Key Benefits & Strategic Advantages
- Lower TDS Deduction Certificate (Section 197 / Form 13) preventing 20-30% TDS blockage on property sales
- Accurate capital gains computation incorporating indexation and reinvestment exemptions (Section 54, 54EC)
- Smooth repatriation of capital through compliant Form 15CA and Form 15CB certification
- Avoidance of notices for non-filing of ITR when high-value Indian transactions are executed
- Strategic planning of residency days under physical presence and citizenship rules
Step-by-Step Advisory & Execution Process
Calculating physical days in India across current and preceding 4 financial years under Section 6.
Preparing and submitting lower deduction application on TRACES prior to real estate sale.
Verifying Section 54 / 54F / 54EC capital gains bond reinvestment options.
Issuing CA certificate and assisting bank in outward remittance under FEMA limits.
Filing accurate non-resident tax return and claiming refunds of excess TDS deducted.
Required Information & Documents
- Passport copies with entry and exit stamps
- PAN Card and Overseas Residential Address proof
- Purchase and Sale deeds for real estate transactions, valuation reports
- NRO and NRE bank statements and interest certificates
- Tax Residency Certificate (TRC) from country of residence where treaty benefits are sought
Buyers purchasing property from an NRI must deduct TDS under Section 195 at the highest applicable rate (often exceeding 20% plus surcharge and cess) on the gross sale consideration unless a Lower TDS Certificate is obtained from the tax officer.
Common Pitfalls to Avoid
- Operating regular domestic savings accounts instead of converting to NRO/NRE accounts after attaining NRI status
- Selling property without obtaining a Lower TDS Certificate, resulting in massive liquidity lockup
- Failing to report capital gains on Indian mutual funds in annual income tax filings
Frequently Asked Questions
How is NRI residential status determined under Indian tax law?
An individual is generally considered a Non-Resident if they spend fewer than 182 days in India during the financial year, or fewer than 60 days (extended to 182 or 120 days depending on income and ties) where total stays in the past 4 years don't exceed 365 days. Specific deemed residency rules also apply to non-taxed citizens.
Can an NRI repatriate funds from the sale of inherited property?
Yes. Under RBI and FEMA guidelines, an NRI can repatriate up to USD 1,000,000 per financial year from their NRO account upon submitting Form 15CA and Form 15CB certified by a Chartered Accountant.
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