What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Assessment of an NRI’s Indian Income Tax position.
- Assistance with determining applicable residential status and tax reporting requirements.
- Accurate reporting of Indian-source income and applicable tax deductions.
- Assistance with NRI ITR filing and tax computation.
- Support for property transactions, rental income, and capital gains taxation.
- TDS and tax planning support for NRI-related transactions.
- Guidance on applicable tax treaty considerations where relevant.
- Better management of India-specific tax compliance from overseas.
How the engagement works
NRI taxation is governed by the applicable provisions of the Income-tax Act, 1961, including provisions relating to residential status, scope of taxable income, withholding tax, capital gains, income from house property, and other relevant sources of income. Where applicable, the provisions of a Double Taxation Avoidance Agreement (DTAA) may also be relevant, subject to eligibility, documentation, and treaty conditions. The tax treatment depends on the individual’s residential status, source and nature of income, transactions, and other facts for the relevant financial year.
Scenario 1: An NRI earns rental income from a property located in India and needs assistance with TDS, tax computation, and ITR filing.
Scenario 2: An NRI plans to sell an Indian property and wants to understand the Income Tax and capital gains implications before completing the transaction.
Scenario 3: An NRI has Indian bank interest, dividends, capital gains, rental income, or other India-source income requiring tax reporting.
Scenario 4: An NRI wants to invest in India and needs to understand the tax implications of the proposed investment and future income.
Scenario 5: An NRI receives a TDS certificate, tax notice, or other Income Tax communication and requires professional assistance in responding and completing the necessary compliance.
Residential Status & Taxability Review
We review the individual’s residential status and relevant facts to determine the scope of income that may be taxable in India under the applicable provisions.
NRI Income Tax Return Filing
We prepare and file applicable Income Tax Returns covering Indian-source income, investments, property income, capital gains, and other relevant financial information.
Property & Rental Income Taxation
We assist NRIs with tax implications relating to Indian property, rental income, property sales, deductions, and related TDS requirements.
General questions
01Does an NRI have to pay Income Tax in India?
An NRI may be liable to pay Income Tax in India on income that is taxable in India under the applicable provisions. The taxability depends on residential status, source and nature of income, and other relevant circumstances.
02What income of an NRI is taxable in India?
Income arising or received in India may be taxable depending on the applicable provisions. Examples can include rental income from Indian property, certain capital gains, interest, dividends, business income connected with India, and other India-source income.
03Does an NRI need to file an Income Tax Return in India?
An NRI may be required to file an Income Tax Return where the applicable filing conditions are satisfied. The requirement depends on income, transactions, residential status, and other statutory conditions.
04How is rental income from Indian property taxed for an NRI?
Rental income from property situated in India is generally subject to Indian tax rules applicable to income from house property, subject to the relevant deductions and provisions. TDS requirements may also apply to rent paid to an NRI.
05What happens when an NRI sells property in India?
The sale may result in capital gains tax in India, depending on the nature and holding period of the property and other applicable provisions. TDS requirements may also apply to payments made in connection with the transaction.
06Can an NRI claim benefits under a DTAA?
Where the applicable tax treaty provides a benefit, an eligible taxpayer may be able to claim treaty relief subject to the treaty conditions and required documentation, including applicable proof of tax residency.
07Can you file an NRI Income Tax Return while I am living abroad?
Yes. We can assist with the preparation and filing of applicable Indian Income Tax Returns and provide remote support for document collection, tax computation, filing, and related compliance.
