NRI Taxation Services in India – A Complete Guide

 

For Non-Resident Indians (NRIs), taxation in India can feel complex due to multiple income sources, investments, property ownership, and foreign income rules. Whether it’s filing income tax returns (ITR), claiming benefits under the Double Taxation Avoidance Agreement (DTAA), or complying with FEMA and RBI guidelines, proper tax planning is crucial.

This guide provides a comprehensive overview of NRI taxation services in India and explains how professional consultants like YKG Global can help NRIs remain compliant while maximizing tax savings.

Who is Considered an NRI for Tax Purposes?

An individual is considered an NRI under the Income Tax Act if they do not meet the residency criteria in India. Broadly, you are an NRI if:

• You stay in India for less than 182 days in a financial year, or

• You stay in India for less than 60 days in a financial year and less than 365 days in the preceding 4 years.

Your residency status determines whether your income is taxable in India.

Taxable Income for NRIs in India

NRIs are taxed in India on the income earned or accrued in India. Some common sources of taxable income include:

• Salary Income – Salary earned in India or received in India is taxable.

• House Property Income – Rental income from property situated in India.

• Capital Gains – Gains from selling property, shares, or securities in India.

• Investment Income – Interest on fixed deposits, NRE/NRO accounts, mutual funds, or dividends.

• Business Income – Income from business operations or consultancy provided in India.

 Foreign income earned outside India is not taxable for NRIs, unless it is received directly in India.

Tax Rates and Deductions for NRIs

• NRIs are taxed at the same slab rates as resident Indians.

• No benefit of the basic exemption limit (₹2.5 lakh) for certain types of income like LTCG (long-term capital gains).

• Deductions available:

  • Section 80C: Investments in life insurance, ELSS, PPF (only if opened before becoming NRI).

  • Section 80D: Medical insurance premiums.

  • Section 80G: Donations to eligible charities.

Double Taxation Avoidance Agreement (DTAA)

One of the biggest concerns for NRIs is being taxed twice – once in India and again in the country of residence.

India has signed DTAA with 90+ countries, including the USA, UK, Canada, Australia, Singapore, and UAE.

NRIs can:

• Claim tax credit in their resident country, OR

• Opt for exemption on certain incomes in India.

Documents Required for NRI Taxation Services

To ensure smooth tax filing and compliance, NRIs must keep the following ready:

• PAN Card (Permanent Account Number)

• Passport & Visa (for residency proof)

• Bank statements (NRE/NRO accounts)

• Form 16/16A (if applicable)

• Investment proofs (FDs, mutual funds, property papers)

• Details of foreign tax paid (for DTAA relief)

Common Challenges Faced by NRIs

• Confusion in residential status calculation

• Double taxation issues

• Non-disclosure of Indian income leading to penalties

• Difficulty in filing ITR from abroad

• Mismanagement of NRO/NRE accounts

• Complex rules for capital gains on property sales

How YKG Global Helps with NRI Taxation Services

At YKG Global, we specialize in providing end-to-end NRI taxation solutions. Our team ensures compliance with Indian tax laws while helping you save on taxes through proper planning.

Our Key Services Include:

• NRI ITR Filing – Hassle-free online filing from anywhere in the world.

• Capital Gains Advisory – Guidance on property sales, reinvestments, and exemptions under Sections 54 & 54EC.

• DTAA Advisory – Assistance in claiming treaty benefits and avoiding double taxation.

• Tax Planning & Investments – Structuring investments for maximum savings.

• Property & Rental Taxation – Calculating and paying TDS, filing returns on rental income.

• Compliance Support – Ensuring adherence to FEMA, RBI, and Income Tax regulations.

Why Choose YKG Global?

• 40+ years of expertise in taxation & compliance.

• Dedicated NRI Tax Consultants with international tax knowledge.

• Assistance with both Indian and global tax matters.

• Transparent, reliable, and hassle-free process.

• 5000+ satisfied clients worldwide.

Frequently Asked Questions (FAQs)

Q1. Do NRIs have to file ITR in India if they only have NRE FD interest?
 Interest earned on NRE and FCNR deposits is exempt from tax in India. No need to file unless you have other taxable income.

Q2. Is TDS applicable on NRI property sales?
 Yes, buyers must deduct 20% TDS (LTCG) or 30% TDS (STCG) before making payment to an NRI seller.

Q3. Can NRIs claim a refund of excess TDS deducted?
 Yes, by filing an ITR in India, you can claim a refund of excess TDS.

Q4. Do NRIs need to pay advance tax?
 Yes, if tax liability exceeds ₹10,000 in a financial year.

NRI taxation in India can be challenging without expert guidance. From ITR filing and DTAA claims to capital gains and property taxation, professional assistance ensures compliance and peace of mind.

At YKG Global, our NRI tax consultants simplify the process, help you save taxes, and ensure your global income is structured efficiently.

📧 Email: Rishi@ykgglobal.com
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