NRI Services in India

An NRI is required to file an Income Tax Return in India if their total Indian-sourced income exceeds the basic exemption limit of ₹2.5 lakh in the relevant financial year. Additionally, an ITR must be filed where an NRI has capital gains from the sale of Indian property, shares, or mutual funds — regardless of the amount — in order to claim applicable exemptions or refunds of excess TDS. Even where no tax is payable after exemptions and DTAA benefits, filing the ITR is necessary to formally establish the tax position and obtain refunds of TDS deducted at source.

When an NRI sells immovable property in India, the buyer is required to deduct TDS at 20% of the sale consideration for long-term capital gains — held for more than 24 months — plus applicable surcharge and cess, irrespective of the actual gain amount or property value. For short-term capital gains, TDS is deducted at 30% plus surcharge and cess. These rates frequently exceed the actual tax liability after exemptions under Sections 54, 54EC, and 54F — making it advisable to apply for a Lower Deduction Certificate under Section 197 before the transaction to avoid excess TDS and large refund claims.

Form 15CB is a certificate issued by a Chartered Accountant confirming that a proposed remittance from India to an overseas account is either not chargeable to tax in India or that applicable taxes have been paid. It is required for remittances exceeding ₹5 lakh in a financial year that are chargeable to tax — and is a mandatory prerequisite for the bank to process the remittance. Form 15CB is accompanied by Form 15CA, a declaration filed by the remitter on the income tax portal. RVG Consulting determines the tax treatment, issues Form 15CB, and files Form 15CA — ensuring the remittance is processed without regulatory delay.

India's DTAA network covers over 90 countries and provides NRIs with relief from double taxation on income taxable both in India and their country of residence. DTAA provisions can reduce Indian withholding tax rates on interest, dividends, and royalties, exempt certain capital gains from Indian tax, and provide credit for Indian taxes paid against overseas tax liability. To claim DTAA benefits, an NRI must obtain a Tax Residency Certificate from their country of residence, complete Form 10F, and claim the benefit in their Indian ITR. DTAA benefits are not applied automatically — they must be actively claimed with correct documentation.

Under FEMA, 1999 and RBI regulations, NRIs and PIOs are generally permitted to purchase residential and commercial property in India without prior RBI approval — subject to restrictions on agricultural land, plantation property, and farmhouses. Sale proceeds can be repatriated abroad subject to conditions — including that the property was purchased from inward remittance or NRE / NRO account funds, repatriations are within prescribed limits, and applicable taxes have been paid. Repatriation requires Form 15CB certification and Form 15CA filing. FEMA violations in property transactions attract penalties of up to three times the amount involved.