Overview
NRIs must pay tax in India on income that is received or accrues in India—such as rent, capital gains, or interest. Global income is taxable only if you qualify as a resident in a given financial year.
Returns can be filed online through the government's e-filing portal: incometax.gov.in.
Determining Residency Status
- Resident if present in India ≥182 days during the financial year, or ≥60 days in that year and ≥365 days over the preceding 4 years.
- Indian citizens leaving for employment abroad or ship crew enjoy an extended 182-day threshold.
Residency status also determines whether you qualify as RNOR — see our full Residency Status & RNOR guide with worked examples.
Income Taxable in India for NRIs
Tax applies only to income earned or received in India, including:
- Rental income from property in India
- Capital gains on sale of Indian assets
- Interest on NRO accounts or Indian deposits
- Business or professional income sourced in India
Interest on NRE/FCNR deposits and income earned outside India are exempt if you qualify as NRI.
Selling Property in India & Remitting Funds Overseas
When an NRI sells property in India, the profit is subject to Long-Term Capital Gains (LTCG) tax if held for more than 24 months.
Tax Calculation
- Tax rate: 20% plus surcharge and cess on indexed gains.
- Buyer must deduct TDS @20% (plus surcharge/cess) on the sale consideration and deposit it with the Income Tax Department.
- Exemptions: You may claim relief under Sections 54, 54EC, or 54F by reinvesting in another property or specified bonds within prescribed timelines.
Steps to Comply & Repatriate
Obtain a Lower/Nil TDS Certificate (Optional)
Apply to the Assessing Officer (via Form 13) before sale if you expect lower liability, so buyer deducts tax at the approved lower rate.
File Return & Pay Any Balance Tax
Report the sale in your ITR, claim exemptions, and pay any additional tax due after TDS credit.
Remit Funds Abroad
After paying taxes, you can repatriate sale proceeds through an NRO account using RBI's Liberalised Remittance Scheme (LRS). Most banks provide outward remittance services: State Bank of India, Axis Bank, ICICI Bank. Banks will require Form 15CA/15CB and proof of tax payment before processing.
For the full breakdown of TDS rates, Lower/Nil TDS Certificates, and Section 54/54EC/54F exemptions, see our Property Sale: Capital Gains & TDS guide.
Filing Your Tax Return Online
Gather Documents
Form 16/16A, bank statements, capital gains statements, and proof of deductions (80C, 80D, etc.).
Log in to the Income Tax e-Filing Portal
Choose the Correct ITR Form
ITR-2 for most NRIs; ITR-3 if you have business/professional income.
Declare Income & Claim Deductions
Report Indian-sourced income, claim deductions, and provide foreign bank details if required.
Verify & Submit
E-verify using Aadhaar OTP (if available) or by mailing a signed ITR-V to CPC Bangalore within 30 days.
A PAN is mandatory before you can file — no return can be submitted without one. If you don't have a PAN yet, see our PAN Card Guide or start directly with PAN Card Express.
NRI Tax Filing & Consultation Services
Filing it yourself on the government portal works, but NRI returns often involve foreign income disclosure, DTAA credit claims, and capital-gains reporting — enough complexity that many NRIs prefer expert-assisted filing. These platforms specialize in NRI tax situations specifically.
Pricing and the exact scope of "expert-assisted" plans vary and change over time — compare current quotes directly before choosing, especially if your return involves property sale or multiple countries of income.
Double Tax Avoidance Agreement (DTAA)
India has DTAA treaties with many countries (e.g., USA, UK, Canada) to avoid double taxation. File Form 67 to claim foreign tax credit before filing your return.
See our full DTAA Guide for country-specific provisions and how the credit vs exemption methods work.