Income Tax Return Filing for NRI

Income Tax Return Filing for NRI

  • For NRI
  • Filing of Income Tax Return
  • Expert’s Consultancy
  • Documents reviewed by experts
  • Comprehensive information
  • Simple and Secure online process

Talk to Expert: +91 90797 59095

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NRI Taxation

Introduction of Income Tax Return Filing for NRI

Many citizens from India have settled abroad. shifting to another country does not necessarily mean Good-Bye to the Home Country India. Many NRIs have invested in India in the form of Purchase of ancestral land/property Mutual Funds, Shares, Securities, Life Insurance Policies, Unit Linked Insurance Plans (ULIPs), FCNR Fixed Deposits, holding of NRO & NRE Accounts etc. Thus, Non-Resident Indians may still have Incomes in India and need to get a PAN card & accordingly file Income Tax Return in India. Non-filing of Income Tax Returns in India may bring penalties in the form of Interest, late fees, penalties, prosecution & attachment of Invested Assets.

Compliance Sagar will provide you with all the necessary services and legal advice related to Return filing and also guide you for other compliance-related NRI. You may get in touch with our team on +91 90797 59095 or email cssunil93@gmail.com for all NRI-related compliance.

Advantage of Income Tax Return Filing for NRI in India

Easy loan processing : Income Tax return filling helps NRI like Indian resident in taking loan from various Financial Institutions. NRI can use income tax return as an evidence of good wealth and income.
Allow carry forward losses : Income Tax return filling helps in carry forward the losses occured in previous year from the current year Income. Most businesses face losses in the initial years of the business. The business loss or capital losses can be carried forward for upto 8 years, if the ITR is filed. But if ITR is not filed, the taxpayer is deprived of this benefit.
TDS Refund : If the income of NRI is less than the maximum amount not chargeable to tax then NRI can claim the TDS refund which was deducted on his Indian income

Documents For Filing ITR 1

Aadhaar Card

Form 16 Received By Employer

Passport Details

Bank Account Details [Copy of Cancelled Cheque]

PAN Card

User ID and Password of Income Tax Website

Procedure of Income Tax Return Filing for NRI in India

1. Complete the Questionnaire : We will provide a questionnaire which is required to be filled by you in which we will sought the basic details and documents pertaining to the Filing of ITR of NRI.
2. Review of the documents : All the documents provided to us and the questionnaire will help us to process further for preparation of return of NRI
3. Filing of Income Tax Return : We will file further send you the computation for your review and will file your income tax return before the due date and protect you from any penalty.
4. Acknowledgement : We will further inform you after filling your Income Tax Return and also provide you the return form and computation.

NRI Taxation Consultant in India Package Includes

* Assessment of foreign and domestic income
* Complete advice
* Treatment with tax notices

Additional Information of Income Tax Return Filing for NRI in India


Income from Salary
Income from salary will be considered to arise in India if you are an employee and render services in India. So even though you may be an NRI, but if you are earning a salary in India towards services provided by you in India, it shall be taxed in India immaterial of where you are receiving the income. In case your employer is Government of India and you are the citizen of India, the income from salary, will be taxable even if you rendered services outside the India is also charge to taxable in India.


Rental Payments to an NRI
A tenant who pays rent to an NRI owner must remember to deduct TDS at rate of 30%. The rental income can be received in an account in India or the NRI’s account in the country he is currently residing. If amount is to be sent out of India then the tenant must fill-in Form 15CA and submit it online to the income tax department.


Special Provision Related to Investment Income
When an NRI invests in certain Indian assets, he is taxed at the rate of 20%. If the special investment income is the only income that NRI has received during the financial year, and TDS has been deducted on such an amount, then there is no need to file an income tax return by the NRI.


Income from Other Sources
Interest income from fixed deposits and savings accounts held in Indian banks by the NRI accounts is taxable in India. Interest on NRE and FCNR accounts is tax-free but interest on NRO accounts is fully taxable.


Income from Business and Profession
Any income earned by an NRI from a business or profession controlled or set up in India is taxable in India to the NRI.


Income from Capital Gains
Capital gain on the transfer or sale of capital assets which is situated in India shall be taxable in India. Capital gains on any investments made in India in shares, or securities shall also be taxable in India. If you sell a house property and have a long-term capital gain, then the buyer of such an asset has to deduct TDS at a rate of 20%. However, you are allowed to claim capital gains exemption by investing in a house property as per Section 54 or investing in capital gain bonds as per Section 54EC.


Income from House Property
Income from a property which is situated in India is taxable for an NRI as per Indian taxability provision. The calculation of such income shall be in the same manner as for a resident of India. The property may be rented out or lying vacant. An NRI is allowed to claim a standard deduction of 30%, deduct property taxes, and take the benefit of an interest deduction if there is a home loan taken by the NRI. The NRI is also allowed a standard deduction for principal repayment under Section 80C of the Act. Further deduction can also be claimed for Stamp duty and registration charges paid on the purchase of a property under Section 80C. Income from house property is taxed at slab rates as per the applicable provisions. Taxability provision for an NRI is in the same way as for residents of India.

Opening an NRI Bank Account?

The Difference Between NRE and NRO Accounts
NRIs (Non-Resident Indians) who have any income earned in India and abroad may benefit from having two different types of bank accounts in India

  • NRE (Non-Resident External) account
  • NRO (Non-Resident Ordinary) account
Both NRE and NRO account may be opened in the form of current, savings recurring, or fixed deposit accounts, and depending on your banking needs, one or both may help you more easily manage both foreign and Indian-earned incomes.

What is an NRE Account?
The NRE account is an Indian Rupee denominated account, from which money is freely repatriable outside India. The income is deemed to be earned outside India. You cannot deposit Indian Rupees into this account, only foreign currency can be deposited which will be converted into Indian Rupee at the time of deposit. The interest earned on the balances is free from any income tax.

What is an NRO Account?
An NRO account is a savings or current account opened in India by the NRIs to manage income earned in India such as rent, dividends, or pension. Foreign currency if any deposited into the NRO account is converted into Indian Rupees. Any NRI can open an NRO account. NRIs may also convert their existing resident savings account into an NRO account in case their status changes from resident to non-resident.