NRI & Corporate Financial Consulting Firm in India

Yes. An NRI can apply to the Income Tax Department for a Lower Deduction Certificate under Section 197. If granted, the buyer deducts TDS only on the actual capital gains rather than on the full sale value. This application must be made before the transaction is completed it cannot be applied retrospectively.

Form 15CA is a declaration by the remitter confirming that applicable taxes have been paid on the amount being transferred abroad. Form 15CB is a certificate issued by a Chartered Accountant verifying the tax computation and FEMA compliance. Banks are required by law to collect these documents before processing outward remittances above ₹5 lakhs. Without them, the transfer will not proceed regardless of whether taxes have been paid.

Under FEMA, NRIs can repatriate up to USD 1 million per financial year from their NRO account provided all applicable Indian taxes have been paid and Form 15CA/15CB has been filed. If the property was originally purchased using NRE or FCNR funds, the sale proceeds are repatriable to the extent of the original foreign exchange investment. Repatriation of sale proceeds is permitted for a maximum of two residential properties in a lifetime.

An NRE account holds foreign income converted to Indian rupees the interest earned is fully tax free in India and the balance is freely repatriable. An NRO account holds Indian income such as rent, dividends, or property sale proceeds interest on NRO accounts is taxable in India at 30% plus surcharge and cess. Repatriation from NRO accounts is subject to the USD 1 million annual limit. Understanding which account holds which income has direct implications for your tax liability and repatriation rights.

The capital gains tax treatment for inherited property follows standard rules the holding period and cost of acquisition are determined based on the original owner's purchase. However, for repatriation purposes, inherited agricultural land, farmhouses, or plantation property cannot be repatriated abroad the proceeds must remain in India. For other inherited property, normal repatriation conditions apply subject to the USD 1 million annual limit.

Not automatically. DTAA provides relief from double taxation it does not eliminate Indian tax liability in all cases. To claim DTAA benefits, you must submit a valid Tax Residency Certificate from your country of residence along with Form 10F to the deductor or your CA. Without these documents, TDS will be deducted at the standard Indian rate. DTAA provisions vary by country and must be applied correctly to each type of income.

Not immediately. When you return to India after being an NRI, you may qualify as Resident but Not Ordinarily Resident commonly known as RNOR. Under RNOR status, your foreign income remains outside Indian taxation for a period of 1 to 3 years depending on how long you were abroad. This is a critical window that must be planned carefully withdrawing foreign retirement funds or realising foreign capital gains during the RNOR period can result in significant tax savings.

For property sold in FY 2024–25 onwards, NRIs have two options pay 12.5% long-term capital gains tax without indexation, or pay 20% with indexation. The choice depends on which produces a lower tax liability based on your specific purchase price and holding period. This calculation must be done correctly before filing an incorrect choice cannot be revised after submission.

Under FEMA, continuing to operate a resident savings account after becoming an NRI is a violation regardless of whether any income was deposited. The account must be converted to an NRO account from the date of becoming an NRI. While there is no specific penalty prescribed under FEMA for this alone, it can attract scrutiny during assessments and create complications when attempting to repatriate funds. The position should be regularised promptly.

Yes. NRIs can invest in Indian mutual funds and listed shares through the Portfolio Investment Scheme operated through a designated NRE or NRO account. However, NRIs residing in the USA and Canada face restrictions imposed by certain fund houses due to FATCA compliance requirements not all mutual fund schemes are available to them. Capital gains on these investments are taxable in India and must be reported in your ITR.

Do not ignore it. Income tax notices have specific response deadlines missing them can result in ex-parte assessments, penalty proceedings, or prosecution in serious cases. The first step is to identify the section under which the notice was issued Section 143(1), 143(2), 148, or 148A each require a different type of response. As an NRI, you can authorise a CA in India to respond on your behalf through a Power of Attorney. Engaging a professional immediately is strongly recommended.