Non-Resident Indian (NRI) Services — the integrated suite of tax, FEMA, property, repatriation, investment, and succession advisory services designed specifically for Indians living and working outside India — sit at the intersection of four distinct regulatory regimes that rarely act in isolation. Every meaningful NRI engagement in India touches the Income-tax Act, 1961 (residential status, Section 5(2) source taxation, Section 195 TDS, DTAA relief, ITR filing); the Foreign Exchange Management Act, 1999 read with RBI's NRI / PIO / OCI Master Directions (account architecture, permissible investments, repatriation limits, property acquisition rules); the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Schedule FA disclosures, penalty exposure); and a patchwork of sector-specific laws covering real estate (RERA, state stamp-duty rules), succession (Indian Succession Act, Hindu Succession Act, probate), and banking (NRO / NRE / FCNR(B) account regime). A decision that looks purely financial — sell a flat, rent out a property, invest in Indian equity, repatriate a fixed deposit maturity, buy farm land, receive an Indian inheritance — typically requires alignment across all four regimes simultaneously. Getting any one of them wrong exposes the NRI to TDS over-deduction, blocked repatriation, FEMA compounding penalties, or worse, Black Money Act consequences.
The NRI population that we serve is itself heterogeneous — encompassing first-generation migrants holding Indian citizenship who moved abroad for employment or business; second / third-generation Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI) holding the foreign passport but retaining India-linked assets and family obligations; short-term deputed professionals on work visas with impending return; long-term expatriates considering permanent return to India through the RNOR window; Indian-origin founders, investors, and business owners with dual-country income streams; Gulf-based blue-collar and service-sector workers with regular remittance flows and property holdings in India; and High-Net-Worth Individual (HNWI) NRIs running multi-jurisdictional family-office structures spanning India, the UAE, Singapore, the UK, and the US. Each sub-segment has its own compliance profile, its own tax-cost sensitivities, and its own optimisation levers. A one-size-fits-all approach — which is what most generic online tax-filing platforms offer — fails virtually every NRI because the residential-status nuance, DTAA Article-specific benefits, Section 197 Lower Deduction Certificate opportunities, and FEMA repatriation pathways demand individualised professional engagement.
Our NRI Services cover the full 360-degree compliance and advisory map — starting with onboarding-phase deliverables (residential-status determination, PAN issuance / correction, Aadhaar-linkage status, NRO / NRE / FCNR account structuring guidance, OCI-card-linked benefits mapping); the annual tax-compliance cycle (ITR-2 / ITR-3 filing, Form 26AS / AIS reconciliation, DTAA relief claim with TRC and Form 10F, Schedule TR / CG / OS / FSI population, e-verification, refund pursuit); transaction-specific advisory (sale of Indian property with Section 194-IA vs 195 TDS routing, Section 197 Lower Deduction Certificate procurement, capital-gains computation with indexation and Section 54 / 54EC / 54F reinvestment; Indian rental income optimisation; Indian share / mutual-fund investment with STT-linked exemptions; ESOP / RSU perquisite valuation and apportionment); cross-border remittance certification (Form 15CA / 15CB for all foreign-currency outward remittances, FEMA USD 1 million limit management from NRO); FEMA compliance engagement (permissible-investment advisory, transfer-pricing for NRI-related-party transactions, LRS compliance on the foreign-receivable side, compounding-application representation where contraventions have occurred); returning-NRI / RNOR planning (foreign-asset liquidation in the RNOR window, NRE-to-resident account conversion, Schedule FA pre-filing preparation, Black Money Act compliance review); succession and estate planning (Indian-asset will drafting, probate, nomination rationalisation, HUF / family-trust structuring, Indian inheritance tax-cost review); investment advisory (FDI / ODI for NRIs investing in Indian businesses, portfolio investment scheme, alternative investments); and representation before the Income Tax Department in Section 143(1) intimation, Section 142(1) / 143(2) scrutiny, Commissioner (Appeals), ITAT, and writ proceedings where disputes arise.
Income Tax Act
Primary regime
FEMA 1999
Foreign exchange
USD 1 Million
NRO repatriation limit
Laws & Provisions We Work Under
Income-tax Act 1961
FEMA 1999
RBI Master Directions
Black Money Act 2015
Sec 6 / 6(1A) – Residency
Sec 195 – NR TDS
Sec 90 / 90A – DTAA
Form 15CA / 15CB
FAQs on NRI Services
What is the difference between NRI, PIO, and OCI?
NRI, PIO, and OCI are three distinct categories that are often confused but refer to different things. "NRI" (Non-Resident Indian) is a tax / FEMA concept — an Indian citizen who does not satisfy the residency tests under Section 6 of the Income-tax Act (day-count-based) or the FEMA "person resident in India" definition (intent-based). "PIO" (Person of Indian Origin) is a legacy citizenship / ancestry concept — a foreign national (foreign passport holder) who was an Indian citizen at some point, or whose parents, grandparents, or great-grandparents were Indian citizens, or who is married to an Indian citizen / PIO. The PIO card scheme itself was discontinued in January 2015 and merged into the OCI scheme — existing PIO cards are treated as OCI cards. "OCI" (Overseas Citizen of India) is the current scheme under the Citizenship Act, 1955 — OCI cardholders are foreign nationals with Indian ancestry who receive a lifelong multi-entry visa to India and select resident-equivalent privileges (buying non-agricultural property, operating Indian bank accounts, making Indian investments), but OCI is NOT Indian citizenship — it does not confer voting rights, government employment, or Indian passport. Critically, a person can be simultaneously an NRI (for tax purposes) and an OCI cardholder (for immigration purposes) — the two are independent. For taxation, it is the NRI status under the Income-tax Act that matters, not OCI card possession.
Can an NRI buy property in India?
Yes — NRIs (including OCI cardholders) can buy most categories of immovable property in India, but with clear FEMA restrictions on property type, funding source, and repatriation. Under RBI's Master Direction — Acquisition and Transfer of Immovable Property in India, NRIs and OCIs can freely acquire — residential property (flats, houses, villas) and commercial property (offices, retail, warehouses) — in any number. They CANNOT acquire agricultural land, plantation property, or farm houses, except by inheritance from a resident or on a gift basis from a close relative. Funding must flow through banking channels — either inward remittance from the NRI's foreign account or from the NRE / NRO / FCNR account maintained in India. Cash payments are not permitted. Tax consequences flow alongside FEMA permissions — on purchase from an NRI seller, the buyer must deduct TDS under Section 195 (on gains, not gross); on purchase from a resident seller, the buyer deducts 1% under Section 194-IA via Form 26QB. On sale by the NRI, capital gains are taxable in India, TDS is deducted by the buyer, and repatriation of sale proceeds is permitted up to USD 1 million per FY from NRO (with additional routes for property bought from NRE funds). Joint purchase with a resident spouse / child is permitted. Stamp duty and RERA compliance are state-law overlays.
What bank accounts should an NRI maintain in India?
Under FEMA and RBI's Master Directions, an NRI can maintain three primary types of bank accounts in India, each with distinct purpose, funding rules, tax treatment, and repatriation rights. (1) NRE (Non-Resident External) Account — a rupee-denominated account funded by inward remittance of foreign earnings (salary, foreign business income, etc.); interest earned is fully exempt from Indian income tax under Section 10(4)(ii); entire balance (principal + interest) is freely repatriable to the NRI's foreign account without limit; can be held jointly with other NRIs. Use case — parking foreign earnings in India while maintaining full repatriability. (2) NRO (Non-Resident Ordinary) Account — a rupee-denominated account for Indian-source income (rent from Indian property, Indian dividends, pension from Indian employer, interest on Indian investments, sale proceeds of Indian property); interest is fully taxable at 30% + surcharge + cess (subject to DTAA reduction); repatriation out of NRO is capped at USD 1 million per FY (plus current-year income components); can be held jointly with a resident. Use case — routing Indian income and transaction proceeds. (3) FCNR (B) (Foreign Currency Non-Resident Bank) Account — a term deposit denominated in foreign currency (USD, GBP, EUR, JPY, AUD, CAD etc.); interest is tax-exempt under Section 10(15)(iv)(fa); principal and interest are freely repatriable; protects against INR depreciation risk. Use case — preserving purchasing power in foreign currency terms. Most NRIs maintain a combination — typically NRE for salary remittances, NRO for Indian income, and FCNR(B) for larger foreign-currency parking.
Do NRIs pay tax on global income in India?
No — NRIs are NOT taxed on global income in India. This is the single most important distinguishing feature of NRI taxation and the cornerstone of all NRI tax planning. Under Section 5(2) of the Income-tax Act, a non-resident's Indian tax base is limited to income that is — (a) received or deemed to be received in India, or (b) accrues or arises or is deemed to accrue or arise in India. Foreign salary, foreign business income, foreign capital gains, foreign rentals, and foreign interest / dividend — all remain entirely outside Indian tax. This is a sharp contrast to residents / RORs, whose global income is taxable in India, and even RNORs, where only non-India-controlled foreign business income is excluded. The practical implication is that an NRI earning, say, Rs. 50 lakh of US salary while holding Rs. 10 lakh of Indian rental income and Rs. 2 lakh of Indian dividend pays Indian tax only on the Rs. 12 lakh — not on the Rs. 50 lakh US salary. However, this neat rule is disrupted in two situations — first, Section 6(1A) "deemed resident" rule treats Indian citizens with Rs. 15 lakh+ Indian income parked in zero-tax jurisdictions as RNOR, and second, loss of NRI status (crossing the 182-day or 60+365-day threshold) triggers full-scope ROR taxation. Preserving NRI status through careful day-count tracking is therefore an important tax-planning discipline.
How can an NRI repatriate funds from India?
Repatriation of funds from India to the NRI's foreign account is permitted under FEMA but operates through distinct channels with differing limits and documentation requirements. (1) NRE / FCNR(B) balances — fully and freely repatriable at any time, in any amount, with no FEMA cap. Only Form 15CA is needed (Part D, since these funds come from already-repatriable sources). (2) NRO balances — capped at USD 1 million per financial year (aggregate across all NRO accounts of the NRI), in addition to which current-year income components (interest, dividend, rent, pension) can be repatriated without the cap. Form 15CA (Part C for taxable remittances) and Form 15CB (CA-certified tax compliance certificate) are mandatory for NRO repatriations above Rs. 5 lakh. (3) Property sale proceeds — up to USD 1 million per FY from the sale of residential / commercial property in India; unlimited repatriation available if the property was originally purchased from NRE / foreign funds (to the extent of those funds). Documentation — sale deed, original purchase proof, TDS deposited, ITR filed, Form 15CA / 15CB. (4) Inherited funds — subject to the same USD 1 million per FY NRO cap, with additional documentation (inheritance certificate / legal heir certificate / probate / succession certificate). (5) Gifts received — from a close relative who is a resident, subject to certain limits. All outward remittances are routed through authorised dealer banks (AD Category-I), which act as the operational gatekeeper and require the complete Form 15CA / 15CB documentation package before releasing foreign currency.
What is Section 195 TDS and how does it affect NRIs?
Section 195 of the Income-tax Act is the catch-all TDS provision for all payments to non-residents — applying to interest, rent, royalty, fees for technical services, capital gains on property or shares, commission, and any other "sum chargeable" to tax under the Act. Three features of Section 195 make it particularly burdensome for NRIs. First, the statutory rates are high — 20% or 12.5% on long-term capital gains (property / unlisted shares), 30% or applicable slab on short-term capital gains, 30% on rent, 20% on interest, 10% on royalty / FTS in most cases — plus applicable surcharge and 4% cess. Second, the rate is applied on the gross payment, not on the capital gain or net income. For property sale, this means TDS is on the full sale consideration, not on the indexed capital gain — frequently resulting in deduction multiple times the actual tax liability. Third, TAN is mandatory for the deductor (even an individual buyer must obtain TAN if buying from an NRI seller), and Form 27Q quarterly return replaces the Form 26QB challan-cum-return that applies to resident sellers. The combined effect of these three features is that NRIs typically over-suffer TDS relative to their actual Indian tax liability — the classic Rs. 5 crore property sale with Rs. 12.5 lakh actual capital-gains tax suffers Rs. 62.5 lakh+ TDS at 12.5% of gross. The primary remedy is Section 197 Lower Deduction Certificate — obtained via Form 13 before the transaction — which directs the buyer to deduct only the actual-liability portion, protecting cash flow and eliminating the 18-30 month refund cycle.
What should a returning NRI plan for before coming back to India?
Returning to India after years of NRI status is one of the biggest tax-structuring opportunities in an NRI's lifetime, and careful planning in the 12-24 months before return can save significant tax. Key planning levers — (1) Use the RNOR window. Under Section 6(6), a returning NRI enjoys Resident but Not Ordinarily Resident status for typically 2-3 FYs post-return, during which foreign-source income continues to be outside Indian tax. Plan foreign-capital-gain realisation, foreign-business exit, and foreign-asset liquidation within this window. (2) Pre-ROR asset structuring. Review all foreign assets — bank accounts, investment portfolios, real estate, pension / 401(k) / retirement accounts, life insurance cash value — and plan treatment before ROR status kicks in and Schedule FA disclosure becomes mandatory with Black Money Act penalty exposure. (3) NRE / FCNR account planning. On loss of NRI status under FEMA, NRE accounts must typically be redesignated as resident accounts within a reasonable period; some FCNR(B) deposits can be held to maturity under RBI directions. Plan deposit maturities around the transition. (4) Foreign retirement account decisions. 401(k), IRA, RRSP, Superannuation, ISA and similar foreign retirement corpora have complex Indian tax treatment post-ROR — some enjoy pass-through treatment under Section 89A (for specified notified countries); others face full residence-based taxation on accrual. (5) ESOP / RSU vesting schedules. Foreign employer ESOPs vesting after ROR status are taxable in India at market value — plan vesting acceleration or exercise in RNOR window. (6) Indian-asset structuring. Consolidate Indian investments, rationalise property holdings, set up an HUF / family trust where beneficial, and align nominations / wills with the new residency reality. A 12-month head start and a proper checklist typically saves lakhs to crores in avoidable tax.
What happens if an NRI has never filed Indian ITR despite having Indian income?
Non-filing of ITR by an NRI who has Indian taxable income is a significant compliance gap that the Income Tax Department's data-analytics architecture (AIS, SFT, Project Insight, NMS) increasingly surfaces — and it carries real consequences. First, Section 142(1) notices — the Department can issue a notice requiring ITR filing for any open AY within the 3-year ordinary reassessment window (extended to 10 years in specific search-linked or high-value cases). Second, Section 148 reassessment proceedings — where escaped income is identified, notice under Section 148 (or 148A SCN under the new reassessment regime) can be issued within the 3-year or 10-year window depending on the escaped income quantum and evidence. Third, penalty under Section 270A — at 50% (under-reporting) or 200% (misreporting) of the tax on escaped income, over and above the tax itself. Fourth, Section 276CC prosecution for wilful failure to file ITR — a non-cognisable offence carrying imprisonment up to 7 years in severe cases. Fifth, practical consequences — blocked refunds, Form 15CA / 15CB roadblocks when attempting repatriation, visa / banking issues in both India and the foreign country, and the inability to claim capital-loss carry-forwards. The correct remedial path — (a) voluntary ITR filing (updated return under Section 139(8A) within 4 years from end of AY with additional tax of 25% / 50% / 60% / 70% depending on filing timeline); (b) self-assessment tax payment covering all gaps; (c) comprehensive case-file preparation for potential reassessment; (d) proactive disclosure rather than reactive defence. An early voluntary cleanup is materially less expensive than reactive defence against Section 148 / 270A / 276CC proceedings.
