NRI Taxation in India: What NRIs Must Know in 2025

Introduction: NRI Taxes Aren’t Optional — They’re Strategic

You may live abroad, but your financial roots often stay in India — property, rent, investments, or savings. Every Non-Resident Indian (NRI) earning from India must comply with the NRI taxation policy in India.

The challenge? Constantly changing laws — from Income Tax and FEMA to RBI repatriation rules and DTAA. Many NRIs miss filings or pay more tax than they should.

That’s why partnering with the best CA firm in India is essential. A skilled NRI taxation CA ensures compliance, minimizes taxes legally, and manages repatriation smoothly.

Understanding NRI Taxation in India

Your residential status decides what income is taxable.

You’re an NRI if you spend less than 182 days in India in a financial year and don’t meet the “60-day + 365-day in 4 years” test.

Tax applies only to income earned or received in India — rent, NRO interest, dividends, or capital gains. Global income is exempt.

Working with the best CA in India helps you confirm residency correctly and avoid double taxation.

DTAA: Preventing Double Taxation

India has Double Taxation Avoidance Agreements (DTAA) with 90+ countries. These treaties prevent you from paying tax twice on the same income.

With proper documentation — Tax Residency Certificate (TRC), Form 10F, and a declaration — you can:

Claim credit for taxes paid in India.
Use lower TDS rates on dividends or royalties.
Avoid double taxation on salary or business income.

The best CA for taxation handles this paperwork efficiently and ensures your treaty benefits are properly applied.

Repatriation Rules: Moving Money Abroad

Selling property or earning rent in India? You can legally transfer funds abroad under RBI’s repatriation norms.

You’ll need:

Form 15CA – declaration confirming tax payment.
Form 15CB – certificate from your Chartered Accountant verifying tax compliance.

Banks can’t process remittances without these. A NRI taxation CA ensures your repatriation aligns with FEMA and Income Tax Act provisions — no delays or compliance issues.

Capital Gains and Tax Implications

Property Sales

Short-Term Gains (<24 months): taxed at slab rates.
Long-Term Gains (>24 months): 20% with indexation.
Buyers must deduct TDS @20% before paying you.

You can save tax under:

Section 54 – reinvest in another home.
Section 54EC – invest in NHAI/REC bonds.
Section 54F – reinvest full sale proceeds.

Shares & Mutual Funds

LTCG (>1 year) – 10% above ₹1.25 lakh.
STCG (≤1 year) – 15%.
Debt funds – 20% with indexation after 2 years.

The best CA for NRI taxation structures sales and reinvestments so you pay the lowest possible tax.

NRI Income Tax Filing in 2025

If your income in India exceeds ₹2.5 lakh, filing an ITR is mandatory.

Your CA handles:

ITR-2/ITR-3 preparation and filing
TDS reconciliation via Form 26AS and AIS
DTAA claims and documentation
Refunds and compliance reviews

Filing late or inaccurately can invite penalties. The best CA firm in India ensures accurate, timely filing and smooth refunds.

Why You Need an NRI Tax Specialist

NRI taxation is complex — involving income tax, FEMA, and DTAA rules. Common mistakes include:

Missing DTAA benefits
Incorrect repatriation forms
Late filings and refund delays

A specialized CA for NRI taxation in India handles it all:

End-to-end compliance
Legal tax savings
Repatriation and audit support

Best CA firms in India, offer tailored tax planning for NRIs, ensuring full legal compliance and maximum savings.

Annual NRI Tax Calendar (2025)

Period	What Your CA Handles
Apr–Jun	Review income sources, confirm residency
Jul–Sept	File ITR, claim DTAA credits
Oct–Dec	Repatriation & capital gains planning
Jan–Mar	Advance tax & 15CA/15CB filings

Having a NRI taxation CA track your year-round compliance keeps you stress-free and audit-ready.

The Bottom Line

NRI taxation isn’t just paperwork — it’s smart financial management. A trusted CA for NRI taxation helps you stay compliant while saving tax and protecting your wealth.

If you’re an NRI earning income in India, consult Casela Advisors — among the best CA firms in India — for expert tax planning and end-to-end compliance.

Frequently Asked Questions (FAQs)

1. Do NRIs need to file ITR in India if TDS is deducted?
Yes, if total income in India exceeds ₹2.5 lakh or to claim refunds and DTAA benefits.

2. Can NRIs repatriate money from property sale in India?
Yes, after paying taxes and obtaining Form 15CA & 15CB from a CA.

3. Is NRO or NRE account better for NRIs?
NRE interest is tax-free; NRO interest is taxable at 30%.

4. How can NRIs avoid double taxation?
By using DTAA benefits with TRC, Form 10F, and a self-declaration.

Casela Advisors

Chartered Accountants | Taxation • Audit • Business Advisory
📞 +91 9819 000 227
📧 info@caselaadvisors.com
🌐 www.caselaadvisors.com