ITR Filing for NRIs — DTAA Relief, Section 195 TDS & Repatriation

NRI tax filing — different rules, higher stakes

Non-Resident Indians are taxed only on income that arises or is received in India — rent, capital gains on Indian property or shares, interest on NRO accounts, and any Indian business income. But the compliance is more complex than a resident return: higher TDS rates under Section 195, DTAA relief claims, repatriation certificates, and reporting in the correct schedule for residential status. We handle NRI returns for clients across the US, UK, UAE, Canada, Australia and Gulf countries with property, investments or family business interests in J&K and across India.

Who needs this service

• NRIs earning rental income from property in India (subject to 30% TDS under Section 195 by the tenant if paid directly, or self-computed advance tax)
• NRIs who sold property, shares or mutual funds in India and need capital gains computed with indexation (for property/debt) and DTAA relief
• NRIs with NRO savings/FD interest income (TDS deducted at 30% + surcharge/cess by the bank)
• OCI/PIO cardholders with inherited property or ancestral land in Jammu & Kashmir
• Returning NRIs (RNOR status) needing help transitioning their tax residency and reporting foreign assets correctly

Documents required

• Passport copy with visa/immigration stamps to establish residential status (days in India test)
• PAN card and Indian bank account details (NRE/NRO)
• Sale deed / purchase deed and improvement cost records, if reporting capital gains on property
• TDS certificates (Form 16A) from tenants, banks or buyers who deducted tax under Section 195/194-IA
• Tax Residency Certificate (TRC) from the country of residence, for claiming DTAA benefit
• Form 10F (self-declaration) if TRC doesn't contain all prescribed particulars

Process & timeline

1. We first determine your residential status for the year (Resident / NRI / RNOR) based on days-in-India rules under Section 6
2. Income streams are mapped — rent, capital gains, interest — and TDS already deducted is reconciled against Form 26AS
3. DTAA relief is computed under Section 90 (if a treaty exists) or Section 91 (unilateral relief), whichever is more beneficial
4. ITR-2 (or ITR-3 for business income) is filed along with Schedule FA disclosures where applicable, and refund/lower-deduction certificates are tracked

Turnaround: 2–4 working days depending on complexity of property transactions and DTAA documentation.

Property sale by NRIs — the 20%+ TDS problem

When an NRI sells property in India, the buyer is required to deduct TDS at ~20% (plus surcharge and cess) on the entire sale value under Section 195 — not 1% under 194-IA as with resident sellers. This is regardless of actual capital gain. We help NRIs apply for a Lower/Nil TDS Deduction Certificate (Form 13) from the Assessing Officer before the sale to reduce this upfront deduction to the actual tax payable on the gain, and file the return afterward to claim any excess refund. Long-term capital gains on immovable property (held over 24 months) qualify for indexation benefit and exemption under Section 54/54EC (bonds up to ₹50 lakh).

DTAA — avoiding double taxation

India has DTAA agreements with the US, UK, UAE, Canada, Australia, Singapore and 90+ other countries. Under Section 90, you can claim credit in your resident country for tax paid in India (or vice versa), or claim a reduced TDS rate on interest/dividends per the treaty. Where no treaty exists, unilateral relief under Section 91 still allows a credit. We identify which article of the applicable treaty applies to your income type and compute the exact relief.

Repatriation — Form 15CA/15CB

To remit sale proceeds or accumulated rental income abroad through an authorised bank, a Chartered Accountant must certify Form 15CB confirming tax has been paid/deducted, which is then filed as Form 15CA on the income tax portal before the bank processes the transfer. We issue both for property sale proceeds, NRO account transfers and other repatriable income, typically within 24–48 hours.

Why Tax Easy India

• Correct residential status determination — a common source of over/under-reporting for NRIs
• Lower TDS certificate (Form 13) applications for property sales, reducing cash flow lock-up
• DTAA relief computed treaty-by-treaty, not a generic assumption
• Same-team support for both the ITR and Form 15CA/15CB repatriation certification