What capital gains exemptions are available to NRIs on Indian property sale?

Section 54 (reinvestment in one residential property within 1-2 years), Section 54EC (NHAI/REC bonds within 6 months, up to ₹50 lakh), and Section 54F (for non-residential asset gains reinvested in residential property).

Must NRIs disclose foreign assets in their Indian tax return?

No. Schedule FA and FSI are mandatory only for R&OR (Resident and Ordinarily Resident) taxpayers. NRIs and RNOR individuals do not disclose foreign assets in their Indian income tax return.

Filing Income Tax Return in India for NRIs – ITR-2, DTAA & TDS Refunds | NDS Avla

Filing Income Tax Return in India for NRIs – ITR Preparation, DTAA Claims & TDS Refunds

Q: Can NRIs opt for the new tax regime under Section 115BAC?

Yes. NRIs can choose the new tax regime (lower slab rates, no major deductions) or the old regime. The choice depends on available Chapter VI-A deductions and total India income.

Expert NRI Return Filing Services – Handled Remotely from Anywhere in the World

NRIs are required to file an income tax return in India if their total taxable income from Indian sources exceeds ₹2.5 lakh in a financial year. The obligation exists even when TDS has been fully deducted — particularly when NRIs want to claim refunds of excess TDS, carry forward capital losses, formally claim DTAA treaty benefits, or document Indian income for banking or immigration purposes abroad.

NRI return filing differs from resident filing in several critical ways: the applicable ITR form, the limited scope of taxable income, the non-applicability of foreign asset schedules (Schedule FA/FSI), and the availability of Chapter XII-A special provisions. Our services cover all India income heads — rental income, capital gains on shares and property, NRO interest, dividends — integrated with residential status determination and exempt income identification.

Our NRI Income Tax Return Filing Services

ITR-2 Filing for NRIs

Complete preparation and e-filing of ITR-2 for NRIs with rental income, capital gains on shares/mutual funds/property, NRO interest, dividends, and other non-business India-sourced income.

ITR-3 for NRI Business Income

Preparation and filing of ITR-3 for NRIs with business or professional income from India — including proprietary businesses, partnerships, and consulting income from Indian clients.

Capital Gains Tax Computation

Precise computation of STCG and LTCG on sale of Indian property, listed/unlisted shares, mutual funds, and bonds — with indexation, holding period analysis, and reinvestment exemption claims.

DTAA Treaty Benefit Claims

Application of Double Taxation Avoidance Agreement provisions to reduce Indian tax on income also taxed in the country of residence — with Form 10F and Tax Residency Certificate filing.

TDS Reconciliation & Refund Filing

Matching TDS deducted against Form 26AS and AIS, identifying excess deductions, and filing returns to claim full refunds with Section 244A interest on delayed refunds.

Capital Loss Carry Forward

Strategic return filing to carry forward capital losses to set off against future capital gains — requires timely filing before the July 31 due date.

When Must NRIs File an Indian Income Tax Return?

Total Indian taxable income exceeds ₹2.5 lakh in the financial year — filing is mandatory
TDS deducted exceeds actual tax liability — filing is required to claim the refund
Capital losses need to be carried forward to set off against future capital gains
DTAA treaty benefits need to be formally claimed and documented in the return
Property was sold and capital gains exemption under Section 54/54EC/54F is being claimed
Income Tax Department notice received requiring return filing for the assessment year
Indian tax return required by foreign visa authority, bank, or immigration office as income proof

Frequently Asked Questions

Can NRIs opt for the new tax regime under Section 115BAC?

Yes. NRIs can opt for the new tax regime under Section 115BAC, which offers lower tax slab rates but disallows most deductions including Section 80C, 80D, and the standard deduction on salary. The choice between old and new regimes depends on available deductions and total India income. Our team evaluates both options before filing to determine which regime minimizes the overall tax liability.

What capital gains exemptions are available to NRIs on sale of Indian property?

NRIs can claim: Section 54 (reinvestment in one residential property within 1 year before or 2 years after sale, or construction within 3 years); Section 54EC (investment in NHAI or REC bonds within 6 months, up to ₹50 lakh); and Section 54F (for LTCG from non-residential assets reinvested in one residential property). If reinvestment is not completed by the return filing due date, amounts can be deposited in the Capital Gains Account Scheme (CGAS) to preserve the exemption.

What is Form 10F and when must NRIs file it?

Form 10F is a self-declaration filed by NRIs to claim DTAA treaty benefits where the Tax Residency Certificate (TRC) from their country of residence does not contain all information required under Section 90(5). It provides the taxpayer's TIN in the foreign country, period of residence, and address. From 2023, Form 10F must be filed online on the Indian income tax portal. It is required when providing DTAA details to payers for reduced TDS rates and when filing the annual return.

What happens if an NRI misses the income tax return filing deadline?

The standard due date for NRIs is July 31 of the assessment year. Missing this deadline means capital losses cannot be carried forward. A belated return can be filed until December 31 with a late fee under Section 234F — ₹5,000 (or ₹1,000 for income below ₹5 lakh) — plus interest under Section 234A on outstanding tax. An updated return under Section 139(8A) can be filed within 24 months of the end of the relevant assessment year, subject to additional tax payment.

Must NRIs disclose foreign assets in their Indian income tax return?

No. Schedule FA (foreign assets) and Schedule FSI (foreign income) are mandatory only for Resident and Ordinarily Resident (R&OR) taxpayers. NRIs and RNOR individuals are not required to disclose their foreign assets, overseas bank accounts, or income earned abroad in their Indian income tax return. This obligation arises only when the individual becomes fully Resident (R&OR), typically 2–3 years after returning to India.

NRI Tax Return Filing – Accurate, Complete, Handled Remotely

We file NRI income tax returns from wherever you are in the world — full DTAA benefit claims, maximum TDS refund recovery, and complete capital gains planning.

F.A.Q.

What is GSTR-9 and why is it required?

GSTR-9 is an annual GST return that summarizes all transactions reported during the financial year. It is required to ensure proper reconciliation and compliance with GST laws.

Who is required to file GSTR-9?

All regular GST-registered taxpayers are required to file GSTR-9, except composition dealers, casual taxable persons, and non-resident taxpayers.

What is the due date for filing GSTR-9?

The due date is generally 31st December following the end of the relevant financial year, unless extended by the government.

What details are included in GSTR-9?

It includes details of outward supplies, inward supplies, input tax credit claimed, taxes paid, and adjustments made during the year.

Is GSTR-9 mandatory for all taxpayers?

GSTR-9 is mandatory for most regular taxpayers, but certain small taxpayers may get exemptions based on turnover thresholds notified by the government.

What happens if GSTR-9 is not filed on time?

Late filing may result in penalties and late fees, along with potential compliance issues or notices from GST authorities.