NRI Tax & Wealth Management

Residential status is based on physical presence in India. You are a Resident if you spend 182 days or more in India in a financial year, or 60 days in the current year and 365 days in the preceding 4 years. RNOR status provides a transitional benefit where foreign income remains exempt. We assess your status each year to plan accordingly.

RNOR status applies to a person who was a non-resident in 9 out of 10 preceding years or was in India for 729 days or fewer in the preceding 7 years. An RNOR pays Indian tax only on Indian-sourced income and foreign income remains exempt. This status typically lasts 2 to 3 years after return, providing a valuable window to repatriate and restructure foreign assets without Indian tax.

NRIs can hold NRE accounts (foreign earnings in India, fully repatriable, interest exempt from Indian tax), NRO accounts (India-sourced income, repatriation up to USD 1 million per year subject to 15CA or 15CB), and FCNR(B) accounts (foreign currency deposits, fully repatriable and tax-exempt). On becoming resident, NRE and FCNR accounts must be redesignated to RFC accounts within a reasonable period.

NRIs must file an Indian income tax return if their Indian-sourced income from rent, capital gains, interest, or dividends exceeds the basic exemption limit of Rs.2.5 lakh or Rs.3 lakh for those aged 60 and above. Even where tax has been fully deducted at source, filing may be beneficial to claim refunds.

Capital gains from property sale are taxable in India regardless of residential status. Long-term gains on property held for more than 2 years are taxed at 20% with indexation benefit. Short-term gains are taxed at slab rates. The buyer must deduct TDS at 20% for long-term and 30% for short-term gains. NRIs can claim exemption under Sections 54, 54EC, and 54F by reinvesting in specified assets.

Yes. NRIs can invest in Indian equities and mutual funds under the Portfolio Investment Scheme through their NRE or NRO accounts. NRIs resident in the USA and Canada face restrictions from certain fund houses due to FATCA compliance requirements. Long-term capital gains on listed shares held for more than one year are taxed at 10% above Rs.1 lakh and short-term gains at 15%.

India has DTAAs with over 90 countries which prevent NRIs from paying tax on the same income twice. US-based NRIs for example can claim credit for Indian TDS against their US tax liability. To avail DTAA benefits you need a Tax Residency Certificate from your country of residence and must submit Form 10F to the Indian payer.

Key planning steps include timing the return to maximise RNOR status, liquidating foreign assets before becoming ordinarily resident, repatriating funds from NRE accounts while still a non-resident, restructuring foreign investments, and reviewing succession arrangements for India-held assets. We create a personalised roadmap based on your specific asset base and timeline.