Chapter XII-A (Sections 115C–115-I) of Income-tax Act, 1961 (corresponding provisions of Income-tax Act, 2025) / the corresponding section of the Income-tax Act, 2025 (formerly Section 195 TDS) / Section 90 (DTAA Relief) / FEMA 1999

NRI Taxation & ITR Filing Advisory

End-to-end tax advisory, lower TDS withholding certificates (Form 13), Form 15CA/15CB repatriation certifications, and Income Tax Return (ITR-2/ITR-3) filing for Non-Resident Indians under the Income-tax Act, 2025 (and 1961 Act) with DTAA treaty optimization.

CA Due Diligence

Official Portal Filing

State Stamp Advisory

NRI Taxation & ITR Filing Advisory Statutory Advisory

Statutory Filing

MCA & Tax Practice

Relevant RegulatorCentral Board of Direct Taxes (CBDT), Ministry of Finance & Reserve Bank of India (RBI)

incometax.gov.in

External link to the official website of the relevant authority. H A V N & COMPANY is not affiliated with any government authority.

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STATUTORY OVERVIEW

Non-Resident Indian (NRI) Tax Filing, Lower TDS & Capital Repatriation

For Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and expatriates, managing investments and property transactions in India involves complex interplay between the Income-tax Act, 2025 (and Income-tax Act, 1961), Double Tax Avoidance Agreements (DTAA), and RBI foreign exchange regulations under FEMA. When an NRI sells real estate in India, buyers are legally mandated to deduct TDS at rates exceeding 20% to 30% plus surcharge under the corresponding section of the Income-tax Act, 2025 (formerly Section 195 of the 1961 Act), leading to severe fund lockups. Our dedicated NRI Tax practice provides end-to-end guidance for Lower TDS Nil Withholding Certificates in Form 13, Form 15CA/15CB repatriation clearances, and optimal ITR filing.

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

Regulatory Authority

Central Board of Direct Taxes (CBDT), Ministry of Finance & Reserve Bank of India (RBI)

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓Passport Copies (All Pages Showing Entry/Exit Stamps) & OCI Card (if applicable)
✓Indian Permanent Account Number (PAN) Linked to Current NRI Status
✓Sale Deed & Registered Purchase Deeds with Invoices for Property Transactions
✓NRE, NRO & FCNR Bank Account Statements for the Relevant Financial Year

2. Registered Office & Premises Proof

✓Tax Residency Certificate (TRC) Issued by the Foreign Revenue Authority
✓Form 10F Electronic Verification Filed on incometax.gov.in
✓Form 26AS, AIS (Annual Information Statement) & TIS Records
✓Mutual Fund Capital Gain Statements & Brokerage Transaction Logs

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Standard

Residential Status & DTAA Scoping

Determining precise residency status (NRI, RNOR, ROR) based on physical day counts under Section 6 of the Act and applicable DTAA provisions.

02Standard

Tax Computation & Lower TDS Application

Computing indexed capital gains, preparing Form 13 on incometax.gov.in, and representing the taxpayer in proceedings before the Assessing Officer.

03Standard

Form 15CA / 15CB Remittance Certification

Issuing CA Form 15CB with verified ICAI UDIN and filing electronic Form 15CA for outward remittance through AD Category-I banks.

04Standard

Electronic ITR Filing & Refund Tracking

Filing ITR-2 / ITR-3, claiming Foreign Tax Credits via Form 67, and monitoring swift direct deposit of excess TDS refunds.

Lower TDS Certificates (Form 13) for Property Sales

Practice Scope & Statutory Guidance

Under the corresponding section of the Income-tax Act, 2025 (formerly Section 195 of the Income-tax Act, 1961), property sales by NRIs trigger heavy gross TDS deductions. We prepare and file electronic applications in Form 13 on incometax.gov.in, proving indexed capital gains, roll-over exemptions under Section 54/54EC, and securing a Lower or NIL Tax Deduction Certificate to preserve immediate liquidity.

Form 15CA & 15CB CA Certification for NRO/NRE Repatriation

Practice Scope & Statutory Guidance

Repatriating inheritance, rental income, or property sale proceeds from Indian NRO accounts to overseas bank accounts requires Chartered Accountant verification under Section 195(6) of the Act. We issue digitally signed Form 15CB certifications with ICAI UDIN and file electronic Form 15CA undertakings on the Income Tax portal, ensuring smooth outward remittance through Authorised Dealer banks.

DTAA Foreign Tax Credit (FTC) & Form 67 Compliance

Practice Scope & Statutory Guidance

To eliminate double taxation, we leverage Bilateral Double Tax Avoidance Agreements (DTAA) under Section 90 of the Act. We verify Tax Residency Certificates (TRC), submit Form 10F, and file electronic Form 67 to claim Foreign Tax Credit (FTC) in the country of overseas residence (US, UK, UAE, Singapore, Canada, Australia).

STATUTORY MATRIX

Statutory Provisions & Regulatory Comparative Matrix

Comparative analysis of governing sections under the new framework alongside legacy statutory references.

Taxation Parameter	Non-Resident Indian (NRI)	Resident Indian	Statutory Reference / Portal
Taxable Income Scope	Only income accrued, arisen, or received in India is taxable	Worldwide global income is taxable in India	The corresponding section of the Income-tax Act, 2025 / 1961 Act
TDS on Property Sale	20% to 30% + Surcharge (Deducted on total sale value unless Form 13 obtained)	1% TDS under the corresponding section of the Income-tax Act, 2025 (formerly Sec 194-IA) if value > Rs. 50 Lakh	The corresponding section of the Income-tax Act, 2025 (formerly Sec 195) / https://www.incometax.gov.in/
Repatriation Limits	Up to USD 1 Million per financial year under RBI LRS / NRO route	USD 250,000 per financial year under Liberalised Remittance Scheme (LRS)	RBI Master Direction on Remittance Facilities / https://www.rbi.org.in/
Remittance Tax Clearance	Mandatory Form 15CB (CA Certified) & Form 15CA (Part C)	Form A2 declaration for outward remittance	Section 195(6) of Income-tax Act / https://www.incometax.gov.in/
Double Tax Treaty Relief	Exemption or reduced rate under Section 90 DTAA with TRC and Form 10F	Foreign Tax Credit (FTC) for taxes paid abroad on global income	Article 13 / 23 of Bilateral DTAA Conventions

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

CompliancePeriodic

Annual ITR Filing on incometax.gov.in

Timely submission of annual returns by July 31 for individuals to claim TDS refunds and carry forward capital losses.

CompliancePeriodic

Form 67 Foreign Tax Credit Submission

Mandatory electronic filing of Form 67 prior to the due date of return to claim DTAA tax treaty credits.

CompliancePeriodic

Foreign Asset Reporting in Overseas Return

Providing supporting statements for reporting Indian capital gains and assets in US IRS Form 1040 (FBAR/FATCA) or UK HMRC returns.

CompliancePeriodic

NRO Account Balance Reconciliation

Annual verification of NRO bank accounts to ensure interest income has been subjected to correct 30% TDS or DTAA treaty rates.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Frequently asked questions and procedural guidance regarding NRI Taxation & ITR Filing Advisory.

Why is TDS on property sales by NRIs deducted at 20% to 30% instead of 1%?

Under the corresponding section of the Income-tax Act, 2025 (formerly Section 195 of the Income-tax Act, 1961), payments to non-residents are subject to withholding tax at the maximum marginal capital gains rate (20% for long-term gains plus applicable surcharge and cess), calculated on the total sale consideration rather than the capital gain. To avoid this massive cash lockup, the NRI seller must apply for a Lower TDS Certificate in Form 13 on the official Income Tax portal (https://www.incometax.gov.in/) before executing the sale deed.

What is Form 15CB and when is it mandatory for an NRI?

Form 15CB is a statutory certification issued by an independent Chartered Accountant under Section 195(6) of the Income-tax Act. It certifies that the proposed remittance from an Indian bank account (NRO account) to an overseas bank account is eligible for transfer, the funds are legitimate, and applicable income taxes have been fully discharged.

How much money can an NRI repatriate abroad from India every financial year?

Under the Reserve Bank of India (RBI) Foreign Exchange Management regulations on rbi.org.in, an NRI or Person of Indian Origin (PIO) is permitted to repatriate up to USD 1,000,000 (US Dollar One Million) per financial year out of balances held in their NRO account arising from legitimate sources, including property sale proceeds and inheritance.

What is the difference between an NRE account and an NRO account?

An NRE (Non-Resident External) account is maintained in Indian Rupees for parking overseas earnings; funds in an NRE account are freely repatriable and interest earned is exempt from Indian income tax. An NRO (Non-Resident Ordinary) account is used to manage income earned in India (such as rent, dividends, pensions, or local property sales); interest earned on NRO accounts is taxable in India and subject to TDS.

STATUTORY ADVISORY DESK • PRACTICE INQUIRIES

Statutory Inquiries & Practice Advisory

Information on NRI Taxation & ITR Filing Advisory is provided for general reference. Office addresses and contact details are listed on the Contact page.

Contact Practice Office +91 99140-14949