Income tax returns, tax on sale of property, certificates for remittance and tax advice for non-resident Indians.
Services
- Returns of income
- Tax deduction on sale of property by a non-resident
- Applications for lower or nil deduction of tax
- Certificates for repatriation of funds from India
- Tax on rent, interest and other income arising in India
- Replies to income tax notices
- Relief under Double Taxation Avoidance Agreements
- Setting up a business in India
What is taxed in the hands of a non-resident
| Nature of income | Taxed in India |
|---|---|
| Income that accrues or arises in India | Yes |
| Income deemed to accrue or arise in India | Yes |
| Income received in India | Yes |
| Income deemed to be received in India | Yes |
| Income accruing outside India from a business controlled from India or a profession set up in India | No |
| Other income accruing and received outside India | No |
Sale of property by a non-resident
The buyer must deduct tax at source on the amount chargeable to tax when paying a non-resident seller, under Section 393(2) of the Income-tax Act, 2025 (earlier Section 195). The seller may apply to the Assessing Officer for a certificate of lower or nil deduction. Documents usually needed are the passport, PAN, sale agreement, purchase deed, earlier returns of income and bank statements.
Repatriation of funds
An authorised dealer bank may allow remittance of up to USD 1 million in a financial year from a Non-Resident Ordinary (NRO) account or from sale proceeds of assets, after applicable taxes. The remitter furnishes a declaration and, where required, a chartered accountant’s certificate in the prescribed forms (earlier Forms 15CA and 15CB, now Forms 145 and 146).
Questions
When is an individual a non-resident?
An individual is resident in India for a tax year if he or she is in India for 182 days or more in that year, or for 60 days or more in that year and 365 days or more in the four preceding years. For an Indian citizen who leaves India for employment, or a citizen or person of Indian origin who visits India, the 60 days is read as 182 days, or as 120 days where Indian income exceeds Rs 15 lakh. A person who meets none of these tests is a non-resident.
Is income earned abroad taxable in India?
A non-resident is taxed only on income that is received, accrues or arises in India, or is deemed to. A resident and ordinarily resident person is taxed on global income.