Living abroad doesn't mean overpaying tax back home
New TDS rules, a new Form 128 for lower-deduction certificates, and a brand-new Income Tax Act NRI taxation in 2026 has more moving parts than ever. SSA TAX handles all of it remotely, so your refund lands without you stepping foot in India.
starting price · basic NRI return
The Basics
What is NRI Taxation?
If you're a Non-Resident Indian earning income in India through property, investments, business, or other sources you're liable to pay Indian tax on that India-sourced income. NRI taxation runs on a different rulebook from resident taxation: separate exemptions, separate TDS rates, and separate filing logic.
Core rule: NRIs are taxed only on income earned or received in India. Income earned abroad stays outside Indian tax as long as your residential status genuinely qualifies as NRI for that year.
Who is an NRI Under the Income Tax Act?
Under Section 6, you're treated as an NRI for a financial year if either applies:
Residential status is assessed year-by-year and it's determined purely by days spent in India, not by your passport, visa, or where you currently work.
WHAT CHANGED
New NRI Tax Rules & Regulations to Know in 2026
From 1st April 2026, the Income Tax Act, 2025 and Income Tax Rules, 2026 came into force, replacing the Income-tax Act, 1961 but your AY 2026-27 return for income earned in FY 2025-26 is still filed under the old Act. Several NRI-specific procedures have already changed under the new framework.
Form 13 replaced by Form 128
The Lower/Nil TDS Certificate application used to reduce TDS on property sale to actual tax on the gain now runs through the new Form 128 under the Income Tax Rules, 2026, instead of the earlier Form 13.
TAN still mandatory for now
Buyers purchasing property from an NRI must still quote TAN and deduct TDS under the existing mechanism until 30th September 2026. A simplified PAN-based system is expected from 1st October 2026.
TDS deducted on full sale value, not gain
On property sale, the buyer deducts TDS on the entire sale value generally 12.5–20% for long-term gains and up to 30% for short-term gains which is why most NRIs are owed a refund after filing.
Budget 2026 simplifies buyer compliance
A procedural change for resident buyers purchasing from NRI sellers reduces paperwork delays making property transactions involving NRIs smoother to close.
DTAA documentation still required upfront
To get reduced treaty rates on dividends, interest or capital gains, you still need a Tax Residency Certificate and Form 10F filed electronically before, not after, TDS is deducted.
New regime is the default slabs still apply to NRIs
The new tax regime applies by default unless you opt out, but several flat-rate provisions for capital gains, NRO interest, and dividends continue to apply regardless of regime choice.
What Income is Taxable for NRIs in India?
| Source of Income in India | Taxable? |
|---|---|
| Salary received / services rendered in India | Yes |
| Rental income from property in India | Yes |
| Capital gains on shares / mutual funds / property | Yes |
| Interest from NRO account | Yes |
| Interest from NRE / FCNR accounts | No* |
| Dividend income from Indian companies | Yes |
| Agricultural income in India | Exempt |
ITR Filing for NRIs When is it Required?
- Your India-sourced income exceeds the basic exemption limit
- You want to claim a refund of excess TDS deducted
- You have capital gains even if total income is below the exemption limit
- You own property or investments in India
- You wish to carry forward losses to future years
Documents Required for NRI Tax Filing
- PAN card & passport copy
- Overseas address proof & Indian address
- Indian bank statements especially NRO account
- Form 16A / TDS certificates
- Property documents (if rental income or sale)
- Capital gains statements mutual funds, shares, property
NRI Taxation vs. Other Compliances in India
NRI clients often ask how their tax filing relates to other compliances tied to property or business in India. Here's the difference, side by side.
| Compliance | Purpose | Who Needs It | Frequency | Filed By |
|---|---|---|---|---|
| NRI ITR Filing | Declares India-sourced income & claims TDS refund | NRIs with Indian income above exemption limit, or with TDS to reclaim | Annually | The NRI taxpayer |
| Lower/Nil TDS Certificate (Form 128) | Reduces TDS to actual tax on gain before a property sale | NRIs selling Indian property | Per transaction | The NRI seller |
| DTAA / Form 10F + TRC | Claims treaty benefit to reduce TDS on dividends/interest | NRIs with a DTAA country of residence | Annually, before TDS deduction | The NRI taxpayer |
| FEMA / Repatriation (Form 15CA/15CB) | Authorises remitting sale proceeds abroad | NRIs repatriating funds from India | Per remittance | NRI + Chartered Accountant |
| PAN / Re-KYC | Mandatory identifier for any Indian financial transaction | All NRIs holding Indian investments or property | One-time, updated as needed | The NRI taxpayer |
Common Tax Provisions Every NRI Should Know
| Section / Rule | What It Covers |
|---|---|
| Section 195 | TDS on NRI income property sale, interest, and more |
| DTAA | Avoids double taxation between India and your country of residence |
| Section 54 / 54EC / 54F | Capital gains exemption on reinvestment |
| Section 80C, 80D, etc. | Select deductions still available to NRIs |
| Form 10F / TRC | Required to claim DTAA benefit before TDS deduction |
| Form 128 (new) | Lower/Nil TDS Certificate for property sale replaces Form 13 |
How It Works
Your NRI Tax Filing, Handled in 4 Steps
Free Consultation
A 15-minute call to assess your residential status and India income.
Upload Documents
Share documents securely over email or drive no physical visit needed.
We Compute & Prepare
Our CA team calculates tax, claims DTAA benefit, and prepares your return.
Review & e-Verify
Approve from anywhere in the world, e-verify, and track your refund.
What Makes SSA TAX Different From Other NRI Tax Firms?
Most local CAs treat NRI returns like any other filing. NRI tax has its own rulebook DTAA, TDS on the full sale value, foreign asset reporting. Here's exactly where we do it differently.
Typical Tax Agents
- Treat NRI returns the same as resident filings
- No proactive Lower TDS Certificate filing before property sale
- DTAA claims an afterthought, not planned in advance
- Require in-person visits or physical document signing
- No follow-up once the return is filed
SSA TAX
- NRI-focused CA team 1,000+ NRI clients served worldwide
- Form 128 / Lower TDS Certificate filed before your property sale closes
- DTAA, TRC & Form 10F handled proactively to cut TDS at source
- 100% remote sign, pay, and e-verify from any country
- Dedicated refund tracking until money actually lands in your account
TDS refund specialists
Banks deduct flat TDS on NRO interest and buyers over-deduct on property sale by default. We file the right claims to bring that excess tax back to you tracked end to end.
DTAA & capital gains experts
We structure your filing to legally minimise tax using treaty benefits across 90+ DTAA countries.
Updated for 2026 law
From Form 128 to TAN transition timelines, our team tracks every NRI-specific change as it happens.
Foreign asset reporting
Schedule FA compliance handled correctly to keep you clear of penalty risk.
Bank & buyer liaison
We coordinate directly with Indian banks, buyers and CAs so you don't have to chase anyone yourself.
Choose the Right NRI Tax Package
Rental & Interest Income
For NRIs with rental income from Indian property and/or NRO bank interest only.
Property Sale & Capital Gains
For NRIs selling property in India, with capital gains computation and TDS refund claims.
Multiple Assets & DTAA
For NRIs with multiple assets, DTAA claims across countries, or audit-sensitive cases.
FAQ