Section 6 FY 2025-26 NRI RNOR DTAA NRI Residential Status FY 2025-26: A Simple Day-Count Guide By CA D P Shewale, FCA, DISA | D P Shewale & Co LLP, Pune Most NRIs believe two things that are not quite right. One — your passport decides whether you pay tax in India. Two — as long as you live abroad, only your Indian income can be taxed here. Neither is correct. Your tax status in India depends on how many…
Filing your Indian tax return as an NRI involves documents from multiple countries and institutions. Getting them ready early saves time, avoids errors, and reduces the chance of a tax notice. 1. Personal & Identity Documents PAN card Passport with travel stamps Record of your entry and exit dates from India Proof of Indian address (if you have one) 2. Income Documents If you earn a salary in India: Form 16 from your employer Salary slips If you earn…
NRI tax returns are reviewed more closely than resident returns. The income structure, residency proof requirements, and foreign tax claims are more complex – and a single error can trigger a notice that delays your refund by months. Here are the four mistakes we see most often, and how to avoid them. Error 1: Wrong Residency Classification The mistake: Filing as “Resident” when you should be “Non-Resident,” or vice versa. This one error changes everything – what income is taxable, which…
Selling property in India as an NRI involves multiple layers of taxation, withholding requirements, and regulatory compliance. Understanding each layer ensures you meet your obligations correctly and avoid unnecessary tax outflows. TDS on Property Sale When an NRI sells property in India, the buyer is responsible for deducting Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act before transferring the sale proceeds. The applicable TDS rates are: Holding Period Gain Type TDS Rate More than 24…
