NRI Taxation Services in Delhi

Residential status (Section 6)

Residential status is decided separately for each year. The tests below apply under Section 6 of the Income-tax Act, 1961 up to FY 2025-26 and continue under Section 6 of the Income-tax Act, 2025 from Tax Year 2026-27.

DTAA relief, TRC and Form 10F / Form 41

A non-resident may apply the tax treaty rate where it is more beneficial than the Act (Section 90 of the 1961 Act; Section 159 of the 2025 Act). To claim treaty benefits the non-resident needs a Tax Residency Certificate from the country of residence and, where the TRC does not contain all the prescribed details, a declaration in Form 10F, which becomes Form 41 from Tax Year 2026-27. Indian residents who need a TRC for use abroad apply for it in Form 42 (earlier Form 10FA) on the e-filing portal; the certificate is then issued in Form 43 (earlier Form 10FB). Treaty rates for interest, dividends and royalties often differ from the domestic rate, so the relevant article is checked in each case.

TDS on payments to non-residents

Any person paying a non-resident a sum chargeable to tax must deduct tax under Section 195 of the 1961 Act; from 1 April 2026 this is Section 393(2) of the 2025 Act, with payment codes 1039–1057 and the quarterly statement in Form 144 (previously Form 27Q). Common cases are rent paid to an NRI landlord, interest on NRO deposits and sale consideration for property. Where the non-resident expects the actual tax to be lower, a lower or nil deduction certificate can be sought from the Assessing Officer under Section 197 (Form 13), which is Section 395 (Form 128) under the 2025 Act.

Selling property in Delhi as an NRI: step by step

1. Work out the gain first. Long-term capital gains on property transferred on or after 23 July 2024 are taxed at 12.5% without indexation for non-residents, plus surcharge and cess. Where the sale price is below the stamp duty (circle rate) value by more than 10%, the stamp duty value is taken as the sale price (Section 50C of the 1961 Act). The Delhi property stamp duty calculator and the capital gains calculator help with both figures.
2. Consider a lower deduction certificate. Without one, the buyer deducts TDS on the full sale consideration, not just the gain. The seller can apply to the Assessing Officer under Section 197 (Form 13), which from 1 April 2026 is Section 395 and Form 128. The Finance Act 2026 also provides for an electronic route (Section 395(6)), subject to conditions to be prescribed. Apply well before the registration date.
3. The buyer deducts TDS under Section 195 of the 1961 Act, which from 1 April 2026 is Section 393(2) of the 2025 Act, at the rate in force or the rate in the certificate. The 1% TDS that applies to resident sellers (old Section 194-IA) does not apply to an NRI seller.
4. TAN or PAN. Until 30 September 2026 every buyer needed a TAN and filed the quarterly statement (Form 27Q, now Form 144). For transactions from 1 October 2026, a buyer who is a resident individual or HUF can deduct and deposit this TDS without a TAN (Section 397(1)(c)(iii), inserted by the Finance Act 2026). Companies, firms and non-resident buyers still need a TAN.
5. Reinvestment exemptions. Sections 54 and 54EC (Sections 82 and 85 of the 2025 Act) are available to NRIs, subject to their conditions and time limits.
6. Repatriation. Sale proceeds credited to the NRO account can be remitted within the USD 1 million a year limit, with Form 15CA and, where required, a CA certificate in Form 15CB (Forms 145 and 146 from 1 April 2026), supported by proof that tax has been paid or deducted.
7. File the return for the year of sale to report the gain, claim credit for the TDS and get any excess refunded.

The NRI property sale checklist lists the documents for each step.

TCS when family in India sends money to you or pays for you

Remittances by a resident in India under the Liberalised Remittance Scheme, such as gifts to a family member abroad or fees paid for a child studying abroad, attract tax collected at source by the bank above Rs 10 lakh in a year. From 1 April 2026 (Finance Act 2026, Section 394 of the 2025 Act):

• education or medical treatment: 2% above Rs 10 lakh (5% earlier); nil where the remittance is out of an education loan from a financial institution;
• other purposes, including gifts and maintenance of relatives: 20% above Rs 10 lakh;
• overseas tour packages bought in India: a flat 2%.

TCS is not an extra tax: the remitter claims credit for it in their own return. The LRS tracker keeps count of the year's remittances.

Returning to India: residential status and accounts

• Status after return. Many returning Indians are RNOR for one or more years, during which foreign income is generally not taxed in India; check each year with the residential status checker.
• Accounts. Under FEMA, NRE and FCNR deposits are re-designated as resident accounts or moved to a Resident Foreign Currency (RFC) account after return; interest on them stops being exempt once you become resident.
• Disclosure. Once you are resident and ordinarily resident, foreign assets, accounts and income must be reported in Schedule FA and Schedule FSI of the return, even where no tax arises. The foreign asset disclosure tool lists what to report.

NRE, NRO and repatriation

Interest on an NRE or FCNR account is exempt while the holder is a person resident outside India under FEMA, and the balance is freely repatriable. Interest on an NRO account is taxable and subject to TDS. Remittance from an NRO account is allowed up to USD 1 million per financial year for capital balances such as sale proceeds, while current income such as rent and dividends is repatriable outside that limit. A remittance generally needs Form 15CA and, above the prescribed limit, a chartered accountant certificate in Form 15CB; from 1 April 2026 these are Forms 145 and 146. See also the firm's FEMA compliance page for RBI reporting.

Relevant dates

• Income tax return for FY 2025-26 (non-audit cases): due date under Section 139(1); belated return by 31 December 2026 and revised return up to 31 March 2027.
• TDS on payments to non-residents: deposit by the 7th of the following month (30 April for March).
• Quarterly statement of TDS on non-resident payments (Form 27Q / Form 144): 31 July, 31 October, 31 January and 31 May.

Section numbers for later years can be checked in the Income Tax Act 2025 section finder.