NRI Tax Services
1) Non-Residents, NRIs NRO A/c Remittance Outside India 15CA 15CB Services
Outward Money Remittance By Non-Resident Indians (NRIs), Foreign Citizens (OCIs, PIOs) - From NRO Accounts To NRE Bank Account/Foreign Bank Account – Tax Advisory/CA Services In Delhi NCR, Mumbai, Chennai, Bangalore, Hyderabad, Gurgaon, Noida, Pune, Gujarat, Kochi, Kerala, Chandigarh, Ludhiana, Punjab, UP, HP, Dehradun, Other Major Cities India
Doing NRO Account Outward Repatriation is a general and regular requirements of various NRIs, OCIs. In this regard, NRIs look forward for 15CA 15CB form filing services which is a prerequisite of Banks. In this regard, we assist NRIs in preparation & filing of Forms 15CA 15CB with Income Tax Department in all major cities in India. Accordingly, we also assist NRIs in many cases for setting up a communication with Banks. In this regard, we do assist NRIs across India with our presence in all major cities in India.
NRI NRO Account Outward Remittance Transactions
Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Person of Indian Origin Residing Abroad (PIOs), Foreign Citizens Residing In India (Expatriates), often remit their money (lying in their Bank Account in India) from NRO Account to following:
- Either to their NRE Bank Account in same bank or other bank
- Or their Foreign Bank Account held by NRI/OCI in their home country outside India.
When the NRI/OCI/PIO requests their bank for the remittance, their banker generally require some additional documents ie:
- Application for outward remittance from NRO Account
- A2 Form (a Form under RBI Regulations)
- Form 15CB (A Chartered Accountant Certificate) (to be submitted online on Income Tax Deptt Portal)
- Form 15CA (A Declaration By Remitter to Income Tax Deptt) (To be submitted online on Income Tax Deptt Portal)
- Source of funds (in some cases) (with documentary support)
- Passport Copy (in some cases)
2) NRI OCI Property Sale Lower TDS Certificate Form 13
Property Sale By NRIs, OCIs, Foreign Citizens – TDS U/s 195 – Lower Tax, TDS (Nil) Exemption Certificate U/s 197 (Filing Form 13 Online) – Tax Consultant in Delhi NCR, Bangalore, Mumbai, Chennai, Kolkata, Hyderabad, Pune, Gujarat, Chandigarh, Dehradun, Gurgaon, Noida, Kochi, Other Major Cities India
TDS On Property Sale Transactions By Non Residents (NRIs, OCIs)
As per Indian Tax Laws, TDS provisions apply on various financial transactions in India.
TDS is also applicable on Property Sale Transactions in India.
In relation to property sale matter, If the seller is Resident Indian, TDS rate is 1% and governed by section 194IA. However, if the seller is Non-Resident (i.e. NRI, OCI, Foreign Residents), TDS is governed by Non-Resident TDS provisions i.e. section 195 of the Income Tax Act.
Under the Non-Resident TDS Provisions i.e. Section 195, TDS rates apply at the maximum rates on the Sale amount of Property. This rate is 20% if property is long term capital asset. The rate is is 30% if property is short term capital asset. Applicable surcharge and 4% cess is extra.
TDS Rate and Genuine Hardship On Non-Resident Property Seller
Generally, in all property sale transactions, it happens that the actual tax liability in the hands of tax payer (non-resident seller) is lesser than the proposed TDS on that transaction.
The pain of Non-resident property seller can be understood by an example. E.g. An NRI agrees to sell a property @ Rs 1.50 Crore, and property purchase cost (after indexation) in the hands of NRI is Rs 1.45 Crore. Hence, a capital gain arises for Rs 5 Lakh only. Now, as per Non-Resident TDS provisions (Sec 195), considering property is long term asset (i.e. holding period exceed 2 years) the applicable TDS is 23.92% (20% + SC 15% + cess 4%) of sale amount i.e. Rs 35.88 Lakh. Though actual tax liability is Rs 1.04 Lakh only i.e. 80% of Rs 5 Lakh (20% + 4% cess; SC not applicable on below 50 Lakh Rs gain).
Hence, in the above situation, as per applicable NRI TDS provisions 35.88 Lakh TDS will be deducted against actual tax liability of Rs 1.04 Lakh. Though, NRI can claim the excess TDS refund (Rs 34.84 Lakh) through filing of ITR. However, it is a time taking process. If TDS deducted on full amount, Non-resident money will be blocked with Income Tax Department for a long time, which causes loss of bank interest also.
Hence, this is a Genuine Hardship on the Non-residents (NRIs, OCIs) in relation to their property sale matter transactions in India.
To overcome this situation, Income Tax Act (sec 197) provides for Lower TDS Certificate option (or also called as TDS Exemption Certificate).
NRI, OCI Lower TDS Certificate or TDS Exemption Certificate – Section 197 (Form 13)
To seek relief in the Withholding Tax Rates, NRI/Foreign Citizen can apply for Lower TDS Certificate (TDS Exemption Certificate) with the Jurisdictional Income Tax Authority.
This application is submitted in Form 13 of Income Tax Forms.
NRI Lower TDS Certificate is an online application process (wef Oct 25, 2018)
NRI applicant need to prepare and arrange various supporting documents for this Lower TDS Certificate. All the documents are submitted with Form 13 Application online.
On submission of documents, the application moves to the Jurisdictional TDS Certificate Officer. The officer review the application and raises observations & further requirements if any.
On satisfying all the concerns, the officer processes the certificate and allow Lower TDS to the NRI/Foreign citizen in relation to the transaction.
On receipt of the Lower TDS Certificate (or TDS exemption certificate) the buyer deducts the TDS as per Certificate.
Hence, through this process NRI/Foreign citizen gets TDS relief before the sale transaction, and avoid blocking of their money with Income Tax Department.
3) Sale of Immovable Property, Capital Gains Reports
NRIs acquire immovable property in India. This acquisition is either by way of investment by NRI himself or by way of inheritance from their parents/grand-parents etc. In lots of cases, NRIs wish to sell this immovable property due to two reasons. One is to fetch them a good return. And two they are settling outside India, hence, they don't wish to hold this immovable property any more. Consequently, there are lots of sale of immovable property transactions happening by NRIs/PIOs. With this, lots of tax issues arise before them. Certain questions which generally come to their mind are:
- What is the tax treatment of selling an immovable property?
- What will be the cost of immovable property acquired by them through inheritance or gift?
- How will the gain be calculated in case of immovable property acquired long back when prices were very low?
- What will be the treatment of other related expenses paid to other people (i.e. other than seller)?
- What is the importance of Stamp Duty Valuation (i.e. Circle Rates of Stamp Duty Valuation Authority)?
- How the capital gains tax (arising on sale of property) be avoided or reduced?
- What are the NRI specific TDS provisions wrt acquisition or sale of immovable property?
The same can be understood by understanding the salient features of tax provisions wrt sale of immovable property:
- Profit on sale of immovable property: Being a capital asset, under the Capital Gains chapter, it is a taxable gain technically called as Capital Gains, which is calculated as under:
- Computation of Capital Gains
| Particulars | INR |
|---|---|
| Sale Consideration | 50 Lac |
| Less: Indexed Cost of Acquisition | 30 Lac |
| Less: Expenses wrt Sale (eg. broker fee) | 2 Lac |
| Capital Gains | 18 Lac |
- Indexation of Cost: Cost of acquisition can be indexed (as per the index provided by CBDT every year), if the immovable property holding period before sale is more than 24 months (two years) ie. Long Term Capital Asset.
- Immovable Property Acquired By Way of Inheritance/Gift: In case of immovable property was acquired by NRI by way of Inheritance/Gift, then as per the provisions of Capital Gains Chapter the benefits of previous owner (i.e Deceased or Donor) will pass on to the person who acquires such property. Hence, costing, indexation etc benefit will be allowed.
- Stamp Duty Value: As per the provisions of Section 50C of the Income Tax Act, if NRI sells an immovable property less than the Stamp Duty Value then for the purposes of capital gains Stamp Duty Value shall be considered as Sale Price. Eg. if in above case, Stamp Duty Value of property is INR 60 Lac, then 60 Lac shall be considered as Sale Value and capital gains would be Rs 28 Lac.
- Tools To Nullify or Minimise Capital Gains Taxation: By adopting certain tax planning tools, capital gains taxes (on sale of immovable property) can be minimise or reduced to nil. Those tools include:
- Investing in Long Term Specified Bonds (i.e. 5 year lock-in bonds of NHAI/REC)
- Investing in a new Residential House Property
- TDS on Sale of Immovable Property By NRIs, PIOs: As per the TDS provisions, buyer of immovable property needs to deduct TDS from the payment to be made to NRIs/PIOs (under the TDS provisions of payment to Non-Residents i.e. Section 195). Hence, sale of immovable property by NRIs/PIOs attract TDS on sale consideration paid to them.
4) NRI, Non-Resident Income Tax Return Services In India
NON RESIDENT, NRIs ITR FILING SERVICES IN INDIA - TAX CONSULTANT, CA SERVICES IN DELHI, MUMBAI, KOLKATA, CHENNAI, HYDERABAD, BANGALORE, KERALA, GUJARAT, GURGAON, PUNE, NOIDA, MAJOR CITIES INDIA
Background
Income Tax Return Filing in India is an annual compliance, which is to be complied by all taxpayers. Non-residents are not an exception for this. For Non-residents (NRIs, PIOs, OCIs, Foreign Citizens), ITR Filing is more important. Also, Non-residents are more compliant for their duties in relation to tax compliances etc. Here are some important things in relation to Non-Resident ITR filing in India.
Components of Non-Resident ITR
Non-residents generally have following kind of income which is taxable in India:
- Interest Income From Bank Account (NRO, NRE Accounts)
- Rent From House Property
- Capital Gains From Sale of Mutual Funds, Shares
- Dividend income from Share, Mutual Funds (taxable wef FY 2021-22) (Amendment via Budget 2020)
- Capital Gain from sale of Property
Process of Filing ITR
ITR filing process includes following steps:
- Gathering all the documents needful for ITR preparation
- Preparation of ITR Computation (self or with the help of tax expert)
- Payment of taxes (if payable)
- Preparation of ITR Form and Submission of same with IT Website (self through ITR Filing website or with the help of tax consultant)
- ITR V Verification (online e-verify or offline by sending ITR V hard copy to CPC)
Due Date
Due date of ITR filing in India is July 31 of Assessment Year for Non-Audit cases (generally applies to all Non-Residents). E.g. If ITR is to be filed for FY 2022-23 then due date will be July 31, 2023. Belated ITR or Revised ITR can be filed upto Dec 31, 2023.
Benefits of Filing of ITR
Why NRI should file ITR in India. There are lots of benefits for NRIs to file ITR in India. In this link, benefits of ITR filings can be understood in more details BENEFITS FOR ITR FILING IN INDIA.
Relevant Terms and Information For ITR
There are lot of information, which a Non-Resident (NRI, Foreign Citizen, OCI, Expat, PIO) must know in relation to his ITR filing in India. Here are some important information in relation to latest ITR (FY 2022-23), which Non-Resident, NRIs, Foreign Citizens, Expatriates must go through before filing of their ITR.
More On Non-Resident ITR In India
Here are links for more information in relation to NRI ITR Filing in India.
- Basic Important Information for NRI ITR
- What Are Benefits for NRIs to File ITR in India
- NRI Income Tax Slab Rates in India
- NRIs OCIs New Income Tax Slab Option WEF FY 2020-21
- How to File ITR for Earlier Years and Claim a Refund if ITR Filing Not Done Yet
- What Are the Penal Provisions and Consequences if ITR is Not Filed in India
- What Are Documents and Information Required by NRIs for Filing ITR in India
- What is the ITR Filing Process for NRI ITR in India
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