Everything a Non-Resident Indian needs to know about Indian income tax, FEMA regulations, NRO/NRE accounts, property ownership, overseas remittances and annual ITR filing obligations — in one place.
FY 2026-27 Update: New Income Tax Act 2025 is in force from 1 April 2026. NRI residency rules, TDS rates and ITR forms have changed. Read the full update →
Non-Resident Indians have obligations under two separate legal frameworks — the Income Tax Act (for taxation of Indian-sourced income) and FEMA 1999 (for all foreign exchange and banking transactions). Here is a complete overview of every area that affects you.
Key deadlines every NRI must be aware of for FY 2026-27 (April 2026 to March 2027).
| Due Date | Compliance Requirement | Applicable To | Penalty / Consequence |
|---|---|---|---|
| 31 Aug 2026 | ITR filing for FY 2025-26 (non-audit cases) | NRIs with Indian income above ₹2.5 lakh | Late fee up to ₹5,000 (₹1,000 if income < ₹5 lakh) |
| Per transaction | Form 15CA / 15CB — before each remittance | NRIs repatriating funds from NRO account, property sale proceeds, rent | Penalty of Rs.1 lakh per default under Section 271-I of Income Tax Act |
| 30 Sep 2026 | Form 15CA/15CB for remittances (per transaction) | NRIs remitting funds from NRO account | Penalty ₹1 lakh per default under Section 271-I |
| 31 Oct 2026 | ITR filing for FY 2025-26 (audit cases) | NRIs with income requiring tax audit | Late fee + interest under Section 234A |
| 31 Mar 2027 | Belated / revised ITR for FY 2025-26 | All NRI taxpayers — belated filing permitted up to 31 March of the assessment year | Late fee up to Rs.5,000; losses (other than house property) cannot be carried forward |
| 15 Jun / 15 Sep / 15 Dec / 15 Mar | Advance tax instalments (if tax liability > ₹10,000) | NRIs with Indian business / capital gains income | Interest @ 1% per month under Sections 234B & 234C |
| Annual | Form 10F renewal (for DTAA benefit claims) | NRIs claiming DTAA benefits from Indian deductors | TDS deducted at higher rate without valid Form 10F |
| Annual | Tax Residency Certificate (TRC) renewal | NRIs claiming DTAA benefits | DTAA benefits denied without valid TRC |
| On each transaction | PIS reporting for equity purchases/sales | NRIs investing in Indian stock markets | FEMA violation — compounding with RBI |
| Within 60 days of return | Conversion of resident savings account to NRO | Persons becoming NRI | FEMA contravention — penalty up to 3x the amount |
Tax is deducted at source on most payments made to NRIs. These rates apply under the Income Tax Act 2025 (effective 1 April 2026) and may be reduced under applicable DTAA.
| Nature of Income | TDS Rate (Act) | DTAA Reduction Possible | Relevant Section |
|---|---|---|---|
| Interest on NRO account | 30% + surcharge | Yes — 10-15% under most DTAAs | Section 195 |
| Dividends from Indian companies | 20% + surcharge | Yes — 10-15% under most DTAAs | Section 195 |
| Long-term capital gains (property) | 20% + surcharge | Varies by DTAA | Section 195 |
| Short-term capital gains (property) | 30% + surcharge | Varies by DTAA | Section 195 |
| LTCG on listed equity / equity MFs | 12.5% (above ₹1.25L) | Varies by DTAA | Section 112A |
| STCG on listed equity / equity MFs | 20% | Varies by DTAA | Section 111A |
| Rental income from property | 30% (on gross) | Varies by DTAA | Section 195 |
| Professional / technical fees | 20% | Yes | Section 195 |
| Interest on NRE / FCNR accounts | Nil (exempt) | N/A — already exempt | Section 10(4) |
If TDS rates under the Act are higher than your actual tax liability, you can apply to the Income Tax Officer for a lower TDS / nil TDS certificate under Section 197. This can significantly reduce TDS on property sale proceeds, rental income and NRO interest. Our team handles these applications regularly.
| Activity | Permitted | Conditions / Limits |
|---|---|---|
| Hold NRE / NRO / FCNR accounts | Yes | Must be maintained as per FEMA regulations |
| Repatriate from NRE account | Yes — freely | No limit on amount or frequency |
| Repatriate from NRO account | Yes — up to limit | USD 1 million per financial year after tax payment |
| Purchase residential / commercial property | Yes | Maximum 2 residential properties without RBI approval |
| Purchase agricultural land | No | Only inheritance permitted — not purchase |
| Invest in Indian equities / MFs | Yes — via PIS | Through designated PIS bank account only |
| Give loan to resident relative | Yes | In Indian Rupees; interest free; specific conditions apply |
| Give gift to resident relative | Yes | Up to USD 2,50,000 per year (LRS route from abroad) |
| Open foreign currency account in India | Limited | RFC account only — on return to India |
| Invest in Indian partnership firm | With conditions | Not permitted in agricultural / plantation / real estate firms |
Each country's DTAA rates, TRC requirements, local tax return obligations, and compliance deadlines differ. Select your country of residence for a dedicated guide.
Our NRI practice at Shahi & Co. advises Non-Resident Indians across the USA, UAE, UK, Canada, Australia, Singapore and 15+ other countries on Indian income tax, FEMA compliance, property transactions, ITR filing and repatriation planning.
Income tax, GST, NRI compliance, audit, company registration, FEMA — our team is available for queries across all practice areas.
Our team will reach out on the phone or WhatsApp number you provided, usually within one working day.