NRI Tax Consultant Bangalore

Living outside India does not necessarily mean that an individual has no tax responsibilities in India. NRIs may continue to earn income from Indian sources such as rent from property, interest, investments, capital gains or business activities. They may also own property in India, sell assets, make investments or receive other income that can create Indian tax and compliance requirements.

Understanding these obligations can be challenging because NRI taxation depends on factors such as residential status, the nature and source of income, applicable tax provisions and, in some cases, a Double Taxation Avoidance Agreement (DTAA).

H A B and Co provides professional NRI Tax Consultant Bangalore services to NRIs who require assistance with Indian income tax return filing, taxation of Indian income, property transactions, capital gains, TDS-related matters, DTAA considerations and tax compliance.

NRI Tax Consultant Services in Bangalore

NRI taxation involves several areas that may require professional attention. H A B and Co provides tax support based on the individual's residential status, income sources, investments and transactions in India.

Our NRI tax services include:
● NRI income tax return filing
● Taxation of Indian income
● Rental income tax support
● Capital gains tax assistance
● NRI property taxation
● DTAA-related advisory
● TDS and withholding tax support
● Assistance with tax notices
● Tax planning and compliance
● Documentation and filing support

Professional assistance can help NRIs understand their Indian tax obligations and maintain appropriate documentation.

NRI Income Tax Return Filing in Bangalore

The first step in NRI taxation is determining the individual's residential status for the relevant tax year. Residential status is determined under the applicable provisions based on factors such as the individual's period of stay in India and specific circumstances. The Income Tax Department's current guidance states that the basic residence tests continue to consider the 182-day condition and the 60-day plus 365-day condition, subject to applicable exceptions.

Once residential status is established, the taxpayer's Indian income and applicable filing requirements can be assessed.

For example, for AY 2026–27, the Income Tax Department states that ITR-2 is applicable to individuals and HUFs who do not have income chargeable under the head "Profits and Gains of Business or Profession", while ITR-3 is applicable where business or professional income is involved.

H A B and Co can assist NRIs in reviewing their income, documents, applicable ITR form, tax computation and filing requirements.

NRI Taxation on Indian Income

NRIs may have different sources of income in India. The tax treatment can vary depending on the nature of the income and the applicable provisions.

Rental Income

Rental income from property situated in India can be taxable in India. The income is generally considered under the head "Income from House Property", subject to the applicable provisions and deductions.

NRIs receiving rent from Indian property should maintain relevant rental agreements, property-related documents, municipal tax details and other supporting records. The Income Tax Department's ITR guidance specifically requires relevant property and rent information when computing income from house property.

Interest Income

Interest earned from Indian bank accounts, deposits and other investments may have Indian tax implications. The actual treatment depends on the nature of the account, investment and applicable tax provisions.

NRIs should also review the TDS appearing in their tax records and reconcile it with the income reported in the return.

Capital Gains

An NRI may earn capital gains from selling assets such as shares, securities or property in India. Capital gains taxation depends on the asset, date of acquisition, date of transfer, holding period and applicable provisions.

The Income Tax Department treats profit or gain arising from the transfer of a capital asset as income under the head "Capital Gains".

For property transactions, maintaining purchase documents, improvement expenses, sale documents and other relevant records is important for determining the applicable capital gains.

Business or Professional Income

An NRI who has business or professional income connected with India may have additional tax and filing requirements. The applicable return form and tax treatment depend on the nature of the activities and income.

DTAA Advisory for NRIs

NRIs may sometimes have tax implications in both India and the country where they are resident. A Double Taxation Avoidance Agreement, or DTAA, can provide relief in situations where the same income is subject to taxation in both jurisdictions, subject to the conditions of the relevant treaty.

DTAA provisions can differ from one country to another and may depend on the type of income, residential status and treaty conditions.

For Tax Year 2026–27, the Income Tax Department provides a specific process for non- residents seeking treaty relief, including Form 41 for furnishing prescribed information for a DTAA claim under the Income-tax Act, 2025.

H A B and Co can assist NRIs in reviewing the relevant tax provisions and documentation when considering DTAA-related claims.

NRI Property Taxation in Bangalore

Property owned in India is one of the most important areas of taxation for many NRIs. Tax considerations may arise when an NRI receives rental income or sells an Indian property.

Sale of Property by an NRI

When an NRI sells property situated in India, the transaction can result in capital gains and withholding tax obligations. The calculation depends on factors such as the property's acquisition cost, improvement expenses, date of purchase, sale consideration and applicable capital gains provisions.

TDS on Payments to Non-Residents NRI

Payments to a non-resident that are chargeable to tax in India can attract withholding obligations. Under the Income-tax Act, 1961, Section 195 was the key provision governing tax deduction on certain payments to non-residents. From Tax Year 2026–27, the Income- tax Act, 2025 provides the corresponding framework for tax deduction on payments to non- residents. The Income Tax Department also identifies the new provisions and corresponding forms for such payments.

Therefore, buyers and sellers involved in NRI property transactions should obtain appropriate professional advice before completing the transaction.

Lower or Nil Withholding Certificate NRI

In appropriate circumstances, a taxpayer can apply for a lower or nil withholding certificate where the estimated tax liability justifies a lower rate or no deduction. Under the earlier Income-tax Act, 1961, this was governed by Section 197. The corresponding provision under the Income-tax Act, 2025 is Section 395(1).

The certificate is issued by the Assessing Officer when the prescribed conditions are satisfied.

Capital Gains Exemptions NRI

Certain capital gains exemptions or relief provisions may be available depending on the nature of the asset, reinvestment and other conditions. NRIs should not assume that an exemption automatically applies. The specific transaction should be reviewed against the applicable provisions before claiming any exemption.

Why Choose H A B and Co for NRI Tax Services in Bangalore?

NRI tax matters can involve multiple income sources, property transactions, investments and cross-border considerations. H A B and Co provides professional support to help NRIs organise their Indian tax and compliance requirements.

Our services focus on understanding the client's residential status, Indian income, property transactions, investments and applicable documentation before determining the relevant tax requirements.

We assist with ITR filing, tax computation, property taxation, capital gains, TDS-related matters, DTAA considerations and other applicable tax compliance requirements.