Expert Guide to NRI Taxation Services in India 2026: ITR Filing, Capital Gains, DTAA & More

Non-Resident Indians (NRIs) often face unique tax challenges when dealing with income from India—whether it’s rental income, interest on NRO accounts, mutual fund investments, or property sales. With recent updates from Budget 2025 (applicable for FY 2025-26 / AY 2026-27) and ongoing changes in the Income Tax Act, staying compliant is crucial to avoid notices, claim refunds, and optimize tax savings.

At N C Agrawal & Associates, a leading Chartered Accountant firm in Delhi NCR and Noida with over 10 years of experience, we specialize in helping NRIs navigate these complexities. From expert ITR filing to DTAA advisory, repatriation support (Form 15CA/15CB), and capital gains planning, our services ensure hassle-free compliance tailored to NRIs in the USA, UAE, UK, Canada, Singapore, and beyond.

Why NRIs Need Specialized Taxation Help in 2026

NRIs are taxed in India only on Indian-sourced income (e.g., rent, interest from NRO accounts, capital gains from property or shares, salary if rendered in India). Foreign income remains non-taxable unless you’re a Resident.

Key 2026 considerations include:

• New tax regime benefits: Income up to ₹12 lakh may have zero tax liability in many cases (with standard deduction up to ₹75,000).
• Capital gains changes: Long-term gains (property held >24 months) taxed at 12.5% without indexation for properties bought after July 23, 2024 (option for older properties).
• TDS rates: Higher deductions on payments to NRIs (e.g., 12.5–30% on property sales), plus 4% health & education cess.
• Budget 2025 impacts: Simplified presumptive taxation for certain non-residents, expanded safe harbour rules for international transactions, and focus on reducing litigation.

Common pitfalls include missing Schedule FA (foreign assets disclosure), incorrect residential status, or failing to claim DTAA benefits—leading to excess TDS or penalties.

Our Core NRI Taxation Services

We provide end-to-end support for NRIs:

• NRI ITR Filing & e-Filing — Select ITR-2 (most common for salary/rental/capital gains) or ITR-3 (business/profession). We handle regime choice (old vs new), deductions, and e-verification.
• Capital Gains on Property Sale — Calculate LTCG/STCG, apply for lower/nil TDS certificate under Section 197, claim exemptions under Section 54/54F (reinvest in residential property) or 54EC (bonds up to ₹50 lakh).
• Repatriation of Funds — Certify Form 15CA/15CB for legal transfer abroad (up to $1 million/year under FEMA).
• DTAA Advisory — Leverage treaties (e.g., India-UAE DTAA for mutual funds/capital gains) to claim lower withholding rates or refunds. Provide TRC/Form 10F support.
• NRO/NRE/FD Interest Taxation — Advise on exemptions (NRE interest tax-free) and TDS refunds.
• Returning to India Planning — RNOR status guidance, foreign asset reporting, and tax-efficient transition.

Budget 2026 Update for TDS on Payment to NRIs & Lower TDS Deduction Certificate Page

Recent Update After Budget 2026

Changes to TDS/TCS rules affecting NRIs and related withholding compliance:

1. TAN Not Required for Withholding on Property Payments to NRIs

Under earlier practice, resident buyers had to obtain a TAN just to deduct and deposit tax on payments to non-resident sellers.
From October 1, 2026:

• You can use your existing PAN to deposit TDS for payments under Section 195 to NRIs.

• This simplifies compliance for buyers paying non-resident sellers for property, rent, and other payments that attract withholding.

2. Impact on TDS for Rent and Other Payments

The requirement to deduct TDS or withhold under Section 195 remains the same. What has changed is:

• Procedure only — PAN-based deposit instead of needing a TAN first.

So if you deduct TDS on rent to an NRI:

• Continue to deduct tax at applicable rates.

• Use your PAN to deposit the tax, avoiding the separate TAN application.

This change reduces administrative friction without altering the substantive tax liability.

3. Lower TCS on Overseas Remittances

Separately, Budget 2026 has reduced TCS on outward remittances for:

• Education and medical purposes — 2%

• Overseas travel packages — 2%

Although TCS is not TDS, it affects cash flow and should be considered when planning payments abroad.

What This Means for You

Step-by-Step: How We Help NRIs File ITR

1. Free Initial Consultation — Discuss your income sources, residential status, and documents via call/WhatsApp.
2. Document Collection — PAN, Form 26AS, bank statements, TDS certificates, property deeds.
3. Status & Form Selection — Confirm NRI/RNOR, choose ITR form and regime.
4. Computation & Filing — Compute tax, claim credits/refunds, e-file on the portal.
5. Post-Filing Support — Handle notices, refunds, or revisions.

Common FAQs for NRIs

• Do NRIs need to file ITR? Yes, if Indian income exceeds exemption limits (₹3 lakh new regime) or to claim TDS refunds/carry forward losses.
• What is the basic exemption for NRIs in 2026? Same as residents—check latest slabs; new regime often simpler for NRIs with fewer deductions.
• How to reduce TDS on property sale? Apply for lower deduction certificate before sale.
• Is NRO interest taxable? Yes, but claim DTAA benefits or refunds via ITR.
• What documents for Form 15CA/15CB? CA certificate, bank details, purpose proof.
• How does Budget affect NRI taxation? Watch for slab tweaks, TDS changes, and DTAA enhancements.

Don’t risk penalties or missed refunds—let experts handle it. With our Delhi NCR location, we offer seamless coordination for NRIs worldwide.

Contact N C Agrawal & Associates Today

Call/WhatsApp: 9718046555
Visit: https://ncagrawal.com/
Email for free consultation on NRI taxation, ITR filing, or property sale planning.

Secure your compliance and savings in 2026—reach out now!