NRI tax & investment guides — the knowledge library

NRO Fixed Deposits — the complete tax, FEMA and repatriation guide for NRIs

Indian banks deduct 30% TDS on every interest credit. Most NRIs never claim back the gap to their treaty rate. Here's the full picture: who can hold an NRO FD, how Section 195 works, what the DTAA does for you country by country, and the FEMA + Schedule FA paperwork around it.

NRE Fixed Deposits — the tax-free Indian deposit, with one big catch

NRE interest is exempt under Section 10(4)(ii) of the Income-tax Act — zero TDS in India, fully repatriable. The catch is that your country of residence may tax it as worldwide income. US and UK NRIs especially: your NRE interest is tax-free in India and fully taxable on your 1040 / Self Assessment with no Foreign Tax Credit available (because India levied no tax). Here's the complete picture.

FCNR Fixed Deposits — the foreign-currency tax-free deposit

FCNR (B) lets you hold INR-equivalent funds in USD, GBP, EUR, JPY, CAD, AUD, CHF, SGD or HKD inside an Indian bank, with interest exempt under Section 10(15)(iv)(fa) — zero TDS, no INR risk for you, RBI-capped rates. The right product when you want the Indian yield without the rupee depreciation.

Selling Indian property as an NRI — the complete TDS, Form 13 and repatriation guide

When you sell Indian property, the buyer must deduct TDS under Section 195 on the FULL sale value — 13.0% to 14.95% depending on the band. Section 197 / Form 13 lets the AO certify a lower rate based on your actual computed gain, often unlocking 25–35% of the sale price into your cash flow at closing. Here's the full picture: Section 112 post-FA(No.2) 2024, the resident-only indexation election, FEMA repatriation, and the timing trap most NRIs miss.

Indian Equity Mutual Funds — the most-held NRI investment, and the one US NRIs should be most careful with

For Gulf, Singapore, Hong Kong NRIs, Indian equity MFs are arguably the cleanest growth wrapper in your portfolio. For US NRIs, every Indian MF is a Passive Foreign Investment Company under IRC §1297 — a PFIC — and the IRS treats it punitively unless you elect mark-to-market. Here's the full tax stack: Section 112A on LTCG, Section 111A on STCG, Section 196A on distributions, the FA 2023 DTAA-reduction proviso, AMC onboarding restrictions for US/Canada residents, and where this product fits in a capital-growth-oriented NRI portfolio.

GIFT City IFSC FCY Fixed Deposits — the offshore-flavoured tax-free deposit inside India

The IFSC banking units in GIFT City sit on Indian soil but are treated as offshore for FEMA and tax. Interest on FCY deposits with these IBUs is exempt for non-residents under Section 10(15)(viii) of the Income-tax Act. Foreign currency, foreign-flavoured tax, Indian banking convenience — and rates that typically beat what your home-country bank pays on equivalent USD savings.

Tax-Free PSU Bonds — the post-2016 secondary-market tax shelter for NRIs

Between 2012 and 2016 the Government of India authorised PSUs (REC, NHAI, IRFC, PFC, HUDCO, NABARD, NHPC, NTPC) to issue bonds whose interest is fully exempt from Indian income tax under Section 10(15)(iv)(h). No fresh issuances since 2016 — all available paper trades on the secondary market on NSE / BSE. NRIs can buy via an NRE-funded demat account; the interest stays tax-free for the holder regardless of when the bond was acquired. For high-bracket NRIs (US, UK, Canada) where residence-state tax already eats most yield, this is one of the cleanest fixed-income shelters India offers.

Sovereign Gold Bonds — what to do with your existing holdings as an NRI (and why you can't buy fresh)

Sovereign Gold Bonds (SGBs) are RBI-issued bonds linked to gold prices, with a 2.5% annual interest coupon and Section 47(viic) tax-exemption on redemption gain at maturity. NRIs are NOT eligible to subscribe to fresh tranches per RBI's SGB Master Direction — but if you became an NRI after subscribing, you can hold existing bonds until early redemption / maturity. This guide covers what to do with existing SGBs as an NRI: maturity exemption, secondary-market sale, NRO repatriation, and the niche scenarios where SGBs still make sense in an NRI portfolio.

Form 41 replaces Form 10F from FY 2026-27 — what NRIs claiming DTAA benefits need to know

If you're an NRI claiming a treaty rate of TDS — say 12.5% on your NRO interest instead of 30% — you've been filing Form 10F since 2012. From the 2026-27 financial year onwards, Form 41 takes over, under the new Income-tax Act 2025. Same purpose, slightly different form, different statutory citation. Here's exactly what changes, what doesn't, and what you need to do in the transition window.

Form 13 Lower Deduction Certificate — how NRI property sellers stop the buyer from withholding ₹25 lakh extra at closing

When an NRI sells Indian property, the buyer must withhold TDS at 13.0–14.95% on the FULL sale value under Section 195 — not on the actual gain. On a ₹2 crore flat with a ₹40 lakh real gain, that's about ₹29 lakh deducted at closing against an actual tax liability of about ₹5 lakh. Form 13 / Section 197 is the legal lever that closes this gap. Here's exactly how it works, when to apply, and what to expect.

Schedule FA — the foreign-asset disclosure that triggers Black Money Act exposure for returning NRIs

Once you become Resident & Ordinarily Resident in India, every foreign asset you hold — your US 401(k), UK SIPP, Canadian RRSP, Singapore CPF, even a small Vanguard brokerage — must be disclosed in Schedule FA of your ITR-2 each year. Skip a year and the Black Money Act 2015 exposes you to ₹10 lakh per-year penalty under Section 42, plus a 90% penalty under Section 41 if the asset is treated as undisclosed foreign income, plus possible imprisonment under Section 51. Here's the complete picture: who must file, what goes where, the two safe-harbour thresholds, the Section 89A deferral route for retirement accounts, and the path back if you missed prior years.

Every NRI redemption tax rate in one place — stocks, mutual funds, SGB, EPF, bonds, NPS, REITs

When you sell or redeem Indian investments as a non-resident, the rate your AMC, broker, RBI, EPFO, or RTA cuts at source is rarely the rate you actually owe. This is the single-page reference: at-source TDS rate, DTAA treaty floor, Form 13 / lower-deduction lever, and the repatriation paperwork — for every major asset class an NRI typically holds.

NRI selling Indian listed equity — the complete tax + repatriation guide for FY 2026-27

If you hold Indian shares via your Portfolio Investment Scheme (PIS) account and you're now an NRI, your broker withholds capital gains TDS on every sale. The post-Finance (No 2) Act 2024 rules changed the rates from 23 July 2024 onwards. Here's the full picture: what TDS the broker cuts, what the DTAA does (and doesn't) reduce, when Form 13 is worth applying, and how to get the money out of India.

Sovereign Gold Bonds for NRIs — the Section 47(viic) tax-free redemption + the secondary-market catch

Sovereign Gold Bonds (SGBs) issued by RBI on behalf of the Government of India are one of the most tax-efficient gold-exposure instruments for Indian investors. NRIs cannot buy new tranches, but if you bought SGBs as a resident and later became NRI, you can hold to maturity and claim the Section 47(viic) capital-gains exemption. Here's exactly how it works — including what changes if you exit early on the secondary market.

EPF withdrawal for NRIs and returning NRIs — the 5-year rule, the 10% TDS, and the foreign-tax-credit play

Whether you're resigning your Indian job to move abroad, or you're a returning NRI closing out an old EPF balance, the tax treatment turns entirely on one question: did you complete 5 years of continuous service? Less than 5 years means the entire withdrawal becomes taxable as Salary in the year of withdrawal. Five or more years means it's tax-free. Here's the complete picture, including TDS coordination, UAN portability, and the foreign-side tax-credit angle.

NRI bonds, NPS, and REITs/InvITs — the complete tax + repatriation reference

Beyond stocks, mutual funds, and SGBs, NRIs typically hold a mix of bonds (government, corporate, tax-free), NPS accounts, and REITs/InvITs. Each has its own statutory framework, TDS regime, and DTAA treatment. This is the single guide that covers all three asset classes — when interest is exempt, when capital gains are taxed, how the NPS 60/40 exit works, and how REIT distributions are split for taxation.

NRI mutual fund TDS — why it's 30%, and how to get your treaty rate

Every NRI who redeems an Indian mutual fund sees the same shock — the AMC sliced off 30% (or 20% on equity MFs, or 12.5% on LTCG) before crediting your NRO. That's Section 195 working as designed. Your DTAA treaty cuts it materially — to 12.5% LTCG for most countries, sometimes down to 0% for Gulf NRIs holding pre-treaty lots. Here's the complete rate stack by fund type and your country.

How to avoid the 30% TDS on your NRO account interest

Every NRI sees the same shock — the bank slices 30% off the interest credited to their NRO. That's not punishment; it's Section 195 doing what the law requires when you haven't filed the right forms. The cure exists, it's well-defined, and most NRIs leave ₹40,000 to ₹3 lakh per year on the table by not running it.