NRI tax & investment guides — the knowledge library

FCNR vs NRE vs NRO: which NRI account, in plain English

Three accounts, one simple rule — where the money came from decides which one it belongs in. Here is the difference without the jargon: which interest is tax-free, how to take money back abroad, and a step-by-step checklist for the day you become an NRI and the day you move back.

The NRI tax recovery gap: a 2026 data report across 31 countries

We ran the same ₹15 lakh NRO fixed deposit through India's tax treaties in every country we cover. The money NRIs lose is at the withholding stage, not in some exotic loophole — and most of it is recoverable. Here are the numbers.

The Income-tax Act 2025: what changed for NRIs (old vs new forms and sections)

From 1 April 2026, India runs on a new Income-tax Act. The residence test is the same, but most of the forms and section numbers you know were renumbered. Here is the plain old-to-new map, what genuinely changed, and why your FY 2025-26 filing still uses the old forms.

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: TDS, Form 13, and getting your money out

When you sell, the buyer cuts TDS on the full sale price, not on your gain, so lakhs get locked up. Here's the whole picture: why the rate is what it is, how Form 13 frees your cash before closing, how to cut the tax with reinvestment, and how to move the proceeds abroad.

Indian equity mutual funds: simple tax for most NRIs, a real trap for US ones

When you sell an Indian equity mutual fund, India taxes the gain at 12.5% if you held it over a year, or 20% if less. That's the whole story for most NRIs. If you live in the US, there's a catch the IRS calls PFIC, and it changes everything. Here's both, plus who can actually buy these funds and how to keep your money repatriable.

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

Form 10F is the one-page form you file to claim your treaty (DTAA) tax rate instead of the default 30%. From April 2026 it has a new name: Form 41. Same form, new number. Here's which one to file, and how.

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 a ₹10 lakh per-year penalty under Section 43 (Section 42 if you never file at all), plus a 90% penalty under Section 41 if the asset is treated as undisclosed foreign income, plus possible imprisonment (Sections 49 to 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 gets the same shock: the bank slices 30% off the interest credited to their NRO account. It's not a penalty, just the default the law sets for non-residents. Your treaty rate is far lower, and getting it back is a well-worn path that most NRIs never walk.