Non-Resident Indians

In today’s globalized world, millions of Indians live and work across diverse geographies, pursuing new opportunities and building successful careers abroad. Despite being away from their homeland, they continue to maintain strong financial, cultural, and emotional ties with India. Their engagement spans across investments, remittances, philanthropy, and active participation in India’s growth story.

This enduring connection reflects both their global outlook and their deep-rooted commitment to India’s progress.

What Does “NRIs” Mean?

A Non-Resident Indian (NRI) is an Indian citizen or a Person of Indian Origin (PIO) who resides outside India for employment, business, or any other purpose indicating an indefinite stay abroad, and does not meet the criteria of “resident”.

How is NRI Status Determined?

Your residential status for tax purposes is determined based on the total number of days you are physically present in India during a financial year, which runs from April 1 to March 31. The classification of an individual as a resident or non-resident depends on specific criteria related to the duration of stay in India within this period. This status plays a crucial role in determining tax obligations, as residents are generally liable to pay tax on their global income, whereas non-residents are taxed only on income earned or received in India.

However, under FEMA, NRI may be recognised as a Person Resident in India (PRI) or Person resident outside India (PROI) which would trigger the necessary compliance framework in relation to proposed transaction by NRI in India.

Legal framework for NRIs

NRIs operate under a well-defined and sophisticated legal and regulatory framework that governs their financial, investment, and tax affairs both in India and abroad. Key legislations and policies include: Income Tax Act, 1961, FEMA (1999), Liberalized Remittance Scheme (LRS), etc. Regulatory bodies such as the Central Board of Direct Taxes (CBDT), RBI guidelines for NRI, and Authorised Dealers (AD-Banks) play a crucial role in ensuring that NRIs operate within the legal framework, maintain compliance, and protect their cross-border financial interests.

Key Challenges NRIs Face

• Income Tax Return Filing: NRIs may require to file returns on income from rent, interest, salary, or capital gains in India. Expert guidance ensures correct tax computation and compliance.
• Income Tax Refunds: Reconciliation of Form 26AS/AIS and correct NRO/NRE details help avoid delays in refund claims.
• Online Responses to Income Tax Department: Efficient handling of notices, e-verifications, and compliance communications from India’s tax authorities.
• Lower Withholding Tax Certificate: Helps NRIs reduce excessive TDS on rent, professional fees, or investments
• Overseas Remittance (Form 15CA/15CB): Compliance for funds transferred abroad, certified by a Chartered Accountant, prevents FEMA violations.
• Advisory Services: Strategic guidance on NRI financial planning, tax, investments, and regulatory compliance to optimize wealth management.
• PAN & TAN Services: Assistance with applying, updating, and linking PAN/TAN for taxes, investments, and property transactions.
• Income Tax Clearance Certificates (ITCC): Required before leaving India or remitting large funds, ensuring no pending tax liabilities.
• Representation Services: Authorized representation before Income Tax Dept or RBI for assessments, appeals, and FEMA clarifications.
• Taxation of Gifts: Guidance on tax implications for gifts from relatives or non-relatives, ensuring correct reporting and exemptions.
• Violating investment rules: Investing in asset classes or through channels not permitted under FEMA, such as agricultural land or specific types of equity investment, can result in penalties.
• Bank account status: Keeping Indian bank accounts incorrectly after changing residential status can lead to violations.
• Non-compliance with sectoral caps: Breaching limits on the amount of equity or real estate that can be held is a common violation.
• Documentation issues: Lack of proper documentation, such as PAN cards, address proofs, and property documents, can create significant hurdles for managing assets and transactions.

How can MBG Help?

MBG supports NRIs in managing their cross-border tax, compliance, and financial challenges with expertise and personalized solutions:

• Income Tax & Regulatory Advisory: Expert guidance on NRI income tax rules, filing returns, claiming refunds, lower TDS certificates, and taxation of gifts.
• Representation Before Authorities: Acting on behalf of NRIs before the Income Tax Department, CBDT, and RBI for notices, assessments, appeals, and FEMA compliance.
• Cross-Border Financial & Remittance Support: Assistance with Form 15CA/15CB, PAN/TAN services, and efficient management of NRO/NRE accounts.
• Statutory Compliance & Clearance Certificates: Ensuring timely ITCCs and adherence to all statutory and regulatory obligations.
• Title Due Diligence of Immovable Properties – It will be our responsibility to verify ownership, encumbrances, litigation history, RERA/registry checks and help you acquire assets with confidence.
• Drafting of Agreements – Standardised packages for lease deeds, wills, power-of-attorney, conveyances, settlement deeds etc. Tailored, ready-to-use, and reviewable online.
• Assistance at Registrar Office – We coordinate registration, filings, stamping and liaise with registrar / sub-registrar offices on your behalf.
• Business Setup Services – Entity formation, local branch/subsidiary structuring, NRI bank account rules advisory, and business-bank account support.
• Estate Planning & Inheritance Advisory – Structured planning for succession, trusts and inheritance strategy, supported by legal documentation + advisory.
• General Documentation Services – Document review, compliance-check, legal letters, NDAs, simple advisory memos.
• Regulatory Services – Advisory covering domestic and cross-border regulation.
• Reserve Bank of India (RBI) / Foreign Exchange Management Act, 1999 (FEMA) Compliance & Advisory – From inward/outward remittances, foreign investments, repatriation, etc.
• Statutory Compliance Services – Filing of returns, secretarial audits, maintenance of records, board minutes, resolutions etc.
• Nature of Bank Accounts Advisory – Advisory on the suitable bank account structures for investment/business operations in India.