NRI tax · Decision guide
NRI tax: online CA-assisted vs doing it yourself (India)
NRI tax has more moving parts than a resident return, and most of them are decided before you even open the form. Your residential status for the year sets what India can tax. A tax treaty can reduce double tax if you claim it correctly. A property sale brings TDS and capital gains that rarely sort themselves out. For a simple case you can file yourself, but the judgement calls are where a mistake is expensive. This guide shows where each route fits.
- DIY works for a simple case: one clear Indian income source and settled non-resident status.
- Residential status is the first and most important call, and the rules changed recently.
- Treaty relief usually needs Form 67 and a tax residency certificate to avoid double tax.
- Property sale brings high TDS and capital gains that rarely sort themselves out.
- Claw Tax: a verified CA handles status, treaty and property, with a reviewer check; capital-gains ITR from Rs 2,499.
- Not tax advice: confirm the assessment year and current rules.
01You can file an Indian return yourself
A non-resident with Indian income can file on incometax.gov.in like any other taxpayer. If your only Indian income is, say, interest on an NRO account with TDS already deducted, or modest rent, and you are clear about your residential status, filing yourself is realistic.
Do it yourself when the picture is simple: one or two clear income sources, no treaty claim needed, no property sale, and you are confident you are a non-resident for the year. In that case the return is mechanical.
This is a decision guide, not tax advice
Residential-status rules, treaty relief and section numbers change, and the Income-tax Act, 2025 is set to replace the 1961 Act. Confirm the assessment year and current rules, and let a qualified professional handle cross-border specifics.
02The questions that trip up NRIs
These are the points where self-filing most often goes wrong.
- Residential status. Whether you are a non-resident, resident, or resident-but-not-ordinarily-resident for the year depends on day-count rules that changed in recent years. Get this wrong and the whole return is built on the wrong base.
- Double-tax relief under a treaty (DTAA). Claiming relief usually needs the right disclosure and often Form 67 and a tax residency certificate. Miss the process and you can pay tax twice.
- Sale of Indian property. The buyer deducts TDS, often at a high rate for an NRI seller, and you compute capital gains and may seek a lower-deduction certificate. This is rarely simple.
- Repatriation and account type. NRE, NRO and FCNR accounts are taxed differently, and moving money out has its own forms.
- Which return form applies, and reconciling TDS in the Annual Information Statement with what was actually deducted.
03When CA-assisted filing is worth it
Assisted filing earns its fee whenever a cross-border judgement is involved.
- You sold, or are selling, Indian property, and need the TDS, capital gains and any lower-deduction certificate handled correctly.
- You want to claim treaty relief, and need Form 67 and the residency certificate done right.
- Your residential status is borderline, because you moved during the year or spent significant time in India.
- You have income in more than one country and want to avoid double tax while staying compliant in both.
- You are short on time and overseas, and want a professional to manage the filing and any follow-up.
Because the amounts in a property sale or a treaty claim are usually large, the cost of assisted filing is small next to the cost of getting it wrong.
04DIY vs assisted, side by side
The two routes on the points that matter for an NRI.
| Factor | Do it yourself | CA-assisted (online) |
|---|---|---|
| Residential status call | Your judgement | Reviewed by a professional |
| Treaty (DTAA) relief | You handle Form 67 and TRC | Professional handles it |
| Property sale and TDS | You compute and reconcile | Professional computes and advises |
| Time zone and effort | All on you | Managed for you online |
| Service cost | Zero | Fixed, published (capital-gains ITR from Rs 2,499) |
| Best for | Simple single-source income | Property, treaty or borderline status |
05How Claw Tax helps
Claw Tax and Accounts is an online tax, GST and accounting service for India that connects you with a verified chartered accountant at a fixed, published price, with a Claw reviewer checking every filing before it is submitted.
For NRI tax, you book a free 20-minute call or pick the service, pay the fixed price, and a verified partner CA confirms your residential status, applies any treaty relief with the right forms, and computes capital gains on a property sale, reconciling the TDS in your AIS. A Claw reviewer checks the draft before you approve and it is e-verified, and everything happens online so time zones are not a problem. A capital-gains return, which covers a property sale, is published from Rs 2,499. See the current service and price at clawlaw.in/tax.
For other tasks with the same choice between doing it yourself and getting help, see payroll: CA-assisted vs doing it yourself and trademark: CA-assisted vs doing it yourself.
06Frequently asked questions
Do NRIs have to file an income tax return in India?
An NRI must file in India if their taxable Indian income crosses the basic exemption limit, or to claim a refund of excess TDS, or in certain other situations. Income earned and received outside India is generally not taxed in India for a non-resident. Because this depends on residential status and the source of income, confirm your position for the year before deciding.
Can an NRI file an Indian return without a CA?
Yes, for a simple case. If your only Indian income is something like NRO interest with TDS deducted, and your non-resident status is clear, you can file yourself on incometax.gov.in. The case for professional help grows sharply with a property sale, a treaty claim, or a borderline residential status.
How is a property sale by an NRI taxed?
The buyer deducts TDS, often at a higher rate for an NRI seller, and the NRI computes capital gains and may apply for a lower-deduction certificate to avoid excess TDS. The gain and any exemptions must be reported in the return. Because the amounts are large and the TDS mechanics are specific, this is one of the clearest cases for assisted filing.
What is DTAA relief and how do I claim it?
A Double Taxation Avoidance Agreement lets you avoid paying tax twice on the same income across two countries. Claiming it usually requires disclosing the treaty position, filing Form 67 for foreign tax credit, and holding a tax residency certificate. The process must be followed correctly, or the relief can be denied.
How does residential status affect my tax?
Your status for the year, non-resident, resident, or resident but not ordinarily resident, decides how much of your worldwide income India can tax. It is set by day-count rules that changed in recent years. Getting it wrong builds the whole return on the wrong base, so it is the first thing a professional checks.
Is it safe to file NRI taxes through an online service from abroad?
It can be, if the service uses secure document handling, has a qualified professional prepare the return, and files with your approval through OTP or e-verification. Filing online also removes the time-zone and travel problem of coordinating with someone in India. Check data handling and who actually files before you choose.