For Non-Resident Indians (NRIs), navigating the Indian income tax system can feel like walking through a maze—multiple income sources, confusion over residential status, TDS on Indian earnings, and the fear of missing deadlines from another time zone. The process isn’t just complicated—it’s risky, especially when errors can trigger hefty penalties or notices from the Income Tax Department.
That’s where TaxBuddy comes in. With dedicated NRI support, seamless digital filing, and expert human guidance, TaxBuddy makes tax filing a smooth, stress-free experience no matter where in the world you are.
Let’s explore how NRIs can benefit from TaxBuddy and why it has become one of the most trusted names in India for hassle-free NRI tax return filing.
Why NRIs Need to File ITR in India
Many NRIs believe that if they’re not living in India, they don’t need to file taxes here. But that’s not always true. You need to file an Income Tax Return (ITR) in India if:
- You earn rental income, capital gains, interest on fixed deposits or savings accounts, or dividends from India.
- Your total income from India exceeds ₹2.5 lakh in a financial year.
- You wish to claim a refund for TDS deducted by Indian banks or companies.
- You want to carry forward capital losses for future gains.
- You want to avoid income tax notices and comply with Indian laws for peace of mind.
Failing to file on time, or filing inaccurately, can lead to interest under Section 234A/B/C, and even prosecution under Section 276CC in extreme cases.
NRI Tax Challenges That TaxBuddy Solves
1. Understanding Residential Status
TaxBuddy starts with one of the most overlooked aspects—determining your correct residential status based on days stayed in India. This is important because your taxability depends on whether you’re an NRI, RNOR (Resident but Not Ordinarily Resident), or Resident. Incorrect classification is a major reason for return rejections and notices.
2. Choosing the Correct ITR Form
Most NRIs need to file either ITR-2 or ITR-3, depending on whether they have business income from India. Choosing the wrong form often leads to Section 139(9) defective return notices. TaxBuddy helps you pick the correct form based on your exact sources of income—so you never have to worry about form errors.
3. Claiming Refunds on TDS Deducted
Indian banks often deduct TDS at 30% on NRI interest, regardless of whether you’re eligible for a lower rate or exemption under DTAA (Double Taxation Avoidance Agreement). TaxBuddy helps:
- File Form 10F or declare DTAA applicability.
- Adjust TDS in your ITR to claim rightful refunds.
- Guide you on how to avoid over-deduction in future years.
4. Managing Multiple Income Sources
From rent to mutual funds to capital gains on property sales—many NRIs earn from multiple channels. TaxBuddy’s team ensures every source is correctly reported and taxed. Even more importantly, they review your AIS (Annual Information Statement) and 26AS to detect any mismatches that could trigger notices.
5. Handling Indian Property Income
If you rent out a property in India, TaxBuddy helps you:
- Deduct 30% standard deduction.
- Claim interest on home loan as deduction.
- Calculate tax on deemed rent if the property is vacant.
- Understand how to deal with TDS deducted by tenants.
6. Expert Advice on Capital Gains
Selling Indian property? TaxBuddy ensures you:
- Correctly classify gains as long- or short-term.
- Apply indexation for long-term assets.
- Claim exemptions under Section 54, 54EC, etc.
- File Form 15CA/15CB if you’re remitting funds abroad.
7. Guidance on the Right Tax Regime
NRIs are eligible for both the old and new tax regimes. But which one should you choose? TaxBuddy compares both based on your income sources and deductions to help you pick the option that offers maximum savings.
8. Avoiding Double Taxation with DTAA
If you live in a country that has a DTAA with India, TaxBuddy ensures you:
- Avoid paying tax on the same income in both countries.
- Get relief under Section 90/91.
- Understand what income is taxable only in your resident country.
Fully Digital Filing from Anywhere in the World
You don’t need to post physical forms or courier documents. TaxBuddy’s secure online portal allows you to:
- Upload your documents (bank interest statements, rent agreements, Form 16A, etc.)
- Get your ITR prepared by a tax expert.
- Review and e-sign the return.
- Receive confirmation of filing—all without leaving your home abroad.
Whether you’re based in Dubai, Singapore, the US, or the UK—TaxBuddy works around your time zone, offering email and video support for urgent clarifications.
NRI-Focused Notice Management
Worried about tax notices while you’re thousands of miles away from India? TaxBuddy’s Notice Management team helps you respond to:
- Section 143(1) notices (mismatch in TDS)
- Section 148 (income escaping assessment)
- Section 142(1) (documents required for assessment)
Even if you’re not physically in India, TaxBuddy handles representation on your behalf—ensuring your compliance stays intact.
Transparent Pricing & Expert Guidance
Unlike traditional tax agents or CAs who may charge arbitrarily high fees for NRIs, TaxBuddy offers fixed, transparent pricing for NRI tax filing packages—starting as low as ₹999.
Every plan includes:
- Expert-prepared ITR
- Personal review of AIS and 26AS
- Choice of old vs new regime evaluation
- One-on-one tax consultation
Premium plans include Form 15CA/CB assistance, capital gains evaluation, and investment planning for tax optimisation.
Why NRIs Trust TaxBuddy
- Over 1 million+ users
- Dedicated NRI desk
- AI-powered + human-assisted filing
- Support via call, WhatsApp, or email
- Easy document upload and e-verification
NRIs have already filed lakhs of returns through TaxBuddy, citing time-saving, professional accuracy, and peace of mind as key reasons for choosing it over others.
Final Thoughts
As an NRI, filing your Indian income tax return correctly and on time is critical—not just for compliance, but also to protect your investments, claim your refunds, and avoid legal hassles. With complex rules and evolving tax laws, even a small mistake can lead to major issues.
That’s why it’s smarter to let TaxBuddy handle your NRI tax filing. From reviewing your income sources to filing accurate returns and even responding to tax notices—TaxBuddy takes care of everything, so you can focus on your work and life abroad.
Author Bio:
Written by Emma Carlton, a tax research analyst at SEOEngine.agency, Emma specializes in global taxation, NRI compliance, and digital finance tools. With over four years of experience working alongside TaxBuddy’s content and strategy team, she simplifies tax for global Indians through detailed, easy-to-understand content.