Why We Built Taxsure.ai. When I first moved to Canada, I knew adjusting to a new country would be tough—but nothing prepared me for the challenge of managing my Indian taxes from thousands of miles away. Back in India, filing was simple: I had a CA I trusted, and everything happened face-to-face. Suddenly, I found myself juggling time zones, missed calls, and late-night WhatsApp messages, just to get basic questions answered.
The paperwork felt endless. Coordinating with a CA back home meant long waits for responses, constant follow-ups, and a lingering sense of uncertainty that I was missing something important. Every deadline brought stress. Even simple things, like sending documents, became complex and frustrating.
So I looked for help from experts in cross-border taxation. The quotes I received from big consulting firms shocked me—thousands of dollars for services I didn’t really need, just because I lived abroad. Despite my background in business and my network in finance and accounting, I still felt lost and overwhelmed.
I couldn’t stop thinking: if I’m finding this so difficult, what must it be like for other NRIs, especially those without these connections or resources? Talking to friends, I realized my experience wasn’t unique—nearly everyone I spoke to had their own version of this story. That’s when it hit me: in a world where AI is making everyday life easier, why should tax filing for NRIs still feel stuck in the past?
That’s how Taxsure was born. I teamed up with people who truly understood the NRI struggle to build a platform that’s simple, transparent, and designed for people like us—so that managing taxes from anywhere feels just as easy as being at home.
Want to experience a better way to file your Indian taxes? Visit taxsure.ai to join the waitlist, or follow us for early access!
Earning rental income from property in India can be a lucrative avenue for Non-Resident Indians (NRIs), but the tax treatment comes with its own set of rules and deductions. To help you maximize your returns and stay compliant in the 2025 filing season, this guide covers everything from gross annual value to TDS obligations and allowable deductions.
1. Rental Income Is Taxable in India for NRIs
Under the Income-tax Act, rental income from Indian property—whether residential or commercial—is fully taxable in India for NRIs, regardless of where you reside. It falls under “Income from House Property” and must be declared in your ITR.
2. Computing Gross Annual Value (GAV)
Your taxable rental income begins with the Gross Annual Value (GAV). This is the higher of:
Component
Definition
Actual Rent Received
Total rent you actually receive in the year.
Reasonable Expected Rent
Municipal valuation or fair rent as determined by local authorities.
Note: If your property was vacant for part of the year, GAV is adjusted pro-rata.
3. Allowable Deductions Under “Income from House Property”
Once GAV is determined, you can reduce it by three key deductions:
Deduction
Rate/Limit
Notes
Municipal Taxes Paid
100% of actual taxes
Only if paid by you and not recovered from tenant
Standard Deduction
30% of GAV
Flat rate covering repairs, maintenance, etc.
Interest on Home Loan
Actual interest payable (up to ₹2 L for self-occupied; unlimited for let-out)
Loan must be taken for acquisition/construction of property
Example: GAV: ₹3,00,000 – Municipal taxes: ₹20,000 – Standard deduction: ₹90,000 (30% of GAV) – Loan interest: ₹1,20,000 Net Rental Income = ₹3,00,000 – (₹20,000 + ₹90,000 + ₹1,20,000) = ₹70,000
4. Tax Rate & Filing Requirements
ITR Form: NRIs must use ITR-2 to report rental income under Schedule HP.
Tax Slab: Net rental income is added to your other taxable Indian income (e.g., capital gains) and taxed at the applicable individual slab rates (up to 30% plus surcharge and cess for high earners).
5. TDS on Rental Payments
When an NRI receives rent, the tenant (or rent-collecting agent) is responsible for deducting 30% TDS under Section 195 (plus surcharge and cess).
TDS Certificate: Tenant issues Form 16A; make sure to collect it every quarter.
Form 26AS: Verify TDS entries match your Form 16A before filing.
If TDS > actual tax liability, you can claim a refund by declaring the credit in your ITR.
6. Step-by-Step: Reporting Rental Income in Your ITR
Gather Documents: Form 16A, property tax receipts, loan interest certificate.
Calculate GAV & Net Income: As per sections 2 & 3 above.
Select ITR-2: Navigate to “Income from House Property (Schedule HP)”.
Enter Values:
GAV in House Property section
Municipal taxes, standard deduction, and interest under respective fields
Declare TDS Credit: Under Schedule TDS2, enter TDS details exactly as per Form 26AS.
Submit & E-Verify: File by July 31, 2025, and complete e-verification via Aadhaar OTP, net-banking, or bank ATM.
7. Common Pitfalls & How to Avoid Them
Mistake
Correction/Tip
Forgetting municipal taxes
Keep tax receipts handy; declare 100% under deductions
Using self-occupied limits for let-out
For let-out property, interest is fully deductible
Mismatch in TDS details
Cross-verify Form 16A and Form 26AS before filing
Wrong ITR form
Always use ITR-2 for house property income
8. How Taxsure.ai Simplifies Rental Income Taxation
Auto-Calc GAV & Deductions: Enter rent and let our engine compute GAV, deductions, and net income.
TDS Tracker: Import Form 26AS data and map TDS certificates seamlessly.
ITR-2 Pre-Filler: Pre-populates Schedule HP, TDS2, and bank-account details.
Deadline Alerts: Never miss filing or e-verification dates.
Final Call to Action
Managing rental income for NRIs need not be a maze of calculations and certificates. With Taxsure.ai, all your GAV computations, deductions, and TDS credits are handled automatically—so you focus on growing your real-estate portfolio, not your tax forms.
Ready to simplify your rental-income filings? Visit Taxsure.ai today and turn your rental returns into worry-free income.
Tax Deducted at Source (TDS) for NRIs: What It Is and How to Get It Refunded
Non-Resident Indians (NRIs) often face Tax Deducted at Source (TDS) on various India-source incomes—from NRO account interest to rental receipts and capital gains. While TDS ensures tax compliance, it can sometimes be higher than your actual liability. This guide walks you through everything you need to know about TDS as an NRI and shows you exactly how to claim a refund of any excess deductions in the 2025 filing season.
1. What Is TDS and Why NRIs Are Affected
Tax Deducted at Source (TDS) is a mechanism where the payer (bank, tenant, broker) withholds tax before crediting your payment. For NRIs, common TDS scenarios include:
NRO account interest: 30% TDS by banks
Rental income: 30% TDS by tenants or collection agents
Capital gains: 15% TDS on long-term gains for listed securities, 10% on others
Dividend income: 20% plus surcharge and cess (no dividend distribution tax)
Professional fees or technical services: 10–15% under DTAA rates
Why it matters: You may have deductions exceeding your slab rate or treaty rate, leading to excess TDS which you can—and should—claim back.
2. How to Verify Your TDS Deducted
Download Form 26AS:
Log in to the Income-tax e-filing portal → My Account → View Form 26AS.
Check TDS Entries:
Under Part C – TDS/TCS, confirm:
Deductor TAN (e.g., your bank’s TAN)
Challan number
Amount deducted and date
Match with Certificates:
For banks, use Form 16A or bank TDS certificate.
For tenants, request Form 16A or rent TDS certificate.
3. When You’re Owed a Refund
You qualify for a TDS refund if actual tax liability < TDS deducted, typically because:
Allowable deductions/exemptions (80C, 80TTA on interest, municipal taxes on rent) lower your taxable income.
DTAA benefits allow you to apply a lower withholding rate—bank used 30% but treaty rate is 15%.
Slab rate for individuals (up to 30% plus surcharge/cess) is lower than flat TDS rates on certain incomes.
4. Step-by-Step: How to Claim Your TDS Refund
Step 1: Compute Your True Tax Liability
Aggregate Income: Salary (if any), NRO interest, rental, capital gains.
Deduct Exemptions: Section 80C, 80TTA, standard deduction on rental (30% and municipal taxes).
Calculate Tax: Apply NRI slab rates; add surcharge and cess.
Step 2: Choose the Correct ITR Form
ITR-2: For salary, interest, rental, gains, and DTAA claims.
ITR-3: If you have business or professional income.
Step 3: Fill TDS Details in ITR
Schedule TDS2 (Other Sources): Enter your bank/tenant TDS details exactly as per Form 26AS.
Schedule CG (Capital Gains): TDS on gains under Sections 112A/112.
Schedule IT (Tax Paid): The system calculates refundable TDS automatically.
Step 4: Submit & E-Verify
Submit ITR: Note acknowledgement number.
E-Verify: Via Aadhaar OTP, net banking, or bank ATM within 30 days.
Step 5: Track Your Refund
e-Filing Portal:e-File → Refund/Demand Status → Enter PAN & AY.
Bank Account: Refund credited to your Indian bank account (ensure correct IFSC).
5. Common Pitfalls & How to Avoid Them
Pitfall
Solution
Mismatch in Form 26AS vs Form 16A
Request your bank/tenant to correct entries before filing
Wrong ITR form
Use ITR-2/ITR-3 only; avoid ITR-1/ITR-4 for NRI incomes
Incorrect bank details
Double-check account number & IFSC in your ITR
Missing e-verification
Complete immediately after filing; else your return stays pending
Overlooking DTAA lower rates
File Form 67 by July 24 to claim treaty-based TDS relief
6. How Taxsure.ai Streamlines Your TDS Refund
Auto-Populate TDS Data: Pulls Form 26AS entries directly into your ITR.
Real-Time Tax Calculator: Shows your actual liability vs. TDS paid.
Guided Filing Flow: Step-by-step prompts for deductions and TDS schedules.
Deadline Alerts: Never miss ITR or e-verification deadlines.
Expert Review: Optional CA check ensures accurate refund claims.
Final Takeaway & Call to Action
Don’t let excess TDS eat into your returns. By verifying your deductions, choosing the right ITR form, and following the refund process diligently, you can reclaim every rupee you’re owed. And with Taxsure.ai, the entire workflow—from TDS import to ITR filing and refund tracking—becomes fully automated, precise, and stress-free.
Ready to recover your TDS? Visit Taxsure.ai today and claim your full refund with confidence!
How to Save Tax in India Legally as an Non-Resident Indians (NRIs)? Non-Resident Indians (NRIs) can often feel that Indian taxes eat into their hard-earned money twice—once abroad and once back home. Yet, the Indian tax code provides multiple legal avenues to minimize your India tax liability. This guide walks you through the most effective, fully compliant strategies to save tax in 2025.
1. Leverage Exempt Interest on NRE & FCNR Accounts
Why it helps: Section 10(4)(ii) and 10(15)(vii) of the Income-tax Act fully exempt interest on NRE and FCNR (foreign-currency) deposits.
Action:
Park surplus funds in NRE or FCNR fixed deposits.
Declare this exempt interest under Schedule EI (Exempt Income) in your ITR—no tax, no paperwork.
Result: 100% of interest earned stays in your pocket, tax-free.
2. Claim Foreign-Tax Credit under DTAA
Why it helps: If you earn India-source income (e.g., NRO interest or rent) and pay tax abroad (via TDS under DTAA), you can offset that against your Indian tax bill.
Action:
Obtain a Tax Residency Certificate (TRC) from the IRS (Form 6166) or CRA (T2209).
File Form 67 on the Income-tax portal before submitting your ITR.
In Schedule FTC (Foreign Tax Credit) of ITR-2/ITR-3, enter your Form 67 acknowledgment.
Result: You pay the higher of the two tax rates—but never both in full.
Smart Form Selector: Guides you to ITR-2/ITR-3 based on your profile.
Form 67 Wizard & DTAA Claims: Integrated flows for foreign-tax credit.
Real-Time Validation: Flags missed exemptions, deadlines, and reporting gaps.
Final Call to Action
Saving tax legally as an NRI doesn’t require endless spreadsheets or expert fees—just a clear strategy and the right tools. With Taxsure.ai, your deductions, exemptions, and treaty benefits are maximized automatically, so you keep more of your money and stay fully compliant.
Start saving today: Visit Taxsure.ai and transform your 2025 filing season into your most tax-efficient yet.
