Residential status review
A day count from your passport stamps, with the 182-day, 120-day and deemed-resident tests applied, so you file under the right status.
NRI Tax Services in Kerala
T K Chandy & Associates provides NRI tax services in Kerala for Malayalis working in the Gulf, the UK and elsewhere. We work out your residential status, file your Indian return, claim DTAA relief, get lower TDS certificates for property sales, issue the CA certificate for repatriation and plan the move back for returning NRIs.
- Led by a chartered accountant since 1994
- Member of SGA World International
- Kakkanad, Kochi
At a glance
NRI taxation at a glance
- What is taxed: A non-resident pays Indian tax only on income earned or received in India, such as NRO interest, rent, capital gains and Indian business income. Gulf salary is not taxed in India.
- Status test: Residential status depends on days in India each tax year (182 days, or 120 days if Indian income exceeds ₹15 lakh) and on the deemed resident rule.
- Property sales: The buyer deducts TDS on the sale price. A lower deduction certificate (Form 128, formerly Form 13) limits TDS to the tax actually due. From 1 October 2026 a resident individual buyer no longer needs a TAN.
- Repatriation: Money is sent abroad with Form 145 and the CA certificate in Form 146 (formerly Forms 15CA and 15CB), within the RBI limit of USD 1 million a financial year from NRO balances.
Kerala has one of the largest overseas populations of any Indian state, and most of it is in the Gulf. Many families in Ernakulam, Thrissur, Kottayam, Pathanamthitta and Malappuram have a member in the UAE, Saudi Arabia, Qatar, Kuwait, Oman or Bahrain, with savings, land and houses back home. Those assets create Indian tax questions: NRO interest, rent from a flat in Kochi, the sale of family property, and moving money back abroad.
Our NRI tax services in Kerala start with the question that decides everything else: are you resident or non-resident in India for the year? We then file your Indian return, claim treaty relief where tax has been deducted at the wrong rate, apply for a lower TDS certificate before you sell property, and certify remittances so your bank can send the money abroad.
T K Chandy & Associates works from Kakkanad, Kochi, and is a member of SGA World International. Our associate firms, Saif Chartered Accountants in Dubai and Sharjah and SGA World Auditing & Accounting in Abu Dhabi, are independent firms that can help with the UAE side, such as a tax residency certificate. Most NRI clients deal with us entirely online. Read our guide to tax savings for NRIs under DTAA.
NRI tax services
Which NRIs Do We Help in Kerala?
We act for non-residents and their families in India, and for buyers and tenants who deal with them:
- Gulf NRIs with NRO interest, rent, deposits and mutual funds in India
- NRIs selling land, a house or a flat in Kerala, and their resident buyers
- Seafarers and merchant navy officers whose status turns on days at sea and in India
- NRIs in the UK, Europe, the US and Australia who pay tax abroad and need treaty relief
- Returning NRIs settling back in Kerala, during their RNOR years
- Families managing an NRI's affairs under a power of attorney
What the engagement covers
What Do Our NRI Tax Services Include?
NRI income tax return
The correct ITR for your income, with NRO interest, rent, capital gains and TDS credit claimed, and refunds followed up.
DTAA relief
Treaty rates on interest, dividends and royalties, using your tax residency certificate and Form 41 (formerly Form 10F).
Lower TDS certificate
Form 128 (formerly Form 13) applications so the buyer or payer deducts TDS on the actual tax due, not the full sale price.
Property sale support
Capital gains computation, reinvestment planning, and help for the buyer with TDS deposit, the TDS statement and certificate.
Repatriation certificate
Form 146 (formerly 15CB) certificate and Form 145 (formerly 15CA) filing, so your bank can remit the sale proceeds or NRO balance.
Returning NRI planning
RNOR status, timing of foreign asset sales, NRE and FCNR deposits, and foreign income reporting in the years after you return.
NRI notices
Replies to notices about high-value transactions, property deals or non-filing, often raised because a buyer reported the sale.
Tenant and buyer compliance
Advice to residents paying rent or sale money to an NRI on the TDS they must deduct and deposit.
Residential status
How Is NRI Residential Status Decided?
For an Indian citizen or person of Indian origin, the tests below are applied for each tax year (April to March). Status decides what India can tax.
| Situation in the tax year | Status | What India taxes |
|---|---|---|
| In India for 182 days or more | Resident | Worldwide income (unless RNOR) |
| Visiting, Indian income up to ₹15 lakh, under 182 days in India | Non-resident | Indian income only |
| Visiting, Indian income above ₹15 lakh, 120 to 181 days in India and 365 days in the previous four years | RNOR | Indian income, plus income from a business controlled or profession set up in India |
| Indian income above ₹15 lakh and not liable to tax in any country | Deemed resident (RNOR) | Indian income, plus income from a business controlled or profession set up in India |
| Returning NRI: non-resident in 9 of the previous 10 years, or 729 days or less in India in the previous 7 years | RNOR | Indian income; most foreign income stays outside tax |
| Leaving India for employment abroad | Non-resident if under 182 days in India | Indian income only |
"Indian income" here excludes income from foreign sources. A Gulf NRI paying no tax in the UAE is not automatically a deemed resident; the rule applies only where Indian income exceeds ₹15 lakh, and even then foreign salary is not taxed in India. We check your facts before you file.
Common NRI income
How Is NRI Income Taxed in India?
How the most common Indian income of Kerala NRIs is treated, before treaty relief:
NRE and FCNR deposit interest
- Tax treatment
- Exempt while you are a non-resident
- TDS by the payer
- None
NRO interest
- Tax treatment
- Taxable at slab rates
- TDS by the payer
- About 30% plus surcharge and cess, or the treaty rate with TRC and Form 41
Rent from property in India
- Tax treatment
- Taxable after 30% standard deduction and home-loan interest
- TDS by the payer
- Tenant deducts about 30% plus surcharge and cess
Sale of land or building held over 2 years
- Tax treatment
- Long-term gain taxed at 12.5%
- TDS by the payer
- Buyer deducts on the sale price unless Form 128 certificate
Sale of listed shares and equity funds
- Tax treatment
- 20% short-term; 12.5% long-term above ₹1.25 lakh
- TDS by the payer
- Deducted by the fund house or broker at the applicable rate
Dividends from Indian companies
- Tax treatment
- Taxable
- TDS by the payer
- 20% plus surcharge and cess, or the treaty rate
Our process
How Does Our NRI Tax Service Work?
Step01
Online consultation
A call or video meeting at a time that suits the Gulf, UK or US time zone, to understand your income, assets and plans.
Step02
Status and document review
We count your days in India, list your Indian income sources and check the TDS already deducted in your Form 26AS and AIS.
Step03
Plan before the transaction
For a property sale or large remittance, we work out the tax and apply for a lower TDS certificate before the deal is registered.
Step04
Filing and certification
We file your return, claim DTAA relief and refunds, and issue the Form 146 certificate for repatriation where needed.
Step05
Year-round support
We track refunds, answer notices and review your status each year, especially in the years you plan to return.
Be ready
What Documents Does an NRI Need to Share?
Scanned copies by email are enough. Depending on your case:
- PAN and passport (all pages with stamps)
- Overseas address and visa or residence permit
- NRE and NRO account statements
- Interest certificates and TDS certificates
- Tax residency certificate from your country
- Rent agreement and tenant PAN
- Property sale deed and purchase deed
- Cost of improvement bills and valuation report
- Broker and mutual fund capital gains statements
- Previous years' Indian returns
- Power of attorney, if a relative acts for you
- Any notice from the Income Tax Department
Property sales
How Can an NRI Reduce TDS on the Sale of Property in Kerala?
When an NRI sells property, the buyer must deduct TDS on the amount paid, not just the gain. Long-term gains are taxed at 12.5% plus surcharge and cess, so on a high-value sale the TDS can be several times the actual tax, and the excess comes back only after you file a return and the refund is processed.
- Lower deduction certificate: apply in Form 128 (formerly Form 13) under section 395 of the Income-tax Act, 2025, with the purchase cost, sale value and computation. The officer issues a certificate stating the rate the buyer should use. Budget 2026 also allowed electronic, rule-based issue of these certificates. Apply well before the registration date.
- No TAN for individual buyers: from 1 October 2026, a resident individual or HUF buying property from a non-resident does not need to obtain a TAN to deduct and deposit the tax. Before that, the buyer needed a TAN for a single transaction.
- Exemptions: the gain can be reduced by reinvesting in a residential house in India or in specified bonds within the time limits, and the lower certificate can reflect that plan.
- After the sale: you file a return declaring the gain and claiming the TDS. We then certify the remittance in Form 146 so the proceeds can be sent abroad.
Worked example
Example: A Dubai NRI Selling a Flat in Kochi
A Malayali engineer working in Dubai agreed to sell a flat in Kakkanad for ₹90 lakh. He had bought it in 2014 for ₹45 lakh.
- Without a certificate, the buyer would have deducted TDS on the whole ₹90 lakh, more than ₹11 lakh with surcharge and cess.
- We computed the long-term gain, compared it with the 20% indexed option available for property bought before 23 July 2024, and filed Form 128 six weeks before the registration date.
- The certificate allowed the buyer to deduct TDS on the gain only, a fraction of the original amount. As the buyer was a resident individual registering after 1 October 2026, he did not need a TAN, and we guided him through the deposit and statement.
- We filed the NRI's return for the year and issued the Form 146 certificate, and his bank remitted the balance to the UAE.
Without the certificate, most of the TDS would have been locked up until the refund was processed.
Fees and timing
How Much Do NRI Tax Services Cost?
The fee depends on the number of income sources, whether there is a property sale and a lower deduction certificate to obtain, treaty relief claims, the number of years to be filed or corrected, and whether a notice is involved. A Form 146 certificate is quoted per remittance. We quote a fixed fee in writing after reviewing your documents. Allow four to eight weeks before a property registration for a lower deduction certificate; a return with simple income can be filed within a week of receiving documents.
Glossary
NRI tax terms explained
- NRI
In tax, a non-resident under section 6 of the Income-tax Act, 2025. In banking and FEMA, a "person resident outside India". The two tests are different.
- RNOR
Resident but not ordinarily resident. A transitional status, typically for returning NRIs, in which most foreign income is still not taxed in India.
- TRC
Tax residency certificate issued by your country of residence, needed to claim treaty rates in India.
- Form 41
The self-declaration filed with the TRC to claim DTAA benefits (formerly Form 10F).
- Form 128
Application for a certificate of lower or nil TDS (formerly Form 13).
- Forms 145 and 146
The online remittance declaration and the chartered accountant's certificate for payments to non-residents (formerly Forms 15CA and 15CB).
Why T K Chandy & Associates
Why Choose Us for NRI Tax Services in Kerala?
CA-led since 1994
Status reviews, certificates and returns are checked and signed by an experienced chartered accountant.
Gulf and UK associates
Independent associate firms in Dubai, Sharjah, Abu Dhabi, London and Cardiff through SGA World International.
Works across time zones
Calls and video meetings at times that suit you abroad; documents by email.
Local in Kochi
Our Kakkanad office can meet family members, buyers and banks in person on your behalf.
Tax and FEMA together
Income tax, repatriation and FEMA questions answered by one team, with our FEMA and RBI compliance service.
Confidential
Passport, property and bank records handled securely and shared only as you instruct.
Related services
Which Other Services Help NRIs?
FEMA & RBI compliance
Investment, property and repatriation rules under FEMA for NRIs and their companies.
Income tax filing
Returns, regime advice and notices for resident family members and returning NRIs.
International tax
Treaty questions, cross-border businesses and transfer pricing.
TDS compliance
TDS on payments to non-residents, Form 144 statements and certificates.
Company registration
Setting up a company or LLP in Kerala with NRI shareholders or partners.
Talk to us
Ask about your NRI tax position
Tell us your country of residence, your Indian income or the property you plan to sell, and the timeline. We will reply with the steps and a fixed fee.
Prefer to talk now? Call +91 484 354 1530 or email [email protected].
Who prepared this page
Written and reviewed by chartered accountants at T K Chandy & Associates
This page is prepared by the audit and tax team at our Kakkanad, Kochi office and checked against the Companies Act, the Income-tax Act, GST law and ICAI standards. It is reviewed whenever the rules change.
- Last reviewed 29 October 2026
- Led by T K Chandy Vaidyan, chartered accountant since 1994
- Member of SGA World International
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Ask an expertFrequently asked questions
NRI tax services in Kerala – frequently asked questions
Short answers to the questions clients in Kochi ask us most. Still unsure?
Talk to our team01.Do NRIs have to pay tax in India on their Gulf salary?
No. A non-resident is taxed in India only on income earned or received in India. Salary earned and received abroad for work done abroad is not taxable in India, whatever the tax position in the Gulf country.
02.Is it compulsory for an NRI to file an income tax return in India?
An NRI must file if Indian taxable income exceeds the basic exemption limit. Even when not compulsory, filing is the only way to get back excess TDS, such as on NRO interest or a property sale.
03.How many days can an NRI stay in India without becoming resident?
Generally up to 181 days in a tax year. If your Indian income exceeds ₹15 lakh, staying 120 days or more can make you resident (as RNOR) when you also spent 365 days in India over the previous four years. We count the days from your passport.
04.Is NRE account interest taxable?
Interest on NRE and FCNR deposits is exempt while you are a non-resident. NRO account interest is taxable and the bank deducts TDS on it.
05.How much TDS is deducted when an NRI sells property in Kerala?
The buyer deducts TDS on the sale consideration at the long-term rate of 12.5% plus surcharge and cess, or at slab-equivalent rates for short-term gains. A lower deduction certificate in Form 128 limits the deduction to the tax actually due.
06.How long does a lower TDS certificate take?
Allow four to eight weeks, depending on the case and the officer's queries. Apply as soon as the sale price is agreed and well before registration, because the certificate must be in hand when the buyer pays.
07.Does a buyer need a TAN to buy property from an NRI?
From 1 October 2026, a resident individual or HUF buyer does not need to obtain a TAN to deduct TDS on a purchase from a non-resident. Other buyers, such as companies and firms, use their TAN as before.
08.What are Form 15CA and 15CB now called?
Under the Income-tax Rules, 2026, Form 15CA is Form 145 and Form 15CB, the chartered accountant's certificate, is Form 146. Your bank asks for them before sending money abroad.
09.How much money can an NRI repatriate from an NRO account?
Up to USD 1 million per financial year from NRO balances, including sale proceeds of property, after tax is paid, under RBI rules. NRE balances are freely repatriable.
10.How does an NRI claim DTAA benefit in India?
Get a tax residency certificate from your country of residence, file Form 41 (formerly Form 10F) and give both to the payer or claim the treaty rate in your return. Treaty relief is allowed under section 159 of the Income-tax Act, 2025.
11.What is RNOR status for returning NRIs?
Resident but not ordinarily resident. A returning NRI who was non-resident in nine of the previous ten years, or in India for 729 days or less in the previous seven years, is RNOR. Most foreign income stays outside Indian tax during this period, so it is the time to plan foreign asset sales.
12.Can a family member in Kerala handle my taxes?
Yes, through a power of attorney for property and banking, while the return is filed under your own PAN. We work with your family in Kochi and with you directly online.
13.Can an NRI claim exemption on capital gains from selling property?
Yes. Long-term gains can be reduced by buying or building a residential house in India, or investing in specified bonds, within the time limits and caps. The plan should be decided before applying for the lower deduction certificate.
14.Do you help NRIs living in the UAE?
Yes. Most of our NRI clients are in the Gulf. Our associate firms in Dubai, Sharjah and Abu Dhabi, which are independent firms in the SGA World International network, can assist with the UAE side.
References:Income Tax Department – non-resident individuals · Income Tax Department – Forms under Income-tax Rules 2026 · Union Budget 2026-27 – Memorandum (Finance Bill 2026) · Reserve Bank of India – FEMA — reviewed 29 October 2026