KEY: “Knowledge Empowers You!” to make informed decisions. It’s critical that Non Resident Indians (NRIs) understand the complexities of NRI taxation since the process is complex and lengthy. They are required to pay appropriate taxes as and when they fall under the jurisdiction of Income Tax Act,1971.

NRIs may check the exemptions available which may help him optimize the tax outflow on the capital gain income. The details of what the taxes for an NRI are and how they should be dealt with fall under the category of NRI taxation. Since the rate of tax a NRI has to pay is very high at 22.88%,in such situations, first paying TDS @ 22.88% and then claiming the refund after filing an IT Return, which may take months if not years, is definitely not a wise step. Instead, NRI sellers can apply for a Lower or NIL TDS Deduction Certificate by applying form 13 online from Income tax department. This document on taxation and exemptions for NRIs is very insightful and comprehensive.

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