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Exempt Income · ICAI Registered Firm

Exempt Income for NRIs the income you earn but never pay tax on.

Advisory and tax filing support around exempt income for NRIs — NRE and FCNR interest, certain dividends, long-term bonds, and other receipts that are fully tax-free under Section 10 of the Income-tax Act.

Not every rupee an NRI earns in India is taxable. The Income-tax Act, 1961 lists several specific categories of income that are completely exempt — provided they are reported correctly and the underlying conditions are satisfied.

The most common exemption used by NRIs is interest on NRE and FCNR deposits, which is exempt as long as NRI status under FEMA is maintained. There are also exemptions for interest on specified bonds, certain capital gains, and notified investments.

We help NRI clients identify exempt income correctly, support it with proper documentation, and present it in the right schedule of the income tax return. Missing the disclosure does not save tax — it only creates a needless mismatch with AIS data.

Our Exempt Income for NRIs Services

01

Exempt Income Mapping

Year-wise mapping of NRE / FCNR interest, dividends, and other exempt receipts.

02

NRE / FCNR Review

Review of account status and FEMA residency to confirm continued exemption.

03

Bond & Security Income

Exemption check on tax-free bonds, sovereign gold bonds, and specified securities.

04

Exempt Capital Gains

Long-term capital gains on listed equity, LTCG exemption checks under Section 10(38) for legacy holdings.

05

AIS Reconciliation

Reconciliation of exempt income with AIS / TIS to avoid notices.

06

Schedule EI Filing

Accurate filing of Schedule EI in the income tax return.

07

Documentation Pack

Maintenance of bank certificates, demat statements, and supporting proofs.

08

Notice Handling

Reply to mismatches and notices on exempt income reporting.

Our Approach

1

Income Inventory

All Indian income heads listed including potential exempt categories.

2

Eligibility Check

Each item tested against the relevant Section 10 clause.

3

Status Verification

FEMA residential status verified for NRE / FCNR exemption.

4

ITR Disclosure

Exempt income disclosed under Schedule EI of the ITR.

5

Records & Follow-up

Documentation organized for future reference and notice handling.

Why It Matters

Clear identification of exempt income
Section 10 exemptions correctly claimed
NRE / FCNR exemption confirmed yearly
Schedule EI accurately reported
AIS / TIS mismatches avoided
Documentation organized for records
Capital gains exemptions evaluated
Notices on exempt income handled

Frequently Asked Questions

Yes, interest on NRE accounts is fully exempt as long as NRI status is maintained.

No, interest on FCNR deposits is exempt under Section 10(4) of the Income-tax Act.

No, interest on NRO accounts is fully taxable in India.

Yes, exempt income must be disclosed under Schedule EI of the ITR.

Only up to ₹10,000 under Section 80TTA; balance is taxable.

Want to Map Your Exempt Income Right?

Get every exempt income category correctly identified, claimed, and disclosed in your Indian return — no missed exemptions, no AIS mismatches.

Review My Exempt Income or call +91 9819 000 511