NRI Year-End Tax Planning — 15 Things to Do Before March 31, 2026

The clock is ticking. You have fewer than 10 days left in Financial Year 2025-26.

Every year, thousands of NRIs leave money on the table — or worse, invite penalties and scrutiny — simply because they did not act before March 31. Tax-saving investments cannot be backdated. Advance tax shortfalls attract interest from the day they were due. A single extra day of presence in India can flip your residential status and pull your global income into the Indian tax net.

This is not a general tax calendar. This is a war-room checklist for the final 30 days of FY 2025-26 — the actions that must happen now, the ones that become impossible on April 1, and the quick wins that take 15 minutes but save lakhs.

Whether you are in Dubai, Singapore, the US, the UK, or anywhere else, open this list, work through it top to bottom, and close the year clean.

-- CA Mayank Wadhera (CA | CS | CMA | IBBI Registered Valuer), MKW Advisors | Legal Suvidha | DigiComply

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PART A: INVESTMENT ACTIONS (Items 1-4)

These four actions directly reduce your tax liability for FY 2025-26. Once March 31 passes, the window shuts permanently for this financial year.

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1. Complete Your Section 80C Investments (Old Regime)

Deadline: March 31, 2026 | Urgency: CRITICAL

If you have opted for (or are considering) the old tax regime for FY 2025-26, the full Rs. 1,50,000 deduction under Section 80C is available — but only for investments made on or before March 31, 2026.

Eligible instruments for NRIs include:

• ELSS mutual funds — 3-year lock-in, equity exposure, can be purchased online through most fund houses that accept NRI investments.
• Life insurance premiums — Payable from NRE/NRO accounts.
• PPF contributions — Only if the account was opened while you were a resident. NRIs cannot open new PPF accounts, but existing accounts can receive contributions until maturity.
• Children's tuition fees — Paid to any recognized institution in India.
• Principal repayment on home loan — On property in India.
• National Savings Certificate (NSC) — Available to NRIs at India Post (subject to branch-level acceptance).

What happens if you miss it: You lose the Rs. 1,50,000 deduction entirely for FY 2025-26 under the old regime. At the 30% slab, that is Rs. 46,800 in tax (including cess) gone permanently.

Quick Win: Log into your mutual fund platform today. A single ELSS lump sum of Rs. 1,50,000 takes under 5 minutes. Many platforms — Kuvera, MF Central, CAMS — support NRI transactions with KYC already on file.

Important Note: The new tax regime (Section 115BAC) does not allow Section 80C deductions. If you are on the new regime, skip this item — but read Item 6 to confirm your regime choice is actually optimal.

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2. Execute Tax-Loss Harvesting on Equity Holdings

Deadline: March 31, 2026 (trade must settle by T+1) | Urgency: HIGH

Tax-loss harvesting is the practice of selling equity positions that are currently at a loss to realize capital losses, which can then be set off against capital gains in the same financial year — or carried forward for up to 8 assessment years.

How it works for NRIs:

• Identify stocks or equity mutual fund units in your demat/folio that are showing unrealized losses.
• Sell before March 31, 2026 to book the loss in FY 2025-26.
• The short-term capital loss (STCL) can be set off against both STCG and LTCG.
• The long-term capital loss (LTCL) can be set off only against LTCG.
• If you want to re-enter the same position, buy back after a minimum 30-day gap to avoid the transaction being treated as a wash sale and potentially disregarded under the General Anti-Avoidance Rules (GAAR).

What happens if you miss it: Unrealized losses have zero tax value. You cannot carry forward a loss you did not book. If you have gains elsewhere in FY 2025-26, you pay full tax on those gains with no offset.

Quick Win: Export your demat holding statement. Sort by unrealized P&L. Any position showing a loss greater than Rs. 10,000 is worth evaluating. Place the sell order today — with T+1 settlement, it will settle well within the FY.

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3. Check If LTCG on Equity Exceeds Rs. 1.25 Lakh — Book Gains Tax-Efficiently

Deadline: March 31, 2026 | Urgency: HIGH

Under the current regime (post-Budget 2024 amendments), long-term capital gains on listed equity shares and equity-oriented mutual funds are exempt up to Rs. 1,25,000 per financial year. Gains above this threshold are taxed at 12.5%.

The strategy: If your unrealized LTCG is approaching or has already crossed the Rs. 1.25 lakh mark, consider selling enough units to book gains up to the exemption limit — and then repurchase immediately if you want to stay invested. This resets your cost base and shelters future gains.

For NRIs specifically:

• Gains are computed after indexation benefit is removed for equity (post-Budget 2024, no indexation for equity LTCG).
• TDS is deducted by the broker on the gains portion — you can claim credit or refund when filing ITR.
• If you are in a DTAA country (US, UK, UAE, Singapore, Canada), the treaty rate may apply, but the Rs. 1.25 lakh exemption is a domestic provision available regardless.

What happens if you miss it: You waste the Rs. 1.25 lakh annual exemption for FY 2025-26. It does not carry forward. At 12.5% tax, that is up to Rs. 15,625 in tax saved — every single year.

Quick Win: Check your capital gains statement on Zerodha Console, ICICI Direct, or your broker's tax P&L report. If LTCG is under Rs. 1.25 lakh, sell and rebuy to "harvest" the gains tax-free.

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4. Invest in Section 54EC Bonds If You Sold Property Between October 2025 and March 2026

Deadline: 6 months from date of property sale (but must be within FY for partial benefit) | Urgency: CRITICAL if applicable

If you sold a long-term capital asset (typically immovable property held for more than 2 years) between October 2025 and March 2026, you can claim exemption from LTCG by investing up to Rs. 50 lakhs in Section 54EC bonds (NHAI/REC/PFC/IRFC bonds) within 6 months of the sale date.

Key points for NRIs:

• The investment must be made from the sale proceeds — route through your NRO account.
• The bonds have a 5-year lock-in (non-transferable, non-pledgeable).
• Maximum investment is Rs. 50 lakhs per financial year. If your sale straddles two financial years (e.g., property sold in January 2026), you may be able to invest Rs. 50 lakhs in FY 2025-26 and another Rs. 50 lakhs in FY 2026-27 within the 6-month window — effectively claiming exemption on Rs. 1 crore.
• Application can be made through authorized bank branches or directly to NHAI/REC.

What happens if you miss it: The entire LTCG on the property sale becomes taxable. On a property sold for Rs. 2 crore with a gain of Rs. 80 lakhs, the tax at 12.5% (post-Budget 2024 rate) would be Rs. 10 lakhs — plus surcharge and cess.

Quick Win: Call your NRO bank branch and ask for the Section 54EC bond application form. Applications are processed within 3-5 working days. Do this today — postal delays or bank holidays in the last week of March can derail the timeline.

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PART B: TAX ACTIONS (Items 5-8)

These are direct interactions with the tax system — payments, elections, and verifications that must happen before the financial year closes.

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5. Pay the Final Advance Tax Installment (Due: March 15, 2026)

Deadline: March 15, 2026 (ALREADY PAST — but late payment still reduces penalty) | Urgency: IMMEDIATE

If you missed the March 15 deadline for the fourth and final advance tax installment, pay immediately. The full 100% of your estimated tax liability for FY 2025-26 should have been paid by March 15.

Advance tax installment schedule for FY 2025-26:

What NRIs commonly owe advance tax on:

• Rental income from Indian property (after TDS by tenant, if any shortfall remains).
• Capital gains on sale of shares, mutual funds, or property.
• Interest on NRO fixed deposits (TDS is usually deducted, but if total tax exceeds TDS, advance tax is required).
• Income from business or profession in India.

Penalty for non-payment: Interest under Section 234B (1% per month on shortfall from April onward) and Section 234C (1% per month for each quarter of deferral). These are not waivable — they are computed automatically by CPC when processing your return.

What happens if you miss it: Every month of delay adds 1% simple interest on the unpaid amount. On a Rs. 5 lakh shortfall, that is Rs. 5,000 per month — Rs. 60,000 per year — in non-deductible interest.

Quick Win: Log into the e-filing portal, navigate to e-Pay Tax, select Challan 280 (Income Tax advance tax — code 100), and pay via net banking. It takes under 10 minutes. Even paying on March 25 instead of March 15 reduces the 234C interest significantly compared to paying in July.

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6. Make Your Old Regime vs. New Regime Decision (Last Chance to Plan)

Deadline: Before filing ITR for AY 2026-27 (but planning must happen NOW) | Urgency: HIGH

The new tax regime under Section 115BAC is the default regime from FY 2023-24 onward. To opt for the old regime, you must actively select it when filing your return (for non-business income) or file Form 10-IE before the due date (for business income).

Why decide now, not at filing time:

• If you decide in March that the old regime is better, you still have time to make 80C/80D investments to maximize deductions.
• If the new regime is better, you save the effort and liquidity cost of unnecessary investments.
• The breakeven analysis depends on your total deductions — Section 80C, 80D (health insurance), 80E (education loan interest), HRA, home loan interest under Section 24, and NPS under 80CCD(1B).

General rule of thumb for NRIs:

• If your total deductions (80C + 80D + 80E + home loan interest + other Chapter VI-A) exceed approximately Rs. 3.75 lakhs, the old regime is likely better.
• If deductions are below Rs. 2 lakhs, the new regime almost always wins.
• Between Rs. 2 lakhs and Rs. 3.75 lakhs, run the numbers both ways.

What happens if you miss it: You do not lose the ability to choose at filing time (for non-business income). But if you realize in July that the old regime was better and you never made the 80C investment in March, it is too late. The investment window is gone.

Quick Win: Use any free online old-vs-new regime calculator. Input your FY 2025-26 income and deductions. The answer takes 5 minutes. Then act on it (invest under 80C if old regime wins, or skip and save the cash if new regime wins).

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7. Submit TRC and Form 10F to Your Banks for Next FY (April Onward)

Deadline: Before April 1 to ensure FY 2026-27 TDS is correct from Day 1 | Urgency: MODERATE

A Tax Residency Certificate (TRC) from your country of residence — combined with Form 10F filed on the Indian income tax e-filing portal — is required to claim DTAA (Double Taxation Avoidance Agreement) benefits on Indian-source income. Without these, banks and deductors will apply the higher domestic TDS rate instead of the concessional treaty rate.

Common scenarios where this matters:

• NRO FD interest: Domestic TDS rate is 30% (plus surcharge and cess). Under DTAA with the US, the rate may be 15%. Under the India-UAE treaty, interest may be taxed at a lower rate depending on the article.
• Rental income TDS: 30% standard rate, potentially reducible under treaty.
• Dividend income: 20% domestic rate, often reducible to 10-15% under DTAA.

What happens if you miss it: Banks apply 30%+ TDS from April 1. You can claim the excess as a refund when filing your ITR, but that means your money is locked with the government for 12-18 months. Submitting TRC and Form 10F proactively avoids this cash flow hit.

Quick Win: Request TRC from your country's tax authority now (processing takes 2-4 weeks in most jurisdictions). File Form 10F on the Indian e-filing portal (it is a simple online form). Deliver both to your bank's NRI services desk before March 31 so they apply the correct rate from April 1.

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8. Check Your AIS and Form 26AS for Surprises

Deadline: Before filing ITR (but checking now avoids last-minute panic) | Urgency: MODERATE

The Annual Information Statement (AIS) and Form 26AS on the income tax e-filing portal are the government's record of your financial transactions and TDS credits. Checking them before the year closes gives you time to rectify errors.

What to look for:

• Unreported transactions: High-value purchases, mutual fund redemptions, property transactions, or share sales that may trigger queries if not reported in your ITR.
• TDS mismatches: Ensure TDS deducted by banks, tenants, or buyers matches what appears in 26AS. If a deductor has not filed their TDS return, your credit will be missing.
• SFT (Specified Financial Transactions): Cash deposits, credit card payments, mutual fund purchases above threshold limits are reported here.
• Foreign remittance data: Remittances received in India may show up and could raise questions about source if not documented.
• Incorrect PAN linkages: Sometimes transactions are incorrectly tagged to your PAN due to data entry errors.

What happens if you miss it: You file your ITR in July without knowing that the department has information about a Rs. 15 lakh mutual fund redemption you forgot to report. CPC sends a notice under Section 143(1)(a) for the mismatch. You now have to respond to a notice instead of simply having included the transaction in your original return.

Quick Win: Log into incometax.gov.in. Go to AIS under the Services tab. Download the detailed AIS. Cross-check with your own records. If you spot an error, use the feedback mechanism to flag it as "incorrect" or "duplicate" directly on the portal.

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PART C: BANKING ACTIONS (Items 9-11)

NRI banking in India has unique rules around account types, repatriation limits, and cross-border compliance. These three items must be addressed before the FY closes.

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9. Renew or Book NRE/FCNR Fixed Deposits Before Rate Changes

Deadline: March 31, 2026 (rates often reset on April 1) | Urgency: MODERATE

Banks frequently revise NRE and FCNR fixed deposit rates at the start of a new financial year. If current rates are favorable, locking in a longer tenure now protects your returns.

Key differences:

• NRE FD: Denominated in INR, interest is tax-free in India, fully repatriable (principal + interest).
• FCNR FD: Denominated in foreign currency (USD, GBP, EUR, etc.), interest is tax-free in India, fully repatriable, and eliminates currency risk during the deposit term.

What happens if you miss it: If rates drop in April (as they often do when RBI is in an easing cycle), you earn less on the same deposit for the entire tenure. On a Rs. 1 crore NRE FD, even a 0.25% rate difference means Rs. 25,000 less interest per year.

Quick Win: Call your bank's NRI desk or log into NRI internet banking. Compare rates across SBI, HDFC, ICICI, and Kotak for NRE and FCNR deposits. Book the deposit today at the current rate — it locks in for the full tenure.

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10. Use the Remaining NRO Repatriation Limit Before the FY Resets

Deadline: March 31, 2026 | Urgency: HIGH if you have funds to repatriate

NRIs can repatriate up to USD 1 million per financial year from their NRO account (after applicable taxes and certification). This limit resets on April 1.

Why this matters now:

• If you have been accumulating rental income, sale proceeds, or matured investments in your NRO account and have not repatriated during FY 2025-26, you have up to USD 1 million of capacity available.
• If your repatriation needs exceed USD 1 million, using the remaining FY 2025-26 limit now — and then repatriating again after April 1 under the FY 2026-27 limit — effectively doubles your capacity across two months.
• The process requires a certificate from a Chartered Accountant in Form 15CB (for remittances exceeding Rs. 5 lakhs) and filing of Form 15CA online on the income tax portal.

What happens if you miss it: You lose the unused portion of the USD 1 million limit for FY 2025-26. It does not carry forward. If you need to repatriate Rs. 4 crore in FY 2026-27, you may find yourself hitting the ceiling and having to wait another year.

Quick Win: Calculate your total NRO repatriation in FY 2025-26 so far. If it is under USD 1 million and you have funds in NRO that you want to move abroad, initiate the repatriation request with your bank now. Engage a CA for Form 15CB immediately — processing takes 3-5 working days.

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11. Complete Any Pending Form 15CA/15CB Filings

Deadline: Before the remittance is processed (banks will not release funds without it) | Urgency: HIGH if remittances are pending

Any foreign remittance from India — whether from NRO account, property sale proceeds, or other Indian-source income — requires:

• Form 15CA: An online declaration filed on the income tax portal by the remitter (you), providing details of the remittance and applicable TDS/tax.
• Form 15CB: A certificate from a Chartered Accountant certifying that taxes have been paid on the amount being remitted and confirming the DTAA applicability.

Form 15CB is required when: The remittance amount exceeds Rs. 5 lakhs in a single transaction. Below Rs. 5 lakhs, only Form 15CA (Part A) is required without CA certification.

What happens if you miss it: The bank will simply hold the remittance. You do not get penalized for late filing of 15CA/15CB per se, but the delay means your funds are stuck in India. If you need the money abroad for an investment, mortgage payment, or business need, the delay can have real financial consequences.

Quick Win: If you have a remittance pending, contact your CA to prepare Form 15CB. Once 15CB is uploaded, file Form 15CA online and generate the acknowledgment. Submit the acknowledgment to your bank to release the funds.

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PART D: COMPLIANCE ACTIONS (Items 12-15)

These four items protect your NRI status, close open compliance gaps, and ensure you enter FY 2026-27 with a clean slate.

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12. Verify Your Day Count — Ensure You Have Stayed Fewer Than 182 Days in India

Deadline: March 31, 2026 | Urgency: CRITICAL

Your residential status under the Income Tax Act is determined by the number of days you are physically present in India during the financial year. The primary test: if you are in India for 182 days or more during FY 2025-26, you are a Resident (not NRI) for tax purposes.

Additional test for Indian citizens / PIOs with Indian income exceeding Rs. 15 lakhs: If your India-sourced income exceeds Rs. 15 lakhs and you are in India for 120 days or more (but less than 182), you may be classified as Resident but Not Ordinarily Resident (RNOR) — which has its own tax implications.

How to count:

• The day of arrival in India counts as a day of presence.
• The day of departure from India also counts as a day of presence (based on CBDT Circular No. 2/2015, though this was clarified to count only the day of departure if you depart on that day — maintain conservative counting).
• Use your passport stamps, immigration records, or the Bureau of Immigration online portal to get an accurate count.

What happens if you miss it: If your count hits 182, your global income — salary earned in Dubai, rental income in London, capital gains in the US — becomes taxable in India. The difference between 181 days and 182 days can mean lakhs of additional tax liability.

Quick Win: Count your days right now. If you are at 175+ days, do not travel to India for the rest of March. If you must travel, ensure you depart before the day your count would hit 182. Keep boarding passes and immigration records as proof.

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13. File Belated/Revised ITRs for Previous Years (AY 2025-26 Belated Return Deadline: March 31, 2026)

Deadline: March 31, 2026 for AY 2025-26 belated return | Urgency: CRITICAL if unfiled

If you did not file your Income Tax Return for FY 2024-25 (Assessment Year 2025-26) by the original due date of July 31, 2025, you can still file a belated return under Section 139(4) until March 31, 2026.

After March 31, 2026, you lose the ability to file for AY 2025-26 entirely (unless you apply for condonation of delay, which is discretionary and uncertain).

What NRIs commonly miss filing for:

• Capital gains on mutual fund or share sales.
• Rental income from Indian property.
• Interest on NRO fixed deposits (even though TDS was deducted, filing is still mandatory if income exceeds the basic exemption limit).
• Income from sale of property in India.

Penalties for belated filing:

• Late fee under Section 234F: Rs. 5,000 (Rs. 1,000 if total income is under Rs. 5 lakhs).
• Interest under Section 234A: 1% per month on the unpaid tax from the due date until filing.
• You cannot carry forward capital losses if the return is filed after the due date (except loss from house property, which can be carried forward even in a belated return).

What happens if you miss it: After March 31, 2026, there is no regular mechanism to file for AY 2025-26. Any refund due is forfeited. Any income not reported remains a compliance risk — the department can issue a notice under Section 148 for reassessment for up to 3-10 years depending on the amount involved.

Quick Win: If your ITR for AY 2025-26 is unfiled, gather your Form 16 (if applicable), Form 26AS, AIS, bank statements, and capital gains statements. File through the e-filing portal or engage a CA today. Even a belated return is infinitely better than no return.

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14. Update Nominees on All Indian Financial Accounts

Deadline: Ongoing, but year-end is the best trigger for review | Urgency: MODERATE

SEBI has mandated nomination for all demat accounts. Banks periodically require nomination updates. Insurance policies without nominees create succession nightmares for NRI families.

Accounts to check:

• Demat account (stocks, mutual funds) — nominee must be registered with the depository (NSDL/CDSL).
• NRE and NRO savings and fixed deposit accounts.
• PPF account (if still active).
• Insurance policies — life, health, and general.
• Physical assets — property documents, safe deposit boxes.

What happens if you miss it: Without a nominee, your family will need to obtain succession certificates or probate orders — a process that takes 6-18 months and costs significant legal fees. For NRI families spread across multiple countries, this becomes exponentially more complex.

Quick Win: Log into your demat account and bank account online. Check the nominee section. If it shows "No nominee registered," update it now. Most platforms allow online nomination updates with OTP verification.

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15. Review and Renew Insurance Coverage Before Policy Lapse

Deadline: Policy-specific, but many annual policies renew in March-April | Urgency: MODERATE

Many NRIs hold Indian health insurance and life insurance policies with annual renewal dates in March or April. A lapsed policy means losing continuity benefits, no-claim bonuses, and coverage for pre-existing conditions.

What to review:

• Health insurance (Section 80D): If on the old regime, premiums up to Rs. 25,000 (Rs. 50,000 for senior citizen parents) are deductible. Ensure premiums are paid before March 31 for FY 2025-26 deduction.
• Term life insurance: Verify sum assured is adequate for your current financial situation. NRI income levels often outpace the cover taken years ago.
• Property insurance: If you own property in India, ensure it is insured — especially if tenanted.
• Travel insurance: If you travel to India frequently, an annual multi-trip policy is more cost-effective than per-trip coverage.

What happens if you miss it: A lapsed health insurance policy means re-underwriting, fresh waiting periods for pre-existing conditions (typically 2-4 years), and loss of accumulated no-claim bonus. On a family floater with Rs. 10 lakh cover, the no-claim bonus alone could be worth Rs. 5 lakhs after 5 claim-free years.

Quick Win: Check the renewal date on all your Indian insurance policies. If any renewal falls in March or early April, pay the premium now from your NRE/NRO account. Set a calendar reminder for future renewals.

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The Cost of Inaction: What You Stand to Lose

Let us put real numbers to the risk of inaction:

Total potential cost of inaction across all 15 items: Rs. 5-50 lakhs or more, depending on your income and asset profile.

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Frequently Asked Questions (FAQs)

FAQ 1: I am on the new tax regime. Do I need to do anything from this list?

Yes. Items 2, 3, 5, 8, 9, 10, 11, 12, 13, 14, and 15 apply regardless of your regime choice. Only Items 1 (80C) and the 80D portion of Item 15 are old-regime-specific. Tax-loss harvesting, advance tax, AIS verification, repatriation, and day count are regime-neutral obligations.

FAQ 2: I earn only NRE FD interest in India. Do I still need to file an ITR?

NRE FD interest is exempt from tax in India under Section 10(4)(ii) — as long as you maintain valid NRI status. You are technically not required to file if your taxable income (excluding exempt income) is below the basic exemption limit. However, filing a nil return is recommended if you have high-value transactions that appear in your AIS, to avoid unnecessary notices.

FAQ 3: Can I make 80C investments from my NRE account?

Yes. ELSS mutual funds, life insurance premiums, and certain other 80C instruments accept payments from NRE accounts. However, the investment itself (e.g., ELSS units) may not be freely repatriable until maturity or redemption, and repatriation of proceeds will follow RBI rules applicable at that time.

FAQ 4: What if I sold property in India in November 2025? When is the Section 54EC deadline?

Your deadline is 6 months from the date of sale — so if you sold on November 15, 2025, the 54EC bond investment must be made by May 15, 2026. However, if you invest before March 31, 2026, you also get the benefit of the Rs. 50 lakh per financial year limit for FY 2025-26, potentially allowing another Rs. 50 lakhs in FY 2026-27 (before the 6-month deadline).

FAQ 5: How do I check my day count in India for FY 2025-26?

The most reliable method is checking your passport entry/exit stamps. You can also request a travel history from the Bureau of Immigration (BOI) through their online portal. Some NRI tax software tools also offer day-count calculators where you input your travel dates.

FAQ 6: I missed the March 15 advance tax deadline. Is it too late?

No. Pay immediately. The interest under Section 234C for the March installment is calculated for one month (March 15 to March 31). The longer you wait past March 31, the higher the interest under Section 234B. Paying even on March 25 is significantly better than paying on July 31.

FAQ 7: Can I file a belated return for FY 2023-24 (AY 2024-25)?

No. The belated return deadline for AY 2024-25 was March 31, 2025. That window has closed. You would need to apply for condonation of delay under Section 119(2)(b) to the CBDT, which is granted only in genuine hardship cases and is not guaranteed.

FAQ 8: What is the difference between AIS and Form 26AS?

Form 26AS primarily shows TDS/TCS credits, advance tax payments, and refunds. AIS (Annual Information Statement) is far more detailed — it includes mutual fund transactions, share trading, property purchases, bank interest, dividends, foreign remittances, and more. AIS is the comprehensive document; 26AS is the tax credit summary. Always check both.

FAQ 9: My bank is deducting 30% TDS on NRO FD interest. Can I reduce this?

Yes, by submitting a valid TRC from your country of residence and filing Form 10F on the e-filing portal. If the DTAA between India and your country provides a lower rate (e.g., 15% for US residents under Article 11), the bank should apply the treaty rate. Some banks also accept a lower deduction certificate under Section 197 from the Assessing Officer.

FAQ 10: Is the NRO repatriation limit of USD 1 million per transaction or per year?

Per financial year. You can repatriate up to USD 1 million (approximately Rs. 8.5 crore at current exchange rates) in total across all transactions during FY 2025-26 from your NRO account. This includes sale proceeds of assets, rental income, matured investments, and any other legitimate income earned in India.

FAQ 11: What if my NRI status changes mid-year because I moved back to India?

If you returned to India during FY 2025-26 and will be present for 182+ days, you become a Resident for FY 2025-26 but may qualify as Resident but Not Ordinarily Resident (RNOR) if you were NRI in 9 out of 10 preceding years or were in India for 729 days or less in the preceding 7 years. RNOR status means only Indian-source income and income received in India is taxable — foreign income is still exempt. Verify your RNOR eligibility carefully.

FAQ 12: Do I need to pay advance tax on capital gains if TDS was already deducted?

If TDS fully covers your tax liability on the capital gains, no additional advance tax is needed. But if you fall in a higher slab and TDS was deducted at a flat rate (e.g., 10% on LTCG but your effective rate after surcharge is higher), the shortfall must be paid as advance tax. Calculate your total liability, subtract TDS credits from 26AS, and pay the balance.

FAQ 13: Can I claim HRA exemption as an NRI?

Only if you are receiving HRA as part of salary from an Indian employer and paying rent for accommodation in India. NRIs working abroad for foreign employers do not receive HRA from an Indian employer and hence cannot claim it. This is one reason why the old regime is less beneficial for many NRIs compared to salaried residents.

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Your March 31 Action Plan — Prioritized by Urgency

This Week (Immediately):

• Pay any pending advance tax (Item 5)
• Verify your day count (Item 12)
• File belated ITR for AY 2025-26 if unfiled (Item 13)
• Initiate NRO repatriation if needed (Item 10)

Next 3-5 Days:

• Execute tax-loss harvesting trades (Item 2)
• Book LTCG up to Rs. 1.25L exemption (Item 3)
• Complete 80C investments if on old regime (Item 1)
• Apply for Section 54EC bonds if property was sold (Item 4)

Before March 31:

• Check AIS and 26AS (Item 8)
• Complete Form 15CA/15CB for pending remittances (Item 11)
• Submit TRC and Form 10F to banks (Item 7)
• Finalize old vs. new regime decision (Item 6)
• Book/renew NRE/FCNR FDs (Item 9)
• Update nominees (Item 14)
• Review insurance coverage (Item 15)

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Do Not Navigate This Alone

Year-end tax planning for NRIs involves Indian tax law, FEMA regulations, DTAA provisions, and cross-border compliance — simultaneously. A single misstep on residential status, a missed deadline on advance tax, or an overlooked repatriation form can cost more than a full year of professional advisory fees.

Work with experts who understand the NRI tax landscape inside out.

CA Mayank Wadhera and the team at MKW Advisors have helped hundreds of NRIs across the US, UAE, UK, Singapore, Canada, and Australia navigate year-end tax planning, ITR filing, repatriation structuring, and DTAA optimization.

Get Started Today

Book a consultation: Schedule your year-end tax review

WhatsApp us directly: +91-96677 44073 — Send "MARCH 31" and we will prioritize your case.

Email: [email protected]

The window closes on March 31, 2026. Every day you wait is a day of compounding cost. Act now.

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Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws are subject to change, and individual circumstances vary. Please consult a qualified Chartered Accountant or tax advisor before making financial decisions. The information is current as of March 2026 and pertains to Indian Income Tax Act provisions applicable for FY 2025-26 (AY 2026-27).

Published by CA Mayank Wadhera (CA | CS | CMA | IBBI Registered Valuer) — MKW Advisors | Legal Suvidha | DigiComply