NRI ITR Filing —
ITR-2, Not ITR-1
Which ITR form an NRI must use, what Indian income is taxable, how NRO, NRE and capital gains are treated, the 31 July 2026 deadline and how to file and e-verify from abroad.
An NRI must file an Indian ITR if total Indian-sourced income exceeds Rs 2.5 lakh in the financial year (before deductions). NRIs cannot use ITR-1 Sahaj — they file ITR-2 (salary, house property, capital gains, other sources) or ITR-3 if they also have Indian business or professional income. For AY 2026-27 the due date is 31 July 2026 (non-audit). Indian income — salary for services in India, rent, capital gains on Indian assets and NRO interest — is taxable; NRE and FCNR interest is exempt.
ITR-1 (Sahaj) is only for a resident individual with income up to Rs 50 lakh. A non-resident cannot file ITR-1 even if income is small and only from salary or interest — filing the wrong form makes the return defective u/s 139(9). Almost every NRI uses ITR-2.
Which ITR Form Should an NRI File?
The form depends only on the type of your Indian income, not on where you live. This is the AY 2026-27 mapping on the income-tax portal.
| ITR Form | Who it is for | NRI use |
|---|---|---|
| ITR-1 Sahaj | Resident, income up to Rs 50L (salary / 1 house / other sources) | Not for NRIs |
| ITR-2 | Salary, more than one house, capital gains, foreign income/assets — no business | Usual NRI form |
| ITR-3 | Income from business or profession (incl. partner in an Indian firm) | If business income |
| ITR-4 Sugam | Resident presumptive 44AD/44ADA/44AE | Not for NRIs |
| ITR-5 / 6 / 7 | Firms/LLP, companies, trusts | Entities only |
ITR-1 and ITR-4 are for residents only; a non-resident with presumptive income files ITR-3. Verify eligibility on incometax.gov.in before filing.
File ITR-2 if you have
- Salary / pension accrued in India
- Rent from Indian house property
- Capital gains on shares, mutual funds or property
- NRO interest & other sources
- Foreign assets to report (Schedule FA if applicable)
File ITR-3 if you also have
- Income from an Indian business or profession
- Share of profit as a partner in an Indian firm
- Presumptive income you wish to declare
- Everything ITR-2 covers, plus the business schedules
Not sure whether you are ITR-2 or ITR-3? Get your form confirmed before you file.
Ask a TaxClue Expert →What Income Is Taxable for an NRI in India?
An NRI is taxed only on income that accrues, arises or is received in India. Foreign income is outside the Indian net. The RNOR (Resident but Not Ordinarily Resident) transitional status also keeps most foreign income exempt.
| Status | Rough test (days in India) | Indian income | Foreign income |
|---|---|---|---|
| Resident & Ordinarily Resident | ≥182 days in FY (or 60+365 rule) | Taxable | Taxable |
| Resident but Not Ordinarily Resident | Recently returned; met RNOR conditions | Taxable | Exempt* |
| Non-Resident (NRI) | Less than 182 days (subject to the 120/60-day rule) | Taxable | Exempt |
* RNOR foreign income is exempt except where it is from a business controlled or a profession set up in India.
NRO vs NRE, and Capital Gains
| Income source | Taxable? | Rate / TDS |
|---|---|---|
| Salary for services rendered in India | Yes | Slab rates; TDS by employer (Form 16) |
| Rent from Indian property | Yes | Slab rates after 30% std. deduction; tenant deducts TDS |
| NRO account interest | Yes | 30% TDS — DTAA may reduce |
| NRE account interest | No | Exempt u/s 10(4)(ii) while you are an NRI |
| FCNR deposit interest | No | Exempt u/s 10(15)(iv)(fa) |
| LTCG on Indian property (held > 24 months) | Yes | 12.5% without indexation (post 23 Jul 2024) |
| STCG on listed shares (STT paid) | Yes | 20% u/s 111A |
On sale of Indian property the buyer deducts TDS on the sale value; an NRI can apply for a lower/nil TDS certificate. See our property-TDS guide below.
India has Double Taxation Avoidance Agreements with most countries. By furnishing a Tax Residency Certificate (TRC) and Form 10F, an NRI can claim a lower treaty rate on NRO interest and can set off Indian tax against tax payable in the country of residence — so the same income is not taxed twice.
Sold Indian property or have high NRO TDS? We reconcile it and claim your refund.
Get NRI Tax Help →Due Dates, Belated Returns & Late Fee
File on time to keep the option of the regime you want and to avoid interest under Section 234A/B/C. Key dates for the AY 2026-27 return (FY 2025-26):
| Return / event | Deadline (AY 2026-27) | Note |
|---|---|---|
| Original ITR-2 (non-audit) | 31 July 2026 | Most NRIs |
| ITR-3 with business income (non-audit) | 31 August 2026 | As extended on the portal |
| Audit cases | 31 October 2026 | Accounts subject to tax audit |
| Transfer-pricing cases | 30 November 2026 | With Form 3CEB |
| Belated / revised return u/s 139(4)/(5) | 31 December 2026 | Late fee & interest apply |
| Updated return ITR-U u/s 139(8A) | Within 48 months of AY end | Budget 2025 extended 24 → 48 months |
Missing 31 July only bars a few benefits; you can still file a belated return till 31 December 2026 with a late fee.
234F late fee — income above Rs 5L
234F late fee — income up to Rs 5L
Filing is only half the job — an unverified return is treated as not filed. NRIs must e-verify within 30 days using Aadhaar OTP (if PAN–Aadhaar linked), net banking or EVC, or post a signed ITR-V to CPC Bengaluru. Aadhaar OTP is often unavailable to NRIs, so net-banking EVC is the reliable route.
How an NRI Files ITR from Abroad
- PAN card (and PAN–Aadhaar link status)
- Passport pages / travel dates for day-count
- Form 16 for Indian salary
- Form 16A / 26AS & AIS-TIS for TDS credits
- NRO / NRE / FCNR interest certificates
- Capital-gains statements (broker, property sale deed)
- TDS certificate on property sale (Form 16B)
- Tax Residency Certificate & Form 10F (for DTAA)
- Indian bank account for the refund
- Foreign-asset details (Schedule FA, if reportable)
You should file even without a refund if
- Indian income crosses Rs 2.5 lakh
- You sold Indian property or shares
- You want to carry forward a capital loss
- You need a clean record for a visa or loan
Filing is optional if
- Total Indian income is below Rs 2.5 lakh
- Only NRE/FCNR interest, which is exempt
- No TDS was deducted and no refund is due
Want us to handle day-count, DTAA and the whole return end-to-end?
Get NRI ITR Filing Help →NRI ITR Filing — Frequently Asked Questions
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