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NRI ITR Filing Guide 2026 — Forms, Deadline & Taxable Income | Taxclue

NRI ITR Filing — Complete Guide for AY 2026-27

Updated: 3 June 2026

NRIs must file an Income Tax Return in India if total Indian-sourced income exceeds ₹2.5 lakh in the financial year. Taxable Indian income for NRIs includes salary accrued or received in India, rental income from Indian property, capital gains on Indian assets, and interest on NRO accounts. NRIs generally file ITR-2 (no business income) or ITR-3 (with business income). The filing deadline for AY 2026-27 is 31 July 2026. RNOR (Resident but Not Ordinarily Resident) individuals enjoy a transitional status where most foreign income remains exempt.
31 Jul 2026 NRI ITR deadline — AY 2026-27 (FY 2025-26). E-verify within 30 days of filing using Aadhaar OTP or net banking.

NRI Residential Status & Income Taxability

Your tax liability in India depends on your residential status under the Income Tax Act — determined by your physical presence in India during the financial year.

Status Condition (Days in India) Indian Income Foreign Income
Resident & Ordinarily Resident (ROR) ≥182 days in FY, or ≥60 days in FY + ≥365 days in last 4 FYs Fully taxable Fully taxable
Resident but Not Ordinarily Resident (RNOR) NRI for 9 of 10 preceding years, or ≤729 days in India in last 7 years Fully taxable Exempt (except from Indian business/profession)
Non-Resident Indian (NRI) Less than 182 days in FY (or less than 60 days if applicable) Fully taxable Exempt

What Income Is Taxable in India for NRIs?

NRIs are taxed only on income that accrues or arises in India, or is deemed to accrue or arise in India.

Income Source Taxable for NRI? Rate / Notes
Salary for services rendered in India Yes Slab rates; TDS by employer
Salary credited to Indian account (but services abroad) No Taxable only in country of work
Rental income from Indian property Yes Slab rates after 30% standard deduction; TDS 31.2% by tenant
Long-term capital gains (Indian assets, held >2 yrs) Yes 12.5% without indexation (post-Jul 2024)
Short-term capital gains (Indian listed shares, <12 months) Yes 20% flat rate
NRO account interest Yes 30% TDS (may be reduced under DTAA)
NRE account interest No Exempt under Section 10(4)
FCNR deposit interest No Exempt under Section 10(15)

How to File ITR as an NRI

Filing is fully online. Here is the step-by-step process:

Step 1 — Determine status: Calculate days in India to confirm NRI/RNOR status. Collect Form 26AS, AIS, and TIS from the income tax portal to verify TDS credits.

Step 2 — Choose the correct form: ITR-2 covers salary, house property, capital gains, and foreign assets. Use ITR-3 if you have business income or are a partner in an Indian firm.

Step 3 — Compute income and taxes: Claim deductions available to NRIs (Section 80C investments, Section 24 home loan interest, DTAA relief). Pay any advance tax or self-assessment tax before filing.

Step 4 — File and e-verify: Upload the return at incometax.gov.in. E-verify using Aadhaar OTP (requires PAN-Aadhaar link), net banking, or EVC via bank account. Alternatively, send a signed physical ITR-V to CPC Bengaluru within 30 days.

Frequently Asked Questions

Which ITR form should an NRI file?
NRIs typically file ITR-2 if they have income from salary, house property, capital gains, or other sources — but no business or professional income in India. ITR-3 is used if the NRI also has business or partnership income in India. ITR-1 (Sahaj) is not available to NRIs.
Is an NRI required to file an ITR in India?
Yes, if total Indian income (before deductions) exceeds ₹2.5 lakh in the financial year. This includes salary credited in India, rental income, capital gains on Indian assets, and NRO account interest. If TDS has been deducted and no refund is due, filing may still be advisable to maintain a clean tax record.
How is NRO vs NRE account interest taxed?
NRO account interest is fully taxable in India — TDS is deducted at 30% (plus surcharge and cess), though DTAA may reduce this rate. NRE account interest is completely exempt from Indian income tax under Section 10(4) of the Income Tax Act, as long as the account holder maintains NRI status.
How are capital gains on Indian property taxed for NRIs?
NRIs are taxed on capital gains from the sale of Indian property: LTCG (held > 2 years) at 12.5% without indexation (post-July 2024 budget); STCG (held ≤ 2 years) at slab rates. TDS is deducted at source by the buyer — 12.5% for LTCG and 30% for STCG. NRIs can claim exemption under Section 54 or 54EC by reinvesting proceeds.
How can an NRI file ITR from abroad?
NRIs can file ITR entirely online at incometax.gov.in. After login (PAN-based), select the appropriate form, fill in Indian income details, and e-verify using Aadhaar OTP (if PAN-Aadhaar linked), net banking, or by sending a signed ITR-V physical copy to CPC Bengaluru within 30 days. A tax professional in India can also file on the NRI's behalf using a Power of Attorney.

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