NRI ITR Filing — Complete Guide for AY 2026-27
Updated: 3 June 2026
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.
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