Filing an Income Tax Return (ITR) as a Non-Resident Indian (NRI) in India can seem complex, but understanding the process can make it manageable. Here’s a comprehensive guide to help you navigate the ITR filing process for the Assessment Year (AY) 2025–26. So let’s discuss in details about Income Tax Return of NRI
Who Needs to File an ITR?
As an NRI, you’re required to file an ITR in India if
- Your total taxable income in India exceeds ₹2.5 lakh in a financial year.
- You wish to claim a tax refund for excess Tax Deducted at Source (TDS).
- You have capital gains from investments in India.
- You want to carry forward losses to future years.
Note: Only income earned or accrued in India is taxable for NRIs.
Step-by-Step Guide to Filing ITR as an NRI
- Determine Your Residential Status
Your tax obligations depend on your residential status. You’re considered an NRI if you:
- Were in India for less than 182 days during the financial year, or
- Were in India for less than 60 days during the financial year and less than 365 days in the preceding four years.
- This status must be assessed each financial year.
- Gather Necessary Documents
Ensure you have the following:
- PAN Card.
- Passport (to verify NRI status).
- Form 16 (if applicable).
- Bank account details.
- Bank statements for interest income.
- Property documents (if any).
- Form 26AS (tax credit statement).
These documents will help in accurately reporting your income and taxes paid.
- Choose the Appropriate ITR Form
- ITR-2: For NRIs with income from salary, pension, house property, capital gains, or other sources.
- ITR-3: For NRIs earning income from business or profession in India.
- Note: NRIs cannot use ITR-1 (Sahaj) for filing returns.
- Calculate Taxable Income
Include all income earned or accrued in India, such as
- Salary received in India
- Income from house property
- Capital gains from investments
- Interest from fixed deposits or savings accounts
- Pension received from Indian sources
- Exclude income earned outside India, as it’s not taxable for NRIs.
- Claim Applicable Deductions
Under the old tax regime, NRIs can claim deductions such as:
- Section 80C: Investments in ULIPs, ELSS, life insurance premiums, etc.
- Section 80D: Health insurance premiums
- Section 80E: Interest on education loans
- Note: Deductions are not available under the new tax regime.
- File Your Return Online
- Visit the Income Tax e-Filing Portal.
- Register or log in using your PAN.
- Select the appropriate ITR form and assessment year.
- Fill in the required details and upload necessary documents.
- Verify your return using Aadhaar OTP, net banking, or by sending a signed ITR-V to CPC Bengaluru.]
- Opt for the Suitable Tax Regime
The new tax regime is the default. If you prefer the old regime to avail deductions, you must opt out by filing Form 10-IEA before the due date.
Important Dates
- Due Date for Filing: July 31, 2025, for AY 2025–26.
- Belated Return: Can be filed until December 31, 2025, with applicable penalties.
Penalties for Late Filing
- ₹5,000 if filed after the due date but before December 31.
- ₹10,000 if filed after December 31.
- ₹1,000 if total income does not exceed ₹5 lakh.
New Income Tax Slabs for FY 2025–26 (AY 2026–27)
| Annual Taxable Income (₹) | Tax Rate |
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |