NRI Income Tax Return Filing
If you live abroad but earn rent, interest, dividends or capital gains in India, you may need to file an Indian income tax return. TDS on NRI income is deducted at high rates, and the excess comes back only through an ITR. We check your status, apply the DTAA and file ITR-2 or ITR-3 online, wherever you live.
What it is
An NRI income tax return is the return a non-resident files in India to report income that arises, accrues or is received in India. Once you are a non-resident, your salary and income abroad are not taxed in India. Indian rent, NRO interest, Indian capital gains and Indian dividends are.
For FY 2025-26 (AY 2026-27), the Income-tax Act, 1961 applies, and Section 6 decides your residential status. The return is filed on the Income Tax e-filing portal in ITR-2, or ITR-3 if you have business or professional income in India. ITR-1 and ITR-4 are not available to non-residents. Relief under a Double Taxation Avoidance Agreement (DTAA) comes through Section 90.
Who it applies to
You earn rent or interest in India
Picture an engineer in Dubai who lets out a flat in Greater Faridabad. Above the basic exemption limit, filing is compulsory; below it, filing still recovers the TDS. A clear rental agreement makes the rent easy to show.
You sold property or shares
A property sale by an NRI attracts TDS on the sale value, which is often far more than the actual tax. The return settles the real tax and claims a refund of the rest.
You moved abroad or came back
The year you leave India or return can make you a resident, a non-resident or “resident but not ordinarily resident” (RNOR). Each status taxes different income, so we work it out from your travel dates.
Residential status: are you an NRI?
Status is decided afresh each financial year, by the days you spent in India. Meet either test below and you are a resident; meet neither and you are a non-resident.
| Test | Rule | Special cases |
|---|---|---|
| 182-day test | In India for 182 days or more in the financial year | Applies to everyone |
| 60 + 365-day test | In India for 60 days or more in the year and 365 days or more in the four preceding years | For an Indian citizen leaving for a job abroad, 60 days becomes 182. For an Indian citizen or person of Indian origin visiting India, 60 becomes 182, or 120 if Indian income exceeds ₹15 lakh |
| Deemed resident | Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country | Treated as resident but not ordinarily resident |
Your passport stamps are the evidence, so keep them handy.
Why it matters
Recover excess TDS
Banks deduct 30% on NRO interest, and property buyers deduct tax on the full sale value. Your real tax is often lower, and only a return recovers the difference.
Pay the treaty rate, not the full rate
A tax treaty can cap the Indian tax on your interest or dividends, provided you hold a Tax Residency Certificate and file Form 10F.
Keep losses for later years
A capital loss on Indian shares or property can be carried forward for 8 years, but only if the return is filed by the due date.
TDS on common NRI income
| Income | Tax treatment |
|---|---|
| Interest on NRE and FCNR deposits | Exempt under Section 10(4)(ii), subject to FEMA conditions |
| Interest on NRO deposits | Taxable; TDS at 30% plus surcharge and cess, reducible under the DTAA |
| Long-term gain on property sale | Buyer deducts TDS under Section 195 at 12.5% plus surcharge and cess, on the full sale value unless you hold a lower deduction certificate |
| Listed shares and equity funds | STCG 20%, LTCG 12.5% above ₹1.25 lakh, the same rates as residents |
Here is where NRIs lose money. Say a family in Canada sells their parents’ house in Faridabad. The buyer works out TDS on the whole sale price, not on the gain. A lower deduction certificate under Section 197 (Form 13), obtained before the sale, fixes this. The buyer also needs a TAN and must file a TDS return in Form 27Q, which our TDS filing team can handle for them.
NRIs do not get the Section 87A rebate. And for property bought before 23 July 2024, the option of 20% with indexation is available only to residents; non-residents pay 12.5% without indexation.
Documents required
Identity and status
- PAN and passport
- Travel dates or passport stamps for the year
- Overseas address and contact details
- Tax Residency Certificate, if claiming DTAA relief
Indian income
- NRO and NRE account statements and interest certificates
- Rent agreement and rent received
- Sale and purchase deeds for any property sold
- Capital gains statement from your broker
Tax already paid
- Form 26AS and AIS
- TDS certificates (Form 16A) from banks, tenants or buyers
- Indian bank account details for the refund
How it works
Confirm your residential status
We count your days in India for FY 2025-26 and the earlier years and apply the right test.
Match Indian income with TDS
We match your bank, rent and sale records with Form 26AS and AIS so no TDS credit is missed.
Claim the DTAA rate
Where the treaty rate is lower, we file Form 10F on the portal and claim the lower rate with your Tax Residency Certificate.
Pick the cheaper regime
We compare the old and new regimes, apply the capital gains rates and work out the refund or balance tax.
File and e-verify
We file ITR-2 or ITR-3 on the e-filing portal. You e-verify within 30 days, and the refund goes to your validated Indian bank account.
Timelines
Original due date: 31 July 2026
For FY 2025-26, ITR-2 was due by 31 July 2026. That date has passed.
Belated return: 31 December 2026
You can still file a belated return by 31 December 2026 and claim your refund, with a late fee.
Revised return: 31 March 2027
If you have filed and spotted a mistake, a revised return can be filed up to 31 March 2027.
What happens if you miss it
You pay a late fee and interest
A belated return attracts a fee under Section 234F of ₹5,000, or ₹1,000 if total income is up to ₹5 lakh, plus interest at 1% per month under Section 234A on unpaid tax.
Your losses lapse
A capital loss reported in a belated return cannot be set off in future years. In practice, that hurts an NRI who sold Indian shares at a loss and plans to sell more.
Your refund waits
Excess TDS sits with the department until you file. After 31 December 2026, an updated return cannot be used to claim a refund.
Frequently asked questions
Does an NRI need to file an income tax return in India?
Yes, if the NRI’s taxable Indian income is above the basic exemption limit: ₹4 lakh under the new regime and ₹2.5 lakh under the old regime. Even below that limit, filing is the only way to claim back excess TDS on NRO interest, rent or a property sale. Income earned abroad is not counted. Many NRIs file every year just to recover TDS, entirely online.
How do I know if I am an NRI for tax purposes?
You are a non-resident if you were in India for fewer than 182 days in the financial year and do not meet the 60-day plus 365-day test. For Indian citizens who leave for a job abroad, the 60-day limit is replaced by 182 days. Visiting Indian citizens and persons of Indian origin with Indian income above ₹15 lakh face a 120-day limit. Your passport stamps settle the count, and we check it for you.
Which ITR form should an NRI use?
Most NRIs use ITR-2, which covers salary, house property, capital gains and other income. If you have business or professional income in India, or trade in futures and options, you use ITR-3. ITR-1 and ITR-4 are meant only for residents, so an NRI cannot use them even with simple income. Filing the wrong form can lead to a defective-return notice, so we confirm the form first.
Is interest on NRE and NRO accounts taxable?
Interest on NRE and FCNR deposits is exempt under Section 10(4)(ii), as long as you remain a non-resident under FEMA. NRO interest is taxable in India, and banks deduct TDS at 30% plus surcharge and cess. If your total Indian income is low, or a DTAA allows a lower rate, part of that TDS can be refunded through your return. Keeping your bank’s interest certificate makes the claim simple.
How much TDS is deducted when an NRI sells property in India?
For a long-term gain, the buyer deducts TDS under Section 195 at 12.5% plus surcharge and cess, worked out on the full sale value unless you have a lower deduction certificate. Since the actual tax is only on the gain, the TDS is often much higher than the tax. You can apply under Section 197 before the sale for a lower rate, or claim the excess back in your return.
How do I claim DTAA benefits as an NRI?
Get a Tax Residency Certificate from the tax authority of the country where you live, and file Form 10F on the Income Tax e-filing portal. Give both to your Indian bank or payer so it deducts tax at the treaty rate, and claim the treaty rate in your return. India’s treaties often cap tax on interest and dividends below the normal rate. We read your country’s treaty and apply the right rate.
Can NRIs claim deductions like Section 80C?
Yes, under the old regime NRIs can claim Section 80C for life insurance, ELSS funds and children’s tuition fees, and Section 80D for health insurance. Some investments are not open to them: NRIs cannot open new PPF accounts, buy NSCs or use the Senior Citizens Savings Scheme. Under the new regime, most deductions are not available to anyone. We compare both regimes on your numbers before filing.
Where will my income tax refund be credited?
The refund is credited to the bank account you nominate in the return, which must be pre-validated on the e-filing portal. Most NRIs use their NRO account in India. The refund is issued only after the return is e-verified and processed, so verify within 30 days of filing. If the account details are right, the refund usually follows processing without any further step from you.
Can I file my Indian return from abroad?
Yes. The whole process is online on the Income Tax e-filing portal. You share documents with us by email, we prepare and file the return, and you e-verify through net banking or the other e-verification options on the portal, within 30 days. You do not need to visit India or our Faridabad office. In practice, most of our NRI work is done by phone and email.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee to file an ITR on time. A belated return attracts a late fee under Section 234F of ₹5,000, or ₹1,000 if total income is up to ₹5 lakh.
Ready to begin?
Send us your passport dates and Indian income details, and we will file your FY 2025-26 return before 31 December 2026.