NRI Income Tax Return Filing in India 

Step 1 — Determine Your Residential Status 
 
Your filing obligations in India depend entirely on your residential status for FY 2024–25. Under the Income Tax Act, 1961, you are classified as an NRI if you were physically present in India for fewer than 182 days during the financial year. 
 
The 182-Day Rule 

• Resident (ROR): Present in India for 182 days or more in the FY 

• NRI: Present in India for fewer than 182 days in the FY 

• RNOR (Resident but Not Ordinarily Resident): Returned within 2 of the last 10 years, OR India-days fewer than 730 in the last 7 years 

Tip: Use your passport’s entry/exit stamps to count days precisely. Partial days count as full days. 

Step 2 — Identify Taxable Income in India 

As an NRI, only income that is received or accrued in India is taxable here. Foreign income is not taxable in India. 

Step 3 — Choose the Correct ITR Form 

NRIs cannot use ITR-1 (Sahaj). Filing ITR-1 will make your return defective and invite a notice from the Income Tax Department. 

Warning: ITR-1 (Sahaj) is available only to resident individuals. Using it as an NRI renders the return defective. 

Step 4 — Collect Documents Before Filing 

• PAN Card — Mandatory. Link to Aadhaar if you have one to avoid higher TDS 

• Form 26AS / AIS / TIS — Download from incometax.gov.in — shows all TDS deducted against your PAN 

• Form 16 / 16A — From your employer or deductor (bank, tenant, etc.) 

• Bank statements — Complete statements for NRE, NRO, and FCNR accounts for full FY 2024–25 

• Capital gains statements — From broker or mutual fund house — equity, debt, and property transactions 

• Property documents — Rent agreements, sale deed, home loan interest certificate if applicable 

• Tax Residency Certificate (TRC) — From your country of residence — required to claim DTAA benefits (Form 10F) 

• Passport with travel dates — To verify days spent in India and establish residential status 

• Advance tax challans — Challan 280 receipts if advance tax was paid during the year 

Step 5 — File on the E-Filing Portal (Step by Step) 

1. Visit incometax.gov.in and log in with your PAN and password. If you don’t have an account, register using your PAN. 

1. Go to e-File > Income Tax Return > File ITR. Select Assessment Year 2025-26 and choose your form (ITR-2 for most NRIs). 

1. In the filing status section, select NRI. Enter your passport number and country of residence. 

1. Fill in income details across all schedules — salary (Schedule S), house property (Schedule HP), capital gains (Schedule CG), and other sources. TDS credits from Form 26AS auto-populate. 

1. Select your tax regime — New Regime (default) or Old Regime (opt-in). See Section 6 below for guidance. 

1. Claim eligible deductions: Section 80C (up to Rs 1.5 lakh), Section 80D (medical insurance), Section 80TTA (NRO savings interest up to Rs 10,000), and DTAA relief via Schedule FSI/TR. 

1. Compute your total tax liability. Pay any balance tax using Challan 280 (Self-Assessment Tax) on the portal before submitting. 

1. Preview and submit the return. Note your Acknowledgement Number (ITR-V). 

1. e-Verify within 30 days: use Aadhaar OTP, net banking, or Demat account. Alternatively, post the signed ITR-V to CPC Bengaluru within 30 days by ordinary post. 

Critical: The 30-day e-verification deadline is strict. An unverified return is treated as if it was never filed. 

Step 6 — Old Regime vs New Regime (2026) 

From FY 2024–25, the New Tax Regime is the default. You must explicitly opt for the Old Regime when filing. 

NRI Note: NRIs cannot claim the basic exemption limit against long-term capital gains on listed equity or equity mutual funds — these are taxed at flat rates (10% LTCG / 15% STCG) regardless of the regime chosen. 

Step 7 — Key Tax Rates for NRIs 

Step 8 — DTAA: Avoiding Double Taxation 

India has Double Tax Avoidance Agreements (DTAAs) with over 90 countries. NRIs can use DTAA provisions to claim lower withholding tax rates in India or a credit for taxes paid in their country of residence. 

Common DTAA Benefits by Country 

How to Claim DTAA Benefits 

• Obtain a Tax Residency Certificate (TRC) from the tax authority of your country of residence 

• Fill in Form 10F with your personal details and submit it to the Indian deductor (bank / company) 

• Claim DTAA relief in Schedule FSI (Foreign Source Income) and Schedule TR (Tax Relief) in your ITR 

• For lower TDS on NRO accounts, submit TRC + Form 10F to your bank before the interest is credited 

Step 9 — Advance Tax Obligations 

If your total tax liability in India exceeds Rs 10,000 in a year, you must pay advance tax in four instalments. Failure attracts interest under Sections 234B and 234C. 

Step 10 — ITR Filing Deadlines (AY 2025-26) 

Late Filing Penalties 

• Penalty of Rs 5,000 if return filed after 31 July but before 31 December 2026 

• Reduced penalty of Rs 1,000 if total income does not exceed Rs 5 lakh 

• Interest @ 1% per month (simple) on outstanding tax from the due date under Section 234A 

Warning: If you miss the 31 July deadline, file a belated return by 31 December 2026 to avoid prosecution. An updated return (ITR-U) can be filed up to 31 March 2027 with an additional 25%–50% tax on the tax due. 

 Common Mistakes to Avoid 

 Wrong ITR Form: Filing ITR-1 as an NRI renders the return defective. File ITR-2 or ITR-3 as applicable. 

 Omitting NRO Interest: Interest on NRO accounts has TDS deducted, but the income must still be declared in your ITR under ‘Other Sources’. Omitting it triggers notices under Section 139(9). 

 Missing TRC / Form 10F: Without a Tax Residency Certificate, you cannot claim reduced TDS rates under DTAA. Excess TDS already deducted at the higher rate can be claimed as a refund in your ITR. 

 Unlinked PAN: Transactions without a valid PAN attract TDS at 20% or higher under Section 206AA. Ensure your PAN is linked to your Aadhaar if you hold one. 

 Refund Tip: After filing, validate your NRO bank account on the portal for direct credit of refunds. Refunds are typically processed within 4–8 weeks of e-verification.