For NRIs (Non-Resident Indians), filing an Income Tax Return (ITR) in India is mandatory if you earn income from Indian sources—such as rent, interest, capital gains, or salary received in India. Even if TDS is already deducted, filing ITR ensures compliance and helps claim refunds

1. Who Is an NRI for Income Tax Purposes?

Your tax residency depends on how many days you stay in India:

You are treated as an NRI if:

You stay less than 182 days in India during the financial year, OR
You stay less than 60 days in the year AND less than 365 days in the previous four years

Tax residency is calculated every financial year.

2. When Must an NRI File an Income Tax Return in India?

You should file ITR if you:

Earn more than ₹2.5 lakh taxable income in India
Want to claim TDS refund
Have capital gains from sale of property, stocks, or mutual funds
Earn interest on NRO deposits
Earn rental income
Want to carry forward capital losses
Hold assets or property in India
Received income taxable in India even if paid abroad

3.What Income of an NRI Is Taxable in India?

1. Rental Income

Taxed after 30% standard deduction.

2. Capital Gains

Tax on sale of:

Property
Shares
Mutual funds

3. Interest Income

NRO Account: Fully taxable
NRE Account: Tax-free (subject to conditions)

4. Dividend Income

Taxed at 20% TDS.

5. Salary Received in India

Taxable if services are rendered in India.

4. Which ITR Form Should an NRI Use?

ITR Form	Suitable For NRIs
ITR-2	Most NRIs → capital gains, rental income, salary, interest
ITR-3	NRIs with business or professional income
ITR-5/6	Applicable for firms/companies

➡️ Most NRIs file ITR-2.

5. Documents Required for NRI ITR Filing

PAN Card
Passport (to confirm number of days in India)
Bank Statements (NRE/NRO)
Form 16 (if salary income)
Form 26AS (TDS summary)
AIS & TIS (Annual & Tax Information Statement)
Rent receipts & property details
Capital gains report
TDS certificates (Form 16A/27Q)
Investment proofs (80C, 80D, 80G, etc.)

6. Step-by-Step Process: How to File ITR in India as an NRI

Step 1: Check Your Residential Status

Confirm whether you qualify as an NRI, Resident, or RNOR.

Step 2: Calculate Total Income From India

Include:

Rent
Capital gains
Dividend income
NRO interest income
Salary (if applicable)

Step 3: Download Key Statements

From the Income Tax Portal:

Form 26AS
AIS (Annual Information Statement)
TIS (Taxpayer Information Summary)

Ensure all TDS entries match.

Step 4: Log in to the Income Tax Portal

Visit https://www.incometax.gov.in
Log in using your PAN
Select e-File → Income Tax Return → File Return

Step 5: Choose the Correct ITR Form

Select:

Assessment Year
ITR-2 (for most NRIs)
Filing type: Original or Revised

Step 6: Enter Income Details

Fill in:

House Property (rental income)
Capital Gains (property, mutual funds, shares)
Other Income (interest, dividends)

Step 7: Claim Allowed Deductions

NRIs can claim:

80C – ELSS, life insurance, home loan principal
80D – Health insurance
80G – Donations
Section 24(b) – Home loan interest deduction

Step 8: Validate Tax Summary

The portal automatically shows:

Total income
Total tax
TDS deducted
Refund due

Step 9: Pay Tax (If Required)

If tax payable > TDS:

Pay via Net Banking, UPI, or Debit Card
Generate challan (ITNS 280)

Step 10: Submit and Verify ITR

Return must be verified within 30 days.

Verification methods:

Aadhaar OTP (if applicable)
Net banking
Digital Signature (DSC)
Sending signed ITR-V to CPC, Bengaluru

7. Tax Rates for NRIs (Key Highlights)

Income Tax Slabs for NRIs (Old Regime Only)

NRIs cannot use the new regime.

Up to ₹2.5 lakh → 0%
₹2.5–5 lakh → 5%
₹5–10 lakh → 20%
Above ₹10 lakh → 30%

Capital Gains Tax

Property LTCG: 20% with indexation
Equity LTCG: 10% above ₹1 lakh
Equity STCG: 15%

8. Common Mistakes NRIs Should Avoid

Filing ITR-1 (NRIs cannot use it)
Not reporting NRO interest income
Forgetting to claim TDS refund
Not verifying the return
Reporting residency incorrectly

How to File Income Tax Return in India for NRIs (2026 Guide)