NRI ITR Filing in India — Who Needs It, Forms, DTAA, Process (2026)
NRI ITR filing in India — residential status, ITR forms, DTAA, foreign income disclosure, TDS on NRO. From ₹2,999. CA-led.
Every NRI (Non-Resident Indian) who has Indian income must file ITR in India. In this guide, we cover who is an NRI for tax purposes, which ITR forms apply, DTAA relief, and the filing process.
Who is an NRI for Tax Purposes?
An individual is a Non-Resident Indian (NRI) for tax purposes if:
- Physical presence in India < 182 days in the previous FY, OR
- Physical presence in India < 60 days in the previous FY AND < 365 days in the 4 preceding FYs (for Indian citizens / PIO visiting India)
- Note: Indian citizens working abroad are typically NRIs (less than 182 days in India)
What Income is Taxable in India for an NRI?
| Income | Taxable in India? | TDS / Section |
|---|---|---|
| Salary earned in India | Yes | TDS u/s 192 |
| Salary earned outside India (remitted) | No (if NRI) | — |
| Rental income from Indian property | Yes | TDS u/s 194-I (30% / DTAA rate) |
| Interest from NRO account / FD | Yes | TDS u/s 193 (30% / DTAA rate) |
| Interest from NRE / FCNR account | No | — |
| Capital gains on Indian stocks / MF (sold while NRI) | Yes | TDS u/s 194N (varies) |
| Capital gains on Indian property | Yes | TDS u/s 194-IA (1% / DTAA rate) |
| Business income from India | Yes | TDS + regular slab |
| Dividend from Indian companies | Yes | TDS u/s 194 (20% / DTAA rate) |
| Capital gains on NRE / FCNR account interest | No | — |
ITR Forms for NRI
- ITR-1: Salaried NRI with income < ₹50L, no capital gains, no business income, no foreign assets
- ITR-2: NRI with capital gains, multiple properties, foreign assets / income (but no business)
- ITR-3: NRI with business / profession income
- ITR-4: NRI with presumptive income (44ADA / 44AD)
DTAA — Double Tax Avoidance Agreement
India has DTAAs with 90+ countries. DTAA prevents the same income from being taxed twice (once in India, once in the country of residence). NRI can claim DTAA relief by:
- Providing Tax Residency Certificate (TRC) from the country of residence
- Providing self-declaration that you are a tax resident of the other country
- Providing Form 10F (if required by the deductor)
- Applying for lower / nil TDS certificate from the IT officer (Section 195 / 197)
Foreign Assets Disclosure (Schedule FA)
NRIs must disclose all foreign assets + income in ITR Schedule FA. Includes: foreign bank accounts, foreign stocks, foreign property, foreign mutual funds, foreign retirement accounts, beneficial interest in foreign trust / entity. Penalty for non-disclosure: ₹10 lakh per year (Black Money Act).
NRI ITR Filing Process
- Step 1: Determine residential status (NRI / Resident)
- Step 2: Identify all Indian income sources
- Step 3: Check DTAA applicability (if any income is also taxed abroad)
- Step 4: Gather all documents (PAN, Aadhaar optional, bank statements, property, TDS, etc.)
- Step 3: Compute taxable income (Indian income only, with DTAA relief)
- Step 4: Compute tax (with DTAA relief, rebate, surcharge, cess)
- Step 5: File ITR on the IT portal (or via a CA)
- Step 6: E-verify (Aadhaar OTP / DSC / signed ITR-V)
Cost
| Service | Cost |
|---|---|
| ITR-1 (Salaried, no foreign assets) | From ₹2,999 |
| ITR-2 (with capital gains, foreign assets) | From ₹4,999 |
| ITR-3 (with business income) | From ₹6,999 |
| ITR-4 (presumptive) | From ₹4,999 |
| TDS refund claim | Included |
| DTAA relief claim | Included |
Penalty for Non-Filing
- Late filing: ₹1,000-₹5,000 (Section 234F)
- Non-disclosure of foreign assets: ₹10 lakh per year (Black Money Act)
- Failure to file ITR (when income exceeds basic exemption): ₹1,000-₹5,000
- Wrong information: prosecution + penalty
Frequently Asked Questions
Q: Do NRIs need to file ITR if income is below ₹2.5L?
A: Yes, if your gross Indian income exceeds the basic exemption (₹2.5L for old regime / ₹3L for new regime). For higher credibility (visa, bank loan, NRI status), file even if not required.
Q: Is Aadhaar required for NRI ITR?
A: Aadhaar is optional for NRI ITR. PAN is mandatory. NRIs without Aadhaar can file ITR with a manual verification (ITR-V sent to the IT office).
Q: Can NRI claim DTAA benefit?
A: Yes. NRI can claim DTAA relief if the same income is taxed in India and in the country of residence. Must provide TRC + Form 10F.
Q: How to get TRC for DTAA?
A: Apply to the tax authority of the country of residence (e.g., IRS for US, HMRC for UK). TRC is a certificate stating that you are a tax resident of that country for the FY.