NRI ITR Filing in India 2026: Which ITR Form, Who Must File, DTAA

An NRI must file an income tax return in India for AY 2026-27 (FY 2025-26) if their Indian income exceeds the basic exemption limit (₹4,00,000 under the new regime, ₹2,50,000 under the old), and should file anyway to claim a refund of excess TDS or carry forward losses. NRIs file ITR-2, or ITR-3 if they have Indian business income; ITR-1 and ITR-4 are not available to non-residents.

Many NRIs (Non-Resident Indians) with Indian income need to file ITR in India. In this guide, updated for October 2026, we cover who is an NRI for tax purposes, which ITR forms apply, what is taxable, TDS under Section 195, DTAA relief, deadlines and the filing process. Returns for FY 2025-26 are filed under the Income-tax Act, 1961; the Income-tax Act, 2025 applies from tax year 2026-27.

Who is an NRI for Tax Purposes?

Under Section 6 of the Income-tax Act, 1961, you are resident in India for FY 2025-26 if you were in India for 182 days or more, or for 60 days or more in the year and 365 days or more in the four preceding years. If you meet neither test, you are a non-resident. Special rules:

• Indian citizens and persons of Indian origin visiting India: the 60-day test becomes 182 days, so only the 182-day test applies
• If your total income other than foreign-source income exceeds ₹15 lakh, the 60-day test becomes 120 days (with 365 days in the preceding four years), and you are treated as Resident but Not Ordinarily Resident (RNOR)
• Deemed resident: an Indian citizen with such income above ₹15 lakh who is not liable to tax in any other country is deemed resident (Section 6(1A))
• Note: Indian citizens working abroad are typically NRIs (less than 182 days in India)

Do NRIs Need to File ITR? Decision Table

What Income is Taxable in India for an NRI?

Payments made from 1 April 2026 fall under the Income-tax Act, 2025, where TDS on sums paid to non-residents sits in Section 393(2). For rates by income type, see NRI TDS rates in India; to get TDS cut at a lower rate, apply for a lower deduction certificate.

ITR Forms for NRI

• ITR-1 (Sahaj): not available. It is only for resident individuals; an NRI or RNOR cannot use it, even with only salary
• ITR-2: NRI with salary, house property, capital gains, other sources, or foreign income (but no business) — the form most NRIs file
• ITR-3: NRI with business / profession income from India
• ITR-4 (Sugam): not available. Presumptive filing in ITR-4 is only for residents (other than RNOR); an NRI with business income files ITR-3

ITR Form for NRI: Quick Answer by Income

For a form-by-form walkthrough of which schedules to fill for each income, read NRI ITR filing: which return for which income.

Due Dates for AY 2026-27 (FY 2025-26)

After 31 July 2026, an NRI filing ITR-2 can no longer choose the old regime: for taxpayers without business income, the old regime can be selected only in a return filed by the Section 139(1) due date. A belated return is therefore computed under the new regime.

A belated return attracts the late fee under Section 234F (₹5,000, or ₹1,000 if total income does not exceed ₹5 lakh) and interest under Section 234A on unpaid tax, and capital losses cannot be carried forward from it. See belated, revised and updated returns for AY 2026-27.

DTAA — Double Tax Avoidance Agreement

India has DTAAs with most countries where NRIs live, including the US, UK, UAE, Singapore, Canada and Australia. 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, filed online on the e-filing portal (if required by the deductor)
• Applying for lower / nil TDS certificate from the IT officer (Section 195 / 197 for FY 2025-26; for tax year 2026-27, Form 128 under Section 395 of the Income-tax Act, 2025)

Deductions an NRI Can and Cannot Claim (Old Regime)

These deductions apply only under the old regime, which an NRI can pick only in a return filed by the due date. Under the new regime the only common deduction left is the employer's NPS contribution under Section 80CCD(2).

Foreign Assets Disclosure (Schedule FA)

Schedule FA is for residents of India. If you are a non-resident or not ordinarily resident for FY 2025-26, you do not fill Schedule FA, and your foreign salary, bank accounts and property abroad are not taxed in India. The year you return and become resident and ordinarily resident, Schedule FA applies to all foreign bank accounts, stocks, property, mutual funds, retirement accounts and beneficial interests, and non-disclosure can attract a ₹10 lakh penalty under the Black Money Act (from 1 October 2024 that penalty does not apply where the undisclosed foreign assets other than immovable property total ₹20 lakh or less).

NRI ITR Filing Process

• Step 1: Determine residential status (NRI / RNOR / Resident) using your days in India
• 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 5: Compute taxable income (Indian income only, with DTAA relief)
• Step 6: Compute tax (with DTAA relief, surcharge, cess; no Section 87A rebate for non-residents)
• Step 7: File ITR-2 or ITR-3 on the IT portal (or via a CA), adding a pre-validated Indian bank account (NRO is fine) for refunds
• Step 8: E-verify within 30 days (Aadhaar OTP, net banking, DSC, bank EVC, or post the signed ITR-V to CPC Bengaluru)

Documents Checklist for NRI ITR

• PAN, passport pages with entry and exit stamps (to count days in India)
• Form 26AS, AIS and TDS certificates (Form 16A) for NRO interest, rent, dividends
• NRO, NRE and FCNR account statements for the year
• Capital gains statements from brokers and mutual funds; purchase and sale deeds for property
• Tax Residency Certificate and Form 10F if you claim DTAA rates
• Details of an Indian bank account for the refund

Worked Example: NRO Interest Refund

An NRI in Dubai earns ₹3,00,000 of NRO fixed-deposit interest in FY 2025-26. The bank deducts TDS under Section 195 at 30% plus 4% cess, about ₹93,600. His total Indian income is below the ₹4,00,000 nil-tax slab under the new regime, so his actual tax is nil. He files ITR-2, reports the interest and TDS from Form 26AS, and claims the full ₹93,600 as a refund to his NRO account. Without filing a return, that money stays with the government.

Cost

Penalty for Non-Filing

• Late filing: ₹5,000, or ₹1,000 if total income is up to ₹5 lakh (Section 234F)
• Interest under Section 234A on tax unpaid after the due date
• Capital losses cannot be carried forward from a belated return
• Wrong information: prosecution + penalty

Frequently Asked Questions