Do NRIs need to file an income tax return in India?

When an NRI must file

You must file an Indian return for a financial year if your total income in India is above the basic exemption limit:

• New regime: ₹4 lakh
• Old regime: ₹2.5 lakh. The higher limits for people aged 60 and above apply only to residents, not NRIs.

Count only income that is taxable in India: rent from Indian property, interest on NRO deposits, capital gains on Indian shares, mutual funds or property, and dividends from Indian companies. Salary earned abroad and interest on NRE and FCNR deposits are not counted while you are a non-resident.

When filing is not compulsory but still worth it

• To get a refund. Banks usually deduct about 30% TDS on NRO interest, and tenants and buyers deduct TDS too. If your actual tax is lower, the only way to get the difference back is to file.
• To carry forward a loss, such as a capital loss on shares, so it reduces tax in later years.
• To claim treaty rates under India's tax treaty with your country, for example the 15% cap on NRO interest for residents of Singapore.
• For records, such as visa, loan or property paperwork that asks for Indian returns.

Which form and by when

• ITR-2 for most NRIs (rent, interest, capital gains). ITR-3 if you have business income in India. NRIs cannot use ITR-1.
• Due date: 31 July for ITR-2, 31 August for ITR-3 without a tax audit. A belated return can be filed until 31 December.
• E-verification: Aadhaar is not required. You can e-verify through net banking, a demat account or other options.

First, confirm you are an NRI

Your status depends on the days you spent in India during the year, with different rules for Indian citizens visiting India and for people who left for a job abroad. In the year you move abroad or come back, you may be resident for part of the story, so check this before filing. We work it out from your travel dates.

Keep reading