Which ITR form should an NRI file?
An NRI files ITR-2 if their Indian income is from salary, house property, capital gains or other sources, and ITR-3 if they also have business or professional income in India. ITR-1 and ITR-4 cannot be used by a non-resident.
| Your Indian income | Form for AY 2026-27 |
|---|---|
| Rent, NRO or FD interest, dividends, capital gains on shares, mutual funds or property, salary for work in India | ITR-2 |
| Any of the above plus business or professional income in India (for example consultancy fees from Indian clients, or F&O trading) | ITR-3 |
| Only presumptive business income | ITR-3 (ITR-4 is for residents only) |
In ITR-2, you declare your residential status by answering questions on your days in India, and give your jurisdiction of residence and foreign taxpayer identification number. Getting those answers right matters more than anything else in an NRI return.
Are you an NRI for FY 2025-26?
Your status is tested each financial year by your days in India. For FY 2025-26, you are resident 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. Otherwise you are a non-resident.
Two relaxations change the 60-day test for Indian citizens and persons of Indian origin:
| Situation | When you become resident |
|---|---|
| Any individual | 182 days or more in the year, or 60 days or more plus 365 days in the four preceding years |
| Indian citizen leaving India for employment abroad, or as crew of an Indian ship | Only at 182 days or more |
| Indian citizen or person of Indian origin visiting India, Indian income up to ₹15 lakh | Only at 182 days or more |
| Visiting citizen or person of Indian origin, Indian income above ₹15 lakh | 182 days or more, or 120 days or more plus 365 days in the four preceding years |
| Indian citizen, Indian income above ₹15 lakh, not liable to tax in any other country because of domicile or residence | Deemed resident, whatever the days (section 6(1A)) |
"Indian income" here means total income other than income from foreign sources. Days are counted up to 31 March 2026 for FY 2025-26.
Resident but not ordinarily resident
A resident can be "not ordinarily resident" (RNOR) if they were a non-resident in nine of the ten preceding years, or were in India for 729 days or less in the seven preceding years. This status often applies in the first years after you return to India.
RNOR status is treated more favourably than ordinary residence on foreign income, so it matters for returning NRIs. We confirm your status and its effect before filing. Once you are resident and ordinarily resident again, see Schedule FA for residents.
What an NRI pays tax on in India
A non-resident is taxed in India only on income that is received in India or that accrues or arises in India. Salary earned abroad for work abroad, foreign rent and foreign bank interest are not taxed in India for an NRI.
Common Indian-source income for NRIs is rent from Indian property, interest on NRO accounts and fixed deposits, dividends from Indian companies, capital gains on Indian shares, mutual funds and property, and fees from Indian clients.
The slab rates are the same as for residents. For FY 2025-26 the basic exemption is ₹4,00,000 under the new regime and ₹2,50,000 under the old regime. The section 87A rebate is for resident individuals only, so the "no tax up to ₹12 lakh" rule does not apply to NRIs.
NRE and NRO interest
Interest on an NRE account is exempt under section 10(4)(ii) for a person resident outside India under FEMA who is permitted by the RBI to hold the account. The test is your FEMA status, not your income-tax residency.
Interest on an NRO account is taxable. Banks deduct TDS on it, at 30% plus surcharge and cess for FY 2025-26, which is often more than the tax you finally owe.
Do you need to file?
You must file if your total income in India is above the basic exemption limit. You should also file, even when it is not compulsory, if TDS is more than your tax and you want the excess back.
- Exemption from filing: under section 115G, an NRI whose total income is only investment income or long-term capital gains covered by the special NRI provisions, with tax deducted at source, need not file.
- Reasons to file anyway: a refund of excess TDS, a loss to carry forward, a property sale, or an Indian return record for loans or visas.
If your only Indian income is NRE interest, which is exempt, you generally have nothing to report. We check whether any other income or TDS appears in your AIS first.
TDS on NRI income and getting a refund
Tax is deducted at source on almost every payment to a non-resident, under section 195 for FY 2025-26. Because the payer cannot see your total income, TDS is often higher than your final tax, and the only way to get the difference back is to file a return.
TDS appears in your Form 26AS and AIS. We match every entry with your income and claim the excess as a refund. If TDS is going to be too high on a future payment, such as a property sale, you can apply before the transaction for a lower or nil deduction certificate in Form 128 (old Form 13) under section 395. See our lower TDS certificate service.
Refunds go to a bank account pre-validated on the e-filing portal. If you have no bank account in India, the return lets a non-resident give one foreign bank account instead, with its SWIFT code and IBAN. If the department delays a refund, it generally pays interest at 0.5% a month. We do not promise a refund date, because processing time varies. If a refund is delayed or fails, see our page on refund of excess TDS.
Claiming DTAA relief
India's tax treaties (DTAAs) can reduce Indian tax on some income, such as interest or dividends. To use a treaty rate, you need a Tax Residency Certificate (TRC) from your country of residence and must give the prescribed details to the payer or in your return.
For FY 2025-26, those details were given in Form 10F. For payments from 1 April 2026, Form 10F is replaced by Form 41, under section 159(8) of the Income-tax Act, 2025. See our Form 10F and DTAA service.
If your Indian income is also taxed in your country of residence, the credit for Indian tax is normally claimed there, under its rules. We give you the Indian computation and TDS certificates for that. Form 67 (Form 44 from Tax Year 2026-27) is the foreign tax credit form for residents of India, not for NRIs.
Selling property in India as an NRI
When you sell property in India, the buyer must deduct TDS from the price. The return is where you report the actual gain and claim back any excess.
- Tax on the gain: property held for more than 24 months gives a long-term gain, taxed at 12.5% plus surcharge and cess for NRIs. The indexation option for property bought before 23 July 2024 is available only to resident individuals and HUFs.
- TDS by the buyer: often deducted on the full price unless you hold a lower deduction certificate. See our NRI lower TDS certificate service. A resident seller's sale uses a different form: see the buyer's property TDS filing.
- TAN relief for buyers: from 1 October 2026, a resident individual or HUF buying from an NRI can deposit the TDS without a TAN, using a PAN-based challan. See TDS on property purchase.
- Taking the money out: remitting sale proceeds abroad needs Form 145 and usually a CA certificate in Form 146 (old 15CA and 15CB). See our Form 15CA and 15CB service.
NRI due dates for AY 2026-27
NRIs have the same due dates as residents. Without business income, the date was 31 July 2026; with business income that needs no audit, 31 August 2026. Both have passed.
| Filing | Due date | Status on 21 September 2026 |
|---|---|---|
| No business income | 31 July 2026 | Passed |
| Business or professional income, no audit | 31 August 2026 | Passed |
| Audit cases | 31 October 2026 | Open, unless the CBDT extends it |
| Belated return | 31 December 2026 | Open |
| Revised return | 31 March 2027 | Open |
A belated return carries a late fee under section 234F of ₹1,000 if total income is up to ₹5 lakh, or ₹5,000 above that. If you are filing only to claim a refund and your income is below the exemption limit, the fee is generally not triggered, but we confirm this for your figures. Full details are on our income tax return filing page.
Verifying your return from abroad
A return must be verified within 30 days of filing, or the verification date is treated as the filing date. You can do it online or by posting a signed ITR-V.
Aadhaar OTP works only if your Aadhaar is linked to a mobile number you can receive messages on. Most NRIs use net banking or an electronic verification code generated through a pre-validated Indian bank account instead. We set this up with you before filing. You also need a PAN: see PAN for NRIs.
Income-tax Act, 1961 or 2025: what changes for NRIs
Your FY 2025-26 return is filed under the Income-tax Act, 1961, and your residency for that year is decided under it. From Tax Year 2026-27, the Income-tax Act, 2025 applies. The residency tests themselves have not changed.
| Rule | 1961 Act (FY 2025-26) | 2025 Act (Tax Year 2026-27) |
|---|---|---|
| Residence tests | Section 6 | Section 6, same tests |
| Deemed resident | Section 6(1A) | Section 6(7) |
| Not ordinarily resident | Section 6(6) | Section 6(13) |
| NRE interest exemption | Section 10(4)(ii) | Schedule IV |
| Filing exemption for investment income | Section 115G | Section 216 |
| NRI investment-income regime | Sections 115C to 115H | Sections 212 to 217 |
| Treaty relief details | Form 10F | Form 41, section 159(8) |
| Foreign tax credit (residents) | Form 67 | Form 44 |
| Lower deduction certificate | Form 13, section 197 | Form 128, section 395 |
| Remittance forms | Form 15CA and 15CB | Form 145 and 146 |
| TDS on payments to non-residents | Section 195 | Section 393 |
Each year is tested separately. Days you spent in India in earlier years still count towards the 365-day and 729-day tests under the 2025 Act.
Documents for an NRI return
You can send everything by email or WhatsApp. We download your AIS and Form 26AS with your consent.
- PAN and e-filing login (we help if you have lost access)
- Passport pages with entry and exit stamps, or a travel history, for FY 2025-26 and earlier years
- Tax Residency Certificate and foreign taxpayer identification number, if you claim treaty rates
- NRE and NRO account statements and interest certificates
- Rent agreements and property tax receipts for Indian property
- Broker and mutual fund capital gains statements
- Sale and purchase deeds and TDS certificates for any property sold
- Indian or foreign bank details for the refund
NRI ITR filing fees
There is no government fee to file an income tax return. Our professional fee for an NRI return starts at ₹1,999.
| Fee | Amount |
|---|---|
| Regikart professional fee, NRI ITR | From ₹1,999 |
| Government fee for filing an ITR | No government fee |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 21 September 2026.
The final fee depends on your income sources, for example a property sale or business income, and we confirm it in writing before we start. Form 146 certificates and lower deduction certificates are separate services with their own fees.
How we file your NRI return
We usually file an NRI return in 5-7 working days once we have complete documents. That is our usual experience, not a legal limit.
- Residency. We count your days in India and confirm your status for FY 2025-26.
- Income mapping. We separate Indian income from foreign income and apply treaty rates where you hold a TRC.
- TDS reconciliation. We match Form 26AS and AIS with your income and compute the refund or tax due.
- File and verify. After your approval we file ITR-2 or ITR-3, add your refund bank account and help you verify within 30 days.
Why Regikart for NRI returns
Regikart is a CA and CS firm serving 250+ clients from Kolkata (head office), Delhi and Bengaluru. NRI returns are reviewed by CA Ganpat Khemka, who also handles our foreign remittance work.
- Residency first: we confirm your status from your travel dates before anything else.
- Everything connected: the return, lower TDS certificates, Form 145 and 146, and PAN, handled by one team. See our NRI tax services.
- Remote by default: documents by email or WhatsApp, calls at a time that suits your time zone.
- Setting up a business abroad? See Singapore company setup and UAE company setup.
- Crypto or large gains? See crypto tax filing and our income tax notice reply service if a notice arrives.