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AY 2026-27 · FY 2025-26 · For Non-Resident Indians

Income Tax Return for NRIs

As an NRI you are taxed in India only on your Indian income — your foreign salary stays out. But you still have to file if that Indian income crosses the exemption, or if you want back the TDS that was over-deducted. Here is exactly how it works for AY 2026-27.

Get your NRI return filed by a CA
Taxed onIndian income only
Your formITR-2 (or ITR-3)
Due date31 Jul 2026
The quick answer

An NRI pays Indian tax only on income earned or received in India — rent, capital gains, NRO interest, India salary. You must file an ITR if that income tops the basic exemption, or to reclaim TDS. NRIs file ITR-2 (or ITR-3 for business) — never ITR-1.

Foreign incomeNot taxable in India
Big reason to fileClaim a TDS refund
Wrong formITR-1 / ITR-4 not allowed
First, your residential status

Are you actually an NRI this year?

It is decided every year by your days in India, not your passport or visa. You are a resident if you meet either test below — fail both and you are an NRI.

Test 1

182 days or more in India during FY 2025-26.

or
Test 2

60 days or more this year and 365 days or more across the previous 4 years.

Meet neither → you are a Non-Resident (NRI) for FY 2025-26.

Three exceptions to watch
  • Left India for a job abroad / crew: only the 182-day test applies (the 60-day test is dropped).
  • Indian citizen / PIO visiting India with Indian income over ₹15 lakh: the 60-day test tightens to 120 days.
  • Deemed resident: an Indian citizen earning over ₹15 lakh of Indian income and not taxed in any other country is treated as a resident (RNOR).
What India can tax

Indian income in, foreign income out

The rule is about source, not where you live. Income that arises or is received in India is taxable; income earned abroad is not.

Taxable in India
  • Rent from Indian propertyIncome from a house or flat located in India.
  • Capital gainsOn Indian shares, mutual funds or property you sell.
  • Salary for work in IndiaOr salary received in India.
  • NRO account interestInterest on your NRO deposits.
  • Business income in IndiaProfits from a business set up or controlled in India.
Not taxable / exempt
  • Foreign salary & incomeEarned and received outside India.
  • NRE & FCNR interestInterest on these accounts is fully tax-free.
  • Overseas investmentsForeign shares, property and funds.
Your ITR form

ITR-2 for most NRIs — never ITR-1

ITR-1 (Sahaj) and ITR-4 (Sugam) are for residents only. Pick by whether you have Indian business income.

ITR-2

Most NRIs

Salary, house property, capital gains and other income — but no business or professional income. This is the usual NRI form.

About ITR-2 →
ITR-3

NRIs with Indian business

Use this if you have income from a business or profession carried on in India, in addition to the above.

About ITR-3 →
Don’t use ITR-1 or ITR-4. They are restricted to resident individuals — filing one as an NRI makes the return defective.
When you must file — and when you should

The TDS refund most NRIs leave behind

Filing is mandatory in some cases. But the bigger reason NRIs file is money: TDS on Indian income is often deducted at the highest rate, and the only way to get the excess back is to file.

You must file if…

  • Your Indian income crosses the basic exemption (₹2.5L old / ₹4L new regime).
  • You have income from a house property in India.
  • You want to carry forward a capital loss.

You should file to…

  • Reclaim excess TDS — e.g. ~20%+ on a property sale or 30% on NRO interest.
  • Apply a lower DTAA rate and get the difference refunded.
  • Build a clean Indian tax record for visas, loans and future remittance.

Sold property in India? The buyer must deduct TDS on the whole sale value, not just your gain — so the over-deduction is usually large, and the refund is worth filing for. See how capital gains tax works →

Cut the tax legally

DTAA relief & the deductions you keep

DTAA — don’t pay tax twice

India has tax treaties with most countries. With a Tax Residency Certificate from your country plus Form 10F, you can drop TDS on Indian income from 30% to the treaty rate (often 10–15%), and avoid being taxed on the same income in both places.

Deductions NRIs can & can’t claim

Allowed: 80C on life insurance, ELSS, children’s tuition and home-loan principal; 80D health insurance; 80TTA savings interest; 80G donations.

Not allowed: new PPF, NSC, SCSS or Sukanya accounts, and 80U / 80DD / 80DDB disability and treatment deductions.

Built for NRIs

NRI filing has more moving parts — let a CA handle it

Residential status, DTAA relief, Form 10F, property-sale TDS refunds, NRO/NRE treatment — small mistakes get expensive across borders. We file your Indian return correctly and chase every rupee of refund, from wherever you are.

File my NRI return with a CA
ITR-2The usual NRI form→ Capital gains taxSelling Indian property or shares→ Income tax return filingOur CA-led ITR service→ Income tax calculatorEstimate your Indian tax→
FAQ

NRI income tax, answered

Who is an NRI for income tax?
Residential status is set each year by your days in India. You are a resident if you spend 182 days or more in India in the year, or 60 days or more this year plus 365 days or more over the previous four years. Meet neither and you are a Non-Resident (NRI). A passport or visa does not decide it.
Is an NRI’s foreign income taxable in India?
No. An NRI is taxed in India only on income that accrues, arises or is received in India — such as Indian rent, capital gains, NRO interest and India salary. Salary and income earned and received abroad are not taxable in India.
Do NRIs have to file an ITR in India?
Yes, if your Indian income exceeds the basic exemption (₹2.5 lakh old regime / ₹4 lakh new regime), or you have Indian house-property income, or you want to carry forward a loss. Even when not mandatory, most NRIs file to reclaim TDS that was over-deducted.
Which ITR form should an NRI use?
ITR-2 for most NRIs (salary, house property, capital gains, other income). ITR-3 if you also have income from a business or profession carried on in India. NRIs cannot use ITR-1 (Sahaj) or ITR-4 (Sugam) — those are for residents only.
Is NRE / FCNR interest taxable?
No. Interest on NRE and FCNR accounts is exempt from Indian tax. NRO account interest, however, is taxable and usually has TDS deducted, which you can reclaim by filing.
How can an NRI reduce TDS using DTAA?
India has Double Taxation Avoidance Agreements with most countries. By submitting a Tax Residency Certificate from your country of residence along with Form 10F, you can have TDS on Indian income applied at the lower treaty rate (often 10–15% instead of 30%) and avoid double taxation.
Can an NRI claim 80C and other deductions?
Partly. NRIs can claim 80C on life insurance, ELSS, children’s tuition and home-loan principal, plus 80D, 80TTA and 80G. NRIs cannot open new PPF, NSC, SCSS or Sukanya accounts for 80C, and cannot claim 80U, 80DD or 80DDB.
What is the ITR due date for NRIs for AY 2026-27?
31 July 2026 for NRIs without a tax audit. If you have business income requiring audit, the due date is later. AY 2026-27 (income of FY 2025-26) is filed under the Income-tax Act, 1961.
File with a CA, not a portal

Your Indian return, sorted from anywhere

We handle residential status, DTAA, refunds and the right form end-to-end — transparent pricing, real Chartered Accountants, fully over WhatsApp and email across time zones.

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YMYL note: general information, not tax advice. Residential status and treaty relief are fact-specific — confirm your position with a qualified CA before filing.