Attention NRIs – The ITR filing for NRI deadline is just a week away, file now to get your tax refunds!
If you’re an NRI earning income in India, the ITR filing deadline is just around the corner, on 15th September 2025. Many NRIs assume that living abroad exempts them from Indian taxes or that TDS deductions alone are enough to settle liabilities. In reality, you must file an income tax return in India if your taxable income crosses the exemption limit.
Whether it is rent from property, interest on deposits, dividends, or capital gains, all such income must be reported. Filing your ITR on time ensures you can claim refunds, stay compliant, and avoid last-minute stress.
Act today and complete your filing before the deadline.👉 Limited-Time Offer: Get 60% OFF on ITR filing for NRI with us. Connect with our expert CA today and file hassle-free.
Which Income is Taxable for NRIs in India?
Taxation for NRIs applies solely to income generated or received in India. Common sources include:
Which Income is Taxable for NRIs in India?
NRIs are taxed only on income earned or received in India. Key sources include:NRIs are taxed only on income earned or received in India. Key sources include:
| Income Type | Details | TDS Rate | Applicable ITR Form |
| Salary | Income for work performed in India, even if credited to foreign accounts | Varies | ITR-2 |
| Property | Rent received from Indian properties. Standard deduction of 30%, property tax, and interest on loans can be claimed | 30% | ITR-2 |
| Capital Gains | Sale of Indian shares, securities, or property. Exemptions under Sections 54 & 54EC may apply | LTCG: 20%, STCG (Equities): 15% | ITR-2 |
| Interest | Interest from NRO accounts is fully taxable. NRE & FCNR interest is tax-free | 30% (NRO) | ITR-2 |
| Dividends | Dividends from Indian companies | 20% | ITR-2 |
| Business/Professional | Any income from a business controlled or set up in India | Varies | ITR-3 / ITR-4 |
| NRI Firms/Companies | Income earned through NRI-owned firms or companies | Varies | ITR-5 / ITR-6 |
Note: Even if TDS is deducted, does NRI need to file ITR? → Yes, because filing reconciles liability and enables refund claims.
Do NRIs Need to File ITR in India?
Whether you need to file an ITR depends on your residential status and the type of income you earn in India.
- Mandatory: If taxable income in India exceeds ₹2.5 lakh (old regime) or ₹3 lakh (new regime).
- Even if your income is below these limits, you may still want to file your ITR if you:
- Have capital gains
- Want to claim TDS refunds
- Plan to carry forward losses for future tax adjustments
Common misconception: Many NRIs think that once TDS has been deducted from rental income, NRO deposits, or property sales, their tax obligations are fully settled. In reality, filing your ITR is often essential to reconcile your tax liability and claim any refunds you’re entitled to.
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How to Determine Your Residential Status
Your residential status determines whether only Indian income is taxable or if your global income is also subject to tax in India.
| Status | Condition | Taxable Income |
| NRI | Stayed in India for less than 182 days in a financial year, or stayed less than 60 days in the current year and less than 365 days in the previous four years | Only income earned or received in India |
| Resident / Overseas Indian Citizen | Stayed in India for 182 days or more in a financial year, or meets other conditions for residency | Global income, including income earned abroad |
Key Considerations for NRIs and OCIs
- Indian citizens working abroad: Only the 182-day rule applies. You are considered a resident if you spend at least 182 days in India during the financial year.
- Crew members on Indian ships and PIOs visiting India: Considered a resident only if they spend at least 182 days in India during the relevant financial year. Days spent on a ship under a Continuous Discharge Certificate (CDC) are excluded.
- High-income condition: If your Indian-sourced income exceeds ₹15 lakh, the 60-day condition is replaced with 120 days.
- Non-Resident status: If none of these conditions are met, you are classified as a Non-Resident Indian (NRI) for that financial year.
For instance:
- An NRI staying 120 days in India this year: Only income earned in India is taxable.
- An OCI staying 200 days in India: Global income is taxable.
This ensures NRIs, OCIs, and PIOs can determine which income is taxable in India, choose the correct ITR form, claim deductions, and avoid notices from the tax department.
Which ITR Form Should NRIs File?
A common question is which ITR form for NRI is applicable. Filing the correct form helps you stay compliant and avoid tax notices.
| ITR Form | Applicability |
| ITR-2 | Salary, property, capital gains, foreign assets |
| ITR-3 | Business/professional income |
| ITR-4 (Sugam) | Presumptive business income |
| ITR-5 | NRI-owned firms, LLPs, AOPs, BOIs |
| ITR-6 | Companies (other than those claiming exemption under Section 11) |
Note: ITR-1 (Sahaj) cannot be used by NRIs. It is only applicable to resident individuals with simple income structures (salary, one house property, and income up to ₹50 lakh).
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Deductions and Exemptions for NRIs
Like residents, NRIs can reduce taxable income using deductions:
1. Section 80C Deductions (up to ₹1.5 lakh)
- Life insurance premiums
- Children’s tuition fees
- Principal repayment on home loans
- Investments in ULIPs and ELSS
2. Other Allowable Deductions
- 80D: Health insurance premiums for self, spouse, children, and parents (up to ₹25,000 each)
- 80E: Interest on education loans
- 80G: Donations to eligible charitable institutions
- 80TTA: Interest on savings accounts (up to ₹10,000)
Note: Deductions for differently-abled individuals (Sections 80DD, 80DDB, 80U) are not applicable to NRIs.
Exemptions on Sale of Property
Long-term capital gains may be exempt if reinvested in specified assets, including:
- Shares or debentures of Indian companies
- Bank deposits and government securities
Income Tax Slabs for NRIs (FY 2025-26)
| Income Range (₹) | Tax Rate (Old Regime) | Tax Rate (New Regime) |
| Up to 2,50,000 | Nil | Nil |
| 2,50,001 – 5,00,000 | 5% | 5% |
| 5,00,001 –10,00,000 | 20% | 10% |
| Above 10,00,000 | 30% | 15% |
Note: Surcharge applies to NRIs if income exceeds ₹50 lakh, as per slab thresholds. Rebate under Section 87A is only available to resident individuals and not to NRIs.
What is DTAA and How It Benefits NRIs?
NRIs earning income in India often worry about paying taxes both in India and in their country of residence. The Double Taxation Avoidance Agreement (DTAA) is a treaty between India and over 90 countries, including the USA, UK, Canada, UAE, Australia, and Singapore. It ensures that the same income is not taxed twice and lets you claim credit for taxes already paid abroad using Form 67, helping you reduce your overall tax burden.
Read more about DTAA and how it protects your income.
How NRIs Can Avoid Double Taxation
If you’re paying taxes both in India and in your country of residence, don’t worry. India has Double Taxation Avoidance Agreements (DTAAs) with many countries, which means you can claim credit for taxes already paid abroad using Form 67.
Documents Required for NRI ITR Filing
To file smoothly, keep these ready:
- PAN and Aadhaar
- Form 16 (if any salary in India)
- Form 26AS / Annual Information Statement
- Bank statements for NRO accounts
- Proof of tax-saving investments
- Capital gains statements
- Documents related to foreign income / assets
- Rental income details and TDS certificates
TDS on NRI Income
This table lists TDS rates on common NRI income, adjustable against your total tax liability when filing ITR.
| Income Type | TDS Rate |
| Rent | 30% |
| Sale of Property (LTCG) | 20% |
| NRO Account Interest | 30% |
| Dividends | 20% |
| STCG (Equities) | 15% |
| NRE / FCNR Interest | Tax-free |
Advance tax is applicable if liability exceeds ₹10,000 in a financial year.
When to File ITR
- Mandatory if Indian income exceeds exemption limits (₹2,50,000 under the old regime or ₹3,00,000 under the new regime).
- Filing below the limit allows claiming TDS refunds.
- Deadline for FY 2024-25: 15th September 2025
- Late filing penalty: ₹1,000–₹5,000 under Section 234F
Ready to File Your ITR?
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Final Words
Filing your NRI ITR is seamless and stress-free with the right help. Upload your documents online and our experts will handle everything, including selecting the correct ITR form for NRIs and claiming deductions and refunds.
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Frequently Asked Questions (FAQs)
1. Should NRI file ITR in India if TDS is already deducted?
Yes. Even if TDS has been deducted on your rent, deposits, or capital gains, ITR filing for NRI is still required. Filing helps you reconcile your actual tax liability and claim eligible refunds.
2. Which ITR form for NRI is correct?
The correct form depends on your income type. Most NRIs file ITR-2, especially for salary, property, capital gains, or investments. If you have business or professional income, you need to file ITR-3 or ITR-4.
3. Can NRI file ITR 1 in India?
No. Can NRI file ITR 1 is a common question, but the answer is no. ITR-1 is only for resident taxpayers with a simple income up to ₹50 lakh. NRIs must use ITR-2 or other applicable forms.
4. Does an NRI need to file ITR every year?
Yes, an NRI must file ITR every year if their taxable income in India crosses the exemption limit. Even if it does not, ITR filing for NRI is still useful for claiming TDS refunds and reporting capital gains.
5. What is the last date for NRI ITR filing in India for 2025?
The deadline for NRI filing of ITR is 15th September 2025. Missing it may attract penalties and interest on unpaid tax.
6. How to file NRI income tax returns easily?
Wondering how to do ITR filing for NRI quickly? You can file online using your PAN, Form 26AS, income proofs, and bank details. To avoid errors and delays, many NRIs prefer professional help for smooth and hassle-free filing.
7. What is the 120-day rule for NRI?
If an Indian citizen stays in India for 120 days or more in a financial year and has stayed 365 days or more in the previous 4 years, and their Indian income exceeds ₹15 lakh, they are considered a resident for tax purposes. This means their global income becomes taxable in India, not just Indian income.
8. How much income is tax free for NRIs?
For NRIs, the basic exemption limit is ₹2.5 lakh per financial year. Income above this limit becomes taxable in India.
Meta Des: Confused about which ITR form NRIs should file in India? Learn NRI income tax return filing rules, eligibility, ITR-2 process, deductions & deadlines for 2025.
