Advance authorization scheme for exports
Fema Experts
As an NRI (Non-Resident Indian), you are required to file an Income Tax Return (ITR) in India if you meet certain conditions.
This guide covers:
✅ When does an NRI need to file ITR?
✅ Which income is taxable in India for NRIs?
✅ How to file an ITR as an NRI?
1. When Does an NRI Need to File ITR in India?
An NRI must file an ITR in India if:
✔ Total taxable income in India exceeds ₹2.5 lakh in a financial year (excluding exempt income).
✔ TDS has been deducted, and you wish to claim a refund.
✔ You have capital gains from selling property, stocks, or mutual funds in India (even if below ₹2.5 lakh).
✔ You have rental income from property in India.
✔ You hold foreign assets & need to comply with the Black Money Act (for RNOR status).
💡 Exception: If your only income is from NRE fixed deposits or FCNR deposits (tax-free), you don’t need to file an ITR.
2. Which Income Is Taxable for NRIs in India?
NRIs are taxed only on income earned or received in India.
| Type of Income | Taxability for NRIs |
|---|---|
| Salary earned in India | ✅ Taxable |
| Income from house property in India | ✅ Taxable |
| Capital gains from sale of property, stocks, mutual funds | ✅ Taxable |
| Interest on NRO account | ✅ Taxable (TDS @ 30%) |
| Interest on NRE & FCNR accounts | ❌ Exempt from tax |
| Dividends from Indian stocks & mutual funds | ✅ Taxable @ 20% |
| Freelance/Consulting income from Indian clients | ✅ Taxable |
💡 Tip: If your total tax liability is zero (due to deductions/exemptions), file an ITR to claim a refund of excess TDS deducted.
3. How Can an NRI File ITR in India?
Step 1: Determine the Correct ITR Form
✔ ITR-1 (Sahaj): If you have income from salary, pension, rental income, or interest income (up to ₹50 lakh).
✔ ITR-2: If you have capital gains from property or shares, or foreign assets.
✔ ITR-3: If you have business/professional income in India.
Step 2: File ITR Online via Income Tax Portal
1️⃣ Register/Login at incometax.gov.in
2️⃣ Choose e-Filing > File Income Tax Return
3️⃣ Select Assessment Year & ITR Form
4️⃣ Enter Income Details, Deductions & Tax Paid
5️⃣ Verify & Submit the ITR
💡 Tip: Use DTAA (Double Taxation Avoidance Agreement) benefits if you are taxed in both India and your resident country.
4. What Is the Due Date for NRI ITR Filing?
📌 ITR filing deadline: July 31 (for NRIs without audit requirement).
📌 If tax audit is required: October 31.
5. Penalties for Not Filing ITR as an NRI
❌ Late Filing Penalty: ₹1,000 – ₹5,000 (if filed after due date).
❌ Interest on Unpaid Tax: 1% per month on unpaid tax.
❌ Notice from IT Department: If income is taxable but ITR is not filed.
6. Can an NRI Get a Tax Refund?
✔ Yes! If excess TDS has been deducted from NRO account interest, rental income, or capital gains, you can claim a refund by filing an ITR.
💡 Final Tip: Even if not mandatory, filing an ITR helps with financial transactions like home loans, visa approvals, and future tax compliance.
Would you like help with choosing the right ITR form or tax-saving strategies? Let me know! 😊