Faq CA For NRI ITR
India-specific preparation guide
Faq CA For NRI ITR needs current-law checks, portal verification, documents and a precise brief before you compare experts on the WorkIndex work index.
Post Your Requirement - FreeNRI Income Tax Slabs & Mandatory Return Filing (AY 2026-27)
NRIs must file income tax returns in India if their gross Indian-sourced taxable income exceeds the basic exemption limit, or if they wish to claim TDS refunds.
| ITR topic | Tax rules for NRIs | Key requirement |
|---|---|---|
| Basic Exemption Limit | Rs. 2.5 Lakh under the Old regime, and Rs. 3 Lakh under the default New regime. | NRIs must pay tax on any income exceeding this limit. Slabs apply normally. |
| Section 87A Rebate Exclusion | NRIs are NOT eligible for the Section 87A rebate. | The zero-tax result up to Rs. 7 Lakh or Rs. 12 Lakh is only for resident individuals. |
| ITR Form Selection | ITR-2 is standard for NRI salary, property, and capital gains. ITR-3 applies if business/profession income exists. | NRIs are strictly barred from using the simplified ITR-1 form. |
| Taxable Income scope | Includes Indian salary, rent from property in India, NRO interest, and capital gains on Indian assets. | Foreign-sourced income is completely exempt from tax in India. |
Important compliance checks for NRIs
- Physical stay rules: Verify if stay in India was less than 182 days (and does not meet 60 days + 365 days test) to confirm NRI status.
- TDS on NRI Payments: TDS is deducted under Section 195 on all payments to NRIs (rent TDS is 31.2%, property sale TDS is 20.8% LTCG / 30.9% STCG on gross value).
- NRE/NRO Account Setup: Interest on NRE and FCNR accounts is tax-free in India. NRO interest is fully taxable and subject to 30.9% TDS.
- DTAA Claims: NRIs can submit a Tax Residency Certificate (TRC) and file Form 10F online to reduce Indian TDS rates under tax treaties.
Documents to prepare for NRI tax filing
- Passport copy showing all pages with entry/exit stamps.
- NRE and NRO interest certificates and Form 16A TDS certificates.
- Form 16 from Indian employers (if salaried in India).
- Demat capital gains statement and transaction summaries.
- Tax Residency Certificate (TRC) and Form 10F (for DTAA claims).
Faq CA NRIs ITR: year and source check
Last fact-checked: 18 June 2026.
AY 2026-27 means FY 2025-26 income and is filed under the Income-tax Act, 1961. Tax Year 2026-27 means FY 2026-27 income under the Income Tax Act, 2025. Do not mix the two.
Verify stay days, TRC validity, DTAA rates, NRO interest, and Form 15CA/15CB requirements against official CBDT guidelines, notifications, and portal utilities before taking a filing position.
FAQs
Does an NRI get the Section 87A rebate?
No. The Section 87A rebate (which provides zero tax up to Rs. 7 Lakh or Rs. 12 Lakh in the new regime) is only available to resident individuals. NRIs must pay tax if their income exceeds the basic exemption limit.
Which ITR form should an NRI file?
NRIs must use ITR-2 for salary, house property, capital gains, and other sources. If they have business or professional income in India, they must file ITR-3. NRIs cannot use ITR-1.
What are the criteria under which an NRI must file an ITR in India?
An NRI must file an ITR if their total gross income in India (before deductions) exceeds the basic exemption limit (Rs. 2.5 Lakh under the old regime, Rs. 3 Lakh under the default new regime for AY 2026-27), or if they want to claim a refund for excess TDS.
Frequently Asked Questions
1. Who is considered a Non-Resident Indian (NRI) for tax purposes?
You are an NRI if you stay in India for less than 182 days in the FY, or less than 60 days in the FY plus less than 365 days in the preceding 4 years.
2. Is an NRI taxed on their global income in India?
No. NRIs are only taxed on income earned, accrued, or received in India. Global income earned outside India is not taxable in India.
3. Which ITR form should an NRI file for FY 2025-26?
NRIs must file ITR-2 (if they have salary, property, or capital gains) or ITR-3 (if they have business income). NRIs cannot file ITR-1.
4. Is the Section 87A tax rebate available to NRIs?
No. The Section 87A rebate (which makes tax zero up to ₹12 lakh under the New Regime) is only available to resident individuals. NRIs do not qualify.
5. How is NRE and NRO bank account interest taxed for NRIs?
Interest earned on NRE (Non-Resident External) accounts is fully tax-free in India. Interest on NRO (Non-Resident Ordinary) accounts is taxable and subject to TDS.
6. Can an NRI claim benefits under Double Taxation Avoidance Agreements (DTAA)?
Yes, NRIs can claim lower tax rates or exemptions under DTAA by submitting a Tax Residency Certificate (TRC) and Form 10F.
7. What is the TDS rate on payments made to NRIs?
TDS under Section 195 on payments to NRIs is deducted at the maximum marginal rate (e.g. 30% on rental income or short-term gains) unless a lower tax certificate is obtained.
8. Can an NRI invest in mutual funds or real estate in India? How is it taxed?
Yes, NRIs can invest. Capital gains are taxed at 12.5% for LTCG (equity/property) and standard rates for STCG, with TDS deducted at source.
9. What is the deadline for filing ITR for NRIs?
The due date is July 31, 2026 (or October 31 if subject to audit).
10. Do NRIs have to report foreign bank accounts in ITR?
NRIs do not need to report foreign bank accounts or assets in Schedule FA. Only resident taxpayers are mandatory to report foreign assets.
11. How can I track my Income Tax Refund status?
Log in to the e-filing portal and go to e-File > Income Tax Returns > View Filed Returns to check your status. Ensure your bank account is pre-validated on the e-filing portal and linked with Aadhaar/PAN to receive the refund directly.
12. Is Aadhaar mandatory for NRIs filing ITR?
Aadhaar is not mandatory for NRIs who do not possess one. They can file using their PAN.
13. Can I file a revised return to correct mistakes in my ITR? What is the deadline?
Yes, under Section 139(5), you can file a revised return to correct any errors or omissions in your original filing. The deadline to file a revised return for FY 2025-26 is March 31, 2027.
14. What is an Updated Return (ITR-U)? When can it be filed?
Under Section 139(8A), you can file an Updated Return (ITR-U) within 24 months from the end of the relevant Assessment Year (for FY 2025-26, until March 31, 2029) to declare additional income. It requires paying an additional tax of 25% (if filed within 12 months) or 50% (if filed within 24 months). It cannot be used to claim refunds or increase losses.
15. What is the difference between Form 26AS, AIS, and TIS?
Form 26AS is a statement showing tax deducted (TDS), tax collected (TCS), advance tax paid, and tax refunds. AIS (Annual Information Statement) captures all financial transactions (shares, mutual funds, interest, dividends, property, etc.). TIS (Taxpayer Information Summary) is a simplified version of AIS. You must reconcile your ITR figures with all three to avoid mismatch notices.