NRIWallah team
Updated
November 2026
· 5 min read
Most NRIs have some income in India: rent from a flat, interest on NRO deposits, dividends, or a gain on selling shares or property. Tax is usually withheld from it at source, often more than you owe. Filing a return is how you settle the difference, and in some cases the law requires one whether or not you are owed money. This guide explains when you need to file, how, and what to check first.
Do you need to file?
As an NRI you are taxed in India only on income earned or received in India. You usually have to file a return if that income, before deductions, is above the basic exemption for the year, which is ₹4 lakh under the new tax regime. You also need to file if you want back tax withheld at source, if you want to carry a loss forward to later years, or if you sold property or shares and the gain needs reporting.
Even below the exemption, filing is often worth it. A tenant of an NRI usually deducts tax from the rent at a high rate, and banks deduct tax from NRO interest. Without a return, that tax stays with the government. Our rent TDS calculator shows how much a tenant usually withholds against what you would owe.
Check your status before anything else. Your status for a tax year depends on your days in India, and a year with a long visit can make you resident, which changes what goes on the return. The NRI day tracker works it out from your trips.
Most NRIs file ITR-2. It covers salary, rent from property, capital gains and other income such as interest, for individuals without business income. ITR-1, the simplest form, is for residents only, so an NRI cannot use it. If you run a business or a profession in India, the form is usually ITR-3.
The dates
India’s tax year runs from 1 April to 31 March. The return for a year is usually due by 31 July after it ends, for individuals who do not need a tax audit, which covers most NRIs. Reports of the Finance Act 2026 give 31 August only to people with business income who do not need an audit, not to most NRIs. The government sometimes extends a deadline for a particular year, so check the NRI tax calendar and the portal each summer.
If you miss 31 July, you can usually still file a late return by 31 December, with a late fee and interest on any tax unpaid. Some benefits are lost on a late return, such as carrying forward most losses. A return you have filed can be corrected with a revised return; Budget 2026 is reported to have extended that window to 31 March, with a fee for revisions after 31 December. Check the current position on the portal before relying on either date.
What to gather
- Your PAN and access to the income tax portal, including the mobile number or email it uses for one-time passwords.
- The Annual Information Statement (AIS) and Form 26AS, which you download from the portal. They list the income reported against your PAN and every rupee of tax withheld from it. Check them against your own records; a missing entry usually means the deductor has not filed, and the credit will not reach you until they do.
- TDS certificates from your tenant, bank or buyer: Form 16A for years up to 2025-26, and Form 131, its replacement under the Income-tax Act, 2025, from 2026-27.
- Statements of rent, interest and dividends, and the papers for any sale, with the purchase cost and dates.
- Your bank account for a refund: an Indian account in your name, linked to your PAN and validated on the portal. An NRO account is the usual choice.
The document checklist has a printable list for filing from abroad.
Treaty rates and your country of residence
India has a tax treaty with most countries NRIs live in. A treaty can cap the rate India charges on some income, such as interest or dividends, below the rate withheld. To claim a treaty rate you usually need a Tax Residency Certificate from your country of residence and Form 10F filed on the portal. The DTAA estimator shows how tax paid in India is then credited where you live.
There is one catch for NRIs in countries with no income tax. An Indian citizen whose Indian income is above ₹15 lakh and who is not liable to tax in any other country can be treated as resident in India. If you live in the Gulf and your Indian income is large, check this before you choose your status.
Cutting the tax withheld next year
If tax withheld is far more than you owe every year, you can apply for a lower deduction certificate before the payments start. A lower-TDS certificate covers one tax year and tells your tenant or buyer to deduct less. It ends on 31 March, so the application comes round each year; the renewals tracker can hold the date.
After you file
Verify the return within 30 days, or it is treated as not filed. Online verification with Aadhaar or a validated bank account is quickest. The department then processes the return and sends an intimation. A refund, if due, goes to your validated account, usually within weeks; a demand means the department’s figures differ from yours, and the intimation says why.
This guide explains the usual position. Tax rules change and depend on your income and status, so for a return with property sales, losses or treaty claims, a chartered accountant who files for NRIs is worth the fee.
