Which ITR Form for NRIs?
Most NRIs use ITR-2 — this form covers individuals with income from salary, property, capital gains, and foreign assets. Do not use ITR-1 (Sahaj) — it is only for residents.
| Form | Who Should Use |
|---|---|
| ITR-1 (Sahaj) | Residents only — NOT for NRIs |
| ITR-2 | NRIs with salary, property, capital gains, foreign assets |
| ITR-3 | NRIs with business income in India |
| ITR-4 | NRIs with presumptive business income |
What Indian Income Must NRIs Declare?
- NRO account interest — fully taxable at slab rate; TDS already deducted at 30%
- Rental income from Indian property — taxable after standard deduction of 30%
- Capital gains on Indian stocks/mutual funds — LTCG at 12.5%, STCG at 20%
- Capital gains on Indian property sale — 20% LTCG with indexation for property held 2+ years
- Salary for services rendered in India — taxable even if received abroad
What NOT to declare: NRE account interest (tax-free), foreign salary, foreign property income, overseas capital gains — these are outside Indian tax jurisdiction for NRIs.
Key Deadlines (FY 2025–26)
| Type | Deadline |
|---|---|
| Regular ITR filing | 31 July 2026 |
| Belated ITR (with penalty) | 31 December 2026 |
| Revised ITR | 31 December 2026 |
| ITR with audit (business income) | 31 October 2026 |
How to Claim TDS Refunds
Banks and tenants deduct TDS on payments to NRIs at higher rates — 30% on NRO interest, 20% on property rent. Your actual tax liability may be lower. Filing ITR is the only way to claim this excess TDS back.
Example: NRO interest of ₹2L → TDS deducted ₹60,000 at 30%. Actual tax at 20% slab = ₹40,000. Refund: ₹20,000. This refund is only available if you file ITR.
Foreign Asset Disclosure — Schedule FA
If you are an NRI who has become Resident (or RNOR), you must disclose all foreign assets in Schedule FA of ITR-2:
- Foreign bank accounts (all of them, even if balance is zero)
- Foreign property — residential and commercial
- Foreign investments — stocks, mutual funds, retirement accounts (401k, EPF equivalent)
- Foreign trusts or beneficial interests
How to File — Step by Step
- Register or log in at incometax.gov.in using your PAN
- Select ITR-2 → File for AY 2026-27
- Pre-fill data will auto-populate salary, TDS, and interest from Form 26AS
- Enter property income, capital gains, foreign assets in respective schedules
- Verify using Aadhaar OTP, net banking, or send signed ITR-V to CPC Bengaluru
Consider hiring a CA if you have property sales, multiple income sources, or DTAA claims — the fee (₹3,000–10,000) is usually recovered through refunds and saved penalties.