NRI Income Tax Return: Who Must File, Forms and Due Dates

Laptop, calculator and papers on a desk for filing an NRI income tax return online

If you live in Dubai, London, Toronto, Sydney or New York but still earn rent, interest, dividends or capital gains in India, you may have to file an NRI income tax return with the Income Tax Department. Many people assume tax deducted at source (TDS) settles everything. Often it does not. Filing is how you report your Indian income correctly, claim back excess TDS as a refund and keep a clean record for loans, visas and property deals.

This guide explains who has to file an NRI income tax return, how residency is decided, which ITR form to use, the tax slabs, the due dates for assessment year (AY) 2026-27 and how to e-verify from abroad. Every rule is linked to the official Income Tax Department source, which we checked on 2 November 2026.

Please note: this article is general information, not professional financial, tax or investment advice. Rules change, so check the official sources linked below or speak to a qualified professional before you decide. Read our disclaimer.

Table of contents

Are you an NRI for tax? The residency test comes first
Who must file an NRI income tax return?
Which form to use: ITR-2 or ITR-3
Tax slabs for an NRI income tax return (FY 2025-26)
NRI income tax return due date for AY 2026-27
How to file an NRI income tax return from abroad: 7 steps
Common NRI income tax return mistakes to avoid
Sources
FAQ

Are you an NRI for tax? The residency test comes first

Tax residency in India depends on the number of days you spend in India, not on your passport or visa. According to the Income Tax Department's page on residential status, an individual is resident in a financial year if they:

are in India for 182 days or more in that year, or
are in India for 60 days or more in that year and 365 days or more in the four years before it.

The 60-day rule is replaced by 182 days for Indian citizens who leave India for employment abroad, and for Indian citizens or persons of Indian origin who come on a visit. For visitors whose Indian income (other than foreign-source income) is more than ₹15 lakh, the 60-day figure becomes 120 days.

There is also a "deemed resident" rule: an Indian citizen whose Indian income exceeds ₹15 lakh and who is not liable to tax in any other country because of domicile or residence can be treated as resident. If none of these apply, you are a non-resident and only your income earned or received in India is taxable in India.

Who must file an NRI income tax return?

Filing is mandatory when your total Indian income is above the basic exemption limit of the tax regime you use. Under the default new regime that limit is ₹4 lakh; under the old regime it is ₹2.5 lakh for NRIs, with no higher limits for senior citizens.

Common reasons an NRI income tax return is needed:

Rent from a flat or shop in India.
Interest on NRO savings or fixed deposits. NRE interest is a different case; see our NRE vs NRO account guide.
Capital gains from selling shares, mutual fund units or property in India. If you invest through funds, our mutual funds for NRI guide explains the KYC side.
A TDS refund: banks and buyers often deduct tax at higher rates for non-residents. The only way to get excess TDS back is to file.
Carrying forward losses to set off against future gains.

There is one useful exception. The department states that a non-resident does not need to file if their only income is investment income or long-term capital gains from specified foreign exchange assets and tax has already been deducted at source on it.

Which form to use: ITR-2 or ITR-3

The Income Tax Department's guide to which ITR form applies makes the choice simple for most people working abroad:

Your Indian income	Form for an NRI income tax return
Salary or pension, rent, interest, dividends, capital gains, no business income	ITR-2
Income from a business or profession in India	ITR-3
Any NRI	ITR-1 (Sahaj) cannot be used, because it is only for residents

Most hotel, hospital and office staff in the Gulf or the West who own a flat or deposits in India will use ITR-2.

Notebook, phone and laptop used as a checklist for NRI ITR filing

Tax slabs for an NRI income tax return (FY 2025-26)

You can choose either regime when filing. The new regime is the default.

New regime (default)	Rate	Old regime (NRIs)	Rate
Up to ₹4 lakh	Nil	Up to ₹2.5 lakh	Nil
₹4–8 lakh	5%	₹2.5–5 lakh	5%
₹8–12 lakh	10%	₹5–10 lakh	20%
₹12–16 lakh	15%	Above ₹10 lakh	30%
₹16–20 lakh	20%
₹20–24 lakh	25%
Above ₹24 lakh	30%

The old regime lets you claim deductions such as section 80C (up to ₹1.5 lakh), section 80D for health insurance premiums paid for parents (up to ₹25,000, or ₹50,000 if a parent is a senior citizen) and section 80TTA (up to ₹10,000 of savings interest). Compare both regimes in the e-filing utility before you submit, because the better choice depends on your deductions. Surcharge and cess are added on top of these rates.

NRI income tax return due date for AY 2026-27

Income earned from 1 April 2025 to 31 March 2026 (FY 2025-26) is reported in AY 2026-27. The official due dates are:

31 July 2026: ITR-1 and ITR-2 filers, which covers most NRIs.
31 August 2026: ITR-3 and ITR-4 filers whose accounts are not audited.
21 November 2026: audit cases. The original date of 31 October was extended by CBDT Circular No. 7/2026 dated 28 September 2026.
31 December 2026: last date for a belated return if you missed your due date.
31 March 2027: last date to revise a return.

If you missed 31 July, you can still file a belated NRI income tax return until 31 December 2026, though interest and a late fee may apply and some losses cannot be carried forward. Note also that the new Income-tax Act, 2025 came into force on 1 April 2026 and uses the term "tax year", but income for FY 2025-26 is still filed under the 1961 Act.

How to file an NRI income tax return from abroad: 7 steps

Register or log in on the Income Tax e-filing portal using your PAN.
Confirm your residential status for the year using the tests above.
Download your tax statements (Form 26AS and the Annual Information Statement) and match them with your bank and broker records.
Pick ITR-2 or ITR-3 and choose the new or old regime.
Report all Indian income, claim TDS and any deductions, and pay any balance tax online.
Add a pre-validated Indian bank account for refunds. Your NRO account usually works; moving money abroad later is covered in our money transfer guide.
E-verify within 30 days of filing using Aadhaar OTP, an EVC through your bank account, a digital signature certificate, or by posting the signed ITR-V to CPC Bengaluru. An unverified return is treated as not filed.

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Common NRI income tax return mistakes to avoid

Using the wrong residential status: count your days in India from passport stamps, not memory.
Choosing ITR-1: it is not available to non-residents.
Forgetting to e-verify within 30 days.
Not claiming excess TDS on property sales or deposits.
Skipping treaty relief: if your income is also taxed where you live, check the Double Taxation Avoidance Agreement (DTAA) with that country, usually with help from a chartered accountant.

Protecting your family matters as much as tax. If you are buying cover in India, our sister blog explains term insurance for NRI buyers.

Sources

This guide was checked against these official and reputable sources on 2 November 2026:

FAQ: NRI income tax return

Is an NRI income tax return mandatory?

It is mandatory when your total Indian income is above the basic exemption limit (₹4 lakh under the new regime, ₹2.5 lakh under the old regime). It is also needed to claim a TDS refund or carry forward losses. NRIs whose only income is investment income or long-term gains from specified foreign exchange assets, with TDS deducted, do not need to file.

What is the NRI income tax return due date for AY 2026-27?

31 July 2026 for ITR-2 filers, 31 August 2026 for non-audit ITR-3 filers and 21 November 2026 for audit cases after CBDT Circular 7/2026. A belated return can be filed until 31 December 2026.

Which ITR form should an NRI use?

ITR-2 if you have no business income in India, and ITR-3 if you do. ITR-1 cannot be used by non-residents.

Can I file my NRI income tax return from outside India?

Yes. The whole process is online on the e-filing portal, and you can e-verify by Aadhaar OTP, EVC through a bank account, a digital signature, or by posting the signed ITR-V to CPC Bengaluru within 30 days.

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