Understanding NRI ITR Filing Rules in 2026
NRI tax filing in India follows the Income Tax Act 1961, supported by CBDT circulars and the AY 2025 26 compliance framework. You must file ITR if you have any taxable income in India.
You must file ITR if:
- Your taxable income in India exceeds INR 2.5 lakh
- You earned capital gains
- You want a TDS refund
- You want to carry forward losses
- You received rent or NRO interest
NRIs cannot use ITR 1 or ITR 4.
Your form depends on the type of income earned in India.
NRIs must always file ITR using ITR 2 or ITR 3. ITR 1 is never applicable for NRIs.
Documents You Need Before Filing ITR
Prepare all the following documents before you start the return filing process.
Documents Required
- Passport travel history for calculating residency
- PAN card
- Aadhaar (if applicable)
- Form 26AS
- AIS (Annual Information Statement)
- TDS certificates
- Capital gains statements
- Property sale deed (if applicable)
- NRO bank statements
- Proof of deductions (if claiming any)
Step by Step Process to File ITR as an NRI in 2026
The following steps reflect the AY 2025 26 filing rules.
Step 1: Determine Your Residential Status
Your residential status determines your tax rules.
Use the day count rules under Section 6.
Status options:
- NRI
- RNOR
- Resident
If you visit India frequently, double check your days to avoid wrong classification.
Step 2: Select the Correct ITR Form
NRIs must choose between:
- ITR 2 if you have salary income, rental income, capital gains, or investments
- ITR 3 if you have business or professional income in India
Step 3: Download Form 26AS and AIS
Form 26AS and AIS show all income and TDS entries linked to your PAN. Always cross check these entries with your own records.
Common items shown in AIS:
- NRO interest
- Rent paid to you
- Capital gains transactions
- High value purchases
- Mutual fund redemptions
Step 4: Calculate Your Taxable Income in India
Your taxable income includes:
- NRO interest
- Rental income
- Short term capital gains
- Long term capital gains
- Business income in India
- Salary received for services rendered in India
Form 26AS and AIS must be checked before filing. These documents show all income, TDS, and transactions recorded against your PAN.
Step 5: Claim DTAA Benefits (If Applicable)
If you pay tax abroad on the same income, you can claim DTAA relief.
This gives you:
- Lower TDS rate
- Tax credit
- Exemption on certain incomes
Step 6: Fill ITR 2 or ITR 3 on the Income Tax Portal
Go to the official Income Tax e filing portal and select the correct form.
Fill all required schedules:
- Schedule S for salary
- Schedule CG for capital gains
- Schedule OS for other income
- Schedule FA if foreign assets reporting applies
- Schedule TR for tax relief
- Schedule TDS for TDS entries
Never file ITR without checking AIS. AIS mismatches are the number one reason NRIs receive compliance notices
Step 7: Validate All Details and Compute Tax
The portal automatically calculates your tax payable or refund amount.
Double check:
- Residential status
- TDS matches
- Capital gains calculations
- DTAA entries
- Deductions if applicable
Step 8: E Verify Your Return
You can verify your ITR using:
- Aadhaar OTP
- Net banking
- Bank demat account
- E verification code
If you do not verify your return within the permitted time window, your ITR will be considered invalid.
Common Mistakes to Avoid
NRIs frequently make the following errors when filing ITR:
- Selecting the wrong ITR form
- Missing AIS entries
- Claiming deductions that do not apply to NRIs
- Assuming NRE FD interest is taxable
- Not reporting capital gains correctly
- Forgetting to report foreign assets under Schedule FA (when applicable)
Filing ITR Late as an NRI
If you miss the deadline, you can still file a belated return, but you may face:
- Late filing fees
- Loss of carrying forward losses
- Delayed refunds
- Interest under Section 234A
NRIs should ideally file early due to time zone differences and document dependencies.
How NRIHelpLine Helps You File ITR Smoothly
You get:
- Correct residential status determination
- Expert filing of ITR 2 and ITR 3
- AIS and Form 26AS reconciliation
- Capital gains calculation
- DTAA benefit application
- TDS refund assistance
- End to end compliance
Your counseling session fee is fully adjustable in your final service fee.
FAQs
Q. Can NRIs file ITR online from abroad
Q. Which ITR form is correct for NRIs
Q. Do NRIs need Aadhaar to file ITR
Q. Can NRIs claim TDS refund
Q. Can I file ITR if I have no income in India
Q. Is NRE FD interest taxable
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Expert’s Note
Many NRIs fail to reconcile AIS with their own income records. Even a small mismatch can trigger a notice under sections 139(9) or 143(1)
Sanjeev Sharma (Advocate – NRI HelpLine Tax & Property Law Specialist)
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