Ravi (name changed) messaged me from London on a Sunday night. “I have not filed my Indian return in three years. Nothing has happened. Do I even need to?”
He has an NRO account quietly collecting interest. A flat in Bengaluru that is rented out. He had assumed that living abroad put him outside Indian tax law altogether.
It does not. Being an NRI changes which income India taxes. It never changes whether the department expects a return from you.
⚡ Quick Answer
An NRI must file an Indian return if gross total income, counted before Chapter VI-A deductions, crosses the basic exemption limit of Rs 4 lakh under the new regime or Rs 2.5 lakh under the old one. You must also file to claim a TDS refund or to carry a capital loss forward, even if your income is below that limit. Most NRIs use ITR-2 (ITR-3 if there is business income). The due date for non-audit cases for AY 2026-27 is 31 July 2026, and a belated or revised return can be filed up to 31 December 2026.
Not sure what you are yet? Start here – Who is an NRI under Indian law
So Does an NRI Actually Have to File?
Yes, the moment your Indian-sourced income crosses the threshold. Your Dubai salary, your UK pension contributions, your US 401(k) growth stay outside India’s net. Everything earned, accrued or received in India does not.
Here is the part that catches senior professionals out. The threshold is tested on gross total income before you subtract any 80C, 80D or 80TTA deduction. So an NRI with Rs 4.9 lakh of NRO interest who invests Rs 1.5 lakh in an eligible instrument still has to file, even though the taxable figure lands under Rs 4 lakh.
Think of it like airport security. The gate checks what is in your bag when you walk in, not what you plan to take out later.
Two Rules Residents Enjoy and You Do Not
The Section 87A rebate is for residents only. A resident with taxable income up to Rs 12 lakh under the new regime gets a rebate that wipes the liability to zero. An NRI gets nothing. You pay from the first rupee above Rs 4 lakh.
You cannot park capital gains inside the basic exemption limit. A resident with only Rs 3 lakh of long term gains can shelter them under the exemption slab. A non-resident cannot. Your special-rate capital gains are taxed in full, and the exemption limit only applies to your ordinary income.
Between them, these two rules explain most of the “but my CA said I owe nothing” conversations I have every July.
What Counts as Indian Income
| Income | Taxable in India? | Usual TDS |
|---|---|---|
| NRO savings and FD interest | Yes, fully | 30% plus surcharge and cess |
| NRE and FCNR interest | Exempt while you are a non-resident | Nil |
| Rent from Indian property | Yes | 30% plus surcharge and cess, deducted by the tenant |
| Equity shares and equity funds, LTCG | Yes, above Rs 1.25 lakh | 12.5% |
| Equity shares and equity funds, STCG | Yes | 20% |
| Dividend from Indian companies | Yes | 20% plus surcharge and cess, lower under treaty |
One correction worth making loudly. Your tenant deducts tax under Section 195 and needs a TAN to do it, then files Form 27Q and hands you a Form 16A. Form 15CA and 15CB belong to the remittance stage, when money actually leaves India, not to the monthly rent deduction. Getting these two confused delays more repatriations than any other paperwork mistake I see.
For the full rate card, see tax rates on NRI Indian income.
The Deadlines That Actually Apply
31 July 2026 is the due date for the overwhelming majority of NRIs: salary, interest, rent, capital gains, no audit involved.
31 October 2026 applies where accounts must be audited. 30 November 2026 applies where a Section 92E transfer pricing report is required, which is rare for individuals.
Miss it and a belated return can be filed up to 31 December 2026, not the following March. That window closes earlier than most people assume. Beyond it, only an updated return (ITR-U) remains, and that route does not let you claim a refund.
Late filing costs Rs 1,000 under Section 234F if total income stays under Rs 5 lakh and Rs 5,000 otherwise, plus interest under Section 234A. The bigger loss is silent: capital losses can only be carried forward if the original return was filed on time.
The refund most NRIs never collect
A Doha-based client had Rs 6,80,000 of NRO interest last year. His bank deducted TDS at 31.2%, so Rs 2,12,160 went to the department. His actual liability under the new regime came to Rs 14,560. Nearly Rs 1.98 lakh was his own money, sitting with the government, waiting for a return that had never been filed. Across three years he had left roughly Rs 5 lakh uncollected.
In my experience the NRIs who skip filing are almost never the ones evading tax. They are the ones overpaying it and never asking for the change.
Filing From Abroad, Step by Step
Pull Form 26AS and your AIS first. Every rupee of TDS and every reported transaction sits there. Reconcile before you file, not after a notice.
Fix your residential status for the year. Count your days honestly: 182 days, or 60 days plus 365 across four years, with the 120-day variant if Indian income crosses Rs 15 lakh. If you are recently back, check whether you fall under RNOR status before assuming anything.
Pick the right form. ITR-2 for salary, house property, capital gains and other sources. ITR-3 if there is business or professional income. ITR-1 and ITR-4 are closed to non-residents.
Line up treaty relief in advance. A valid Tax Residency Certificate plus Form 10F on the portal, before filing. See how the TRC works and how DTAA relief is claimed.
E-verify the same day. A filed but unverified return is treated as never filed. This is the single most common self-inflicted wound in the whole process.
Why “Nothing Has Happened So Far” Feels Like Proof
Ravi was not being reckless. He was doing what all of us do with low-frequency risks. Three quiet years felt like evidence of safety rather than the absence of a trigger.
Psychologists call it optimism bias: we systematically believe bad outcomes land on other people. With Indian tax compliance it is unusually seductive, because the consequence never arrives on schedule. It arrives sideways, years later, at the worst moment.
It shows up when you sell the Bengaluru flat and the bank asks for three years of ITRs before releasing repatriation. When a lender wants filing history. When your residential status gets questioned and a clean record would have been your strongest answer.
None of those moments give you notice. That is exactly the point.
Not sure whether you are supposed to be filing at all?
We map your Indian income, status and paperwork so the answer stops being a guess.
Frequently Asked Questions
What is the last date for an NRI to file ITR for AY 2026-27?
31 July 2026 for non-audit cases, which covers almost every individual NRI. Audit cases have until 31 October 2026, and Section 92E transfer pricing cases until 30 November 2026.
Can I still file if I have missed 31 July?
Yes, a belated return can be filed up to 31 December 2026 with a fee under Section 234F and interest under Section 234A. After that, only an updated return (ITR-U) is possible, and it cannot be used to claim a refund.
Do NRIs get the Section 87A rebate?
No. It is restricted to resident individuals under both regimes. An NRI pays tax from the first rupee above the basic exemption limit with nothing to offset it.
My only Indian income is NRE interest. Do I need to file?
NRE interest is exempt in India while you remain a non-resident, so it does not push you over the threshold. Note that your country of residence usually taxes it, so exempt in India rarely means exempt everywhere.
Which ITR form should an NRI use?
ITR-2 for salary, house property, capital gains and other sources. ITR-3 where there is business or professional income. ITR-1 and ITR-4 are not available to non-residents.
Do I need to travel to India to file?
No. Registration, filing and e-verification through net banking, Aadhaar OTP or an EVC can all be done from abroad. Before you start, run through the NRI financial checklist.
Ravi filed all three years in one afternoon. The paperwork took four hours. The dread had taken three years.
Silence from the tax department is not the same thing as permission.
💬 Your Turn
How many years has it been since you last filed an Indian return, and what stopped you the last time you thought about it? Tell me in the comments.
Need urgent help for inckme tax file in india.
Sir, Please contact for income tax return file.
Tax implications on NRIs if they invest in indian mutual funds?
For Non-Resident Indians (NRIs) investing in Indian mutual funds, there are several tax implications to consider. Taxation on Income,Tax Deducted at Source.
I am an NRI as well my daughter, Now my Daughter PPF account got matured and I opened an NRE/NRO account and wanted to deposit the matured account and also wanted to transfer the Money received in my daughter account to my NRO, will there be a Tax issue or Income tax will send notice
Hi Balasubramani
There should not be any tax implications on transferring the funds from the PPF account to the NRO account, as the PPF account has already matured, and the funds are now available for withdrawal or transfer. However, you must comply with FEMA regulations and provide appropriate documentation for the transfer, including evidence of the PPF account maturity, withdrawal or transfer request, and proof of deposit in the NRO account.
Hi Balasubramani,
Transferring money from your daughter’s account to your NRO account may have tax implications. Tax authorities would inquire about the source of funds and the reasons for the transfer. It’s recommended to maintain proper documentation to justify such transfers.
Would like to avail service on ITR filling and financial advisor support
Hi Mr Susil,
You can contact to WiseNRI team for your requirements.
As a seafarer i have completed only 120 days abroad in sailing so do I need to pay any taxes?
Hi Vicky
As per my knowledge you satisfy the basic condition of being the resident in India. Hence your income will be taxable.
Hi Vicky
As per my knowledge you satisfy the basic condition of being the resident in India. Hence your income will be taxable.
If I don’t have a bank account or any sort source of income, should I still file income tax in india?
Hi Sangeetha,
No you don’t need to file ITR
Citizen of USA,Having NRO account in India.In Feb 2022 I got maturity value of my Life insurance policy (with provision of 10D, yrly premium was less then 10%) which is has 4 Lakhs of capital appreciation.TDS on gain was not deducted as policy is exempt.
Do I have to file income tax and to show such gain?
Hi Parshuram,
Kindly Consult with your CA.
Hi Parshuram,
No need to file income tax as the amount is tax free.
I want to know about tds return on fd in nro account
Hi Rama,
NRO Fixed deposits attract a TDS of 30.9 percent
Hi Rama,
TDS on NRO FD is 30.9%
Sir you have mentioned that Fixed Deposits deposited in India are Taxable. I have been having NRE FD’s for many years but they have been tax free.
Hi Sathish,
Interest earned on NRE FD is Tax-free.
I was nri since 20 years, i came to india 2016. But i stayed in india 198 days. Do i need to pay tax .
Hi VSSR,
Yes.
I am an indian citizen and my current status is NROR for FY 2021/2022. Do i need to report my US income when i file taxes in India?
Hi Mohan,
If your status is RNOR then your all foreign income will be exempted from tax.
Thanks . Hope you could answer for these queries also. Also can i speak to you, if yes what number i could call you and use your services. Here are my queries:
1) I will have an NROR status for financial year 2022/2023.
2) I am planning to sell my house in New Jersey before the current year ends. After i sell the house, should i bring the proceeds of the house from US to India in phases (i.e. some before the current year ends and some in the following year i.e. before March 31st 2022) or should i bring in the money in one shot to reduce my taxes in India for the financial year 2022/2023? Currently i do not have to pay any capital gain taxes in US for the house proceeds i get in USA.
3)Is it also correct that i do not have to pay taxes in india for the funds i remove from the self managed IRA i.e. “Individual Retirement Account” account prior to Dec 31st 2022 in USA?
My name is Mohan.
I am 81 years old , & I do not have any taxable income in India! But I have some small amounts of saving bank a/c, interest may be less than Rs20,000. Is this taxable ! Pls advise
Hi Sadashiv,
As per my knowledge, The maximum deduction available for NRIs on savings account interest is Rs. 10K.
But you can refer to a CA for better information.
I came to US in December 2019. I have rental, interest and dividend income and in India but no income in US. I have to file my ITR for the year (calander) 2020 in US. I understand I have to include all my Indian income in my US tax return. Do I need to file my tax return in India too for the FY 2020-21?
Hi Jai,
If you want to avail the benefits of DTAA then you will have to file ITR in India, Plus if your income is above Rs. 2.5 lacs then you will have to file the ITR.
Asking on behalf of my friend. He is outside India for the last 10 years and has no income in India. He is having some policies in India which he had started before coming to the USA so he is sending the installment of policies from the USA to his Indian accounts. So my question is do he need to file income tax returns in India?? and if yes what to do as income?
Hi Amit,
As per my knowledge, If Your friend doesn’t have any income in India then he doesn’t need to file ITR for that, But for better knowledge you can consult a CA.
As an NRI, if i my total taxable income in India is less than 2.5 lakhs (exemption limit), does it mean i can get my TDS on my mutual fund capital gains refunded? Or are MFs always taxed separate to the 2.5 lakh exemption limit? (so no exemption limit applicable to MF capital gains)
If I am earning income on FD in NRE Account, do I need to pay tax and file returns?
Hi Nishith
No you don’t need to file ITR for that.
I am an NRI, I transferred money of above Rs. 3,09,000 to my Indian savings bank account and the bulk of it was transferred to my parent for her expenses. I also used some of the money in my Indian account for purchases from online e-commerce platforms. Do I have to file an income tax return in India?
I want to get a refund on my TDS, I don’t have any other income in India.
Hi Rajeev,
You can claim it if the TDS deducted is below 50K, there is a form for the same. An accountant will be able to tell you the details regarding the same.
“Choose the right ITR form” – what is the right ITR form for NRI? Where can we find list of forms if it depends on individual status?
I’m currently working in the UK since 2018. Should I file ITR in India for 2019- 2020? No income in India.
Hi lakshmi,
As per my knowledge I don’t think you need to do that.
How to file tax in the UK?
Hi veeraragavan,
I think you should consult with an accountant there as he’ll be able to answer this better.
While calculating gross income does one count Dividend income from NRE stocks where DDS is already deducted by Company( FY2019-20).
Which ITR form should I use to file my return. I am an NRE and want to get a refund for the interest deducted from my NRO account.
Hi Avinash,
You can consult with your CA for this or you can find this on income tax website.
I am an NRI. I have filed income tax returns for all previous years. I do not have any income over INR 250,000 in India. Should I continue to file income tax returns?
Hi Nand,
You don’t need to file return.
i am out of India for past 45 years and plan to go back by end of 2022, i have NRO FD and i am paying tax , when i have to start paying tax on my NRI /FCNRE saving .
What are the form numbers for filing income tax returns for f.year ended Mar 31 2020 and what is the deadline for filing?
Hi Harrysh,
You have to file ITR 2 and the deadline is 31st December.
I have NRI and Indian Salary, How to file a tax return?
Hi Rakesh,
You can consult with a CA for this.
I am an NRI since FY 2017-18. In FY 2018-19, I received approximately Rs 15 lacs EPFO refund from my past employment in India for the period 2008-12. Do I need to file ITR for FY 2018-19 and do I need to pay tax on it?
Hi Vinay,
Yes you have to file ITR and also pay tax on it.
Hi My Name is Samina from January-2019 i am working in Kuwait so how should i file my Income tax i mean ITR 1 or 2 and what income should i take as Income from Salary and i have NRI account in India so please let me know how income should i fill.
Hi Samina,
You can consult with a CA for filling ITR.
I am an NRI and had NRO deposits in 2012 and coverted them all to NRE deposits with TDS taken by bank. My total income after that is less tha 250000. Now IT department has asked me to file response for AY 2013-14 for the TDS transactions , time deposits etc during 2012-13. What resposnse to be given. I understand ITR cannot be submitted for 2013-14 now. Please help
Hi Gopakumar,
You should consult with a CA for this. He or She can help you in better way.
NRI HOW TO FILE TAX LAST THREE ?
Hi Girithran,
Please consult with a CA regarding that.
As an NRI can I file india taxes with pan card?
Hi Ram,
As per my knowledge, along with Pan Card, you need some more documents like aadhar card, bank details, contact details, etc.
I have a Savings account in INDIA and i get an interest of around 1 lakh . Which is the ITR form that i have to submit is it ITR 1 or ITR2? I have NRE account that is recomended .
Hi Thimmaiah,
You have to submit ITR 2.
I am in US for last 2 years and in the last financial year i was less than 60 days in india. DO i need to file ITR?
Hi Abhishek,
You don’t need to file ITR.
An NRI has NRO FDs on which TDS has been deducted and he has no other income. The total income of the assessee falls very well below Rs.250000. Kindly clarify whether by filing ITR refund of the TDS can be claimed?
Hi Venkatavaradan,
He can claim for refund by filling ITR.
Sir, thank you for your clarification. I shall ask the NRI to have NRO FDs with interest on them up to Rs.250000/- in a financial year and claim refund by filing ITR. Thanks once again
Thanks and regards
VENKATAVARADAN
I am NRI on h4 visa . Need to file return in india?
Hi Aditi.
If you have any income in India, then you are required to file Tax Returns.
My son is in the U.S. and started earning there recently. I got converted his status to NRI on 01st June 2020 (Savings A/c status to NRO & applied for opening his NRE A/c).
I have Mutual Fund investments (Growth Scheme) in his name that were made 2 years ago (when he was RI).
If I redeem these MF investments now, what will be the Tax implication on these redemption amounts (for investments made as Resident Indian?)
Hi Sameer
Firstly you need to convert the status in his MF holding also. The redemption will be taxed as per the type of MF you hold and for how long.
Hi, I am NRI and working & paying tax in china. I often transfer money to my Indian NRO account through friends by giving them Chinese currency and in return, they give me INR. With that said, do I have to pay tax in India, or do I have to do any annual tax settlement in India since I don’t have income and it’s all tax settlement done in China?
Hi Prem,
Kindly consult your Tax Advisor. As per my views there will be no tax arise out of this.
I am Executor of my friends Will, she held several Mutual funds in India and I am in process of trying to redeem the funds. I had to open bank account for those funds to go into, do I have to pay tax on any of these? They are only a few thousand pounds in each fund and once collected, I will close bank account. I live in Uk. Thank you
Hi Janet
You have to pay tax if there is any long term or short term gain on mutual funds.
You can get clearity in below mention article.
https://www.wisenri.com/nri-mutual-fund-taxation-india/
I am an NRI. I want to open an NRO Demat account in India. The trading will be done through the NRO account in India. The trading account and Demat account will be of a discount broker in India and HDFC NRO account in India. Suppose I transferred an amount of INR 200000 from my NRE account to NRO account or directly in NRO account from abroad and that money will be used to purchase shares of a listed company like TATA motors through a discount brochure in India like pro stocks. How the tax will be calculated?
Hi Habib
Trading Income is considered as Business Income and it will be taxed as per slab.
Dear – I am NRI. In case of Capital Gain by selling the property in Delhi. Will I fall under slab system or flat 20% tax as NRI?
Hi Sameer
It depends upon when you had bought the property and when you sold it. If in case it more than 2 years then the buyer will deduct TDS 20% else 30% and you need to file the Income tax return to adjust this with your rest of the income if any.
What are the Income Tax slabs for FY20-21 for NRI?
Hi Sameer,
Income Tax slabs are same for NRIs and Residents. For FY20-21, there are 2 options and among them the tax payer can choose any 1.
Taxable income Tax Rate Tax Rate
(Option 1) (Option 2)
Up to Rs. 2,50,000 Nil Nil
Rs. 2,50,001 to Rs. 5,00,000 5% 5%
Rs. 5,00,001 to Rs. 7,50,000 20% 10%
Rs. 7,50,001 to Rs. 10,00,000 20% 15%
Rs. 10,00,001 to Rs. 12,50,000 30% 20%
Rs. 12,50,001 to Rs. 15,00,000 30% 25%
Above Rs. 15,00,000 30% 30%
Some Tax deductions will differ in both the options, kindly consult with your Tax – Advisor before opting.
I am working in Malaysia since April 2019 so I need to file my income tax return in India or not?
Hi Om
You are required to file Tax return in India if you have earned something from here.
Sir, I am and NRI from Year 2000 , i visit india for 1 month every year. I have Income in india per year from my bank FD the total interest 2,40,000/- per year from which the bank deducting TDS amount almost 30% of the interest. I have LIC approx 10 Lakh , Share for 2 Lakh and ICICI Prudential Life invested 5 Lakh in the year 2011 and the value now is 9 Lakh , do I need to file Tax in india. Do i am eligible to get back the TDS deducted from the year 2010 onwars..
Hi Roy
Yes, you are required to file Tax returns to claim your TDS or to pay tax if by any means your Income crosses the limit.
For knowing the eligibility to get back the TDS amount for so long, kindly consult a Tax expert.
I have been an NRI since 1997. I have not filed my tax returns so far. My earnings in India, which is house rent is deposited in NRO and TDS is regularly applied directly from the bank. Do I have to submit my returns? Since I have not submitted these many years, can I submit in the future?
Hi Ganesh
Yes, It is advisable to file Income Tax returns as you can also get your TDS refunded, if not come under taxable range.
You can submit your returns in future.
I am out of India for two years. I have not submitted any tax returns at this time. I do not have any income in India. Also the Interest I earn from Bank accounts is less than Rs.10000 per year. I did not sell any property. Do I need to file Income tax in India?
No, you are not required to file ITR.
Do I need file tax return?
Hi Sanjay
You need to file tax return if you have earned any income in India or want to claim any tax refund.
Sir, It seems like the information about NRI income tax return is old ( 2017-18). Now it is 2020.
You didn’t mention the income from monthly Govt. Pension after retirement from government job. I request you please update the information.
Thanks
Thanks I will update that.
Can you give me the name of a good CA in Bangalore who can help with filing taxes as I am an NRI
Hi Sai,
Sorry, we are not in touch with any CA in Bangalore but I will connect you with our CA.
Hi,
I don’t have any income in India and am NRI, but I sent mothly 25000 Rs to my Indian Saving Bank account which is used by my parents every month, so do I require to file ITR in India? I do tax reconciliation abroad where I pay IIT.
Hi Jaan,
You don’t have to file any ITR but NRIs are not allowed to continue normal saving bank accounts.
1.CAN NRI HAVE AN HUF FILE,
2. DOES NRI IN UK HAS TO DECLARE INCOME IN INDIA IN THEIR TAX RETURN IN UK AND PAY TAX IN INDIAN INCOME IN UK EVEN IF IT IS UNDER TAX EXEMPTION IN INDIA.
3.DO NRI NEED TO GIVE INFORMATION ABOUT THEIR HUF FILE IN UK TOO.
Hi Anil
Kindly consult a tax expert as he would be the best person to answer this.
I was a tax resident in india in the financial year 2018-19 (resident in india for 190 days)…but moved out of the country, I know that i have file return in india for income earned in india but do i need to show my abroad income in the return
Hi Namrata
Yes, you need to disclose all your incomes.
I want to file the tax as NRI but not getting any option to select the residential status or ‘Filing as NRI’ on the government tax portal. Please suggest how to file the tax as NRI for free online
Hi Swati,
Must be a bug – you can speak to IT dept helpline.
I am an NRI. The last 2 years my Indian income was over Rs 250,000 so I submitted returns to Indian IT dept. But this year onwards my income will fall substantially below this limit. Can I stop submitting future returns?
Hi Balaji,
Yes, you can stop submitting future returns.
Thanks Hemant. Should I have to inform the Dept of this?
No – you don’t have to.
I am working on ship and have been nri for 10 put of 12 years. Do I have to pay tax for those two years in which one was less than 182 days outside india
Hi Tejas
I think in those 2 years your residential status will also be NRI. And if you have income accrue or arise in india during those 2 years, you have to pay tax in india as NRI
i am working abroad for last 7 years , my company remitt my salary directly to my NRE account in india , will this salary be taxed
Hi Sanjay,
In your case, your income is accrued or arise abroad, so there is no question of tax in india irrespective of the fact it is credited in NRE Account.
Does wise NRI undertake to take file tax returns for NRI from USA?
I want to know whether Salary income out side India should be disclosed in ITR or not?
Hi Awadh,
If you are an NRI & filling tax in India – you can show that Income that you earned abroad. You don’t have to pay any tax on that.
I am a seafarer works on merchant foreign going ship, for FY 2017-18, I have not completed my nri days, am I need to file income tax? Kindly advise
Hi Palu,
Yes, you need to file the Income Tax and you will be liable to pay tax as per the rules applied to NRI.
I left India in 1996 and have been living outside India since and have been visiting india only for short periods every year ( once or twice for 2 weeks at a stretch maximum ). I have investments in various banks and have FDs ( both INR and FCNR ) and hold NRE and NRO accounts. My rental income, mutual fund investments is through my NRO a/c only. I have not filed tax returns as yet and tax is deducted at source on my NRO accounts. Apart from these, I do not have any other monies anywhere else to declare. Do I still need to file Income tax since I continue to hold NRI status or should I only file as and when I get back to India?
Hi Raja,
If your status is NRI and your total income in india exceeds 250000, you have to pay tax in india and file your return. If your tds is deducted on any income in india, you can easily claim it by filing return.
Thanks Anuj
i m nri and my employer send money which i hv earned outside india. i m working outside india he send money directly to my nre account ….is it taxable ?
Hi Narendra,
Yes, “income received in India” will be taxed in India. But DTAA can provide some relief – talk to your CA. I will try to write a post on this.
Hi Narendra, As you have mentioned your salary is being sent by the employer to your NRE account, hence it is NOT Taxable (same as they pay you in your place of employment abroad and you send it to your NRE account), but is this the only income source you have. Or else if you have an NRO account or partnered with any business obligations in India then you have to file tax like any Indian resident.