Quick answer
Does an NRI need to file an income tax return in India?
NRI tax filing is needed when an NRI's Indian income, such as rent, interest or capital gains, is above the taxable limit, or when TDS was deducted and a refund is due. Only income earned or received in India is usually taxable. For FY 2025-26, the belated return deadline is 31 December 2026.
- Residential status decides what is taxable in India
- Indian rent, interest and capital gains are taxable
- Buyers deduct higher TDS when the seller is an NRI
- Form 15CA and 15CB may be needed to remit money
What is NRI tax filing and who needs it?
NRI tax filing is the Indian income tax return of a person who is non-resident for the year. It covers only income that arises or is received in India, and it is how an NRI pays any balance tax or recovers excess TDS.
Typical situations where an NRI should file:
- Rent from a flat or shop in Delhi, such as a family property in Punjabi Bagh, Model Town or Rohini.
- Interest on NRO accounts or fixed deposits, where banks deduct TDS.
- Sale of a house, plot, shares or mutual funds in India.
- A refund claim, because TDS on NRI payments is often higher than the final tax.
- Loss carry-forward, which needs a return filed on time.
Many NRIs also file simply to keep a clean record when they plan to buy property, return to India or deal with Indian banks.
How is residential status decided for tax?
Residential status depends mainly on how many days you were physically in India during the financial year, with additional tests linked to earlier years and, in some cases, your Indian income and citizenship. It is decided afresh every year.
The result can be resident, resident but not ordinarily resident, or non-resident, and each category is taxed differently on foreign income. The day-count rules have exceptions for Indian citizens working abroad and for visitors, so we work from your passport stamps and travel history instead of a rough estimate. Getting status wrong is the single most expensive NRI mistake, because it decides whether your salary abroad is taxable in India at all.
The Income-tax Act 2025, in force from 1 April 2026, restates these rules for tax year 2026-27 onwards. For FY 2025-26 returns, the 1961 Act rules apply as reported.
Need help with NRI tax filing? Talk to a chartered accountant in Delhi today. First call is free.
Which ITR form and due date apply to NRIs?
Most NRIs file ITR-2, because it covers salary, house property, capital gains and other sources without business income. An NRI with business or professional income in India files ITR-3. ITR-1 is meant for residents only.
| Item | Detail |
|---|---|
| Usual form | ITR-2; ITR-3 if there is business income in India |
| Original due date (no audit) | 31 July 2026 for ITR-2 |
| Belated return | Until 31 December 2026 |
| Late fee | ₹1,000 if income up to ₹5 lakh, otherwise ₹5,000 (section 234F) |
| Verification | Aadhaar OTP if linked, net banking, or a signed ITR-V sent by post |
Sources: e-filing portal FAQ and Income Tax Department penalties page, checked October 2026.
How does TDS on sale of property by an NRI work?
When an NRI sells property in India, the buyer must deduct TDS under the rules for payments to non-residents, which usually means a much higher deduction than on a resident seller, often calculated on the capital gain element at the applicable rate plus surcharge and cess.
This is different from the flat deduction a buyer makes when the seller is resident, explained in our guide to TDS on purchase of property. Key points for NRI sellers and their buyers:
- The buyer needs a TAN, deposits the tax and files a non-resident TDS return (Form 27Q under the 1961 Act, reported as Form 144 under the new rules).
- The NRI seller gets a TDS certificate and claims the credit in their Indian return.
- If the actual tax on the gain is lower than the TDS, the seller can apply to the department for a lower or nil deduction certificate before the sale, or claim the excess as a refund after filing.
- Sale proceeds sent abroad from an NRO account usually need Form 15CA, and often a Form 15CB certificate from a chartered accountant.
Rates, surcharge and certificate procedures change, so we confirm them for your sale date before the deal closes.
What documents does an NRI need for tax filing?
For NRI tax filing we need your PAN, passport and travel dates, NRO and NRE bank statements, TDS certificates, AIS and Form 26AS, rent agreements and, for any sale, the purchase and sale deeds with cost records.
| Document | Used for |
|---|---|
| PAN and passport copy with travel dates | Identity and residential status |
| NRO and NRE account statements, interest certificates | Interest income and TDS on it |
| AIS, TIS and Form 26AS | Matching what the department already knows |
| Rent agreement and municipal tax receipts | House property income in India |
| Purchase deed, sale deed, improvement bills | Capital gains on property |
| Broker and mutual fund statements | Capital gains on securities |
| Tax residency certificate from your country | Treaty benefits where claimed |
How our NRI tax filing service works
We handle NRI tax filing remotely in five steps, so you do not need to travel: status check, document collection, computation, your approval, and filing with e-verification.
- 1
Status check
You share your travel dates and we confirm residential status for FY 2025-26 before anything else.
- 2
Collect documents
Statements and deeds are uploaded by email or WhatsApp, or a family member can drop them at our Netaji Subhash Place office.
- 3
Compute and reconcile
We compute Indian income, match AIS and TDS, and check whether a treaty position or refund applies.
- 4
Approve the draft
You see the return summary, the refund or tax payable, and any points to note for the next year.
- 5
File and verify
We file the return and guide you through e-verification from abroad, then track the refund.
Can NRIs avoid double taxation?
Often, yes. India has tax treaties with many countries, and an NRI can usually either claim treaty relief in India or a credit for Indian tax in the country of residence, depending on the income and the treaty terms.
Claiming treaty relief typically needs a tax residency certificate and specific disclosures in the return. For families and business owners with income or holdings in several countries, cross-border structuring goes beyond a single return. Greenwolf Advisors, one of the firms listed on our directory of chartered accountant firms in Delhi, works on cross-border structuring across India, the UAE, the UK, the GCC and GIFT City, with partner offices in Dubai, Singapore and Hong Kong.
NRI tax help in Delhi: who handles it
For a straightforward NRI return with rent and interest, any experienced tax practice can help; for property sales, treaty claims or multi-country holdings, choose advisers who handle cross-border work regularly.
Our office is in Best Sky Tower, Netaji Subhash Place, which is convenient for families in Punjabi Bagh, Pitampura and Model Town who look after an NRI relative's papers. Greenwolf Advisors handles cross-border cases from the same building. Moneymji lists income tax and TDS among its services for simpler returns. Online platforms advertise NRI return plans from around ₹8,000 (seen October 2026); we give a fixed quote after seeing your income sources. Resident filers can see our main income tax return filing page.
Frequently asked questions
Is NRI income earned abroad taxable in India?
For a person who is non-resident for the year, income earned and received outside India is generally not taxable in India. Only income arising or received in India is taxed. That is why confirming residential status every year matters so much.
What is the TDS on sale of property by an NRI?
The buyer deducts TDS under the provisions for payments to non-residents. It is usually based on the applicable capital gains tax rate plus surcharge and cess, which is far higher than the deduction on a resident seller. The NRI can seek a lower deduction certificate or claim a refund after filing.
Does the buyer need a TAN when buying from an NRI?
Yes. Because the seller is non-resident, the buyer deducts tax as a regular deductor, which needs a TAN, a challan and a non-resident TDS return. This differs from buying from a resident, where a simpler one-time form is used.
Can an NRI file ITR from abroad?
Yes. Filing and verification are online. If Aadhaar is not linked, you can e-verify through Indian net banking or send a signed acknowledgement by post. We have handled entire filings for clients who never visited Delhi during the year.
Which ITR form should an NRI use?
Usually ITR-2. It covers rent, interest, capital gains and other income for individuals without business income. NRIs with a business or practice in India use ITR-3. ITR-1 is not available to non-residents.
How can an NRI get a refund of excess TDS?
File the Indian return, showing all Indian income and the TDS credit from Form 26AS. If tax deducted exceeds the final tax, the refund is processed to a bank account in India validated on the portal. Filing within the deadline avoids the late fee.
Do I need Form 15CA and 15CB to send sale money abroad?
Usually Form 15CA is filed online by the remitter, and for many taxable remittances a Form 15CB certificate from a practising chartered accountant must be attached. Your bank will tell you what it needs. Our Form 15CA and 15CB guide explains when each applies.
What if I became resident again during the year?
Returning Indians may qualify as resident but not ordinarily resident for a period, which affects how foreign income is treated. It depends on your stay history over earlier years. Share your travel record and we will work out the status for each year.
Can NRI tax filing be done for past years?
For FY 2025-26, a belated return is possible until 31 December 2026. Earlier years may be reachable only through an updated return, which carries extra tax and cannot be used to claim refunds. Check the time limits on the portal or ask us.