NRI Tax Return Filing Services in India

Non-Resident Indians (NRIs) earning income, holding investments, selling property or carrying out financial transactions in India may need to file an Indian income-tax return depending on their residential status, nature of income, tax liability and other applicable conditions.

NRI income-tax returns often require more detailed review than a normal resident return because issues such as residential status, Indian-source income, capital gains, TDS, Double Taxation Avoidance Agreements (DTAA), foreign tax credit, repatriation and Annual Information Statement (AIS) reconciliation may need to be considered together.

EzyBiz India Consulting LLP provides professional NRI Tax Return Filing Services in India for NRIs, OCI cardholders, returning Indians and individuals having cross-border tax matters. Our team assists with tax computation, Form 26AS/AIS review, DTAA analysis, capital gains, refund claims and preparation and filing of the appropriate income-tax return.

For broader advisory on residential status, property, investments, DTAA and remittances, visit our NRI Taxation Services in India.

Professional NRI ITR Filing Support Across India

CA-Assisted NRI Income Tax Return Filing

NRI tax returns should be prepared after reviewing the taxpayer’s complete Indian income and relevant supporting documents rather than merely entering figures available in Form 26AS or AIS.

Our NRI tax return filing service can include review of residential status, Indian-source income, TDS, capital gains, rental income, interest, dividends, tax treaty eligibility and refund position before preparation of the return.

Support for Simple and Complex NRI Tax Returns

We assist with straightforward NRI tax returns as well as cases involving multiple properties, property sales, substantial TDS, shares and mutual funds, business or professional income, foreign tax matters and tax notices.

NRIs requiring general return filing assistance can also review our Income Tax Return Filing Services in India.

Who Is Treated as an NRI for Income Tax Purposes?

Residential Status Is Determined Under Income-Tax Law

An individual’s tax liability in India depends significantly on residential status for the relevant tax year. Residential status is determined based on the statutory conditions relating principally to the individual’s physical presence in India and certain special rules applicable to Indian citizens and persons of Indian origin.

The Income Tax Department provides current guidance for non-resident taxpayers.

NRI Status Under FEMA and Income-Tax Law Can Differ

Residential status under the income-tax law should not automatically be assumed to be the same as residential status under FEMA. The two laws have different purposes and tests.

For tax-return filing, the taxpayer’s income-tax residential status must therefore be determined independently for the relevant year.

When Should an NRI File an Income Tax Return in India?

NRI Having Taxable Income in India

An NRI may need to file an income-tax return where Indian taxable income exceeds the applicable statutory threshold or where another return-filing condition applies.

Indian-source income may include rental income, capital gains, interest, dividends, salary for services connected with India, business or professional income and other taxable receipts depending on the facts.

NRI Filing a Return to Claim Tax Refund

Even where substantial tax has already been deducted at source, filing an income-tax return may be necessary to determine the correct final tax liability.

If TDS exceeds the actual tax payable, the NRI may be entitled to claim a refund through the income-tax return, subject to the applicable provisions.

What Income of an NRI Is Taxable in India?

Income Received or Arising in India

The scope of Indian taxation for a non-resident is generally focused on income received or deemed to be received in India and income accruing, arising or deemed to accrue or arise in India, subject to the applicable law and tax treaty.

The precise treatment should be reviewed based on the nature and source of each item of income.

Foreign Income of an NRI

A genuine non-resident is generally not taxed in India merely because income has been earned outside India. However, the place of receipt, source of income, nature of services and other facts can affect the analysis.

Returning NRIs should pay particular attention to when their residential status changes. Our guide on NRI Returning to India – Tax Planning discusses this transition in greater detail.

Which ITR Form Is Applicable to an NRI?

ITR-2 for NRIs Without Business or Professional Income

For AY 2026-27, the Income Tax Department states that ITR-2 may be used by a non-resident individual having income under heads other than profits and gains from business or profession.

This can include salary or pension, house property, capital gains and income from other sources, depending on the taxpayer’s circumstances.

ITR-3 for NRIs Having Business or Professional Income

An NRI having taxable business or professional income may generally need to file ITR-3, subject to the applicable conditions.

The Income Tax Department’s current Non-Resident Individual guidance for AY 2026-27 provides information on applicable return forms.

Documents Required for NRI Tax Return Filing

Basic Identification and Tax Documents

Depending on the case, common documents may include:

• PAN;
• passport;
• details of stay in India;
• Indian bank account details;
• Form 16 or Form 16A;
• Form 26AS;
• AIS and TIS;
• advance tax or self-assessment tax challans; and
• previous income-tax returns where relevant.

Income and Investment Supporting Documents

Additional documents may include:

• bank interest certificates;
• rent agreements and rental statements;
• property purchase and sale documents;
• capital gain reports;
• demat and broker statements;
• mutual fund statements;
• dividend statements;
• business or professional records;
• foreign tax documents where treaty relief is claimed; and
• other documents relevant to the income reported.

Form 26AS, AIS and TIS Review for NRI ITR Filing

Reconciliation Before Filing the Return

NRIs should review Form 26AS, AIS and TIS before finalising the income-tax return. These statements can contain information relating to TDS/TCS, financial transactions, interest, dividends, securities transactions, tax payments and other reported information.

For a detailed explanation, see our guide on Form 26AS, AIS and TIS for ITR Filing in India.

Handling AIS or TDS Mismatches

Information appearing in AIS should be compared with actual supporting records rather than blindly copied into the return.

Where an AIS entry is incorrect or duplicated, the taxpayer may use the feedback functionality available through AIS. The Income Tax Department’s official AIS FAQs explain the AIS and feedback mechanism.

NRI Salary and Pension Income in India

Salary Income Connected With India

Salary taxation for an NRI depends on where the services are rendered, where income accrues or arises and the relevant statutory provisions.

The mere fact that salary is paid into an overseas or Indian bank account does not by itself determine its final tax treatment.

Pension and Retirement Income

Pension received by an NRI may require review of the source of the pension, place of former employment, residential status and any applicable DTAA.

Foreign pension and retirement accounts can become particularly important when an NRI returns permanently to India.

NRI Rental Income and House Property

Rental Income From Property Situated in India

Rental income from immovable property situated in India may be taxable in India even where the property owner lives abroad.

The taxable amount should be computed in accordance with the applicable house-property provisions after considering permitted deductions and other relevant factors.

TDS on Rent Paid to an NRI

Payments of rent to a non-resident may be subject to withholding requirements applicable to payments to non-residents.

Since the withholding obligation can differ from the rules applying to rent paid to a resident taxpayer, the payer and NRI recipient should review the applicable provisions before payment.

NRI Tax Return After Sale of Property in India

Reporting Capital Gains on Property Sale

An NRI selling residential, commercial or other taxable immovable property in India may be required to report the resulting capital gain in the Indian income-tax return.

The computation can require review of purchase cost, improvement cost, sale consideration, transfer expenses, holding period, stamp-duty value and available exemptions.

Claiming Refund of Excess TDS

Tax deducted by the buyer from payments to an NRI seller may exceed the seller’s ultimate tax liability after computing capital gains and eligible exemptions.

Where excess tax has been deducted, the resulting refund can generally be claimed through the income-tax return, subject to applicable conditions.

Detailed NRI Property Sale Guidance

For detailed guidance on capital gains, TDS, lower withholding, exemptions and repatriation, see our Sale of Property by NRI – Tax, TDS and Other Implications.

NRI Taxation of Shares, Mutual Funds and Investments

Capital Gains on Shares and Securities

NRIs investing in Indian shares, bonds and other securities may have taxable short-term or long-term capital gains when investments are sold or transferred.

The applicable treatment depends on the nature of the security, period of holding, listing status, applicable special provisions and the facts of the transaction.

Mutual Fund Capital Gains

Different tax rules can apply to equity-oriented funds, specified debt-oriented funds and other categories of mutual funds.

The scheme classification, acquisition date and holding period should be reviewed before computing taxable gains.

Detailed Investment Tax Guide

For a detailed discussion, see our guide on Taxation of Shares and Mutual Funds for NRIs in India.

NRI Bank Interest, Dividends and Other Income

Interest on NRE, NRO and Other Accounts

The tax treatment of bank interest depends on the type of account and the taxpayer’s residential status.

NRI taxpayers should separately identify interest earned through NRE, NRO, FCNR(B), resident and other accounts and determine the applicable tax treatment.

Dividend and Investment Income

Dividend and other investment income received from Indian sources may be taxable in India, subject to applicable domestic provisions and any beneficial DTAA treatment.

TDS deducted from such income should be reconciled before finalising the return.

NRI Banking and Repatriation

For an overview of NRE, NRO and FCNR accounts, repatriation and returning-resident considerations, see our guide on NRI Bank Accounts in India.

DTAA Benefits and Foreign Tax Credit for NRIs

Relief From Double Taxation

India has entered into Double Taxation Avoidance Agreements with many countries. A DTAA may allocate taxing rights between India and the NRI’s country of residence or provide relief from double taxation.

Treaty relief depends on the applicable treaty article, nature of income, tax residence and supporting documentation.

Tax Residency Certificate and Supporting Documentation

Where an NRI intends to claim treaty benefits, documentation such as a Tax Residency Certificate and other prescribed information may be required depending on the nature of the claim.

Documentation should preferably be reviewed before relying on a concessional treaty rate.

Detailed DTAA Guidance

For a broader explanation of treaty relief, TDS, capital gains, interest and dividend income, see our guide on DTAA Benefits for NRIs.

NRI TDS, Tax Refund and Lower Tax Deduction Issues

TDS Is Not Necessarily the Final Tax Liability

A common misconception is that once TDS has been deducted from an NRI payment, no further tax analysis is required.

TDS is generally a tax collection mechanism. The final tax liability should be determined after computing taxable income, eligible deductions, exemptions, capital gains and treaty relief, where applicable.

Claiming NRI Income Tax Refund

If the total TDS and taxes paid exceed the final income-tax liability, the NRI may generally claim the resulting refund through the income-tax return, subject to applicable provisions.

The refund claim should be supported by correct tax computation and reconciliation with Form 26AS and other tax records.

Lower or Nil Withholding in Appropriate Cases

In appropriate transactions, an NRI may be able to explore a lower or nil withholding mechanism where permitted by law.

This is particularly relevant in transactions such as property sales where tax deduction based on gross payment can substantially exceed the final tax liability.

How EzyBiz India Handles NRI Tax Return Filing

Step 1 – Residential Status and Document Review

We begin by reviewing residential status and the nature of income and transactions undertaken during the relevant year.

A customised document checklist is then prepared based on the facts of the case.

Step 2 – Tax Computation and Reconciliation

We review the available tax information and reconcile relevant items with Form 26AS, AIS, TIS, bank records, property records, capital gain reports and other supporting documents.

Where DTAA relief, capital gain exemptions or foreign tax issues arise, these are reviewed separately.

Step 3 – Preparation, Filing and Post-Filing Support

After finalising the computation, the applicable income-tax return is prepared and filed electronically.

We can also assist with verification, refund-related issues, processing adjustments and subsequent tax notices where required.

Common Mistakes in NRI Income Tax Returns

Incorrect Residential Status

Using an incorrect residential status can affect the scope of taxable income, applicable return form, disclosures and treaty analysis.

Days of physical presence and other statutory conditions should therefore be checked carefully before filing.

Ignoring AIS or Form 26AS Information

Failure to reconcile the return with Form 26AS, AIS and TIS can result in missed income, incorrect TDS claims or unexplained differences.

Any material mismatch should be investigated before filing wherever possible.

Incorrect Capital Gain or DTAA Treatment

Applying an incorrect capital gain rate, wrong holding period, inappropriate exemption or unverified DTAA rate can materially affect the return.

Complex investment and treaty matters should be reviewed based on current law and transaction-specific documents.

Why Choose EzyBiz India for NRI ITR Filing?

Integrated NRI, Tax and Regulatory Support

NRI tax matters frequently extend beyond preparation of an income-tax return. Property transactions, investments, remittances, DTAA claims, FEMA issues and tax notices may be connected.

EzyBiz India provides integrated support through its NRI Taxation Services in India, Direct Tax Advisory Services and related regulatory services.

Support for Tax Notices and Assessments

If the Income Tax Department raises a notice relating to income reported in the return, AIS mismatch, capital gains, TDS credit or another tax issue, our Income Tax Assessment and Litigation Services in India team can assist with review and response.

Frequently Asked Questions on NRI Tax Return Filing in India

Does Every NRI Have to File an Income Tax Return in India?

No. Return-filing requirements depend on the NRI’s taxable income and other applicable statutory conditions for the relevant year.

However, an NRI may also need or choose to file a return to report transactions or claim a refund of excess TDS where permitted.

Can an NRI File ITR From Outside India?

Yes. Indian income-tax returns are filed electronically, and an NRI can generally complete the process while residing outside India, subject to the applicable filing and verification requirements.

Which ITR Form Should an NRI Use?

The applicable form depends on the nature of income. For AY 2026-27, ITR-2 is generally applicable to a non-resident individual without business or professional income, whereas ITR-3 may apply where business or professional income is involved.

Can an NRI Claim a Refund of TDS?

Yes, where tax deducted or otherwise paid exceeds the NRI’s final Indian tax liability, the excess may generally be claimed as a refund through the income-tax return, subject to applicable provisions.

Should an NRI Check AIS Before Filing ITR?

Yes. AIS, TIS and Form 26AS should be reviewed and reconciled with supporting records before the return is finalised.

AIS information should not, however, automatically be treated as the final taxable amount without examining the underlying transaction and applicable tax treatment.

Related Services

• NRI Taxation Services in India
• Income Tax Return Filing Services in India
• Sale of Property by NRI – Tax, TDS and Other Implications
• DTAA Benefits for NRIs
• NRI Returning to India – Tax Planning
• Taxation of Shares and Mutual Funds for NRIs
• NRI Bank Accounts in India
• Form 26AS, AIS and TIS for ITR Filing
• Form 145 and Form 146 Filing Services in India
• Income Tax Assessment and Litigation Services in India
• Direct Tax Advisory Services in India

Reviewed By

Anil Agrawal, Chartered Accountant
Founder, EzyBiz India Consulting LLP
More than 20 years of professional experience in Indian taxation, NRI taxation, international taxation, regulatory advisory and business consulting.

Last Reviewed: September 2026

Disclaimer

The information provided on this page is for general informational and educational purposes only and should not be construed as tax, legal, investment, FEMA or regulatory advice for any specific person or transaction.

The tax treatment of an NRI depends on residential status, nature and source of income, applicable tax year, transaction-specific facts, Double Taxation Avoidance Agreement, tax withholding, documentation and other relevant provisions.

The Income-tax Act, 2025 applies from 1 April 2026. Tax years beginning before 1 April 2026 may continue to be governed by the Income-tax Act, 1961 and the corresponding provisions applicable to those periods. Tax rates, forms, filing requirements, TDS provisions, treaty rules and procedures may change from time to time.

Taxpayers should verify the latest applicable law, rules, notifications, treaty provisions and guidance issued by the Income Tax Department and other competent authorities and obtain professional advice based on their individual facts before filing an income-tax return or taking a tax position.