Short answer: you must file an Indian income-tax return if your India-source income for the year is above the basic exemption limit — ₹2.5 lakh under the old regime, or ₹4 lakh under the new (default) regime for FY 2025-26. But a large number of NRIs should file even when they’re below that line, because it’s the only way to get back TDS that was deducted at source. Not sure whether you even count as an NRI this year? Start with the residential-status calculator.

When filing is mandatory

You must file if, in the financial year (1 April – 31 March):

  • Your total India-source income exceeds the basic exemption (₹2.5L old / ₹4L new regime), before deducting exemptions on reinvested capital gains and Chapter VI-A deductions (80C, 80D and so on); or
  • You have capital gains from selling Indian property, shares or mutual funds — most advisers treat this as file-regardless-of-amount; or
  • You want to carry forward a capital loss to set against future gains (only allowed if you file by the due date).

A crucial NRI-specific point: the Section 87A rebate is not available to non-residents. The headline “no tax up to ₹12 lakh” under the new regime applies only to residents. As an NRI you’re taxed from the first rupee above the exemption limit.

When you should file even if it isn’t mandatory

For many NRIs the real reason to file is a refund. TDS is deducted aggressively on NRI income — 30% on NRO interest, and a large slice of the gross value on a property sale — often far more than you actually owe. Filing is the only way to claim the excess back. File if:

  • TDS has been deducted on your Indian income (rent, NRO interest, a property sale) and it exceeds your real liability;
  • You sold property and TDS came off the full sale value — see how big that gap can be with the capital-gains & TDS calculator;
  • You need the return for a visa, loan or repatriation paper-trail.

What income is taxable for an NRI

Only India-source income is taxable in India for an NRI — your foreign salary and overseas income are not. Typically taxable: rent from Indian property, NRO account interest (NRE and FCNR interest is exempt), dividends from Indian companies, and capital gains on Indian assets. DTAA relief can lower the tax on several of these — see our guide on DTAA, Form 10F and the TRC.

Which ITR form?

NRIs generally use ITR-2 (salary, house property, capital gains, other income) or ITR-3 (if there’s business or professional income in India). NRIs cannot use ITR-1 (Sahaj) or ITR-4 — those are for residents. The new regime under Section 115BAC is the default; you can opt for the old regime if it works out better (NRIs with an Indian home loan or sizeable 80C investments often find it does).

Deadlines for FY 2025-26 (AY 2026-27)

  • 31 July 2026 — most NRIs (no audit).
  • 31 October 2026 — audit cases.
  • 31 December 2026 — belated return, with a late fee under Section 234F (₹5,000, or ₹1,000 if income is under ₹5 lakh).

Verify your return within 30 days of filing, or it’s treated as not filed.

Common mistakes we see

  • Claiming the 87A rebate — it triggers a demand notice for NRIs.
  • Filing as “Resident” by mistake — that pulls your global income into the Indian net.
  • Claiming DTAA relief without filing Form 10F first — the benefit is disallowed; Form 10F can’t be filed retrospectively.
  • Not reconciling with Form 26AS / AIS before filing — a mismatch auto-generates a notice.

How NRI360 helps

We confirm your residential status, pick the right form and regime, reconcile your 26AS/AIS, apply every DTAA benefit and relief, and file — so you claim every rupee of refund you’re owed and don’t invite a notice. See our full NRI tax filing service.

Figures are indicative and current as of FY 2025-26; your exact position is confirmed in your free review.