education

NRI Tax Filing in India: What to Report and What to Ignore

By Aayush Jain·Reviewed May 8, 2026·10 min read

Many NRIs are confused about whether they need to file an Indian income tax return. The answer depends on the type and amount of India-sourced income, your residential status, and whether TDS has been deducted in excess. This guide cuts through the confusion.

When do NRIs need to file in India?

NRIs are taxed in India only on income sourced in India (salary paid in India, rental income from Indian property, dividends from Indian companies, capital gains on Indian assets). If your India-sourced income exceeds the basic exemption limit (₹3 lakh under the new regime for FY 2024-25), you must file.

Even if your income is below the threshold, you should file an ITR if: (1) TDS has been deducted on NRO interest or dividends and you want a refund, (2) you've had capital gains from selling Indian property or stocks, or (3) you want to carry forward capital losses for future offset.

Which ITR form for NRIs?

  • ITR-2: most NRIs with capital gains from stocks/property and NRO income
  • ITR-1 (Sahaj): only for NRIs with India-salary income below ₹50 lakh — limited use case
  • ITR-3: NRIs with business income in India
  • File by July 31 of the assessment year (for FY 2025-26, file by July 31, 2026)

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