Income Tax Return (ITR) Filing for NRI in India – Complete Guide

 



Income Tax Return (ITR) Filing for NRI in India – Complete Guide

Income Tax Return (ITR) filing in India is mandatory not just for residents but also for Non-Resident Indians (NRIs) under certain conditions. With globalization and increasing cross-border investments, many NRIs earn income in India through property, bank deposits, shares, mutual funds, or business operations. While their residential status exempts them from taxation on global income, income earned in India is taxable as per Indian tax laws.

This guide provides a complete overview of Income Tax Return filing for NRIs in India — including eligibility, taxation rules, documents required, step-by-step filing procedure, and professional assistance available through YKG Global.

Who is Considered an NRI for Tax Purposes?

According to the Income Tax Act, 1961, a person is treated as a Non-Resident Indian (NRI) if:

  • They stay in India for less than 182 days in a financial year, OR

  • They stay in India for less than 60 days during the year and less than 365 days in the past four years.

This classification is important as it decides how much of their income in India is taxable.

When Does an NRI Need to File an ITR in India?

An NRI must file an ITR in India if they earn:

  • Income from Salary – if received in India or earned for services rendered in India.

  • Income from Property – rental income from property located in India.

  • Income from Investments – capital gains from shares, mutual funds, or other securities.

  • Income from Business or Profession – if set up or controlled in India.

  • Other Sources – such as fixed deposits or savings account interest (beyond exemption limits).

 If an NRI’s taxable income exceeds ₹2.5 lakh in a financial year, filing ITR in India is mandatory.

Taxable Income for NRIs

  • Salary Income – Taxed if services are rendered in India.

  • Property Income – Rental income is fully taxable; however, deductions for municipal taxes and standard 30% allowance are allowed.

  • Capital Gains – Short-term and long-term capital gains are taxable as per rules.

  • Interest Income – Taxed at 30% for NRO account deposits; exempt for NRE and FCNR accounts.

Documents Required for NRI ITR Filing

  • Passport and Visa details (to establish residential status).

  • PAN Card.

  • Form 16 (if salaried).

  • Details of bank accounts (NRO/NRE).

  • Investment proofs (mutual funds, shares, real estate).

  • TDS certificates (Form 16A).

  • Proof of foreign income (for DTAA applicability).

Step-by-Step Process of Filing ITR for NRIs in India

  • Determine Residential Status – Using the Income Tax Act criteria.

  • Collect Documents – PAN, bank statements, investment proofs, TDS certificates, etc.

  • Compute Taxable Income – Include income from salary, property, investments, etc.

  • Claim Deductions – Section 80C, 80D, 80G, and other permissible deductions.

  • Apply DTAA Benefits – Avoid double taxation by claiming relief under Double Taxation Avoidance Agreement (DTAA).

  • Choose Correct ITR Form – ITR-2 or ITR-3 depending on income type.

  • File Online – Login to the Income Tax e-filing portal and submit your return digitally.

  • Verification – Complete e-verification through Aadhaar OTP, Net Banking, or send signed ITR-V to CPC Bangalore.

Benefits of Filing ITR as an NRI

  • Compliance with Indian tax laws.

  • Avoidance of penalties and interest.

  • Ability to claim TDS refunds.

  • Facilitation of financial transactions like home loan applications.

  • Smooth repatriation of funds outside India.

  • Proof of income for global investments and visa applications.

Penalties for Non-Compliance

Failure to file an ITR on time may result in:

  • Penalty of up to ₹5,000 under Section 234F.

  • Interest on unpaid taxes under Sections 234A, 234B, and 234C.

  • Difficulty in repatriating funds outside India.

How YKG Global Helps NRIs with ITR Filing

At YKG Global, we provide end-to-end support for NRI Income Tax Return filing in India, including:

  • Assessing your residential status.

  • Tax planning to reduce liability under DTAA.

  • Preparing accurate tax computations.

  • Filing ITR online and ensuring compliance.

  • Handling notices or queries from the Income Tax Department.

With 40+ years of experience and global clientele, we ensure seamless and hassle-free ITR filing for NRIs.

Frequently Asked Questions (FAQs)

1. Can NRIs file ITR online from abroad?
Yes, NRIs can file ITR online from anywhere in the world using the Income Tax Department’s e-filing portal.

2. Do NRIs need an Aadhaar card to file ITR?
No, Aadhaar is not mandatory for NRIs.

3. Is rental income taxable for NRIs?
Yes, rental income from property in India is taxable, but deductions are available.

4. How can NRIs avoid double taxation?
By claiming relief under the Double Taxation Avoidance Agreement (DTAA).

5. Which ITR form should an NRI file?
Usually, ITR-2 is used for most NRIs unless they have income from business/profession (then ITR-3 applies).

Income Tax Return (ITR) filing for NRIs in India is a crucial compliance requirement that helps avoid penalties, ensures smooth financial operations, and allows NRIs to claim refunds and DTAA benefits. With the right professional support, the process becomes simple and stress-free.


At YKG Global, our experts specialize in NRI taxation services, helping you file ITR accurately and on time, no matter where you are in the world.

📧 Email: Rishi@ykgglobal.com
🌐 Website: www.ykgglobal.com
📱 Call/WhatsApp: +91 76782 77665
📍 Offices: Delhi | Mumbai | Dubai | Singapore


Comments

Post a Comment

Popular posts from this blog

AEO Registration - Documents Required & Eligibility Criteria in India

Image
  Key Requirements for AEO Certification in India Before applying for AEO (Authorized Economic Operator) status, businesses must ensure they meet all documentation and compliance criteria as outlined by the Central Board of Indirect Taxes and Customs (CBIC) . The documents and requirements vary slightly across AEO T1, T2, and T3 categories. Who is Eligible for AEO Registration? You can apply for AEO certification if: You hold a valid Import Export Code (IEC) Your business has been active in India for at least 3 financial years You have a clean compliance history (customs, GST, DGFT) You maintain secure internal controls and logistics operations You can provide financial transparency and standard operating procedures Documents Required for AEO Registration Here’s a list of commonly required documents (CBIC may request additional records based on your application level): Copy of Import Export Code (IEC) GST registration certificate PAN card of the entity Constitution documents (...
Read more

AEO Certification Process in India

Image
  What is the AEO Certification Process? The AEO (Authorized Economic Operator) certification process is a structured assessment conducted by CBIC under India’s customs framework. It involves the submission of documents, verification of internal systems, physical security, and trade compliance to determine eligibility for AEO status. Step-by-Step AEO Certification Procedure Step 1: Preliminary Assessment & Document Preparation Ensure your business meets the eligibility criteria and prepare all necessary documents, including SOPs, self-declarations, site layouts, and compliance records. Step 2: Submit Application to AEO Program Manager Fill out the AEO application form and submit it along with all annexures, declarations, and supporting documents to the Directorate General of Performance Management (DGPM), CBIC. Step 3: Application Scrutiny by CBIC The customs authority reviews your submitted documents. For AEO T1, this is generally desk-based. For T2 and T3, a site inspection ...
Read more

Make in India Certificate In Maharashtra

Image
  The   Make in India Certificate   has become a   symbol of domestic manufacturing excellence   and   government trust   in India's vision for self-reliance. While there is   no central certificate issued by the Indian government titled " Make in India Certificate ,"   many companies need   a recognized declaration or self-certification   to participate in tenders, avail benefits under various schemes, and promote their products as “Made in India.” Whether you're a  manufacturer, exporter, or MSME  based in Delhi or anywhere in India, getting certified under the  Make in India framework  is essential to unlock benefits in public procurement, GEM portal visibility, and buyer confidence. What is a Make in India Certificate? A  Make in India Certificate  is typically: A  self-declaration  issued by the company on its letterhead Accompanied by a  CA certificate  confirming value additio...
Read more