Filing your Income Tax Return (ITR) correctly is crucial for Non-Resident Indians (NRIs) to ensure compliance with Indian tax laws and avoid unnecessary penalties. The due date for filing the ITR for Financial Year (FY) 2024-25, which corresponds to Assessment Year (AY) 2025-26, is 31st July 2025 (without penalty).
Understanding Financial Year (FY) and Assessment Year (AY)
● Financial Year (FY): The period in which income is earned, running from 1st April 2024 to 31st March 2025.
● Assessment Year (AY): The year in which the income earned in the financial year is assessed and taxed. For FY 2024-25, the Assessment Year is 2025-26.
Key Documents & Details Required for ITR Filing
Here’s a checklist of essential documents NRIs need to prepare before filing their ITR. Individuals should review the list and compile the applicable documents based on their specific case.
1. KYC Documents
● PAN Card (Mandatory for tax filing)
● Aadhaar Card (If available, though not mandatory for NRIs)
● Passport (Front and back pages for residency proof, its required to calculate India immigration entry and exit stamps to ascertain days stayed in India for residential status)
2. Income Tax Login Credentials
● Ensure access to the Income Tax e-filing portal (https://www.incometax.gov.in)
● If not registered, create an account using PAN as the username
● If you don’t recollect, forget the password and reset to new one
3. Communication Address in India
● Provide an updated and complete Indian address along with PIN code or Foreign address to be updated in portal
4. Bank Account Details & Statements for period 01.04.2024 to 31.03.2025
● NRO (Non-Resident Ordinary) account statements
● NRE (Non-Resident External) account statements (Optional)
● FCNR (Foreign Currency Non-Resident) account statements (Optional)
5. Income Details
● Salary Income (If earned in India, including Form 16 from an employer)
● Rental Income from properties in India (Rental agreements and rent receipts)
● Interest Income from NRO accounts (Bank statements and Form 16A for TDS deductions)
● Capital Gains from the sale of property, PMS, shares, or mutual funds
● Dividends & Other Income received in India
6. Investment & Deduction Proofs
● Section 80C Investments (LIC, PPF, ELSS, NSC, etc.)
● Home Loan Interest Certificate for deduction under Section 24(b)
● Medical Insurance Premiums (Section 80D)
● Education Loan Interest (Section 80E)
7. Real Estate Taxation Documents (If Applicable)
● Property Sale Agreement (In case of sale of immovable property)
● TDS Certificate (Form 16B) if TDS was deducted by the buyer
● Lower TDS Certificate (If applied under Section 197 to reduce TDS liability)
● Capital Gains Computation
8. Foreign Assets & Foreign Income (Mandatory for Resident only)
● Details of foreign bank accounts held
● Foreign salary or business income details
● Any income from foreign stocks, mutual funds, or real estate
9. Tax Deducted at Source (TDS) & Form 26AS
● Verify Form 26AS on the Income Tax portal to check TDS deductions
● Annual Information Statement (AIS) & Taxpayer Information Summary (TIS) to match reported income
Filing Process for NRIs
1. Gather all applicable documents from the checklist above.
2. Log in to the Income Tax e-filing portal and select the relevant ITR form (Usually ITR-2 or ITR-3 for NRIs, depending on income sources).
3. Fill in the required details, including income, deductions, and tax payments.
4. Verify Form 26AS & AIS/TIS for any discrepancies.
5. Submit the return before 31st July 2025 to avoid penalties.
6. E-verify your ITR using Aadhaar OTP, net banking, or DSC (for digital signing).
Conclusion
Filing an accurate ITR ensures compliance with Indian tax laws and prevents future tax notices. This checklist serves as a general reference, and NRIs should verify which items are applicable to them before filing. If you need expert assistance in NRI taxation, lower TDS certificates, or remittances, feel free to connect!
