Individual Tax Return Filing for NRI for AY 2025-26

Understanding taxes poses quite a head-scratcher for non-resident Indians (NRIs) staying abroad but still keeping ties to their motherland. Key elements they’ve got to think about? Well, tracking your residential status is a major one – it brings with it a whole raft of tax implications.

And hey, income earned within Indian borders?

That’s taxable. But remember, money you make elsewhere doesn’t invite the taxman over, unless you’re a resident as per the rulebook.

Getting into the nuts and bolts, the income tax returns process necessitates a solid look at all investments and bank accounts hanging out back home. The deadline – 31st July 2025 – sneaks up faster than you’d think.

Now, what if you’ve got property or assets in India?

That rental dough or any sales profit bites a chunk in taxes. And those double taxation treaties can be a saviour if you’re settled in one of those countries with a handshake agreement on this stuff.

So, wrapping up filing your taxes as an NRI isn’t a stroll in the park. But, keeping this knowledge handy and minding the 31st July 2025 due date? Smart move. It saves a hustle and dodges penalties, so you can sleep without the taxman haunting your dreams.

This blog will make it easier to help you understand how NRIs can file their individual tax returns for the Assessment Year (AY) 2025-26.

You will be treated as a Resident in India in any previous year if you satisfy any of the following conditions:

1.If you are in India for a period of 182 days, or more during the previous year or

2.If you are in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

If you do not satisfy both the conditions as mentioned above you will be treated as Non- Resident in that previous year.

However, if you are an Indian citizen and a person of Indian origin who visits India during the year, the period of 60 days as mentioned in point 2 above shall be substituted with 182 days or 120 days depending on your Total Income. The similar concession is provided if you are Indian citizen and left India in any previous year as a crew member or for the purpose of employment outside India.

A bunch of people often wonder, “Do we have to file an income tax return in India if we’re an NRI?” Well, here’s the deal — yeah, an NRI has to file a tax return in India when their annual earning exceeds the basic exemption limit as per the Income Tax Act, 1961. Here’s what could add up to that taxable income:

• Salary derived from India
• Rent from properties in India
• Gains from selling immovable property in India, like plots, apartments, or buildings
• Interest earned in India
• Income from a Business set-up in India

Even if your income is below the basic exemption limit, filing an NRI tax return can be beneficial for claiming refunds on the taxes deducted at source (TDS).

Picking the right ITR form for an NRI plays an important role. The form you need depends on the nature of the income earned by you.
When you have obtained NRI status and you do not earn income from Business or Profession, you should opt for ITR-2.
And when you have obtained NRI status and earn income from Business or Profession, you should opt for ITR-3.

1. 16A Form: This certificate which is issued quarterly reflects the TDS deducted from your income. It’s an important document for filing your NRI tax return.
2. Documents Required: You gotta gather all your paperwork like your PAN and Aadhaar cards, bank statements, info on investments, and Form 16A.
3. India Tax E-file: Filing your income tax return in India for NRI? The primary method is using the e-filing portal. It’s important to understand how to navigate through the E- Filing portal.
4. NRI Investment Review: Keep a close eye on your investments in India. This practice has an influence on managing your tax dues. Consider getting a financial advisor might be a solid move for your NRI investment review.

The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f F.Y. 2024-25 to make new tax regime as the default tax regime. However, you may have the option to opt out of new tax regime and choose to be taxed under old tax regime if it is beneficial for you. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.