Filing your Indian Income Tax Return (ITR) as a Non-Resident Indian (NRI) can feel daunting — especially when rules change year after year. FY 2025–26 (AY 2026–27) brings several updates: revised tax slabs under the new regime, a new Income Tax Act that transitions from 1 April 2026, updated ITR forms, and a staggered due-date calendar. This guide consolidates everything you need into one structured checklist so you can walk into ITR season fully prepared.
Whether you earn rental income, hold Indian mutual funds, sold property, or just want to claim a TDS refund — this guide is your step-by-step roadmap. And if you need hands-on help, CA For NRI offers end-to-end NRI tax filing assistance.
What’s New for NRIs in FY 2025–26 (AY 2026–27)
Before diving into the checklist, here are the key changes that affect NRI filers this year:
New Tax Regime is the Default
The New Tax Regime under Section 115BAC remains the default for all taxpayers, including NRIs. If you wish to opt for the Old Tax Regime, you must actively choose it while filing your ITR. For NRIs with business or professional income, Form 10-IEA must be filed before the due date to opt out of the new regime.
Tax Slabs Under the New Regime (FY 2025–26)
The Budget 2025 introduced revised slab rates under the new tax regime. The basic exemption limit has been raised to ₹4 lakh under the new regime. Here are the applicable slabs for NRIs:
| Taxable Income (New Regime) | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
New ITR Forms for AY 2026–27
The CBDT notified all ITR forms (ITR-1 to ITR-7) on 30 March 2026. NRIs generally use ITR-2 (no business income) or ITR-3 (with business/ profession income). NRIs cannot use ITR-1 (Sahaj) and cannot opt for presumptive tax options u/s 44AD & 44ADA.
Income Tax Act 2025 — What It Means for AY 2026–27 Filers
The new Income Tax Act 2025 came into force on 1 April 2026, replacing the Income-tax Act, 1961. However, for AY 2026–27 (income earned in FY 2025–26), the provisions of the old Act (1961) still apply. The new ‘Tax Year’ concept applies only from FY 2026–27 onwards. Rights, benefits, and obligations arising under the old Act continue to exist.
Revised Return Deadline Extended
Budget 2026 extended the due date for filing a revised ITR to 31 March 2027 (from the earlier December 31). However, if you revise after 31 December 2026, a fee of ₹1,000–₹5,000 applies.
ITR Filing Due Dates for FY 2025–26 (AY 2026–27)
| Taxpayer Category | Due Date |
|---|---|
| NRIs — Salaried / Non-audit cases (ITR-2) | 31 July 2026 |
| NRIs — Non-audit business income (ITR-3) | 31 August 2026 |
| NRIs — Cases requiring tax audit | 31 October 2026 |
| Belated Return (with penalty) | 31 December 2026 |
| Revised Return | 31 March 2027 |
| Updated Return (ITR-U) | Within 48 months from end of AY |
Filing deadline approaching?
Don’t wait until the last minute. Let our NRI tax experts handle your ITR filing accurately and on time.
Determine Your Residential Status
Your residential status determines what income is taxable in India and which forms and deductions apply. This is the single most critical step before filing.
Key Thresholds (Income Tax Act, 1961)
- Stay in India > 182 days in FY → Resident (general rule)
- Stay ≥ 60 days in FY + ≥ 365 days in preceding 4 FYs → Resident (second condition)
- Note: The 60-day rule is relaxed to 182 days for:
a) Indian citizens leaving India for employment purposes
b) Indian citizens or PIO/OCI already settled outside India coming to visit India.
- Indian citizens/PIOs visiting India: 60-day threshold raised to 120 days if Indian-source income > ₹15 lakh
- Deemed Resident rule (Section 6(1A)): Indian citizen with India-source income > ₹15 lakh and not taxable in any other country due to domicile/ residence or any other criteria of similar nature.
Not sure about your status? Use our NRI residency determination guide or consult our experts.
NRI vs RNOR vs ROR — Tax Scope
| Status | India-Source Income | Foreign Income |
|---|---|---|
| Non-Resident (NRI) | Fully Taxable | Not Taxable |
| Resident but Not Ordinarily Resident (RNOR) | Fully Taxable | Taxable only if income is earned from a business controlled from India or a profession set up in India |
| Resident & Ordinarily Resident (ROR) | Fully Taxable | Fully Taxable |
The Master NRI ITR Checklist for FY 2025–26
Organise all documents under the following 14 categories before you begin filing.
Identity & KYC Documents
- PAN Card
- Aadhaar Card (not mandatory for NRIs, but useful for e-verification)
- Passport — front, back, and pages with India entry/exit stamps
- Valid Visa / Overseas Resident Permit / OCI Card
Income Tax Portal Access
- Log in to incometax.gov.in and verify/update: mobile number linked to Indian bank account, active email ID, and current overseas address. Also cross-check your Form 26AS and Annual Information Statement (AIS) — mismatches in TDS figures between Form 16/16A and Form 26AS are one of the most common triggers for scrutiny notices.
Bank Statements (01 Apr 2025 – 31 Mar 2026)
- NRO Account Statements — interest is taxable in India at applicable slab rates
- NRE Account Statements — interest is exempt only if applicable FEMA conditions are satisfied
- FCNR Account Statements (if applicable) — generally exempt
- Indian savings account statements (if applicable)
Read more: NRE/NRO Account — Tax & FEMA Implications
Income from Property in India
- Full property address with PIN code
- Rental income received during FY 2025–26 (month-wise)
- PAN and full name of tenant(s) — for disclosure purposes
- Municipal taxes paid during the year
- Nature of ownership: sole, joint, or co-owner (with ownership percentage)
- Interest certificate for housing loan for claiming the deduction of interest component
Salary / Employment Income (India-Sourced)
- Form 16 — Parts A and B
- Monthly salary slips
- Employment/ appointment letter from Indian employer
- Arrears or gratuity received, if any
Business or Professional Income
- Profit & Loss Statement and Balance Sheet for FY 2025–26
- Details of receipts and business expenses
- GST Returns (GSTR-1, GSTR-3B) if GST-registered — reconcile with ITR income
- Tax audit report (Form 3CA/3CB/3CD) if turnover exceeds prescribed limits
- NRIs opting for presumptive taxation (Section 44AE): separately disclose gross receipts/turnover and net profit in the new ITR columns for AY 2026–27
Capital Gains — Shares & Mutual Funds
- Realised Capital Gains Statements from all mutual fund platforms (CAMS, KFintech, etc.)
- Tax Profit & Loss report from stockbroker(s)
- Dividend report
- PMS portfolio statement and audit report, if applicable
- ELSS/Equity fund statements (for Section 80C under Old Regime)
Sale of Capital Assets or Property
- Sale deed and original purchase deed
- Stamp duty paid receipts
- Fair Market Value (FMV) report from a registered valuer if the property acquired before 1 April 2001
- Proof of reinvestment under Section 54 (purchase of new residential property) or Section 54EC (NHAI/REC bonds) for exemption claims
- Note: Indexation benefit is NOT available for property sold on or after 23 July 2024
- Brokerage, legal fees, and improvement cost receipts
- Lower TDS certificate under Section 197, if obtained
NRI selling property? Check TDS on Property Sale by NRI — 2026 Guide and learn about the Lower TDS Certificate for NRIs.
Other Sources of Income
- Annual interest certificates from NRO/NRE bank accounts
- Fixed deposit and recurring deposit interest statements
- Annuity, pension, or royalty income
- Income from winnings, lottery, or horse races (taxable at a flat 30%)
Deductions & Exemptions (Old Regime — Chapter VI-A)
Applicable only if you opt for the Old Tax Regime:
-
- Life insurance premium receipts (Section 80C — up to ₹1.5 lakh)
- Health insurance premium receipts (Section 80D)
- ELSS/PPF/NSC/home loan principal repayment certificates (Section 80C)
- Medical insurance for parents’ receipts (enhanced deduction for seniors)
- Donation receipts with valid 80G registration numbers
- Education loan interest statement (Section 80E)
Loan Interest Certificates
- Housing loan interest certificate — for Section 24 deduction on let-out property (unlimited) or self-occupied property (up to ₹2 lakh under Old Regime)
- Education loan interest statement (Section 80E)
Residential Status Calculation
- Day-count tally of days spent in India during FY 2025–26 (01 Apr 2025 – 31 Mar 2026)
- Dates of every arrival and departure from India (landing and take-off days both count as India-stay days)
- Passport/boarding pass copies as supporting evidence
- Day-count for preceding 4 financial years (for secondary condition check)
Stranded in India due to geopolitical events or illness? Read our guide on unintentional overstay and residential status implications.
DTAA Documentation
If you are claiming tax relief under a Double Taxation Avoidance Agreement (DTAA) between India and your country of residence:
- Tax Residency Certificate (TRC) issued by the tax authority of your country of residence
- Form 10F — for Tax Exemption Method
- Form 67 — for Tax Credit Method
- Declaration of beneficial ownership
- Foreign tax return/tax paid certificates from your country of residence
India has DTAA with 90+ countries. Get your Tax Residency Certificate (TRC) for NRIs with expert assistance.
Foreign Asset Disclosure (for Ordinarily Resident Status)
Applicable only if you qualify as Resident and Ordinarily Resident (ROR) in India:
- Details of all foreign bank accounts (account number, IBAN, country, bank name, peak balance)
- Foreign real estate holdings (address, acquisition cost, income earned)
- Foreign equity investments (company name, country, number of shares, cost, FMV)
- Foreign pension or retirement accounts
- Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income) in the ITR form
Which ITR Form Should an NRI File?
| ITR Form | Who Should Use It (NRI Context) |
|---|---|
| ITR-1 (Sahaj) | Not applicable for NRIs — strictly for resident individuals only. |
| ITR-2 | NRIs with salary, house property, capital gains, or other income (no business income). |
| ITR-3 | NRIs with income from business or profession (including presumptive income under Section 44AE). |
Not sure which ITR form applies to you?
Our NRI tax specialists will identify the correct form, compute your taxes, and file error-free.
Capital Gains Tax for NRIs — FY 2025–26 Quick Reference
| Asset Type | Holding Period for LTCG | LTCG Rate | STCG Rate |
|---|---|---|---|
| Listed Equity Shares / Equity Mutual Funds | > 12 months | 12.5% (above ₹1.25 lakh threshold, Sec. 112A) | 20% (Sec. 111A) |
| Unlisted Shares | > 24 months | 12.5% | Slab Rates |
| Immovable Property in India | > 24 months | 12.5% without indexation (from 23 Jul 2024) | Slab Rates |
| Debt Mutual Funds (Purchased after 1 Apr 2023) | Any Period | Slab Rates (No LTCG Benefit) | Slab Rates |
| Unlisted Bonds / Debentures | > 12 months | 12.5% | Slab Rates |
For detailed capital gains planning, read our Capital Gains Tax for NRIs Guide.
E-Verification of ITR — Don’t Forget This Step
Filing the ITR is not complete until it is e-verified. An unverified ITR is treated as invalid. You have 30 days from the date of filing to e-verify. Options available for NRIs:
- Aadhaar OTP (if Aadhaar is linked to Indian mobile number)
- Net banking login through authorised Indian banks
- Demat account-based e-verification (via depository)
- Bank account-based EVC (Electronic Verification Code)
- Digital Signature Certificate (DSC) — recommended for NRIs without Indian mobile access
- Physical ITR-V sent to CPC Bengaluru via speed post (fallback option; takes longer time than usual)
Final Compliance Reminders for NRIs
Action Checklist Before You File
Determine residential status with exact day count
Verify Form 26AS and AIS for TDS/TCS mismatches
Confirm FEMA residential status separately (different from IT Act status)
Collect Form 10F for claiming DTAA benefits under tax exemption method and Form 67 for claiming DTAA benefits under tax credit method and TRC if claiming DTAA relief
Identify correct ITR form (ITR-2 or ITR-3 for most NRIs)
Compare Old vs New Tax Regime (remember: Section 87A rebate is NOT available to NRIs)
Compute capital gains correctly — indexation not available for property sold after 23 July 2024
Disclose all Schedule FA/FSI if you qualify as ROR
E-verify the ITR within 30 days of filing
File by 31 July 2026 to avoid penalties and protect loss carry-forwards
Also read: How to Calculate Total Income from Indian Sources for NRIs | FEMA Compliance for NRIs | Repatriation of Funds from Property Sale
Frequently Asked Questions (FAQs)
An NRI must file an ITR in India if their total India-source income exceeds the basic exemption limit (₹2.5 lakh under Old Regime; ₹4 lakh under New Regime). Filing is also advisable — even below the exemption limit — if TDS has been deducted (to claim a refund), or for visa or loan documentation purposes.
No. The enhanced Section 87A rebate of ₹60,000, which effectively makes income up to ₹12 lakh tax-free, is available only to resident individuals. NRIs are explicitly excluded from this benefit. NRIs can, however, benefit from the raised basic exemption limit of ₹4 lakh under the New Tax Regime.
For most NRIs (salaried or non-audit income), the due date is 31 July 2026. NRIs with non-audit business income have until 31 August 2026. Audit cases have until 31 October 2026. A belated return can be filed until 31 December 2026 with a late fee.
NRIs typically file ITR-2 if they have salary, property, capital gains, or investment income (no business income). ITR-3 is used for business or professional income. NRIs cannot use ITR-1 (Sahaj), which is exclusively for resident individuals.
Not directly. The new Income Tax Act 2025 came into force on 1 April 2026, but the provisions of the Income-tax Act, 1961 still govern AY 2026–27 (income earned in FY 2025–26). The new ‘Tax Year’ concept applies only from FY 2026–27 onwards.
Interest earned on NRE (Non-Resident External) accounts is tax-exempt in India, provided FEMA conditions are met and you maintain valid NRI status. However, interest on NRO accounts is fully taxable in India, subject to TDS at 30% (or lower DTAA rate with TRC and Form 10F).
To claim DTAA relief, you must obtain a Tax Residency Certificate (TRC) from your country of residence and submit Form 10F electronically on the Income Tax portal for claiming benefit under the tax exemption method, whereas submit Form 67 for claiming benefit under the tax credit method. India has DTAA agreements with over 90 countries, covering the UAE, USA, UK, Canada, Australia, and more.
You can file a belated return until 31 December 2026 with a late fee of ₹1,000 (income ≤ ₹5 lakh) or ₹5,000 (all other cases) under Section 234F, plus interest under Section 234A at 1% per month on unpaid tax. Critically, missing the due date also means you cannot carry forward certain capital losses or business losses.
Yes. When an NRI sells property in India, the buyer is required to deduct TDS under Section 195. The applicable TDS rate depends on the nature of gains, holding period, and DTAA applicability — it is not automatically 20% as commonly misunderstood. Consider applying for a Lower TDS Certificate to avoid excess TDS deduction.
Yes. Aadhaar is not mandatory for NRIs. However, it can simplify e-verification. Without Aadhaar, NRIs can verify using net banking, a demat account, or a Digital Signature Certificate (DSC), or send a physical ITR-V to CPC Bengaluru.
Need Expert NRI Tax Assistance?
NRI taxation is multi-layered — it intersects the Income Tax Act, FEMA, DTAA agreements, and foreign country laws. A minor error in residency determination, form selection, or capital gains computation can lead to notices, penalties, or excess tax outgo.
CA For NRI — Zenify Consultancy Services specialises exclusively in NRI taxation and cross-border financial compliance. Our services cover:
- End-to-end ITR filing for NRIs across the globe (UAE, USA, UK, Canada, Australia, and more)
- Residency status and FEMA compliance advisory
- Capital gains planning for property and investment sales
- Lower TDS certificate applications under Section 197
- DTAA benefit claims with TRC and Form 10F support
- Repatriation of sale proceeds from India
- NRI-specific investment and tax planning
File your FY 2025–26 ITR with confidence.
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