NRI Income Tax Return Filing in India: Complete Guide - R Negi & Company, Chartered Accountants

Living abroad does not always end your tax responsibilities in India. Many Non-Resident Indians continue to earn income from Indian sources, such as rent from property, interest from NRO bank accounts, dividends, pensions, business activities, or capital gains from the sale of shares, mutual funds, land, or buildings. Such income may still be taxable in India even when the person permanently resides outside the country.

Before filing an income tax return, an NRI must first determine the correct residential status under the Income Tax Act. After that, the taxpayer should identify taxable Indian income, select the appropriate ITR form, reconcile TDS with Form 26AS and AIS, and check whether any benefit is available under a Double Taxation Avoidance Agreement. This guide explains the key rules of NRI income tax return filing in simple and practical language.

This guide explains NRI income tax return filing in simple language. It also covers residential status, taxable income, ITR forms, deductions, tax regimes, filing deadlines, refunds, DTAA relief, penalties, and common mistakes. NRIs who own property, maintain investments, or earn income in Greater Noida or elsewhere in India can use this guide to understand their basic tax responsibilities.

Who is Considered an NRI for Income Tax Purposes?

A person does not automatically become an NRI merely because they work abroad, hold a foreign visa, or maintain an NRE account. Instead, income tax law mainly determines residential status by counting the number of days the person stays in India.

Generally, an individual becomes a resident in India if either of the following conditions applies:

The person stays in India for 182 days or more during the relevant tax period.
The person stays in India for 60 days or more during the relevant tax period and for at least 365 days during the four immediately preceding tax periods.

If the person does not satisfy either condition, the person generally qualifies as a non-resident.

However, special rules apply to Indian citizens and Persons of Indian Origin. Therefore, a taxpayer should not rely only on the basic 182-day rule.

Special Residential Status Rules for Indian Citizens and PIOs

The law modifies the normal 60-day condition in certain situations.

These special rules may apply to:

Indian citizens leaving India for employment outside India
Indian citizens leaving India as crew members of Indian ships
Indian citizens visiting India
Persons of Indian Origin visiting India

For example, where an Indian citizen or Person of Indian Origin visits India, the normal 60-day condition may be replaced with a longer period.

However, if Indian income, excluding foreign-source income, exceeds ₹15 lakh, the 120-day rule may apply along with the requirement of staying in India for at least 365 days during the preceding four tax periods.

Similarly, an Indian citizen may become a deemed resident where:

Indian income, excluding foreign-source income, exceeds ₹15 lakh; and
The person is not liable to tax in any other country because of residence, domicile, or a similar condition.

In such cases, the individual may qualify as a Resident but Not Ordinarily Resident instead of a full resident.Therefore, an NRI who visits India frequently should carefully maintain travel records, passport details, immigration history, and flight documents.

Why is Residential Status Important?

Residential status determines the scope of income taxable in India.

A resident and ordinarily resident individual may need to report worldwide income in India. On the other hand, an NRI generally pays tax only on income that:

Is received or deemed to be received in India
Accrues or arises in India
Is deemed to accrue or arise in India

Consequently, foreign income earned and received outside India generally remains outside the Indian tax system for an NRI.

For example, salary earned for services performed outside India and first received in a foreign bank account will generally not become taxable in India merely because the employee is an Indian citizen.

However, the tax position may change if the person performs the services in India, receives the income first in India, or earns the income through an Indian business, property, or investment.

Therefore, the NRI should examine both the source of income and the place of receipt.

Which Income is Taxable for an NRI in India?

An NRI may earn several types of income from India. Since each category follows different tax rules, the taxpayer should review them separately.

Salary Income Earned in India

Salary generally becomes taxable in India when an NRI performs employment services in India.

The location of the bank account does not always decide the tax treatment. For example, if an NRI performs work in India but receives the salary in a foreign account, India may still tax that salary.

Similarly, salary first received in India may require reporting even when the employer is situated outside India.

Therefore, while deciding taxability, the NRI should examine:

Where the services were performed
Where the salary was first received
Whether the salary relates to employment in India
Whether a DTAA provides any relief

Pension Income

Pension from an Indian employer or pension connected with services rendered in India may become taxable in India.

However, the final tax treatment may depend on:

Whether the pension is private or government pension
Where the former employment took place
The NRI’s country of residence
The applicable tax treaty

Therefore, an NRI should examine the relevant DTAA before deciding how to report pension income.

Rental Income From Property in India

Rental income from a house, flat, office, shop, or commercial property situated in India is taxable in India.

This rule applies even when the owner lives permanently abroad or receives rent in a foreign bank account.

While calculating taxable rental income, an NRI may generally claim eligible deductions, such as:

Municipal taxes actually paid
Standard deduction from net annual value
Eligible housing-loan interest

For example, an NRI who owns a rented flat or commercial unit in Greater Noida should maintain:

The rent agreement
Rental receipts
Bank statements
Municipal tax receipts
Housing-loan interest certificates
Ownership documents

In addition, the tenant may need to deduct TDS under the provisions applicable to payments made to a non-resident.

Therefore, the tenant should not automatically apply the normal resident-landlord TDS rules.

Income From Vacant Property

An NRI may also need to consider the tax treatment of a vacant house.

Depending on the number of properties and their use, the law may treat some properties as self-occupied and others as deemed to be let out.

As a result, an NRI who owns more than one property in India should review each property separately.

Capital Gains on Sale of Indian Assets

An NRI may earn capital gains by selling Indian assets, such as:

Residential property
Commercial property
Land
Listed shares
Unlisted shares
Mutual fund units
Bonds
Debentures
Other securities

The tax treatment depends on several factors, including:

Type of asset
Date of purchase
Date of sale
Holding period
Purchase cost
Sale consideration
Transfer expenses
Applicable tax rate
Availability of exemption

Therefore, the NRI should not rely only on figures shown in AIS, Form 26AS, or a general broker profit-and-loss report.

Instead, the taxpayer should calculate capital gains transaction-wise.

Sale of Property by an NRI

When an NRI sells property in India, the buyer generally has to deduct TDS under the provisions applicable to payments made to non-residents.

The buyer should not deduct only one per cent merely because the transaction involves immovable property. That one per cent provision generally applies where the seller is a resident.

In an NRI property transaction, the TDS may depend on:

Whether the gain is short-term or long-term
Applicable tax rate
Surcharge
Health and education cess
Sale consideration
Lower deduction certificate, if obtained

Therefore, both the buyer and seller should confirm the seller’s residential status before completing the sale.

This point is particularly important in Greater Noida because many NRIs own flats, plots, villas, and commercial units in the area.

Capital-Gain Exemptions for NRIs

An NRI may claim eligible capital-gain exemptions by investing in specified assets within the prescribed time.

Depending on the nature of the original asset, relief may be available through:

Purchase of a residential house
Construction of a residential house
Investment in specified bonds
Investment in another eligible asset
Deposit in the Capital Gains Account Scheme

However, the taxpayer must satisfy all conditions relating to the investment amount, time limit, ownership, and use of the new asset.

Therefore, an NRI should complete tax planning before using or transferring the sale proceeds.

Interest From an NRO Account

Interest earned on an NRO savings account or fixed deposit generally becomes taxable in India.

Banks usually deduct TDS before crediting the interest. However, the TDS amount does not always represent the final tax liability.

For example, the bank may deduct more tax than the NRI actually owes. In that case, the NRI can file an income tax return and claim a refund.

On the other hand, if the bank deducts less tax, the NRI may need to pay the balance as self-assessment tax.
For a detailed comparison, read our complete guide on the difference between NRE and NRO accounts.

Interest From an NRE Account

Interest from an eligible NRE account generally remains exempt from tax in India, provided the account holder satisfies the required conditions.

However, the exemption depends on the person’s status under FEMA and the applicable banking rules.

Therefore, when a person becomes resident in India, they should inform the bank and re-designate the account where required.

Simply holding an NRE account does not guarantee that the interest will always remain exempt.

For a detailed comparison, read our complete guide on the difference between NRE and NRO accounts.

Interest From an FCNR Account

Interest from an eligible FCNR deposit may also remain exempt, subject to prescribed conditions.

Nevertheless, the NRI should maintain:

Bank statements
Deposit certificates
Interest certificates
Residential status documents

These records can support the exemption if the Income Tax Department asks for clarification.

Dividend Income

Dividend received from an Indian company or Indian mutual fund generally becomes taxable in India.

The payer may deduct TDS before making the payment. Therefore, while filing the return, the NRI should report the gross dividend and separately claim the eligible TDS credit.

The taxpayer should not report only the amount received after tax deduction.

Business or Professional Income

Business or professional income connected with India may become taxable in India.

For instance, an NRI may earn income from:

A proprietary business in India
Consultancy services performed in India
Professional services connected with India
Online services carried out through an Indian establishment
Trading operations in India
Partnership firm remuneration or interest

The tax position may become more complex when the NRI has:

A business connection in India
A Permanent Establishment
An office or fixed place of business
Employees or agents in India
An interest in an Indian partnership firm

Therefore, an NRI carrying on business activities in India should review the tax position carefully before filing the return.

Partnership Firm Income

An NRI may receive the following amounts from an Indian partnership firm:

Share of profit
Interest on capital
Salary
Bonus
Commission
Remuneration

The share of profit may receive different tax treatment from interest or remuneration.

Moreover, interest or remuneration from a partnership firm may require the taxpayer to file ITR-3.

Therefore, an NRI partner should not treat every payment from the firm in the same manner.

When Must an NRI File an Income Tax Return?

An NRI generally needs to file an income tax return when taxable Indian income exceeds the applicable basic exemption limit.

However, income above the exemption limit is not the only filing condition.

An NRI may also need to file a return when:

The NRI wants to claim a refund.
The NRI earns taxable capital gains.
TDS exceeds the final tax liability.
The NRI wants to carry forward eligible losses.
The NRI completes specified high-value transactions.
The NRI wants to claim DTAA relief.
The NRI wants to claim foreign tax credit.
The Income Tax Department issues a notice.
Another mandatory filing condition applies.

Therefore, an NRI should not assume that filing is unnecessary merely because tax has already been deducted.

Limited Exemption From Filing an ITR

In certain limited cases, an NRI may not need to file a return where Indian income consists only of specified investment income, eligible capital gains, or both, and the payer has deducted the required tax.

However, this exemption applies only when all prescribed conditions are satisfied.

Moreover, the exemption may not help when the NRI wants to:

Claim a refund
Carry forward a loss
Claim a capital-gain exemption
Claim treaty relief
Correct an incorrect TDS amount
Report another source of income

Therefore, the taxpayer should review the complete facts before relying on this exemption.

Which ITR Form Should an NRI Use?

Choosing the correct ITR form is essential.

If an NRI uses the wrong form, the Income Tax Department may treat the return as defective. Consequently, the taxpayer may need to correct and refile it within the prescribed period.

Can an NRI File ITR-1?

No. An NRI cannot use ITR-1.

ITR-1 is available only to specified resident individuals.

Therefore, an NRI cannot file ITR-1 even when income consists only of:

Salary
Pension
Bank interest
One house property

ITR-2 for NRIs

ITR-2 is the most commonly used form for NRIs who do not have business or professional income.

An NRI may generally use ITR-2 when income includes:

Salary
Pension
One or more house properties
Short-term capital gains
Long-term capital gains
Interest
Dividend
Other taxable income

For example, an NRI earning rent from a Greater Noida property, NRO interest, and mutual fund capital gains may generally use ITR-2, provided there is no business or professional income.

ITR-3 for NRIs

An NRI generally needs to use ITR-3 when income includes profits or gains from business or profession.

ITR-3 may apply where the NRI earns:

Proprietary business income
Professional income
Consultancy income
Futures and options income
Speculative trading income
Partnership firm interest or remuneration

Therefore, even a small amount of business income may make ITR-3 applicable.

Can an NRI File ITR-4?

No. An NRI cannot use ITR-4.

ITR-4 is available only to specified resident taxpayers who qualify for presumptive taxation and satisfy the other conditions.

Consequently, an NRI with business or professional income generally needs to use ITR-3.

Income Tax Return Filing Deadlines for NRIs

The filing deadline depends on whether the taxpayer requires an audit or has a transfer-pricing reporting obligation.

The general statutory deadlines are:

Taxpayer category	General filing deadline
Individual without audit requirement	31 July
Business or profession without audit requirement	31 July
Tax audit case	31 October
Transfer-pricing case	30 November
Belated or revised return	31 December

However, the government may extend these deadlines through an official notification.

Therefore, the taxpayer should verify the applicable deadline before filing.

Most importantly, merely filing ITR-3 does not automatically provide a later due date. If the accounts do not require an audit, the normal non-audit deadline generally applies.

Old Tax Regime and New Tax Regime for NRIs

The new tax regime operates as the default regime for eligible individual taxpayers.

However, an NRI may compare both regimes and select the more beneficial option, subject to applicable conditions.

The better option depends on:

Total income
Eligible deductions
Housing-loan interest
House-property loss
Capital gains
Business income
Special-rate income
Medical insurance
Investments
Pension contributions

Therefore, an NRI should calculate tax under both regimes before choosing one.

Current New Tax Regime Slabs

The current normal slab rates are:

Total income	Tax rate
Up to ₹4 lakh	Nil
₹4 lakh to ₹8 lakh	5%
₹8 lakh to ₹12 lakh	10%
₹12 lakh to ₹16 lakh	15%
₹16 lakh to ₹20 lakh	20%
₹20 lakh to ₹24 lakh	25%
Above ₹24 lakh	30%

In addition, surcharge and health and education cess may apply.

However, these slab rates do not apply to every type of income. Certain incomes may attract special rates, including:

Certain short-term capital gains
Certain long-term capital gains
Lottery income
Gambling income
Virtual digital asset income
Other specified income

Therefore, the NRI should calculate normal income and special-rate income separately.

Can an NRI Claim the Section 87A Rebate?

No. An NRI cannot claim the Section 87A rebate.

The rebate is available only to eligible resident individuals.

Consequently, an NRI and a resident taxpayer with the same taxable income may have different tax liabilities.

For example, a resident individual may receive a rebate that reduces tax to nil within the prescribed limit. However, an NRI cannot claim that rebate.

Deductions Available to NRIs

An NRI may claim various deductions under the old tax regime, provided the relevant conditions are satisfied.

Common deductions may include:

Eligible investments and payments under Section 80C
Medical insurance premium under Section 80D
Interest on education loan under Section 80E
Eligible donations under Section 80G
Eligible National Pension System contributions
Housing-loan interest
Certain savings-account interest deductions, subject to eligibility

However, many deductions are not available under the new tax regime.

In addition, some deductions may not be available against specified investment income or income taxed at special rates.

Therefore, an NRI should verify each deduction before claiming it.

Step-by-Step Process for Filing an NRI Tax Return

Step 1: Calculate Residential Status

First, calculate the exact number of days spent in India.

Then, review the required preceding periods and check whether the 120-day rule, deemed-resident rule, or Resident but Not Ordinarily Resident status applies.

If passport entries are unclear, compare them with flight tickets, immigration records, and travel history.

Step 2: Identify Taxable Indian Income

Next, prepare a complete list of Indian income, including:

Salary
Pension
Property income
Bank interest
Dividends
Capital gains
Business income
Professional income
Partnership income
Other Indian income

At the same time, identify exempt income separately, such as eligible NRE or FCNR interest.

This step helps prevent both under-reporting and unnecessary taxation.

Step 3: Review Form 26AS, AIS, and TIS

After identifying the income, review:

Form 26AS
Annual Information Statement
Taxpayer Information Summary

Then, compare these records with:

Bank statements
TDS certificates
Broker reports
Mutual fund statements
Property documents
Rent receipts
Dividend statements

If AIS contains incorrect information, submit feedback on the portal.

However, do not blindly copy the AIS amount into the return. Instead, report the correct figure based on supporting documents.

Step 4: Reconcile TDS

Next, match every TDS entry with the corresponding income.

For example:

Match bank TDS with gross interest.
Match property TDS with the correct seller and transaction.
Match rent TDS with rental income.
Match dividend TDS with gross dividend.
Match professional TDS with business or professional income.

The taxpayer should report gross income and claim TDS separately.

Step 5: Calculate Capital Gains Correctly

For every asset, collect:

Purchase date
Sale date
Purchase price
Sale price
Transfer expenses
Improvement expenses, where eligible
Holding period
TDS details
Supporting documents

After that, classify the gain as short-term or long-term.

For shares and mutual funds, use transaction-wise reports. Similarly, for property, examine the stamp-duty value, actual sale price, purchase cost, improvement cost, and exemptions.

Step 6: Select the Correct ITR Form

After classifying the income, choose the appropriate form.

Use ITR-2 where there is no business or professional income.

Use ITR-3 where business or professional income exists.

Do not use ITR-1 or ITR-4.

Step 7: Compare the Tax Regimes

Next, calculate tax under both regimes.

While comparing them, consider:

Deductions
Housing-loan interest
Medical insurance
Investments
Pension contributions
Capital gains
Business losses
House-property losses
Special-rate income

Then, select the regime that gives the lower lawful tax liability.

Step 8: Check DTAA Benefits

An NRI may pay tax on the same income in India and the country of residence.

To reduce double taxation, India has signed Double Taxation Avoidance Agreements with many countries.

Depending on the treaty, relief may take the form of:

Exemption
Foreign tax credit
Reduced tax rate
Allocation of taxing rights
Deduction of foreign tax

However, different treaty articles apply to salary, pension, interest, dividends, capital gains, rental income, business profits, and professional services.

Therefore, the NRI should review the correct treaty article before claiming relief.

Step 9: Obtain a Tax Residency Certificate

An NRI claiming treaty benefits generally needs a valid Tax Residency Certificate from the country of residence.

In addition, the taxpayer may need to submit Form 10F where the certificate does not contain all prescribed information.

However, holding a Tax Residency Certificate does not automatically grant relief. The taxpayer must also satisfy the conditions of the relevant DTAA.

Step 10: Complete the Applicable Schedules

The NRI should complete all relevant schedules, including those relating to:

Salary
House property
Capital gains
Other sources
Business income
Exempt income
TDS
Advance tax
Self-assessment tax
Special-rate income
DTAA relief
Assets and liabilities

The taxpayer should not leave a schedule incomplete merely because the portal has prefilled part of the data.

Step 11: Review Foreign Asset Reporting

An NRI generally does not report foreign assets in the same manner as a resident and ordinarily resident taxpayer.

However, the person must first confirm the correct residential status.

For example, an RNOR or resident taxpayer may have different disclosure requirements.

Therefore, the taxpayer should not skip a foreign asset or asset-and-liability schedule without reviewing the instructions.

Step 12: Add a Pre-Validated Bank Account

An NRI should add and pre-validate an eligible Indian bank account on the income tax portal.

Before filing, verify:

Account number
IFSC
Account status
PAN linkage
Name of account holder
Refund eligibility

An incorrect or inactive account may delay the refund.

Step 13: Pay Self-Assessment Tax

After claiming TDS, deductions, advance tax, and treaty relief, calculate the remaining liability.

If tax remains payable, deposit self-assessment tax before filing.

Then, confirm that the challan details appear correctly in the return.

Step 14: Submit and Verify the Return

Finally, submit the return and complete verification.

The taxpayer may verify the return through:

Aadhaar OTP, where available
Net banking
Electronic Verification Code
Digital Signature Certificate
Signed ITR-V sent to the Centralised Processing Centre

Generally, the taxpayer must verify the return within 30 days.

If verification takes place after the permitted period, the Income Tax Department may treat the verification date as the filing date. Consequently, late-filing consequences may apply.

Moreover, an unverified return may become invalid.

How Can an NRI Claim a TDS Refund?

Banks, tenants, buyers, companies, and other payers often deduct tax before paying income to an NRI.

However, TDS is only advance tax. Therefore, it may differ from the final tax liability.

An NRI may become eligible for a refund when:

A bank deducts excess TDS from NRO interest.
A buyer deducts excess tax on a property sale.
The NRI claims an eligible capital-gain exemption.
The NRI has eligible deductions.
A DTAA provides a lower rate.
Capital losses reduce taxable gains.
Taxable income remains below the applicable limit.
The payer deducts tax at a higher rate due to missing documents.

To claim the refund, the NRI should:

File the correct ITR.
Report gross income.
Claim eligible TDS.
Provide correct bank details.
Verify the return.
Respond to any tax query.

Can an NRI Receive a Refund in an NRO Account?

Yes. An NRI can generally nominate an eligible and pre-validated Indian bank account, including an NRO account, to receive the refund.

However, the account should remain active, and the name and PAN details should match the bank records.

Consequences of Late Filing

Late filing can lead to financial and compliance problems.

Late-Filing Fee

A late-filing fee may apply where the return is filed after the applicable due date.

The general fee may be:

₹1,000 where total income does not exceed ₹5 lakh
₹5,000 in other cases

Interest on Unpaid Tax

Interest may also apply because of:

Delay in filing
Inadequate advance tax
Delay in advance-tax instalments
Delay in self-assessment tax payment

The amount depends on the unpaid tax and the period of delay.

Loss of Carry-Forward Benefit

An NRI may lose the right to carry forward certain losses if the return is not filed within the original due date.

This commonly affects:

Business losses
Short-term capital losses
Long-term capital losses
Specified activity losses

However, house-property loss may follow different rules.

Therefore, an NRI with capital or business loss should file the return on time.

Delay in Refund

Late filing may delay return processing. As a result, the refund may also arrive later.

Income Tax Notices

The Income Tax Department may issue a notice when it finds a mismatch between:

ITR
Form 26AS
AIS
TIS
TDS returns
Bank records
Property records
Broker statements
Mutual fund information
Foreign remittance data

Therefore, the taxpayer should reconcile all important transactions before filing.

Common Mistakes NRIs Should Avoid

Common mistakes include:

Using ITR-1 or ITR-4
Treating citizenship as residential status
Failing to count days spent in India
Ignoring the 120-day rule
Ignoring deemed-resident provisions
Treating NRO and NRE interest alike
Failing to report NRO interest
Applying resident-seller TDS rules to an NRI property sale
Claiming Section 87A rebate
Reporting net income instead of gross income
Claiming TDS without reporting the related income
Ignoring AIS mismatches
Failing to report capital gains
Using incorrect broker reports
Claiming DTAA relief without documents
Failing to file Form 10F where required
Ignoring partnership income
Choosing the wrong tax regime
Selecting incorrect residential status
Failing to pre-validate the refund account
Missing the verification deadline
Assuming that TDS removes the filing requirement

By avoiding these mistakes, an NRI can reduce the risk of notices, tax demands, delayed refunds, and defective returns.

NRI Income Tax Return Filing Services in Greater Noida

NRI income tax return filing often involves much more than entering figures into an online form.

A Chartered Accountant in Greater Noida can assist with:

Residential status calculation
Day-counting analysis
Review of the 120-day and deemed-resident rules
Selection of the correct ITR form
Comparison of tax regimes
Reconciliation of AIS, TIS, and Form 26AS
Property capital-gain calculation
Share and mutual fund capital-gain calculation
Review of NRI property-sale TDS
Capital-gain exemption planning
Excess TDS refund claims
Review of NRO, NRE, and FCNR interest
DTAA relief
Tax Residency Certificate review
Form 10F filing
Income tax notice replies
Defective return correction
Revised or updated return filing, where permitted

NRIs who own a flat, house, plot, shop, or commercial property in Greater Noida can usually complete the filing process remotely.

They can share documents electronically, discuss the computation over a call, and complete verification online.

Conclusion

NRI income tax return filing requires more than simply entering income and TDS figures on the income-tax portal. Residential status, the source and place of receipt of income, capital gains, property transactions, bank interest, treaty benefits, and applicable deductions must all be examined carefully.

Every NRI’s situation is different. Travel history, country of residence, type of income, property ownership, investment activity, and treaty eligibility can significantly affect the final tax position.Therefore, NRIs should avoid relying on general assumptions or automatically copying figures from AIS and Form 26AS. A careful review of the complete facts can help ensure correct reporting, lawful tax savings, and a smoother income-tax filing experience.

For professional assistance with NRI income tax return filing, TDS refunds, property capital gains, DTAA relief, Form 10F, or NRI property-sale taxation, you may consult R Negi & Company, Chartered Accountants, Greater Noida. The entire filing process can be completed remotely through secure document sharing, online consultation, and electronic verification.

Frequently Asked Questions on NRI Income Tax Return Filing

1. Is ITR filing compulsory for every NRI?

No. An NRI generally needs to file an ITR if taxable income in India exceeds the applicable limit, capital gains arise, a refund is claimed, losses are carried forward, or DTAA relief is required.

2. Which ITR form should an NRI use?

ITR-2: Salary, pension, house property, capital gains, interest, or dividends
ITR-3: Business, profession, consultancy, F&O trading, or partnership remuneration

NRIs cannot file ITR-1 or ITR-4.

3. Is foreign income taxable in India?

Foreign income earned and first received outside India is generally not taxable for an NRI. However, income earned, received, or arising in India may be taxable.

4. Is NRO interest taxable?

Yes. NRO account interest is generally taxable in India. The NRI should report gross interest and claim eligible TDS separately.

5. Is NRE or FCNR interest exempt?

Eligible NRE and FCNR interest may remain exempt, subject to residential status and applicable banking conditions.

6. Is rental income from Indian property taxable?

Yes. Rental income from property situated in India is taxable. Eligible deductions may be claimed for municipal taxes, standard deduction, and housing-loan interest.

7. Is capital gain on sale of Indian property taxable?

Yes. Capital gains are generally taxable. However, eligible exemptions may be claimed by investing in a residential house, specified bonds, or another qualifying asset.

8. Should the buyer deduct only 1% TDS from an NRI seller?

No. The 1% TDS rule generally applies to resident sellers. TDS on payment to an NRI seller is deducted under the provisions applicable to non-residents.

9. Can an NRI apply for a lower TDS certificate?

Yes. An NRI may apply for a lower deduction certificate where the expected tax liability is lower than the normal TDS amount.

10. Can an NRI claim excess TDS refund?

Yes. Excess TDS deducted on bank interest, rent, dividends, or property sale can be claimed by filing the correct ITR.

11. Can an NRI claim Section 87A rebate?

No. The Section 87A rebate is available only to eligible resident individuals.

12. Can an NRI choose between the old and new tax regimes?

Yes, subject to applicable conditions. The NRI should compare both regimes before filing.

13. Can an NRI claim deductions under Sections 80C and 80D?

Yes, eligible deductions may be claimed under the old tax regime, subject to prescribed conditions.

14. What is DTAA relief?

DTAA relief helps avoid double taxation where the same income is taxable in India and another country. A Tax Residency Certificate and Form 10F may be required.

15. Does TDS remove the need to file an ITR?

No. TDS is only advance tax. Filing may still be required to report income, claim a refund, carry forward losses, or claim treaty relief.

16. Can an NRI file an ITR from outside India?

Yes. The return can be filed online from abroad and verified electronically or through signed ITR-V.

17. Can an NRI receive a refund in an NRO account?

Yes. The refund may generally be credited to an active and pre-validated NRO account.

18. What happens if an NRI files the return late?

Late filing may result in a late fee, interest, delayed refund, and loss of the benefit of carrying forward certain losses.

19. Does an NRI need to report foreign assets?

An NRI generally does not report foreign assets in the same manner as a resident and ordinarily resident taxpayer. The correct residential status should be confirmed first.

20. Can a Chartered Accountant file an NRI return remotely?

Yes. The entire process, including document review, tax calculation, return filing, DTAA review, and verification guidance, can be completed remotely.