ITR for NRI 2026: What's Different From Residents
This guide is for financial year 2025-26 (AY 2026-27) — the return you file in 2026 for income earned from April 2025 to March 2026.
ITR for NRI: What's Different in One Page
Residency decides everything. Under Section 6 of the Income Tax Act, you are a resident if you are in India 182+ days in the financial year, or 60+ days (120 for certain Indian citizens) plus 365+ days in the preceding 4 years. Otherwise you are a non-resident (NRI). A resident who does not meet the "ordinarily resident" test is RNOR (resident but not ordinarily resident).
Tax scope: NRIs are taxed only on income that is received, accrues or arises in India. Residents are taxed on global income. RNORs are taxed on Indian income plus income earned from a business controlled or profession set up in India.
Forms: NRIs cannot file ITR-1 or ITR-4. They file ITR-2 (no business/profession income in India) or ITR-3 (business or profession in India). RNORs also cannot file ITR-1 or ITR-4; they file ITR-2 or ITR-3 only.
Key differences: No Section 87A rebate for NRIs. TDS on NRO interest (30%), rent (31.2% from first rupee), and capital gains at prescribed rates. DTAA and Form 10F can reduce TDS when your country of residence has a treaty with India.
| Status | Tax scope | Forms you can use |
|---|---|---|
| Resident (ROR) | Global income | ITR-1, ITR-2, ITR-3, ITR-4 (if eligible) |
| NRI | Only Indian income | ITR-2 or ITR-3 (not ITR-1 or ITR-4) |
| RNOR | Indian income; plus income from business controlled in India or profession set up in India (even if earned abroad) | ITR-2 or ITR-3 only (not ITR-1 or ITR-4) |
Are You NRI or RNOR?
Residency is based on days in India during the financial year (April to March), not citizenship.
- Resident: You were in India for 182 days or more in the FY, OR you were in India for 60 days or more in the FY and 365 days or more in the four years immediately before the FY.
- Indian citizens / PIO with income above Rs 15 lakh (excluding foreign income): The 60-day rule is relaxed to 120 days. So you can stay up to 119 days in India and still be NRI if your Indian income (or total income excluding foreign salary) exceeds Rs 15 lakh.
- NRI: You do not meet either resident condition.
- RNOR: You are a resident but you were not resident in India in at least 2 out of the 10 previous years, or you were not in India for 730 days or more in the 7 years immediately before the FY. RNORs cannot file ITR-1 or ITR-4; they file ITR-2 or ITR-3 only.
Practical tip: Keep a record of entry and exit dates (passport stamps or travel history). The tax department can ask for proof of days in India. Indian income above Rs 15 lakh gives you the 120-day cushion instead of 60.
Which Income Is Taxable for an NRI?
Only income that is received, accrues or arises in India is taxable for an NRI. Common sources:
- Salary for services rendered in India
- Rent from property in India
- Interest from NRO accounts (NRE and FCNR interest is exempt)
- Capital gains on sale of Indian assets (shares, property, mutual funds)
- Dividends from Indian companies
- Business or profession carried on in India
Foreign salary, NRE/FCNR interest, and foreign capital gains are not taxable in India for an NRI. If you have only NRE fixed deposits and no other Indian income, you may not need to file an ITR unless you want to claim a refund or report something for records.
Which ITR Form Do NRIs File?
Use the quick check below, or pick the scenario that matches you. Then confirm with our ITR form selector (it asks NRI/RNOR in the first question).
Not sure of your status? Use the ITR form selector and choose "NRI" or "RNOR" in the first step. For residency rules, see the section above.
Pick your situation
NRI Tax Slabs and What You Don't Get
NRIs are taxed at the same slab rates as residents for their Indian income, but Section 87A rebate is not available to NRIs in either regime. Tax is payable from the first rupee above the basic exemption: Rs 2.5 lakh under the old regime or Rs 4 lakh under the new regime (FY 2025-26). NRIs can choose the old or new regime; the new regime is the default if no choice is made.
| Income (Rs) | Rate (old regime) |
|---|---|
| Up to 2,50,000 | Nil |
| 2,50,001 to 5,00,000 | 5% |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% + 4% cess |
The table shows old regime slabs. Under the new regime for FY 2025-26, slabs are: nil up to Rs 4 lakh, 5% (4–8 L), 10% (8–12 L), 15% (12–16 L), 20% (16–20 L), 25% (20–24 L), 30% above Rs 24 lakh. Surcharge applies at higher income (e.g. 10% above Rs 50 lakh, 15% above Rs 1 crore). Health and education cess of 4% applies on tax plus surcharge.
TDS for NRIs: Rent, Interest, Capital Gains
Payers must deduct TDS at the rates applicable to NRIs. You can claim a refund by filing your ITR if TDS is more than your tax liability. Typical rates (including surcharge and cess where applicable):
| Income type | TDS rate (NRI) |
|---|---|
| NRO interest | 30% (+ surcharge + 4% cess) |
| Rent (from first rupee) | 31.2% (30% + 4% cess). Lower if DTAA or lower TDS certificate. |
| LTCG on listed equity / equity MF (Section 112A) | 12.5% (from July 2024) |
| LTCG on immovable property | 12.5% (from July 2024; no indexation). Earlier 20% with indexation. |
| STCG on equity (Section 111A) | 15% |
| Other income (e.g. other STCG) | 30% (+ surcharge + cess) |
NRE and FCNR interest is tax-free in India; no TDS. If you have a valid DTAA and file Form 10F with a Tax Residency Certificate, the payer may deduct at the lower treaty rate.
DTAA and Form 10F: Lower TDS When It Applies
India has Double Taxation Avoidance Agreements (DTAA) with many countries. If you are a tax resident of a treaty country, you can often claim a lower rate of TDS on Indian income (e.g. interest, capital gains, royalty). To claim the benefit, you must typically submit a Tax Residency Certificate (TRC) from your country of residence and, in many cases, Form 10F on the Income Tax e-filing portal. Form 10F is a self-declaration with your address, TIN, nationality, and period of residence. Without TRC and Form 10F (where required), the payer will deduct TDS at the domestic rate (e.g. 30% on interest). File Form 10F before or when you file your ITR so that DTAA relief is not denied during assessment.
Note: From July 2022, Form 10F must be filed electronically. If your TRC already contains all prescribed details, some payers may accept it without a separate Form 10F; confirm with the deducter or a CA.
NRI ITR Deadline and When You Must File
For FY 2025-26 (AY 2026-27), the due date for filing ITR-1 and ITR-2 is July 31, 2026. So NRIs filing ITR-2 (no audit) must file by July 31. If you are required to get your accounts audited, the due date is October 31, 2026. Revised returns can be filed by March 31, 2027 (Budget 2026 change). See Budget 2026 ITR Deadlines and Tax Calendar 2026 for full dates.
You must file an ITR if your total Indian income exceeds the basic exemption (Rs 2.5 lakh), or if you have refund to claim, or if you have losses to carry forward, or in certain cases even when income is below the exemption (e.g. to support visa or loan applications).
Latest Data: NRI Filings Are Rising
NRI ITR filings have grown sharply in recent years. Over 7.2 lakh NRI returns were filed in FY 2023-24, up from around 6.8 lakh in the previous year and about 4.9 lakh in FY 2019-20. Clearer residency rules after the 2020 Budget and more NRIs with Indian investments (real estate, capital markets) have driven compliance. If you are an NRI with Indian income, you are part of a large and growing segment; filing on time and with the correct form keeps refunds and records in order.
Frequently Asked Questions
Disclaimer: This article is for informational purposes only. Tax rules and treaties can change. Consult a qualified CA or tax professional for advice specific to your situation.