NRI Income Tax Filing
Non-Resident Indians (NRIs) earning income in India are required to file an NRI Income Tax Return if their total income exceeds the basic exemption limit. The taxability depends on the residential status as per the Income Tax Act, 1961.
Professional CA/CS/CMA Support
Quick Process
100% Compliance Support
Easy Process
All Financial Services in One Place
Tele Support
Determination of Residential Status
As per Section 6 of the Income Tax Act, an individual is classified as an NRI if:
And then finally comes the day when you have to pay Income Tax.
- They spend less than 182 days in India during the financial year, OR
- They have stayed less than 60 days in India during the financial year and less than 365 days in the last four years.
Taxable Income for NRIs
NRIs are taxed only on income earned or accrued in India. Common taxable sources include:
- Salary Income: If salary is received in India or for services rendered in India (Section 9(1)(ii)).
- Rental Income: Taxable under Income from House Property (Section 22-27).
- Capital Gains: Profits from selling property or shares in India (Section 45).
- Interest Income: Fixed deposit interest (taxable) vs. NRE account interest (exempt under Section 10(4)(ii)).
- Dividend Income: Taxable if received from Indian companies (Section 115A).
NRI Income Tax Slabs for FY 2024-25
NRIs follow the same tax slabs as resident individuals under the old tax regime:
Up to ₹2.5 lakh
₹ 2.5 lakh - ₹5 lakh
₹5 lakh - ₹10 lakh
Above ₹10 lakh
Preparation and Computation of Income Tax and Filing of Income Tax Returns
- Determine Taxable Income: Compute income from Indian sources.
- Choose the Correct ITR Form: NRIs typically file ITR-2 or ITR-3.
- Claim Deductions & Exemptions.
- Pay Advance Tax (if applicable) to avoid penalties.
- File ITR on the Income Tax Portal: www.incometax.gov.in
- E-Verify ITR using Aadhaar OTP, Net Banking, or DSC.
Double Taxation Avoidance Agreement (DTAA)
NRIs earning income in both India and their country of residence may face double taxation. To avoid this:
- Claim tax credit under DTAA.
- Obtain a Tax Residency Certificate (TRC) from the foreign country.
- Use DTAA benefits to lower TDS in India.
Consequences of Filing Belated Return of Income (ROI)
Filing a belated return can lead to:
- Penalty under Section 234F: ₹1,000 to ₹5,000.
- Interest under Section 234A, 234B, 234C.
- Loss of certain exemptions and deductions.
- Increased scrutiny from tax authorities.
Updated Tax Return (ITR-U)
If an NRI misses filing or discovers errors in the ITR, they can file an Updated Return (ITR-U) under Section 139(8A):
- Can be filed within two years of the end of the relevant assessment year.
- Requires payment of additional tax.
- Used for correcting omissions or errors.
Benefits of Voluntary Return of Income (ROI) Filing in India
Even if not mandatory, filing an ROI offers benefits such as:
- Claiming Refunds: If excess TDS is deducted.
- Establishing Income Proof: Useful for loans and financial transactions.
- Avoiding Notices from the IT Department.
- Compliance with Tax Laws: Prevents legal issues.
NRI Income Tax Filing Packages
NRI IT
Tax Robo Basic
₹5999 .00
* All Exclusive tax
-
Income Earned Outside India (eg.Salary)
- House Property Rental Income
- Interest Income
- Dividend Income
- Computation of Total Income
- Tax Payment Assistance
- TDS Refund
-
Expert Assisted Tax Filing
NRI IT
Tax Robo Premium
₹8499 .00
* All Exclusive tax
- Income Earned Outside India (eg.Salary)
-
House Property Rental Income
-
Interest Income
- Dividend Income
- Computation of Total Income
- Tax Payment Assistance
- TDS Refund
- DTAA Benefits to Avoid Double Taxation
-
Declaration of Foreign Assets for Indian Residents
-
Expert Assisted Tax Filing
NRI IT
Tax Robo Family Auditor
₹14999 .00
* All Exclusive tax
- LTCG/STCG on Sale of Indian assets (property, shares).
- Futures & Options Trading
- House Property Rental Income
-
Interest Income
- Dividend Income
- Computation of Total Income
- Tax Payment Assistance
- TDS Refund
- DTAA Benefits to Avoid Double Taxation
-
Declaration of Foreign Assets for Indian Residents
- Income Earned Outside India (eg.Salary)
-
Expert Assisted Tax Filing
Documents Required for NRI Tax Filing
NRIs need the following documents to file their tax returns in India:
- PAN Card
- Aadhaar Card (if applicable)
- Bank Statements (Indian and foreign)
- Form 16 / Salary Slips (if applicable)
- Investment Proofs for deductions
- TDS Certificates (Form 16A)
- Property Sale or Rental Agreement (if applicable)
- Foreign Tax Residency Certificate (for DTAA claims)
Frequently Asked Questions (FAQs)
No, NRIs do not need to file an ITR if their total income in India is below the exemption limit of ₹2.5 lakh.
Yes, NRIs can claim a refund if excess TDS has been deducted by filing their ITR and claiming a refund.
NRIs typically file ITR-2 (for income from capital gains, house property, etc.) or ITR-3 (if they have business/professional income).
No, only income earned or received in India is taxable for NRIs. Foreign income is not taxed in India.
Late filing can attract penalties under Section 234F and interest under Sections 234A, 234B, and 234C.
Yes, NRIs can hold both accounts. NRE accounts are tax-free, while NRO accounts are subject to TDS at 30% on interest earned.
NRIs must file an ITR if their total taxable income in India exceeds the basic exemption limit of ₹2.5 lakh.
No, NRIs can file their ITR online from anywhere in the world.
Yes, NRIs get the basic exemption limit of ₹2.5 lakh. However, they are not eligible for certain deductions available to residents.
Yes, if the total tax liability exceeds ₹10,000 in a financial year, NRIs must pay advance tax to avoid interest penalties under Sections 234B and 234C.
Interest earned on an NRE savings account is tax-exempt under Section 10(4)(ii). However, interest on NRO accounts is taxable at 30%.
NRIs can pay taxes online through the Income Tax e-filing portal, using net banking, credit/debit cards, or authorized banks.
Filing an NRI Income Tax Return in India is crucial for compliance and avoiding penalties. Ensure accurate reporting of income and deductions. Need expert assistance? Contact TAX ROBO for hassle-free NRI tax filing services.
