Residential status comes first
Everything turns on residential status for the year. You're resident if you're in India for 182 days or more in the year, or for 60 days in the year and 365 days in the previous four years. For an Indian citizen or person of Indian origin visiting India, the 60 days is replaced by 182 days — or 120 days if Indian income exceeds ₹15 lakh, in which case the person is resident but not ordinarily resident. An Indian citizen with Indian income above ₹15 lakh who isn't liable to tax in any other country is also treated as resident but not ordinarily resident.
Getting status right decides whether foreign income is taxable in India at all, so we work it out from travel dates before anything else.
What an NRI typically reports
| Income | Tax treatment | Notes |
|---|---|---|
| Rent from Indian property | Taxable, with a 30% standard deduction and interest on housing loan | Tenant deducts TDS on rent paid to an NRI |
| Interest on NRO deposits | Taxable | TDS usually deducted by the bank |
| Interest on NRE and FCNR deposits | Exempt for NRIs | Becomes taxable when status changes |
| Capital gains on property, shares, mutual funds | Taxable at capital gains rates | See capital gains |
| Dividends from Indian companies | Taxable | TDS deducted, subject to treaty rates |
Documents required
- Passport pages with travel dates, or a list of days in India for the year and the previous years.
- PAN, and Aadhaar if you have one.
- Form 26AS (Form 168 from tax year 2026-27) / AIS and TDS certificates.
- Bank statements for NRO, NRE and FCNR accounts.
- Rent agreements and property tax receipts.
- Capital gains statements and property sale documents.
- Tax Residency Certificate and Form 10F, if claiming treaty relief.
How we file it
Determine residential status
From your travel dates for the year and previous years.
Collect income details
AIS, 26AS and bank statements show most of it; we fill gaps with you.
Apply the treaty where beneficial
Treaty rates or credits applied where the documents support them.
Choose the form and file
Usually ITR-2 for NRIs with capital gains or more than one property; the return is e-verified online.
Track the refund
Refunds go to a pre-validated Indian bank account; we follow up if processing stalls.
Practical notes from our engagements
- NRE interest shown as taxable. It's exempt while you're an NRI. Including it inflates tax.
- TDS at the maximum rate and no return filed. Many NRIs lose refunds by not filing. The return is how excess TDS comes back.
- Status changed on return to India. In the year of return you may be resident but not ordinarily resident, which keeps most foreign income outside Indian tax for a while.
- Bank account not pre-validated. Refunds go to a pre-validated Indian account, or to one foreign account named in the return if the NRI has no bank account in India.
How we handle NRI returns
We work out residential status from your travel dates, reconcile AIS and TDS, apply treaty relief where it helps, and file and e-verify the return online. Everything can be done without visiting India.
Related services
Frequently asked questions
Does an NRI need to file an income tax return in India?
If Indian income exceeds the basic exemption limit, yes. Even below that, filing is how excess TDS is refunded.
Is NRE interest taxable?
No, interest on NRE and FCNR deposits is exempt for NRIs. Interest on NRO deposits is taxable.
How is residential status decided?
By the number of days in India in the year and earlier years, under Section 6. Special rules apply to Indian citizens and persons of Indian origin, including a 120-day test where Indian income exceeds ₹15 lakh.
Can I claim treaty benefits?
Yes, where the treaty is more beneficial, with a Tax Residency Certificate from your country of residence and Form 10F (Form 41 from tax year 2026-27).
Which ITR form do NRIs use?
Usually ITR-2. ITR-1 isn't available to NRIs; ITR-3 applies if there's business income.
Can the refund go to a foreign bank account?
Usually to a pre-validated Indian bank account. A non-resident with no bank account in India can give one foreign bank account in the return for the refund.
