Key Considerations for NRIs Filing Tax Returns Ahead of the July 31, 2026 ITR Deadline
July 31, 2026, is the deadline for salaried taxpayers and pensioners to file their income tax returns in India. Non-Resident Indians (NRIs) must also report their Indian income in their tax returns. This includes income received, accrued, or deemed to accrue in India, such as salaries for services rendered, rental income from properties, interest from bank accounts, capital gains, and other India-sourced income.
NRI Tax Filing: Quick Guide
Parizad Sirwalla, Partner and Head of Global Mobility Services at KPMG in India, provides essential tips for NRIs filing their tax returns. The process for NRIs is similar to that of resident taxpayers, with returns filed through the Income Tax e-Filing portal using the appropriate ITR form. NRIs should first confirm their tax residential status for the relevant financial year and report their taxable income accordingly.
First-time filers need to register on the Income Tax e-Filing portal at incometax.gov.in. They should ensure their PAN, bank account, and contact details are updated and have supporting documents related to income and taxes deducted ready before filing. Generally, NRIs should use ITR-2 if they do not have business or professional income. If they do, ITR-3 is required, with a deadline of August 31, 2026.
Before filing, NRIs should review Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS) to verify tax deducted at source and income details. It is crucial for NRIs to assess any benefits available under a Double Tax Avoidance Treaty (DTAA) that India may have with their host country. For instance, US tax residents, who are non-residents of India, face a maximum Indian tax rate of 15% on their interest income from India.
After logging into the portal with their PAN and password, NRIs should select the relevant assessment year (AY 2026-27 for the financial year ending March 31, 2026), choose the applicable ITR form, verify pre-filled details, report taxable income, and calculate the tax payable. They must also report their days of stay in India during the relevant financial year and the previous years, along with their country of tax residence and tax identification number.
The filing process is complete only after the submitted return is e-verified through various options, such as Aadhaar OTP. If NRIs cannot e-verify their return through electronic means, they may send a signed hard copy of the ITR-V acknowledgment to the Centralized Processing Centre of the Income Tax Department in Bengaluru.
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