From Capital Gains, Business Income to Rent in India — NRIs Must Know These Tax Rules Before ITR Filing

NRI Income Tax Return Filing is a legal obligation for Non-Resident Indians earning income from Indian sources. Whether it’s rent, interest, or capital gains, filing ITR helps ensure compliance, avoid penalties, and reclaim excess tax deducted at source. The due date to file for FY 2024–25 is July 31, 2025.

If you’re looking for expert assistance to navigate these changes, FilingIn offers personalized tax planning and seamless ITR filing services designed to meet your specific needs.

Understanding Residential Status for NRI Tax Filing

Before filing, it is essential to determine your residential status under the Income Tax Act. You are considered an NRI if:

• You have spent less than 182 days in India in the financial year, or

• You were in India for less than 60 days in the year and less than 365 days in the last 4 years.

For Indian citizens working abroad or crew members, the 60-day rule becomes a 120-day rule if income in India exceeds ₹15 lakh.

When Is NRI Income Tax Return Filing Required?

You must file ITR in India if:

• Your total income in India exceeds the basic exemption limit (₹2.5 lakh for individuals below 60).

• You want to claim a refund on TDS deducted.

• You wish to carry forward capital losses to offset against future gains.

Taxable Income Sources for NRIs

If you’re an NRI, the following income types are taxable in India:

• Salary received or credited in India

• Rental income from property in India

• Interest from NRO accounts, fixed deposits

• Capital gains from mutual funds, shares, or property in India

Income earned outside India is not taxable for NRIs.

Choosing the Correct ITR Form for NRIs

Selecting the right ITR form is critical for smooth processing. Here’s a quick guide:

• ITR-2: For NRIs with salary, house property, capital gains, and other sources (no business income)

• ITR-3: For NRIs earning from business or profession in India

• ITR-1: Not applicable for NRIs

Documents Required for NRI Income Tax Return Filing

To avoid delays, ensure the following documents are in place:

• PAN card, Passport, and Visa copy

• Proof of residential status (travel history or foreign visa)

• Details of NRO/NRE accounts

• Form 26AS and AIS/TIS for tax credits

• TDS certificates from banks or tenants

• Capital gain reports and rent receipts

How to File ITR as an NRI

You can file your ITR through the Income Tax e-Filing Portal:

1. Login using PAN

2. Choose the correct ITR form

3. Fill income, deduction, and bank details

4. Submit and e-verify the return within 30 days

   • Verification methods: Aadhaar OTP, net banking, or physical ITR-V post

Important Deadlines for FY 2024–25

Delays attract late fees and may restrict loss carry-forward options.

Frequently Asked Questions (FAQs)

1.  Is NRI Income Tax Return Filing compulsory for low income?
   Only if taxable income in India exceeds ₹2.5 lakh. However, file to claim refunds or carry forward losses.
2.  Can NRIs claim deductions under 80C?
   Yes, for specific investments like LIC, ELSS, and tuition fees (under the old regime).
3. Can NRIs file ITR without Aadhaar or Indian mobile number?
   Yes. Verification can be done via net banking or by sending ITR-V by post.
4. Is rental income taxable in India for NRIs?
   Yes. Tenants must deduct TDS before making payment to NRIs.