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How NRIs can file income tax return | ITR For Non-Resident India

Here’s all you need to know about the process for filing ITRs for NRIs..

nris file income tax return

Indians who are settled abroad or are earning outside need to file the income tax return by August 5, 2017. This is especially if you want to claim a refund!

Here’s all you need to know about the tax filing process for NRIs

Who is an NRI?

A non-resident India (NRI) is one who is a citizen of India or of Indian origin, but not a resident of India. Income Tax Act defines NRI as “an individual is said to be non-resident in India if he is not a resident in India and an individual is deemed to be resident in India in any previous year if he satisfies any of the other conditions.”

The other conditions include

  • The person needs to be in India for 182 days or more during the previous year.
  • The person needs to be in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.
  • For NRIs, income from salary earned in India themselves or someone does it on their behalf is taxable. The income will be taxed at the slab that one falls in.
  • Income from house property in India is taxable for NRIs.Certain exemptions are allowed here. A standard deduction of 30 percent is allowed with property tax deduction. Also tax benefit on house loanb interest is allowed.
  • Under Section 80C, NRIs are permitted deduction for principal repayment.
  • Income from other sources such as fixed deposits and savings account is taxable. Also, any capital gain will also be taxable.
  • Investment income - This is income from any major assets like shares in public or private company, deposits with bank or security with the central government.
  • Long-term capital gains - Gains from sale of assets is not taxable and no deductions are given under Section 80.

Process of filing return

NRIs will need to furnish the required documents to show income earned in India.

Alongwith this, they also need to submit bank account details, Non Resident Rupee (NRE) or Non Resident Ordinary (NRO) account statement, if any.

Once these documents are uploaded, NRIs will be easily able to file their income tax return. According to some recent reports, the NRIs were required to submit their foreign bank account details too. However, the Central Board of Direct Taxes clarified that these details is optional.

NRIs are also not required to quote Aadhaar details while filing returns.

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