ITR Filing Rules Updated: Key Forms and Steps NRIs Must Know
The Income Tax Department has revised Income Tax Return (ITR) filing norms for the assessment year 2025–26, bringing clarity for non-resident Indians (NRIs) and streamlining the process for various taxpayer categories.
With the ITR filing deadline nearing, NRIs are required to use either the ITR-2 or ITR-3 forms, depending on the nature of their income. According to the latest notification:
- ITR-2 applies to individuals and Hindu Undivided Families (HUFs), including NRIs, who earn income from salaries, capital gains, house property, or other sources like dividends and interest.
- ITR-3 is to be used by those earning income from a business or profession.
- ITR-1 (Sahaj), widely used by resident individuals with simple income profiles, is not applicable to NRIs, even if their income qualifies under the form's parameters.
Declare NRI Status First
Before filing, taxpayers must first establish their residential status under Section 6 of the Income Tax Act. An individual is considered a non-resident if they spend less than 182 days in India during a financial year or less than 60 days in a year and under 365 days in the preceding four years.
Documents Required
NRIs must gather essential documents such as:
- PAN card
- Passport and visa
- Proof of foreign residence
- NRE (Non-Resident External) and NRO (Non-Resident Ordinary) account details
- Form 26AS, AIS (Annual Information Statement), and TIS (Taxpayer Information Summary)
- Income certificates from interest, rent or capital gains
- Supporting documents for deductions under Sections 80C, 80U, etc.
How to File
Returns can be filed via the Income Tax Department’s e-filing portal using the PAN as login ID. The process involves entering income and deduction details, uploading documents, submitting the return, and completing e-verification within 30 days to validate the filing.
NRIs have been advised to double-check forms as incorrect ITR form can lead to notices or delays in refunds.
Govt Push for Digitisation
The government is also encouraging broader use of AIS and TIS tools to pre-verify income reported by financial institutions and ensure accuracy, helping taxpayers avoid mismatches and notices.
