NRI Income Tax Filing Checklist for FY 2024-25
Non-Resident Indians (NRIs) must file their Income Tax Return (ITR) in India if they earn income here. From rental income to capital gains, understanding tax obligations is key to avoiding penalties and ensuring compliance.
This guide provides a complete checklist for NRI to file ITR, along with exemptions, forms, and latest CBDT updates.
Who is an NRI under Income Tax Act?
Under Section 6 of the Income-tax Act, 1961, a person is considered an NRI if:
- They were in India for less than 182 days during the relevant FY,
OR - In India for less than 60 days in the FY and less than 365 days in the preceding 4 years.
👉 Residential status must be checked each financial year before filing ITR.
Mandatory ITR Filing for NRIs: Who Should File?
You must file ITR in India if:
- Your gross total income exceeds ₹2.5 lakh (before deductions under Chapter VI-A).
- You earn:
- Rental income from Indian property
- Capital gains from shares, mutual funds, property sales
- Interest income from NRO accounts or deposits
- Business or professional income in India
🔺 Even if TDS is already deducted, filing is mandatory if income exceeds the basic exemption.
NRI ITR Filing Checklist
Here’s a step-by-step checklist for NRI to file ITR in AY 2025–26:
| ✅ Step | What to Check |
|---|---|
| 1. | Confirm residential status as per Section 6 |
| 2. | Gather PAN and Aadhaar (linking is mandatory if holding Aadhaar) |
| 3. | Choose correct ITR form (usually ITR-2 or ITR-3) |
| 4. | Collect documents: bank statements, Form 16A, TDS certificates, rent receipts, capital gain statements |
| 5. | Report foreign income, if taxable (in case of RNOR status) |
| 6. | Claim DTAA relief by filing Form 67 before ITR |
| 7. | Reconcile AIS/TIS data with actual income |
| 8. | Verify capital gains with broker/AMC statements |
| 9. | Use correct bank account (preferably NRO) for refunds |
| 10. | File ITR before 15th September 2025 (as extended by CBDT Circular No. 06/2025) |
Which ITR Form Should NRIs Use?
| Income Type | ITR Form |
|---|---|
| Salary, one-house property, no biz | ITR-2 |
| Business/professional income | ITR-3 |
| Presumptive income under 44ADA/44AE | ITR-4 (if RNOR) |
🛑 NRIs cannot use ITR-1 (Sahaj) or ITR-4 (Sugam) unless they qualify as RNOR.
How to Claim DTAA Relief (Form 67)
To avoid double taxation, NRIs can claim relief under the Double Taxation Avoidance Agreement (DTAA).
📌 File Form 67 on the income tax portal before filing the ITR
📌 Provide foreign tax paid details and country name
📌 Attach supporting documents like tax receipts, returns
🔍 Refer: Income Tax e-filing portal – Form 67 guide
Legal Reference & CBDT Updates
- Section 90/90A – DTAA Relief
- CBDT Circular No. 06/2025 – ITR due date extended to 15 Sept 2025
- Notification No. 40/2025 – Updated ITR Forms for AY 2025–26
- Form 67 Rule – Must be submitted before ITR filing for DTAA claim (refer: Gaurav Tiwari v. ITO, ITAT Delhi)
Expert View: One Crucial Tip
“Always review your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) before filing. For NRIs, mismatch in NRO interest or capital gains often leads to scrutiny.”
— CA R. Srivatsan, Cross-border Tax Expert
Common Mistakes NRIs Should Avoid
- Filing ITR-1 by mistake
- Not submitting Form 67 before claiming DTAA
- Ignoring capital gains on Indian mutual funds
- Using foreign bank accounts for refunds
- Not reporting NRO FD interest, assuming TDS is final
FAQ: NRI ITR Filing
Q1. Can NRI file ITR without Aadhaar?
Yes, but PAN-Aadhaar linking is mandatory if you have Aadhaar.
Q2. Is it compulsory for NRIs to file Form 67?
Only if claiming foreign tax credit (FTC) under DTAA.
Q3. Can NRIs claim 80C, 80D deductions?
Yes, if eligible investments/payments are made in India.
Summary
Checklist for NRI to file ITR in India: Confirm residential status, choose correct ITR form, file Form 67 for DTAA, and report all Indian income. Filing due by 15 Sept 2025.