India ITR Filing for NRIs — Complete Guide for 2025-26
Non-Resident Indians (NRIs) living in the United States have specific India Income Tax Return filing requirements that differ from residents. Even if you live in the US on an H1B or other visa, you may still need to file an ITR in India for Indian-source income. This guide covers everything you need to know.
Do NRIs Need to File an ITR in India?
An NRI must file an ITR in India if their taxable income from Indian sources exceeds ₹2.5 lakhs in a financial year (₹3 lakhs for age 60-80, ₹5 lakhs for 80+). Indian-source income includes:
- Rental income from Indian property
- Interest from NRO accounts (NRE interest is exempt)
- Capital gains from sale of Indian property, stocks, or mutual funds
- Dividends from Indian companies
- Business income from India
- Pension from Indian employer
US salary income earned while physically in the US is not taxable in India for NRIs — only Indian-source income is.
Which ITR Form Should an NRI File?
| ITR Form | Who Files It |
|---|---|
| ITR-1 (Sahaj) | NOT available for NRIs — only for residents |
| ITR-2 | NRIs with income from salary, house property, capital gains, or other sources (no business income) |
| ITR-3 | NRIs with business or professional income from India |
| ITR-4 | NOT available for NRIs |
Most NRIs file ITR-2 — it covers rental income, capital gains, NRO interest, and other passive income from India.
NRI Tax Rates in India (FY 2025-26)
Old Tax Regime
- Up to ₹2.5 lakh: Nil
- ₹2.5 – ₹5 lakh: 5%
- ₹5 – ₹10 lakh: 20%
- Above ₹10 lakh: 30%
New Tax Regime (Default from FY 2023-24)
- Up to ₹3 lakh: Nil
- ₹3 – ₹7 lakh: 5%
- ₹7 – ₹10 lakh: 10%
- ₹10 – ₹12 lakh: 15%
- ₹12 – ₹15 lakh: 20%
- Above ₹15 lakh: 30%
NRIs can choose between old and new regime. Bluewings Tax calculates which regime is more beneficial for your specific situation.
NRE vs NRO Account Tax Treatment
| NRE Account | NRO Account | |
|---|---|---|
| Interest tax in India | EXEMPT | Taxable (TDS at 30%) |
| Interest tax in US | Taxable (as resident alien) | Taxable (FTC available) |
| Repatriation | Freely repatriable | Up to $1M per year with CA certificate |
| FBAR reportable | Yes | Yes |
Capital Gains Tax for NRIs in India
Budget 2024 changed NRI capital gains tax rules significantly:
- Listed Indian stocks / equity mutual funds (STCG): 20% (increased from 15% in Budget 2024)
- Listed Indian stocks / equity mutual funds (LTCG): 12.5% above ₹1.25 lakh (increased from 10% above ₹1 lakh)
- Debt mutual funds: Taxed at slab rates for both short and long-term
- Indian property (LTCG): 12.5% without indexation (Budget 2024 removed indexation benefit)
- TDS on property sale: Buyer deducts TDS at 20% + surcharge on the entire sale amount
India ITR Deadlines for NRIs (FY 2025-26)
| Deadline | What |
|---|---|
| July 31, 2026 | Standard ITR deadline for NRIs (FY 2025-26) |
| October 31, 2026 | If accounts require auditing |
| December 31, 2026 | Belated return (with late fee under Section 234F) |
Documents Needed for NRI ITR Filing
- PAN card
- Form 26AS from TRACES (shows all TDS deducted)
- Annual Information Statement (AIS) from IT portal
- NRO bank statements (for interest income)
- Rental agreement and rent receipts (for rental income)
- Capital gains statements from broker / depository
- Property sale documents (if sold Indian property)
- Aadhaar (if linked to PAN)
File Your India ITR with Bluewings Tax LLP
Our India team handles NRI ITR-2 and ITR-3 filing with full DTAA analysis. Starting at $49.99. We also coordinate with your US return to maximize Foreign Tax Credits.
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