Which ITR form should an NRI use?

NRIs commonly use ITR-2 when they have Indian income and no business or professional income. ITR-3 may apply where business or professional income is involved.

Is foreign income taxable for an NRI in India?

For a non-resident, income that accrues or arises in India, is received in India, or is deemed to accrue or arise in India is generally reviewed for Indian tax. Foreign income outside India is generally not taxed in India for an NRI, subject to facts.

Can an NRI claim refund in India?

Yes. NRIs can file ITR to claim refund when TDS or taxes paid exceed final Indian tax liability.

Reviewed for current filing season: 9 June 2026

NRI ITR filing guide for AY 2026-27

NRI tax filing depends on residential status, Indian income, TDS, property, capital gains, bank interest, DTAA relief and the correct ITR form. NRIs often file to report taxable Indian income, claim refund, disclose capital gains or respond to AIS/Form 26AS mismatches.

Quick answer: ITR-2 is commonly used by NRIs with Indian income and no business/profession income. ITR-3 is reviewed where business or professional income exists.

Common Indian income for NRIs

Rent from property in India.
Interest from NRO accounts or Indian deposits.
Capital gains from Indian shares, mutual funds or property.
Salary received in India or for services rendered in India.
Business or professional income connected with India.

Examples

NRI with rental income

Rent from an Indian property, TDS, municipal taxes and home-loan interest should be reported and reconciled before claiming refund.

NRI sells Indian shares

Capital gains schedules, broker statements, AIS entries and TDS, if any, should be checked in ITR-2 where no business income exists.

Resident status changed

A taxpayer returning to India should review residential status, RNOR possibility, foreign income and foreign asset schedules carefully.

Documents needed

Passport travel dates and residential status details.
PAN, Aadhaar where applicable, Indian bank account and contact details.
Form 26AS, AIS, TIS and TDS certificates.
Rent agreements, property documents and home-loan statements.
Broker or mutual fund capital gains statements.
Foreign tax documents and DTAA evidence where relief is claimed.

Refund and bank validation

Refund processing depends on correct ITR filing, successful verification, accurate TDS credit and a valid bank account. If refund is delayed, check ITR status, bank validation, outstanding demand and AIS/Form 26AS mismatches.