Answer

ITR

Does an NRI need to file an Indian tax return

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  1. Facts

    An NRI must file if taxable Indian income is above the basic exemption limit. Many NRIs also file to claim back excess TDS on NRO interest, rent or property sale.

  2. Provisions and law

    • Sec 139(1), Income-tax Act 1961 (now Sec 263(1), Income-tax Act 2025)Return is required when total income exceeds the basic exemption limit or a set condition applies.
    • e-Filing portal, returns applicable to non-resident individualsNon-residents file ITR-2, or ITR-3 if they have business or professional income.

  3. Analysis

    Only income earned or received in India is taxed for a non-resident. Add up Indian salary, rent, NRO interest, capital gains and other Indian income. If it crosses the exemption limit, filing is required. Even if it does not, filing helps get back TDS that was cut at high flat rates.

  4. Conclusion

    1. List all Indian income for FY 2025-26.
    2. Check TDS deducted in Form 26AS.
    3. Compare total income with the exemption limit.
    4. File ITR-2 if needed or to claim a refund.

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