ITR for NRI

What are the Conditions for Filing ITR for NRI in India?

Have a look at the following conditions required for filing ITR for NRI in India:

• The gross income slab of an NRI is above Rs. 2,50,000 (old tax regime).
• The gross income slab of an NRI is above Rs. 4,00,000 (new tax regime).
• If you want a refund of the TDS deducted on the income accrued from rent or interest on NRO accounts.
• ITR must be filed before the due date as specified from time to time.

Who Needs to File NRI Taxes in India?

The list of individuals eligible to file NRI taxes in India is as follows:

• NRI earning income from India.
• NRI selling property, shares, or other assets located in India.
• NRI having deposits over Rs. 1 crore in one or more current accounts.
• NRI spending over Rs. 2 lakhs on travel to a foreign country.
• NRI claiming a refund for TDS on income like bank interest or property rent.

What is the Process of Income Tax Return Filing for NRIs?

The process of income tax return filing for NRIs with Corpbiz's expert-led support is given below:

1. Step 1: Determine Residential Status
   The foremost step is to determine the residential status of NRIs based on the number of days stayed in India.


2. Step 2: Calculate Taxable Income & DTAA Benefits
   The next step is to calculate the taxable income accrued or received by the NRIs in India and claim relief under the Double Taxation Avoidance Agreement.


3. Step 3: Gather Financial Documents
   The next step is to gather the necessary financial documents, including Form 26AS, TDS certificates, and proof of income required for filing an ITR for an NRI in India.


4. Step 4: Choose the Appropriate ITR Form for NRI
   The next step is to choose and file an appropriate ITR form for NRI via the Income Tax Department's website or authorized e-filing portals.


5. Step 5: Claim Deductions
   NRIs are further required to claim deductions for life and term insurance premiums under section 80C, medical insurance premiums under section 80D, and interest on education loans under section 80E, if applicable.


6. Step 6: Verify Your ITR
   The last step is to e-verify the ITR filing through Aadhaar OTP, net banking, demat account, digital signature certificate, or bank electronic verification code.

Curious to Know the Types of ITR Form for NRIs?

The different types of ITR form for NRIs are discussed below:

• ITR 2: ITR 2 is a type of income tax return applicable to both resident & non-resident individuals and Hindu Undivided Family, having income under any head other than Profits and Gains of Business or Profession.
• ITR 3: ITR 3 is a type of return applicable to both resident & non-resident individuals and Hindu Undivided Families, having income under the heads of Salary/Pension, House Property, and Profits.
• Form 12BB: Form 12BB is a form applicable to NRIs to record the particulars of an employee's claims for deduction of tax under section 192 of the Income-tax Act, 1961.
• Form 16: Form 16, which comprises details of tax deducted at source on salary using section 203 of the Income Tax Act, 1961, is a form applicable to NRIs.
• Form 16A: Form 16A is a form applicable to NRIs for the issuance of a quarterly certificate capturing the amount of TDS, Nature of Payments, and the TDS deposited with the Income Tax Department.
• Form 26AS: Form 26AS is a tax credit statement that primarily shows TDS/TCS and tax payments, and is crucial for verifying tax deducted in India.
• AIS: AIS, which stands for Annual Information Statement, is a document that lists a wider range of financial transactions, including savings account interest, dividend income, security transactions, and foreign remittances.
• Form 10E: Form 10E is a form used to furnish particulars of Income for claiming relief under Section 89(1) of the Income-tax Act, 1961.
• Form 3CB-3CD: Form 3CB-3CD is to be submitted by a taxpayer who is required to get their accounts audited by an Accountant using Section 44AB of the Income Tax Act, 1961.
• Form 3CEB: Form 3CEB is a form provided by the taxpayer who obtains a report from an accountant under Section 92E for entering into an international transaction or specified domestic transaction.
• Form 3CE: Form 3CE is used to provide a report from an accountant, relating to the receipt of Income by way of royalty or fees for technical services from the government or an Indian concern.