NRIs with Indian income above ₹2.5 lakh must file ITR-2. DTAA benefits available.
Non-Resident Indians (NRIs) with Indian-sourced income above ₹2.5 lakh must file ITR-2 in India. NRO interest is taxable, NRE/FCNR is exempt. DTAA with 90+ countries allows reducing or eliminating double taxation. Understand your Indian tax obligations here.
< 182 days in India
Residential status test
ITR-2
ITR form for NRIs
Tax-free
NRE account interest
Taxable
NRO account interest
20% (Sec 115E)
Special rate (investment income)
July 31, 2026
Filing deadline
Under the Income Tax Act (Section 6), you are a Non-Resident Indian if you were in India for fewer than 182 days during FY 2025-26. Additional rule: if you were in India for fewer than 60 days in FY 2025-26 AND fewer than 365 days in the preceding 4 financial years, you are also an NRI. If your Indian income exceeds ₹15 lakh and you do not qualify as a resident of any other country, you may be treated as a 'Deemed Resident' with worldwide income taxable.
NRIs are taxed only on income sourced in India or received in India: salary for services in India, rental income from Indian property, capital gains from sale of Indian assets (equity, mutual funds, property), interest from NRO accounts, dividends from Indian companies, and business income from operations in India. Interest from NRE and FCNR accounts is fully exempt from Indian income tax.
India has Double Taxation Avoidance Agreements (DTAAs) with 90+ countries including the US, UK, UAE, Singapore, Australia, Canada, and Germany. To claim DTAA benefits: obtain a Tax Residency Certificate (TRC) from your country of residence, file Form 10F with Indian income payors. Budget 2025 expanded the ability to furnish TRC directly for lower TDS rates under Section 196A.
NRIs who invested using convertible foreign exchange (not NRO funds) get special rates under Section 115E: investment income (interest on NRO deposits made in foreign exchange) taxed at 20%, and LTCG from specified assets at 12.5%. Basic exemption limit does not apply to these special-rate income items.
Filing is mandatory if total Indian income exceeds ₹2.5 lakh in a financial year. Filing is optional (but recommended) if income is below ₹2.5 lakh — especially if TDS was deducted at source and you want a refund. ITR-1 and ITR-4 are not available to NRIs; only ITR-2 (no business income) or ITR-3 (with Indian business income).
This income type requires ITR-2
Filing the wrong form results in a defective return
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