This guide provides comprehensive information for Non-Resident Indians (NRIs) regarding their tax filing requirements in India for the Financial Year 2024-25 (Assessment Year 2025-26), including compliance for taking tax credit in their home country.

I. Determining Your Residential Status in India (FY 2024-25)

Your residential status dictates your taxability in India. For FY 2024-25 (April 1, 2024, to March 31, 2025), you are considered an NRI if you meet neither of the following conditions:

• Condition 1: You are in India for 182 days or more during FY 2024-25.
• Condition 2: You are in India for 60 days or more during FY 2024-25 AND 365 days or more during the four financial years immediately preceding FY 2024-25 (i.e., FY 2020-21, 2021-22, 2022-23, and 2023-24).

Important Exceptions for Indian Citizens/Persons of Indian Origin (PIOs):

• Visiting India: If you are an Indian citizen or PIO visiting India, the 60-day period in Condition 2 is extended to 120 days if your total Indian income (excluding foreign source income) exceeds ₹15 lakh during FY 2024-25.
• Leaving for Employment/Crew Member: If you are an Indian citizen leaving India for employment abroad or as a crew member of an Indian ship, only the 182-day rule (Condition 1) applies to determine your residential status.

If you satisfy any of the conditions to be considered a resident, but not the additional conditions to be “Ordinarily Resident,” you might be classified as a Resident but Not Ordinarily Resident (RNOR). For tax purposes, RNORs are taxed similarly to NRIs, meaning only their Indian-sourced income is taxable in India.

II. Taxability of Income for NRIs in India

As an NRI, your tax liability in India is limited to income that is:

• Earned or Accrued in India: This refers to income whose origin or source is in India. Examples include:
  • Salary for services rendered in India.
  • Rental income from property located in India.
  • Capital Gains arising from the sale of assets situated in India (e.g., real estate, shares of Indian companies, mutual funds).
  • Interest income from Non-Resident Ordinary (NRO) accounts, Indian fixed deposits.
  • Dividend income from Indian companies.
  • Business or professional income derived from operations in India.
• Received or Deemed to be Received in India.

Income earned outside India is generally not taxable in India for NRIs.

III. Taxation of Specific Income Types for NRIs (FY 2024-25)

Income Source	Tax Treatment for NRIs in India	Applicable TDS Rate (General)	Notes
Interest Income
NRO Account Interest	Taxable at slab rates.	30% (+ surcharge & cess)	Subject to TDS. You must file an ITR to report this income and claim a refund if excess TDS was deducted.
NRE Account Interest	Exempt from tax in India.	Nil	Provided FEMA regulations are met. No ITR filing required if this is your only income.
Fixed Deposits (India)	Taxable at slab rates (NRO FDs). Exempt (NRE FDs).	30% (+ surcharge & cess) on NRO FDs
Rental Income (Indian Property)	Taxable at slab rates.	30% (or DTAA rate if lower)	You can claim 30% standard deduction on rental income. Municipal taxes paid are also deductible. TDS is applicable on rent paid to NRIs if it exceeds a certain threshold.
Capital Gains (Indian Assets)
STCG on Equity Shares/Equity MFs (held < 12 months)	Flat 15%.	15%	Plus surcharge and cess.
LTCG on Equity Shares/Equity MFs (held > 12 months)	10% on gains exceeding ₹1 lakh in a FY.	10%	Plus surcharge and cess. No indexation benefit.
STCG on Debt MFs (held < 36 months)	Taxable at slab rates.	30%	Plus surcharge and cess.
LTCG on Debt MFs (held > 36 months) – Pre-April 1, 2023 investments	20% with indexation benefit.	20%	Plus surcharge and cess.
LTCG on Debt MFs – Post-April 1, 2023 investments	Taxable at slab rates (no indexation).	30%	Plus surcharge and cess.
STCG on Immovable Property (held < 2 years)	Taxable at slab rates.	30% (or 20% or 1% of sale value depending on buyer’s status and value)	Plus surcharge and cess. TDS is applicable on sale proceeds.
LTCG on Immovable Property (held > 2 years)	20% with indexation benefit.	20%	Plus surcharge and cess. TDS is applicable on sale proceeds. Reinvestment exemptions (Sec 54, 54EC) may apply.
Dividend Income (Indian Companies)	Flat 20%.	20%	Plus surcharge and cess.
Salary Income (for services in India or received in India)	Taxable at slab rates.	As per regular slab rates	Standard deduction, allowances, and perquisites are generally applicable. TDS as per Form 16.
Business/Professional Income (derived from India)	Taxable at slab rates.	As applicable (e.g., 10% for professional services if no PE)	If you have a Permanent Establishment (PE) in India, specific rules apply.
Royalties & Fees for Technical Services (FTS)	Flat 20%.	20%	If not attributable to a PE in India. Plus surcharge and cess.

IV. Income Tax Slabs for FY 2024-25 (AY 2025-26) for NRIs

NRIs can choose between the Old Tax Regime and the New Tax Regime (default).

A. Old Tax Regime (Option to choose)

Income Slab (₹)	Tax Rate	Surcharge (if applicable)
Up to ₹2,50,000	Nil	Nil
₹2,50,001 – ₹5,00,000	5%	Nil
₹5,00,001 – ₹10,00,000	20%	Nil
Above ₹10,00,000	30%	See Surcharge Table below

B. New Tax Regime (Default Option, if not explicitly opted for Old Regime)

Income Slab (₹)	Tax Rate	Surcharge (if applicable)
Up to ₹3,00,000	Nil	Nil
₹3,00,001 – ₹7,00,000	5%	Nil
₹7,00,001 – ₹10,00,000	10%	Nil
₹10,00,001 – ₹12,00,000	15%	Nil
₹12,00,001 – ₹15,00,000	20%	Nil
Above ₹15,00,000	30%	See Surcharge Table below

Surcharge and Health & Education Cess (Applicable to both regimes):

Total Income (₹)	Surcharge Rate
Above ₹50 lakh up to ₹1 crore	10%
Above ₹1 crore up to ₹2 crore	15%
Above ₹2 crore up to ₹5 crore	25%
Above ₹5 crore	37%

Health and Education Cess: An additional 4% on the income tax liability (including surcharge).

Rebate under Section 87A (Not applicable to NRIs): This rebate is generally available to resident individuals whose total income does not exceed ₹5 lakh (Old Regime) or ₹7 lakh (New Regime). However, NRIs are not eligible for this rebate.

V. When is ITR Filing Mandatory for NRIs?

You are required to file an Income Tax Return (ITR) in India if:

• Your total taxable income in India exceeds the basic exemption limit (₹2.5 lakh under the Old Regime or ₹3 lakh under the New Regime).
• You want to claim a refund of excess Tax Deducted at Source (TDS), even if your income is below the exemption limit.
• You want to claim benefits under a Double Taxation Avoidance Agreement (DTAA), especially if TDS has been deducted at a higher rate than the DTAA rate.
• You have earned capital gains from the sale of any asset in India, irrespective of the amount.
• You have foreign assets (e.g., bank accounts, property, investments) to disclose in Schedule FA and Schedule FSI (though for NRIs, generally only income arising from assets in India is taxed, reporting foreign assets is a compliance requirement if you are considered a “Resident” or “RNOR”). While generally not mandatory for a pure NRI unless they have certain types of deemed income, it’s good practice to understand this for residential status changes.
• You have deposited more than ₹1 crore in one or more current accounts.
• Your electricity expenses exceeded ₹1 lakh.
• Your foreign travel expenses exceeded ₹2 lakh (for self or any other person).

Exception from Filing: An NRI is generally not required to file an income tax return in India if:

• Their only income during the financial year is investment income (interest, dividends) and/or Long-Term Capital Gains (LTCG) from specified foreign exchange assets (e.g., shares/debentures of an Indian company, mutual funds where the consideration is paid in foreign currency), AND
• The relevant tax has been deducted at source (TDS) on such income. (This is a special optional tax regime under Chapter XII-A of the Income Tax Act).

VI. Applicable ITR Forms (FY 2024-25 / AY 2025-26)

• ITR-2: This is the most common form for NRIs. Use this form if you have income from:
  • Salary
  • House Property (e.g., rental income)
  • Capital Gains (from shares, mutual funds, property, etc.)
  • Other Sources (e.g., interest income, dividends)
  • Do NOT use ITR-2 if you have income from “business or profession” in India.
• ITR-3: Use this form if you have income from a “business or profession” in India (e.g., if you are a freelancer, consultant, or have a proprietary business in India).

VII. Key Compliance Requirements & Documents for Indian Tax Filing

1. Permanent Account Number (PAN): Mandatory.
2. Passport: Including pages showing Indian immigration entry and exit stamps for calculating your days of stay and determining residential status.
3. Valid Visa or Overseas Resident Permit: Proof of your residence outside India.
4. Access to Income Tax Portal: Active mobile number and email ID (preferably linked to your Indian bank account).
5. Bank Statements (FY 2024-25):
   • NRO (Non-Resident Ordinary) Account Statements (interest is taxable).
   • NRE (Non-Resident External) Account Statements (interest is exempt).
   • Indian Savings Account Statements (if applicable).
6. Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS): These documents, available on the Income Tax e-filing portal, provide a consolidated statement of taxes deducted/collected on your behalf. Review them thoroughly for accuracy.
7. TDS Certificates:
   • Form 16: If you had salary income in India.
   • Form 16A: For TDS on other incomes like NRO interest, rental income, professional fees.
   • Form 16B: For TDS on sale of immovable property.
8. Proof of Income:
   • Rental Income: Property address, total rental income received, municipal taxes paid, PAN/name of tenant(s).
   • Capital Gains: Realised Capital Gains Statements from mutual fund platforms, Profit & Loss report from brokerages, sale/purchase deeds for property. Details of re-investment (if any) for exemptions (e.g., Section 54, 54EC).
   • Other Income: Annual interest certificates from banks.
9. Deduction Claims (if opting for Old Regime and eligible): Relevant receipts and documents for deductions under Chapter VI-A (e.g., Section 80C for life insurance premium, PPF, ELSS; Section 80D for health insurance premium; Section 80G for donations; Section 80E for education loan interest).
10. Loan Interest Certificates: For housing loan interest (Section 24) or education loan interest (Section 80E).

VIII. Tax Compliance for Taking Tax Credit in Home Country

For NRIs required to pay taxes on their global income in their home country, claiming a foreign tax credit (FTC) for taxes paid in India is crucial to avoid double taxation. India’s DTAAs and domestic law (Section 91) facilitate this.

A. Prerequisites in India for Claiming FTC in Home Country:

1. Accurate ITR Filing in India:
   • Ensure all Indian-sourced income subject to tax in India is accurately reported.
   • All applicable taxes (TDS, advance tax, self-assessment tax) must be paid.
   • The ITR serves as official proof of income earned in India and tax paid thereon.
2. Proof of Tax Paid in India:
   • Form 26AS: This is paramount as it reflects all TDS deducted against your PAN.
   • TDS Certificates (Form 16/16A/16B): Issued by the deductor, certifying the amount of tax withheld.
   • Income Tax Payment Challans: For any self-assessment tax or advance tax paid directly by you.
   • ITR Acknowledgement: Proof of filing your return.
3. No Indian TRC for NRIs for FTC: India does not issue a Tax Residency Certificate (TRC) to an NRI for them to claim a tax credit in their home country. The TRC is issued by the home country’s tax authority to prove your residency there, which you then use in India to claim DTAA benefits (e.g., lower TDS rates).

B. Key Documents/Information for Your Home Country’s Tax Authority:

When claiming Foreign Tax Credit (FTC) in your home country, you will typically need the following:

1. Tax Residency Certificate (TRC) from Your Home Country: This document, issued by your country of residence’s tax authority, proves that you are a tax resident of that country. It is usually a prerequisite for your home country to grant you an FTC.
2. Copy of Indian Income Tax Return (ITR): A full copy of your filed ITR for FY 2024-25 (AY 2025-26), showing all Indian income and the tax calculated.
3. Form 26AS: A copy of your Form 26AS for FY 2024-25, showing the actual tax deducted at source in India.
4. TDS Certificates: Copies of all relevant Form 16/16A/16B certificates.
5. Proof of Indian Tax Payments: Copies of tax challans for any advance tax or self-assessment tax paid in India.
6. Income Source Details: Any supporting documents like rental agreements, capital gains statements, bank interest certificates, dividend statements that corroborate the income figures reported in your Indian ITR.
7. DTAA Details (if applicable): While generally handled by your home country’s tax authority based on the DTAA, you might need to identify the specific DTAA and relevant article under which you are claiming credit.
8. Exchange Rates: Be prepared to convert Indian Rupee (INR) amounts of income and tax paid into your home country’s currency using the exchange rates prescribed by your home country’s tax laws for FTC calculations.

C. Important Considerations for FTC:

• Credit Limit: Your home country will generally limit the FTC to the amount of tax that would have been payable on that foreign-sourced income in your home country. You cannot claim a credit for more than the tax payable on that income in your home country, even if the Indian tax was higher.
• Specific Rules of Your Home Country: The exact methodology for claiming FTC (e.g., forms to fill, whether carry-forward/carry-back of unused credit is allowed) is governed by the tax laws of your country of residence. Consult a local tax advisor there.
• Form 10F in India (for DTAA Benefits in India): As an NRI, if you want to avail of lower TDS rates as per a DTAA in India, you must electronically file Form 10F on the Income Tax e-filing portal. This form is required if your TRC from your home country does not contain all the details mandated by Indian tax law. Note: This is for reducing tax at source in India, not for claiming credit in your home country.

IX. Due Date for Filing ITR (FY 2024-25 / AY 2025-26)

For most NRIs (who do not require a tax audit), the due date for filing the Income Tax Return for FY 2024-25 (AY 2025-26) has been extended to September 15, 2025.

• Belated/Revised Return: A belated or revised return can generally be filed by December 31, 2025, but with a late filing fee (up to ₹5,000 for income above ₹5 lakh, ₹1,000 for income up to ₹5 lakh). If you file a belated return, you can only opt for the new tax regime.
• Updated Return (ITR-U): You can file an updated return within 24 months from the end of the relevant assessment year (i.e., by March 31, 2028, for AY 2025-26) to correct omissions or errors in your original or belated return, usually with additional tax and interest.

X. Additional Material / Best Practices

• Maintain Records: Keep meticulous records of all Indian income, expenses related to Indian assets, TDS certificates, and bank statements.
• E-Verify Your Return: After filing, ensure you e-verify your ITR within 30 days of filing. Without e-verification, your return is considered invalid. Common methods include Aadhaar OTP, Net Banking, or Demat Account.
• Consult a Professional: Indian tax laws for NRIs can be complex due to varying income types, DTAA implications, and constant updates. It is highly advisable to engage a qualified Chartered Accountant (CA) in India to ensure accurate compliance and optimize your tax position.
• Monitor Tax Portal: Regularly check the Income Tax e-filing portal for updates, notifications, and to access your Form 26AS, AIS, and TIS.
• Repatriation: Understand the FEMA (Foreign Exchange Management Act) guidelines regarding the repatriation of funds from India to your home country. Ensure taxes are duly paid before repatriation.

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Table Summary: NRI Tax Filing Guide India (FY 2024-25 / AY 2025-26)

Feature	Details for NRI Tax Filing in India	Compliance for FTC in Home Country
Residential Status	Non-Resident if stay in India is < 182 days (or specific other conditions for Indian citizens/PIOs).	Your home country’s TRC is proof of residency there; essential for FTC.
Taxable Income Scope	Income earned or accrued in India, or received/deemed to be received in India. Global income is NOT taxed in India.	Your home country will tax your global income, including Indian-sourced income. FTC is claimed on this.
Tax Regimes	Can choose between Old Tax Regime (deductions allowed) or New Tax Regime (default, lower rates, fewer deductions).	Not directly applicable for FTC in home country, but will affect your Indian tax liability that you claim credit for.
Income Tax Slabs	Same slab rates for both regimes apply to NRIs as residents, but NRIs are NOT eligible for Section 87A rebate.	Your home country’s tax slabs apply to your global income.
Mandatory ITR Filing	If taxable income > basic exemption limit (₹2.5L/₹3L), or to claim TDS refund, or have capital gains, or to avail DTAA benefits, or specific high-value transactions.	Crucial to file ITR in India to generate official proof of Indian income and taxes paid.
Applicable ITR Form	ITR-2 (most common for salary, property, capital gains, other sources – no business income). ITR-3 (if business/profession income in India).	The ITR itself is a key document for FTC.
Key Documents (India)	PAN, Passport (entry/exit stamps), Visa, NRO/NRE bank statements, Form 26AS, AIS, TIS, TDS Certificates (Form 16/16A/16B), Income Proofs, Deduction Proofs (if Old Regime), Loan Interest Certs.	All these Indian documents (especially Form 26AS, TDS Certificates, Tax Challans, ITR copy) are critical evidence for your home country’s tax authority to grant FTC.
DTAA Benefits (in India)	To get lower TDS at source in India as per DTAA, you need TRC from your home country + Electronic Form 10F (if TRC lacks details) submitted on e-filing portal.	Your home country’s tax authority will use the DTAA (and your TRC) to determine how to grant FTC for Indian taxes. The credit mechanism is generally used.
Proof of Tax Paid (India)	Form 26AS, TDS Certificates, Income Tax Challans.	These are the primary proofs of tax paid in India that you submit to your home country’s tax authority.
Due Date (FY 24-25)	September 15, 2025 (for non-audit cases). Belated/Revised by Dec 31, 2025.	Ensure Indian compliance is completed before your home country’s tax filing deadline for smooth FTC claims.
Professional Advice	Highly recommended due to complexity of NRI taxation, DTAA implications, and frequent changes.	Crucial to consult a tax advisor in your home country regarding their specific FTC rules and required documentation.