Q1240. Do NRIs need to file income tax returns in India?

NRIs are required to file income tax returns in India if their total taxable income in India exceeds the basic exemption limit (currently Rs. 2.5 lakhs for most NRIs, or Rs. 3 lakhs under the new tax regime). Income taxable in India for NRIs includes:

• Salary received in India or for services rendered in India
• Rental income from property in India
• Capital gains from sale of assets in India
• Interest income from NRO accounts and Indian fixed deposits
• Income from business or profession in India

Even if TDS has been deducted on your income, you should file a return to:

• Claim refund of excess TDS
• Carry forward capital losses
• Establish a record for future property transactions or visa applications

NRE and FCNR interest is completely tax-free and does not need to be reported. Filing deadline for NRIs is the same as resident Indians — typically July 31 of the assessment year (e.g., July 31, 2026 for FY 2025-26).