Under Which Conditions Do NRIs Need to File ITR in India?

All Non-Resident Indians (NRIs) must file ITR if they have taxable income in India under certain conditions.

When Should an NRI File an ITR in India?

Nidhi | May 27, 2025 |

Under Which Conditions Do NRIs Need to File ITR in India?

Under Which Conditions Do NRIs Need to File ITR in India?

Are you a Non-Resident Indian and not sure if you still need to file taxes in India? You should know that all Non-Resident Indians (NRIs) must file ITR if they have taxable income in India. Not only NRIs but also Persons of Indian Origin (PIOs) or Overseas Citizens of India (OCIs) are also required to file Income Tax Return (ITR). However, there are some conditions required to file ITR as per the Income Tax Act, 1961. Let us understand when NRIs have to file ITR.

Table of Content
  1. Conditions to File ITR by NRI
  2. How is Total Income of NRIs Calculated
  3. Can NRIs Skip ITR Filing?
  4. Benefits of Filing ITR for NRIs

Conditions to File ITR by NRI

NRIs are required to file ITR if their total income in India is more than Rs. 2.5 lakh in a financial year under the old tax regime or Rs. 3 lakh under the new tax regime. However, even if your income is less than this limit, you must file ITR if you have any of the following during the year:

  • Short-Term Capital Gains (STCG) on the sale of shares or mutual funds, or Units of Business Trust.
  • Long-Term Capital Gains (LTCG) that are taxable.
  • Deposited above Rs. 1 crore in a current account in India.
  • Spent more than Rs. 2 lakh from an Indian account for travel to a foreign country for yourself or others.
  • Spent more than Rs. 1 lakh on electricity bills in India.
  • Earned more than Rs. 60 lakh from business in India.
  • Earned more than Rs. 10 lakh from a profession in India.
  • Have TDS or TCS of Rs. 25,000 or above deducted or collected as tax (TDS/TCS) in India.
  • Deposited more than Rs. 50 lakh in savings bank accounts in India.

How is Total Income of NRIs Calculated

If you choose the existing regime, then your total income is calculated before subtracting the following:

  • Tax-saving deductions: Life insurance premiums, children’s school tuition fees, Investments in ELSS (Equity Linked Savings Schemes) under Section 80C, Medical insurance under Section 80D, and Donations under Section 80G.
  • Exemptions: Long-term capital gains reinvested in buying a new house or Investments in specific bonds.

Can NRIs Skip ITR Filing?

NRIs need not submit ITR in case they choose to be taxed under special provisions regarding the incomes of non-residents under Chapter XIIA of the Income Tax Act, 1961, under the following conditions:

  • Your total income includes only income from LTCG, or investment income or both.
  • The tax should have been deducted at the source.

Benefits of Filing ITR for NRIs

Filing ITR is not mandatory for everyone, however, there are several benefits of filing ITR. Some of the benefits of ITR Filing for NRIs are as follows:

  • You can claim a TDS refund in India.
  • Your Visa application and renewal process will become easier.
  • Helps maintain uniformity in your ITR records.
  • You can claim foreign tax credit.

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