The Income Tax Department has announced the Income Tax Return (ITR) forms for the Financial Year 2024-25 (Assessment Year 2025-26)
Janvi | Jul 9, 2025 |
Important Tax Updates for NRIs: 4 Changes You Should Know Before Filing ITR
The Income Tax Department has announced the Income Tax Return (ITR) forms for the Financial Year 2024-25 (Assessment Year 2025-26). The utilities for ITR-1 and ITR-4 have already been announced. The software utilities for ITR-2 and forms will be announced later. This is mainly relevant for Non-Resident Indians, who will mainly file their returns via the ITR-2 form.
With many changes in the Income Tax Act, 1961, including new capital gains regulations and updated income tax slabs, NRIs need to stay updated with the implications on their tax returns. Here are four significant amendments that NRIs should note for the financial year 2024-25:
NRIs using ITR 2 now need to report Indian assets and liabilities only if their gross taxable income exceeds Rs 1 crore during the Financial year 2024-25.
Note: This reporting requirement does not include foreign assets or liabilities.
According to an Expert from the Director at Deloitte India, this update decreases compliance burdens for NRIs with lower income levels in India.
The new capital gains tax regime applies to transactions made on or after July 23, 2024. Gains from sales made before this date will be taxed under the old regime.
The ITR-2 form has been revised to reflect this change by introducing separate sections to report capital gains based on whether the transaction occurred before or after July 23, 2024. This guarantees accurate tax assessments for NRIs.
The ITR forms now require more detailed disclosures for deductions and exemptions. For example:
If an NRI claims a deduction under Section 80C for a life insurance policy, they must mention the policy number.
For Section 80CCD (NPS investments), the PRAN account number must be reported.
These enhanced disclosures are designed to improve transparency and streamline processing by the tax department.
The due date for filing ITR for non-audit cases, such as salaried individuals, pensioners, and NRIs, has been extended. The due date has now shifted to September 15, 2025. Earlier, it was July 31, 2025.
Professionals also remind NRIs of the form 10F at the time of filing the returns. Filing this will enable NRIs to claim the benefits of the Double Tax Avoidance Agreement (DTAA). Moreover, there are no strict official deadlines to file Form 10F; it is valid for one year from the date of filing. If NRIs file it during the period April 1, 2024, to March 31, 2025, they can reduce TDS and claim the benefits of the DTAA at the time of filing the returns.
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