ITR Filing for NRIs: Returns and Forms Applicable for Assessment Year 2025-26:

Returns and Forms Applicable for NRIs for Assessment Year 2025-26

Non-Resident Individual is an individual who is not a resident of India for tax purposes. In order to determine whether an Individual is a Non-Resident or not, his residential status is required to be determined u/s 6 of the Income Tax Act, 1961, as given below:

Who is Non-Resident as per Income Tax?

• First Condition: An individual is considered a resident if they are present in India for 182 days or more during the previous year.
• Second Condition: Alternatively, an individual who is present in India for 60 days or more during the previous year and has been in India for 365 days or more during the previous four years is also considered a resident.

An individual who does not meet these conditions is considered a Non-Resident for that year.

ITR Forms Applicable for NRIs

NRIs need to be aware of the forms that must be filed for tax purposes. The two primary Income Tax Return (ITR) forms for NRIs are:

• ITR-2: This return is applicable for individuals, whether residents or non-residents, who have income from sources like salary, pension, capital gains, and other income. However, it is meant for those not engaged in business or a profession.
• ITR-3: This return applies to individuals or Hindu Undivided Families (HUFs) who have income from business or profession, in addition to other sources such as salary or capital gains. Non-residents with business income should file this return.

Forms to Claim Deductions and Report Tax Details

In addition to the ITR forms, various other forms are required to ensure accurate tax calculation and deductions:

• Form 12BB: This form is provided by employees to their employers for claiming deductions under Section 192, including HRA (House Rent Allowance), LTC (Leave Travel Concession), and interest on borrowed capital.Form 16: A certificate issued by the employer, detailing the salary paid and tax deducted at source (TDS). This is an essential document for salaried individuals to compute their tax liability.
• Form 16A: This certificate is issued for TDS on income other than salary, such as interest income or commission. It is issued by the deductor (payer) to the deductee (receiver) and provides information on TDS amount and payment to the government.
• Form 26AS: The Income Tax Department issues this statement, which includes details of TDS, advance tax, and other information like demand/refund, GST, and more. It can be accessed through the Income Tax e-filing portal.
• Form 10E: This form is for individuals who wish to claim relief under Section 89(1) for receiving salary in arrears or advance. It includes details of the arrears, salary, gratuity, and compensation received.

Form 3CB-3CD

• Who Needs to File It? This form is for taxpayers who are required to have their accounts audited by a Chartered Accountant under Section 44AB of the Income Tax Act.
• What Does It Include? It is a report of the audit of accounts, which includes detailed financial information about the taxpayer’s transactions and financial situation.
• When Should It Be Submitted? This form must be submitted at least one month before the due date for filing the income tax return.

Form 3CEB

• Who Needs to File It? This form is for taxpayers who are involved in international or specified domestic transactions and need a report from a Chartered Accountant under Section 92E.
• What Does It Include? This report provides detailed information about the international transactions or domestic transactions that the taxpayer has entered into, as required by Indian tax laws.
• When Should It Be Submitted? Like Form 3CB-3CD, Form 3CEB must also be filed one month before the income tax return is due.

Form 3CE

• Who Needs to File It? This form is for taxpayers who need to report income earned from royalty or technical services received from the government or an Indian concern. The report is required under Section 44DA of the Income Tax Act.
• What Does It Include? This form contains details of the income earned by the taxpayer through royalties or technical services and confirms that the tax has been appropriately paid or accounted for.
• When Should It Be Submitted? Form 3CE must be submitted at least one month before the income tax return filing deadline.