Which ITR Form Should an NRI File? ITR-2 vs ITR-3 Explained

If you live abroad but earn income in India, you may still need to file an Indian income tax return. Picking the wrong form is one of the most common reasons an NRI return gets a defect notice, so start with the right one.

ITR form for NRIs by type of income

Are you an NRI for income tax?

Residential status depends on how many days you spent in India in the financial year, not on your passport or visa.

In general, an Indian citizen working abroad is an NRI if they stayed in India for fewer than 182 days in the year. Special rules apply to visitors whose Indian income exceeds ₹15 lakh, and to Indian citizens not taxed in any other country, who may be treated as resident. Check your status first, because it decides which form and which income are taxable in India.

When must an NRI file an ITR?

• Your taxable Indian income is above the basic exemption limit (₹4 lakh under the new tax regime for FY 2025-26).
• Tax was deducted (TDS) on your NRO interest, rent or property sale and you want a refund.
• You sold shares, mutual funds or property in India and need to report capital gains.
• You want to carry forward a capital loss to future years.

Interest on NRE and FCNR accounts is exempt from tax for NRIs, so it alone does not create a filing requirement.

Key differences for NRIs

• No Section 87A rebate: the rebate that makes income up to ₹12 lakh tax-free applies only to residents.
• Treaty relief: to claim a lower tax rate under a Double Taxation Avoidance Agreement, keep a Tax Residency Certificate and Form 10F ready.
• Higher TDS: TDS on NRO interest and property sales is usually higher for NRIs, which is why many NRIs are due a refund.
• No foreign assets schedule: Schedule FA (foreign assets) is for residents; NRIs report only Indian income.

Due dates for AY 2026-27

For FY 2025-26 (AY 2026-27), the original due date for NRIs without a tax audit was 31 July 2026, unless extended. A belated or revised return can still be filed up to 31 December 2026, with a late fee for belated returns.

Documents to keep ready

• PAN and passport (for days-in-India calculation)
• Form 16A / TDS certificates and Form 26AS / AIS
• NRO bank statements and interest certificates
• Capital gains statements from your broker or the property sale deed
• Rent agreement and municipal tax receipts, if you have rental income
• Tax Residency Certificate and Form 10F, if claiming treaty benefits

Our ITR filing for NRIs service handles the full return, including refunds and DTAA claims. Sending money abroad from India? See Form 15CA and 15CB filing. You can also estimate tax on a sale with our capital gains calculator.

Frequently Asked Questions

Q1. Can an NRI file ITR-1?

No. ITR-1 (Sahaj) is only for resident individuals. NRIs usually file ITR-2, or ITR-3 if they have business or professional income in India.

Q2. Which ITR form should an NRI with rental income file?

ITR-2, as long as there is no business or professional income in India.

Q3. Is ITR filing mandatory for an NRI with only NRE interest?

No. Interest on NRE and FCNR accounts is exempt for NRIs, so it alone does not require a return.

Q4. Can an NRI choose the new tax regime?

Yes. The new regime is the default for NRIs too, but the Section 87A rebate is not available to them.

Q5. What is the last date for an NRI belated ITR for AY 2026-27?

A belated or revised return for FY 2025-26 can be filed up to 31 December 2026.