ITR Filing for NRI FY 2024–25: Step-by-Step Guide for Non-Resident Indians
Filing Income Tax Returns (ITR) in India is not just for resident taxpayers. If you’re a Non-Resident Indian (NRI) earning income in India, you may also be required to file an ITR, depending on your total income and source. With the rise in cross-border investments, real estate transactions, and digital business models, understanding NRI ITR filing for FY 2024–25 has become more important than ever.
This guide walks you through:
- NRI eligibility,
- income taxable in India,
- applicable ITR forms,
- and a step-by-step process to file your ITR as an NRI for FY 2024–25 (AY 2025–26).
📌 Who is Considered an NRI for FY 2024–25?
Under the Income Tax Act, 1961, your residential status is determined by:
- Staying in India for less than 182 days in the financial year (April 1, 2024 – March 31, 2025), or
- Less than 60 days in the FY and less than 365 days in the last 4 years.
If you meet either of these, you are treated as an NRI for tax purposes.
💼 When Does an NRI Need to File an ITR in India?
You must file ITR if:
- Your total income earned in India exceeds ₹2.5 lakh in FY 2024–25
- You want to claim a refund of TDS deducted in India
- You have capital gains from Indian assets
- You hold foreign assets/income and are required to disclose them (in special cases)
- You want to carry forward losses (like capital loss)
💰 What Type of Income is Taxable for NRIs in India?
Only income earned or accrued in India is taxable for NRIs. Global income is not taxed in India.
Taxable Income in India for NRIs:
- Salary income earned in India or paid by an Indian employer
- Rental income from property in India
- Capital gains from shares, mutual funds, property
- Interest income from NRO accounts or fixed deposits
- Income from business situated in India
✅ Interest earned from NRE and FCNR accounts is tax-free.
📋 ITR Forms Applicable for NRIs (FY 2024–25)
| Form | Who Should Use It |
|---|---|
| ITR-1 | Not for NRIs |
| ITR-2 | NRIs with income from salary, house property, capital gains, or other sources |
| ITR-3 | NRIs with income from business/profession in India |
| ITR-4 | Not applicable unless NRI uses presumptive taxation (rare) |
👉 Most NRIs file ITR-2, unless running a business in India.
🔢 Documents Required for NRI ITR Filing
- PAN Card
- Aadhaar (if available, not mandatory for NRIs)
- Indian bank account details (preferably NRO account)
- Form 26AS (tax deducted summary)
- AIS (Annual Information Statement)
- Rent agreement or property details
- Capital gains statement (for shares, MF, property)
- Interest certificate from NRO/NRE accounts
- Passport (for residency proof, if needed)
🧾 Step-by-Step Guide: ITR Filing for NRI – FY 2024–25
✅ Step 1: Determine Your Residential Status
Before anything, confirm your NRI status using:
- Days spent in India in FY 2024–25
- Previous years’ stay (for tie-breaker)
Use a residency calculator or consult a tax advisor if unclear.
✅ Step 2: Collect Tax Documents
Get these before starting:
- Form 26AS and AIS from the e-filing portal
- TDS certificates from banks or tenants (Form 16A)
- Property sale statements, capital gains summary
- Income proof for salary/rent/business
✅ Step 3: Log in to the Income Tax e-Filing Portal
Visit https://www.incometax.gov.in
Use PAN (as user ID) and password to log in.
✅ Step 4: Choose the Right ITR Form
- ITR-2: Most suitable for salaried NRIs, rental income, or capital gains
- Select “File Income Tax Return” → Assessment Year 2025–26 → Online or Offline → ITR-2
✅ Step 5: Fill in Your Income Details
Sections to fill:
- Salary income (if any)
- House property income
- Capital gains (long-term/short-term)
- Other income like FD interest, savings account interest, dividend
- Foreign assets or bank accounts, if required
Use pre-filled data to reduce manual errors.
✅ Step 6: Claim Deductions (If Applicable)
Under Chapter VI-A:
- 80C – Life insurance, ELSS (Indian investments)
- 80D – Health insurance
- 80G – Donations
- 80TTA – ₹10,000 deduction for savings interest (NRO account)
Note: Most deductions are available only for investments made in India.
✅ Step 7: Compute Tax and Check TDS
The system auto-calculates tax liability based on slabs.
- Verify TDS already deducted (visible in Form 26AS)
- Pay additional tax, if required, using Challan 280 online
- Include self-assessment tax details in the return
✅ Step 8: Preview and Submit ITR
Double-check all entries.
Click Preview → Validate → Submit Return
✅ Step 9: E-Verify Your ITR
E-verification is mandatory. Choose any one of the following:
- Aadhaar OTP (if Aadhaar linked)
- Net banking
- Bank ATM (generate EVC)
- Send signed ITR-V to CPC, Bangalore (if not e-verifying online)
🧾 Tax Slabs for NRIs FY 2024–25
NRIs are taxed similar to residents, except no rebate under 87A.
| Income Slab | Old Regime Tax Rate |
|---|---|
| ₹0 – ₹2.5 lakh | Nil |
| ₹2.5 – ₹5 lakh | 5% |
| ₹5 – ₹10 lakh | 20% |
| ₹10 lakh+ | 30% |
✅ NRIs can opt for the new tax regime, but must declare so in the ITR.
⚠️ Common Mistakes NRIs Should Avoid
- Using the wrong ITR form
- Not reporting Indian capital gains
- Forgetting to report interest from NRO accounts
- Not e-verifying the return
- Expecting exemption on global income
- Not linking PAN with Aadhaar (if holding both)
📎 Benefits of Filing ITR as an NRI
- Claim TDS refund
- Avoid legal penalties
- Maintain a clean financial record
- Help in visa/immigration processing
- Carry forward capital losses
🧠 FAQs on NRI ITR Filing FY 2024–25
Q1. Is Aadhaar mandatory for NRIs to file ITR?
No. Aadhaar is not mandatory if you qualify as an NRI under the Income Tax Act.
Q2. Can NRIs file ITR without Indian income?
No. You are required to file only if you have taxable income or want a TDS refund.
Q3. Are NRIs eligible for ₹5 lakh rebate under Section 87A?
No. Section 87A rebate is not available to NRIs.
Q4. What happens if an NRI doesn’t file ITR?
If income exceeds ₹2.5 lakh in India and you fail to file, you may attract penalty or prosecution.
Q5. Can NRIs open a PPF account and claim deduction?
No. NRIs are not allowed to open new PPF accounts.
✅ Final Thoughts
Filing your ITR as an NRI for FY 2024–25 is easier than ever with digital portals and pre-filled forms. Make sure you determine your residency status, report all Indian income sources, claim eligible deductions, and e-verify your return.
