Income Tax for NRI

Returns and Forms Applicable for Non-Resident Individual for AY 2024-2025

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 in the Income Tax Act, 1961 as given below:

An individual will be treated as a Resident in India in any previous year if he / she satisfies any of the following conditions:

  1. If he / she is in India for a period of 182 days, or more during the previous year or
  2. If he / she is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year.

However, in respect of an Indian citizen and a person of Indian origin who visits India during the year, the period of 60 days as mentioned in (2) above shall be substituted with 182 days. The similar concession is provided to the Indian citizen who leaves India in any previous year as a crew member or for the purpose of employment outside India.

The Finance Act, 2020, w.e.f. Assessment Year 2021-22 has amended the above exception to provide that the period of 60 days as mentioned in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose Total Income, other than Income from Foreign Sources, exceeds ₹ 15 lakh during the previous year. 

 The Finance Act, 2020 has also introduced new Section 6(1A) which is applicable from Assessment Year 2021-22. It provides than an Indian citizen earning Total Income in excess of ₹ 15 lakh (other than income from foreign sources) shall be deemed to be Resident in India if he / she is not liable to pay tax in any country.

APPLICABLE FORMS

  1. ITR-2 – Applicable for Non-Resident Individual 

This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF) not having income under the head Profits and Gains of Business or Profession.

  1. ITR-3 – Applicable for Non-Resident Individual 

This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF) having Income under the head Profits and Gains of Business or Profession.  

Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines, please refer Income Tax Act, Rules and Notifications

Source: Income Tax Department, Government of India