Income Tax Filing in India for Non-Residents – Complete Compliance Guide
Income Tax Filing in India for Non-Residents is mandatory for NRIs, expats, and foreign investors earning income from Indian sources. Income tax filing in India for non-residents ensures compliance with Indian tax laws, enables refund claims, and prevents penalties.
Non-residents earning income from property, shares, interest, or services in India must comply with Indian tax laws irrespective of where they reside.
At Jain Prachi & Company, we provide specialized assistance for income tax filing in India for non-residents, ensuring accurate reporting and timely compliance.
Who Is Covered Under Income Tax Filing in India for Non-Residents
Residential Status Under Indian Tax Law
A person is treated as a non-resident if:
They stay in India for less than 182 days during the financial year, or
They do not satisfy conditions under Section 6 of the Income Tax Act
Income tax filing in India for non-residents applies to:
NRIs earning rental or investment income
Foreign citizens working temporarily in India
Expat employees of Indian subsidiaries
Foreign investors and shareholders
When Is Income Tax Filing in India for Non-Residents Mandatory
Income tax filing in India for non-residents is compulsory if:
Indian income exceeds ₹2.5 lakh in a financial year
Capital gains arise from sale of property or shares
Refund of excess TDS is claimed
Income is taxable under DTAA provisions
Types of Income Covered Under Income Tax Filing in India for Non-Residents
| Income Type | Taxable in India | TDS Rate |
|---|---|---|
| Rental income from Indian property | Yes | 30% |
| Capital gains on property or equity | Yes | 20%–30% |
| Interest from NRO account | Yes | 30% |
| Dividend from Indian companies | Yes | 10% |
| Business income (if PE exists) | Yes | As applicable |
Which ITR Form Applies for Income Tax Filing in India for Non-Residents
ITR-2: Salary, rental income, capital gains
ITR-3: Business or professional income
ITR-5 / ITR-6: Foreign companies or LLPs
Aadhaar linking is not mandatory for income tax filing in India for non-residents.
Documents Required for Income Tax Filing in India for Non-Residents
Indian PAN (mandatory)
Passport and visa copy (for expats)
NRO / NRE bank account details
Form 16A and TDS certificates
Property transaction documents
DTAA documents (TRC, Form 10F, declaration)
Due Dates for Income Tax Filing in India for Non-Residents
| Filing Category | Due Date |
|---|---|
| Non-audit cases | 31st July |
| Audit cases | 31st October |
Penalties for Non-Compliance
Late filing attracts penalties under Section 234F (₹1,000–₹5,000) and loss of carry-forward benefits.
Benefits of Income Tax Filing in India for Non-Residents
Claim refund of excess TDS
Avoid notices and legal proceedings
Maintain clean compliance record
Enable smooth repatriation of funds
Claim DTAA tax credits abroad
How Jain Prachi & Company Supports Income Tax Filing in India for Non-Residents
PAN assistance and correct ITR selection
TDS reconciliation and refund computation
DTAA structuring and Form 67 filing
End-to-end virtual handling
Representation before tax authorities
FAQs on Income Tax Filing in India for Non-Residents
Q1. Can income tax filing in India for non-residents be done online?
Yes. The entire process is online with scanned documents.
Q2. Can I claim a refund if excess TDS was deducted?
Yes. Filing an ITR is mandatory to claim refunds.
Q3. Is PAN compulsory for non-residents?
Yes. PAN is mandatory for tax filing and financial transactions.
