Which ITR Should an NRI File in India?
An NRI cannot use ITR-1. The appropriate return is generally ITR-2 when there is no business/professional income and ITR-3 when business/professional income is present, subject to the taxpayer's complete facts.
Quick Answer
In practical terms, An NRI cannot use ITR-1. The appropriate return is generally ITR-2 when there is no business/professional income and ITR-3 when business/professional income is present, subject to the taxpayer's complete facts.
NRI with salary or pension
An NRI with Indian-source salary/pension and no business/professional income generally examines ITR-2 rather than ITR-1.
NRI with capital gains
Capital gains from Indian shares, mutual funds or property generally need to be reported in the applicable capital-gains schedules of ITR-2 when there is no business/professional income.
NRI with business income
Where business or professional income is chargeable in India, ITR-3 generally needs to be examined.
Residential status is important
Determine residential status correctly before choosing the return. The Income Tax Department's return-applicability guidance distinguishes ITR eligibility by residential status and income type.
Related EZTax Questions
- Which ITR Form Should I File for AY 2026-27?
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- Who Can File ITR-3 for AY 2026-27?
- Who Can File ITR-4 (Sugam) for AY 2026-27?
