Which ITR Should an NRI File for Indian Salary, Rent or Capital Gains?
An NRI cannot file ITR-1. Depending on the income profile, ITR-2 is generally used for an NRI without business or profession income, while ITR-3 applies where business or profession income is involved.
Quick Answer
ITR-2 expressly covers resident and non-resident individuals who have income other than profits and gains of business or profession. Indian salary, house-property income and capital gains can therefore be reported in ITR-2 when the taxpayer has no business or profession income.
What Does This Mean for ITR Selection?
The correct ITR depends on your complete income profile, residential status and the exclusions that apply to each return. A taxpayer should not choose a return only because one income source appears to fit its basic eligibility.
| Situation | Typical ITR direction for AY 2026-27 |
|---|---|
| No business/profession income and eligible for ITR-1 | ITR-1 may be available, subject to all conditions. |
| No business/profession income but not eligible for ITR-1 | ITR-2 is generally considered. |
| Business/profession income and not eligible for ITR-4 | ITR-3 is generally considered. |
| Eligible presumptive business/profession income | ITR-4 may be available if all conditions are met. |
What Should I Check Before Filing?
- Confirm your residential status.
- List every income source, including capital gains, foreign income and special-rate income.
- Check whether you have losses to carry forward.
- Review AIS, Form 26AS and TDS certificates against your own records.
- Check ITR-specific exclusions before selecting the form.
Related EZTax Resources
Official Sources
- Income Tax Department — Salaried Individuals AY 2026-27
- Income Tax Department — File ITR-1 FAQs
- Income Tax Department — File ITR-2 FAQs
- Income Tax Department — ITR-2 User Manual
