Filing Return of Income in India for NRIs | Savlana Init

NRI Taxation · Return Filing

Filing Return of Income in India — Due. Filed. Refunded.

Preparation and e-filing of the Indian income tax return for non-residents — the correct form, the correct schedules, treaty relief claimed, and the excess TDS recovered.

Section 139(1) of the Income Tax Act, 1961 requires a return of income where total income before Chapter VI-A deductions and certain exemptions exceeds the maximum amount not chargeable to tax. For a non-resident the threshold applies to Indian income alone, but the obligation is real, and it is triggered by rent from a single flat or a modest capital gain as readily as by a large transaction. Certain conditions — such as holding a beneficial interest in a foreign asset while resident, or specified high-value expenditure — mandate filing regardless of income level.

The more common reason non-residents file is recovery. Tax deducted under Section 195 is levied on gross receipts rather than net income and takes no account of cost of acquisition, exemptions or treaty rates, so the sum withheld frequently exceeds the true liability by a wide margin. That excess cannot be refunded by the deductor once deposited; it can only be recovered by filing a return. Filing also preserves the ability to carry forward capital losses for set-off in future years, which is lost if the return is filed after the due date.

Which form applies depends on income composition. ITR-1 is unavailable to non-residents. ITR-2 serves most non-residents with salary, house property, capital gains and other sources; ITR-3 is required where there is income from a business or profession in India. The return must be verified within the prescribed period, failing which it is treated as never having been filed. The ordinary due date is 31 July for non-audit cases and 31 October where accounts are audited; a belated or revised return may be filed up to 31 December of the assessment year, and an updated return under Section 139(8A) is available for a further period on payment of additional tax, though it cannot be used to claim or increase a refund.

Our Return Filing Services

ITR-2 Preparation and Filing

Full preparation and e-filing for non-residents with salary, house property, capital gains, interest and dividend income, including all applicable schedules.

ITR-3 for Business and Profession

Filing where there is Indian business or professional income, including books, presumptive taxation assessment where available, and audit coordination.

Capital Gains Computation

Working of gains on property, listed and unlisted shares, mutual funds and bonds, with exemption claims under Sections 54, 54EC and 54F fully documented.

Treaty Relief in the Return

Claiming reduced treaty rates and foreign tax credit in the return, supported by the Tax Residency Certificate and Form 10F.

TDS Credit and AIS Reconciliation

Matching Form 26AS, AIS and TIS to actual receipts, correcting mismatches with deductors, and ensuring no credit is left unclaimed.

Belated, Revised and Updated Returns

Filing under Sections 139(4), 139(5) and 139(8A) where a return was missed or an error must be corrected, with the additional tax consequence explained first.

Refund Tracking and Follow-Up

Bank account pre-validation, refund reissue where credit has failed, and follow-up on delayed or adjusted refunds.

Intimation and Notice Response

Response to intimations under Section 143(1), rectification under Section 154, and defective return notices under Section 139(9).

Our Process

Filing Obligation Assessment

We confirm your residential status, compute Indian income and establish whether filing is mandatory, advisable for refund recovery, or genuinely unnecessary.

Data and Document Collection

Bank statements, TDS certificates, broker and mutual fund statements, sale deeds, rent records and treaty documents are collected against a single checklist.

Computation and Form Selection

Income is computed head by head under domestic law and the applicable treaty, exemptions are applied, and the correct ITR form is selected.

Filing and Verification

The return is filed on the e-filing portal and verified within the prescribed window, since an unverified return is treated as not filed at all.

Processing and Refund

We monitor processing, respond to any intimation or proposed adjustment, and follow the refund through to credit in your pre-validated account.

Why It Matters

✓Excess TDS under Section 195 converted into an actual refund

✓Correct form selected — a wrong form makes the return defective

✓Treaty rates and foreign tax credit claimed with proper support

✓Capital losses carried forward, which a late return forfeits

✓AIS and Form 26AS mismatches resolved before they become notices

✓Exemptions under Sections 54, 54EC and 54F documented, not asserted

✓Verification completed on time, so the filing actually counts

✓Intimations and adjustments answered by the team that filed

Frequently Asked Questions

Filing is required where total income taxable in India exceeds the basic exemption limit, computed before Chapter VI-A deductions and certain exemptions. It is also required in specified situations regardless of income. Beyond the legal obligation, filing is the only route to recover excess tax deducted at source and to carry forward capital losses, which is why most non-residents file even below the threshold.

For most non-residents the due date is 31 July following the end of the financial year. Where accounts are subject to audit, it is 31 October. A belated return under Section 139(4) or a revised return under Section 139(5) may be filed up to 31 December of the assessment year. These dates are occasionally extended by the department, but planning should assume the statutory dates.

Belated and revised returns are limited to 31 December of the assessment year, but Section 139(8A) permits an updated return for a further period on payment of additional tax over and above the normal liability. The critical limitation is that an updated return cannot be used to claim a refund, to increase a refund already claimed, or to reduce total income — so missed refund years cannot be recovered through this route.

It is narrow. Section 115G relieves a non-resident from filing where total income consists only of investment income or long-term capital gains from specified foreign exchange assets, or both, and tax has been deducted at source on that income. Because the deduction is usually higher than the true liability, most people who qualify for the relief still file, precisely in order to recover the difference.

Electronic verification is the practical route — through net banking on an Indian bank account, a Digital Signature Certificate, or an electronic verification code where a linked Aadhaar or bank account permits it. Signing and posting the physical ITR-V to the centralised processing centre remains available but is slow and risky from abroad. An unverified return is treated as never filed.

Only if you are resident and ordinarily resident for the year, in which case Schedule FA disclosure of foreign assets, accounts and income is mandatory and the penalty regime under the black money legislation is severe. A non-resident, and generally a resident but not ordinarily resident, is not required to complete Schedule FA. This is one of the reasons residential status must be settled before the return is drafted.

Ready to file your Indian return as a non-resident?

Send us your TDS certificates and transaction details. We will compute the correct liability, claim what you are entitled to, file the return and pursue the refund.