The Income Tax Department has introduced revised ITR forms for AY 2026-27 (FY 2025-26) with specific changes impacting Non-Resident Indians (NRIs), particularly those opting for the presumptive taxation scheme.

The updated forms mandate separate disclosure of turnover and income, increasing reporting requirements and data reconciliation with tax records.

Key Change in ITR Forms for NRIs

Under the new ITR forms:

• Gross turnover / receipts must be disclosed
• Presumptive income must be reported separately

Previously, taxpayers could report only deemed income under presumptive provisions. The revised format requires additional financial disclosure, enabling cross-verification with:

• Annual Information Statement (AIS)
• Form 26AS
• TDS records
• Banking data

Applicability of Presumptive Taxation for NRIs

The disclosure requirement applies to the following sections:

• Section 44B – Shipping business of non-residents
• Section 44BB – Oil exploration and related services
• Section 44BBA – Air transport business
• Section 44BBC – Cruise business
• Section 44BBD – Electronics manufacturing or services (new provision)

Section 44BBD – Electronics Business

Section 44BBD applies to certain electronics-related businesses operated by non-residents.

• Presumptive income: 25% of total receipts
• Mandatory reporting:
• Total turnover / receipts
• Income declared under the scheme

This provision is relevant for cross-border electronics and technology-related operations.

Global Applicability for NRIs

Under NRI Taxation, NRIs are required to file an Income Tax Return in India if they have India-sourced income, irrespective of country of residence, including:

• USA
• UK
• Canada
• UAE
• Australia

Taxpayers must ensure alignment between:

• Indian tax return disclosures
• Foreign tax filings
• DTAA (Double Tax Avoidance Agreement) claims

Increased Reporting and Scrutiny

The revised ITR structure enables enhanced data matching across:

• AIS and TIS
• Form 26AS
• GST records (where applicable)
• Foreign remittance data

Mismatch in turnover, receipts, or income may result in:

• Defective return notices (Section 139(9))
• Scrutiny (Section 143(2))
• Reassessment proceedings

Applicable ITR Forms for NRIs

Selection of the correct ITR form remains critical:

• ITR-2: Capital gains, property income, or other income (no business income)
• ITR-3: Business or professional income, including presumptive taxation

Incorrect form selection may lead to defective return classification.

Due Date for Filing ITR – AY 2026-27

• 31 July 2026 – Non-audit cases
• 31 October 2026 – Audit cases

Late filing may result in:

• Interest under Sections 234A, 234B, 234C
• Late fee under Section 234F
• Restriction on carry-forward of losses

Common Compliance Issues for NRIs

• Non-disclosure of turnover under presumptive taxation
• Mismatch with AIS, Form 26AS, or TDS data
• Incorrect residential status classification
• Incorrect ITR form selection
• Improper reporting of capital gains or foreign income
• Inadequate documentation of receipts

NRI Tax Filing Considerations for FY 2025-26

• Evaluate applicability of presumptive taxation
• Maintain documentation for gross receipts and turnover
• Ensure consistency with foreign tax filings
• Review DTAA provisions for foreign tax credit
• Reconcile income with AIS and TIS

NRI Tax Filing Services – India

Dinesh Aarjav & Associates provides comprehensive NRI services, including:

• NRI income tax return filing in India (FY 2025-26)
• Advisory on presumptive taxation (Sections 44B, 44BB, 44BBD)
• DTAA Consultancy (USA, UK, Canada, UAE, Australia)
• Foreign asset and income disclosure
• Handling of income tax notices

FAQs – NRI Tax Filing India

1. Is it mandatory for NRIs to file ITR in India?
Ans: Yes, if total income exceeds the basic exemption limit or if tax has been deducted and a refund is claimed.

2. What is the key change in ITR forms for AY 2026-27?
Ans: Separate disclosure of turnover and presumptive income is now required.

3. Which ITR form should NRIs use?
Ans: ITR-2 for non-business income and ITR-3 for business or presumptive income.

4. What is presumptive taxation for NRIs?
Ans: A scheme where income is computed as a fixed percentage of turnover, subject to specified conditions.

5. Can NRIs claim DTAA benefits?
Ans: Yes, subject to eligibility and proper documentation.

Also Read: 

PFIC Purging Election: A Complete Guide for US Tax Filing, FBAR, Form 8938 & Global Mobility Taxpayers

ITR Filing for NRIs: Which ITR Form Should You Use for AY 2025-26?

US 401(k) & IRA Taxation in India (AY 2026–27): New ITR Rules, Section 89A, DTAA & Withdrawal Planning

Revised Return vs Updated Return under Budget 2026: Extended ITR Correction Timeline Explained