ITR Deadline for NRIs Explained in Detail
- PRITI SIRDESHMUKH
- 3 hours ago
- 9 min read
The ITR deadline for Non-Resident Indians (NRIs) for the financial year 2024-25 has been extended to 16 September 2025, as per CBDT Circular No. 06/2025. The extension was granted due to technical issues on the Income Tax portal, giving taxpayers additional time to complete their filings. NRIs must comply with the provisions of the Income Tax Act, 1961, and file their returns if their Indian-sourced income crosses the basic exemption limit. Missing the deadline leads to penalties, interest, and additional compliance burdens.
Table of Contents
ITR Deadline for NRIs in FY 2024-25
For the financial year 2024-25, the Central Board of Direct Taxes (CBDT) extended the ITR deadline for Non-Resident Indians (NRIs). Originally set for 31 July 2025, the due date was first pushed to 15 September and then further extended to 16 September 2025. This applies to NRIs whose accounts are not subject to a statutory audit. The extension was primarily due to technical issues on the Income Tax Department’s e-filing portal, which disrupted timely compliance.
What Happens if NRIs Miss the ITR Deadline?
If an NRI misses the 16 September 2025 deadline, the return can still be filed as a belated return up to 31 December 2025. However, penalties and interest charges apply. Non-compliance may also restrict the ability to claim refunds or carry forward certain losses, which could have long-term financial consequences. In severe cases, repeated non-filing may invite scrutiny from the tax authorities.
Penalties and Interest for Late Filing under Sections 234A and 234F
Late filing comes with statutory costs:
Under Section 234A, an interest of 1% per month is levied on the outstanding tax liability until the return is filed.
Under Section 234F, a late filing fee of up to ₹5,000 is charged. If the total income does not exceed ₹5 lakh, the penalty is capped at ₹1,000.
These penalties are in addition to the loss of certain benefits, such as carrying forward capital losses.
Belated and Updated Return Deadlines for NRIs
Belated returns for FY 2024-25 can be filed until 31 December 2025. After this period, the updated return option is available until 31 March 2030, which is four years from the end of the relevant assessment year. Updated returns, however, come with additional tax liabilities and cannot be used to declare losses or increase refunds.
ITR Filing Deadlines for NRIs Requiring Audit or Transfer Pricing Reports
NRIs whose accounts are subject to statutory audit have until 31 October 2025 to file their ITR. For those covered under transfer pricing regulations or international reporting requirements, the deadline extends further to 30 November 2025. These categories often apply to NRIs with business operations or cross-border transactions linked to India.
NRI Taxability under the Income Tax Act, 1961
An NRI’s tax liability in India is limited to income earned or received in India. This includes salary for services rendered in India, rental income from Indian properties, capital gains on Indian assets, and interest from NRO accounts. Global income is exempt from Indian taxation for NRIs. Residency status is determined under Section 6 of the Income Tax Act, which primarily considers the number of days spent in India during a financial year.
Which ITR Form Should NRIs File?
Most NRIs are required to file ITR-2, which covers income from salary, house property, capital gains, and other sources. If an NRI has business or professional income in India, then ITR-3 applies. Choosing the right form is critical to avoid defective return notices from the tax department.
Tax Rules for NRE and NRO Accounts
Interest on Non-Resident External (NRE) accounts is fully exempt from tax, provided the account holder maintains NRI status. However, interest on Non-Resident Ordinary (NRO) accounts is taxable and subject to TDS. If total income in India exceeds the basic exemption threshold, filing an ITR becomes mandatory.
Basic Exemption Limit for NRIs in Old vs New Tax Regime
The basic exemption limit sets the foundation for determining whether an NRI is required to file an income tax return in India. Under the old tax regime, the exemption threshold remains at ₹2.5 lakh. This means that if an NRI’s total taxable income earned or received in India does not exceed ₹2.5 lakh in a financial year, no income tax is payable, and filing an ITR may not be mandatory unless specific conditions apply, such as claiming a refund of tax deducted at source (TDS). The old regime also allows NRIs to claim certain deductions under sections like 80C, 80D, and exemptions such as on house rent allowance (HRA) if eligible. Therefore, while the basic limit is relatively lower, the ability to apply deductions can significantly reduce taxable income for those who qualify.
In comparison, the new tax regime offers a higher exemption limit of ₹3 lakh. This higher threshold provides immediate relief to NRIs with low-to-moderate Indian income sources, as a slightly larger portion of their income is exempt without relying on deductions. However, the new regime comes with a trade-off, as most traditional exemptions and deductions are not available. This makes the new regime more suitable for those with straightforward income structures, such as only rental income, interest on NRO accounts, or capital gains, where deductions would not substantially lower taxable income.
The difference between the two regimes becomes important when planning a tax strategy. An NRI earning close to the exemption limit may find the new regime beneficial because of its higher threshold and simplified structure. On the other hand, NRIs with significant investments in eligible instruments or payments that qualify for deductions under the old regime might still achieve a lower overall tax liability by staying with the old system, despite its lower exemption base.
Choosing between the two regimes requires evaluating not just the exemption thresholds but also the nature of income, eligibility for deductions, and the overall tax-saving opportunities. For NRIs, who often have limited deductible expenses within India, the new regime can appear attractive, but a careful calculation should be made before deciding which regime to adopt.
CBDT Notifications and Circulars on NRI ITR Deadlines
The most recent update, Circular No. 06/2025, confirmed the extension of the filing deadline to 16 September 2025. The circular was issued to account for the technical disruptions faced by taxpayers while accessing the e-filing portal. Such notifications provide legal backing and ensure that taxpayers are not penalised for circumstances beyond their control.
Why Timely ITR Filing Matters for NRIs
Timely filing is more than just compliance. It ensures quicker processing of refunds, reduces the risk of penalties, and strengthens financial credibility. For NRIs, it also plays an important role in securing clearances for financial transactions such as property sales, loan applications, and investments in India.
How TaxBuddy Simplifies ITR Filing for NRIs
Navigating Indian tax rules can be challenging for NRIs, given the differences in income sources and residency rules. TaxBuddy offers AI-driven filing solutions, ensuring accuracy and speed. The platform supports both self-filing and expert-assisted options, making it suitable for simple as well as complex tax cases. With automated data imports, expert guidance, and post-filing support, NRIs can rely on TaxBuddy for seamless compliance.
Conclusion
The ITR filing deadline for NRIs in FY 2024-25 has been extended to 16 September 2025, giving additional time for compliance. While belated and updated return provisions offer some flexibility, penalties and interest apply to late filings. Ensuring timely compliance protects financial interests and avoids unnecessary hassles. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers flexibility by providing both self-filing and expert-assisted options. In the self-filing plan, taxpayers can upload essential documents such as Form 16, TDS certificates, or bank statements, and the AI-powered system auto-fills relevant fields while performing error checks. This ensures accuracy for simple returns. For NRIs and others with complex tax matters such as capital gains, multiple income sources, or foreign transactions, the expert-assisted plan connects users with certified professionals who prepare, review, and file the return. This approach ensures compliance and reduces the risk of receiving notices from the Income Tax Department.
Q2. Which is the best site to file ITR?
The official Income Tax Department portal is the primary platform for filing income tax returns in India. However, many taxpayers, including NRIs, prefer third-party platforms like TaxBuddy because they offer additional benefits. TaxBuddy’s platform is AI-driven, performs real-time data validation, and provides error-free filing. Unlike the government portal, which primarily facilitates filing, TaxBuddy enhances the experience with expert guidance, deadline reminders, and post-filing support, making it one of the best choices for smooth and reliable compliance.
Q3. Where to file an income tax return?
An income tax return can be filed through two main channels. The first is the official e-filing portal managed by the Income Tax Department, which is free but requires manual effort to enter data and verify accuracy. The second option is to use online filing platforms like TaxBuddy, which not only handle the technical aspects of filing but also reduce errors by pulling data directly from PAN, Form 26AS, and Form 16. TaxBuddy is particularly useful for NRIs and those with complex tax structures, as it combines automation with professional assistance.
Q4. What is the ITR deadline for NRIs for FY 2024-25?
For FY 2024-25 (AY 2025-26), the ITR deadline for NRIs in non-audit cases has been extended to 16 September 2025. This extension was granted by CBDT under Circular No. 06/2025 due to technical issues on the Income Tax portal. If an NRI’s accounts are subject to audit, the due date is 31 October 2025. For those with transfer pricing compliance, the deadline extends further to 30 November 2025. Missing these deadlines results in late fees, interest, and loss of certain tax benefits.
Q5. Can NRIs file a belated return if they miss the due date?
Yes, NRIs can file a belated return if the original deadline is missed. For FY 2024-25, the belated return window remains open until 31 December 2025. However, late fees under Section 234F and interest under Section 234A will apply. Moreover, certain benefits, such as carrying forward capital losses, cannot be availed when filing a belated return. This makes timely compliance important for taxpayers who wish to optimize their tax position.
Q6. What are the penalties for late ITR filing for NRIs?
The Income Tax Act prescribes two key penalties for late filing:
Section 234A: Interest at the rate of 1% per month on the unpaid tax amount until the return is filed.
Section 234F: A late fee of up to ₹5,000. However, if the total income is below ₹5 lakh, the penalty is reduced to ₹1,000. These costs are in addition to the inconvenience of delayed refunds and restrictions on claiming certain losses.
Q7. Which ITR form should NRIs generally use?
Most NRIs are required to file ITR-2, which is applicable for individuals with income from salary, house property, capital gains, or other sources, but not from business or professional activities. If an NRI earns business or professional income in India, ITR-3 is applicable. Choosing the right form is essential to avoid defective return notices and to ensure smooth processing of the tax return.
Q8. Are NRE account earnings taxable for NRIs?
Interest earned on Non-Resident External (NRE) accounts is exempt from tax in India, provided the individual maintains NRI status under the Income Tax Act. On the other hand, interest earned on Non-Resident Ordinary (NRO) accounts is fully taxable and subject to TDS. NRIs must declare this NRO interest income in their ITR if it exceeds the basic exemption limit. This distinction between NRE and NRO accounts is crucial for tax planning and compliance.
Q9. What is the basic exemption limit for NRIs under different regimes?
The basic exemption threshold for NRIs depends on the chosen tax regime:
Under the old tax regime, NRIs enjoy an exemption up to ₹2.5 lakh.
Under the new tax regime, the exemption limit is higher at ₹3 lakh. This difference can influence the decision of whether to opt for the old regime, where deductions are available, or the new regime, which offers lower tax rates but fewer deductions.
Q10. What happens if an NRI fails to file ITR at all?
Failure to file ITR may lead to multiple consequences. The taxpayer may receive notices from the Income Tax Department demanding compliance. Penalties and interest can accumulate on unpaid taxes. Refunds, if any, will be lost. In addition, non-filing could cause difficulties in carrying out financial transactions in India, such as property sales, investment clearances, or loan applications. Repeated non-compliance could also raise red flags with the authorities.
Q11. Do NRIs need to file ITR if their only income is NRO interest below the exemption limit?
If the only income an NRI has in India is from an NRO account and the amount is below the exemption threshold (₹2.5 lakh under the old regime or ₹3 lakh under the new regime), filing ITR is not mandatory. However, if tax has been deducted at source (TDS) on such income, filing an ITR becomes useful to claim refunds. Thus, while not compulsory, filing in such cases may still be beneficial.
Q12. How can TaxBuddy help NRIs with tax filing?
TaxBuddy simplifies tax compliance for NRIs by offering both self-filing and expert-assisted plans. The self-filing option uses AI-powered automation to auto-fill forms and detect errors. For complex returns involving capital gains, rental income, or multiple sources of income, expert-assisted plans provide professional guidance to ensure accuracy. TaxBuddy also offers post-filing support, including assistance with notices. For NRIs managing compliance from abroad, this blend of technology and expert service makes filing both seamless and secure.
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