NRI Return Filing in India AY 2026-27: ITR-2, ITR-3, Due Dates & Foreign Asset Reporting

Quick answer: A non-resident individual filing for AY 2026-27 will generally use ITR-2 if there is no business or professional income, and ITR-3 where business or professional income is included. For most NRI individuals without business income, the normal filing deadline is 31 July 2026. Non-audit business cases move to 31 August 2026, specified audit cases to 21 November 2026, and transfer-pricing cases to 30 November 2026. AY 2026-27 still relates to FY 2025-26 under the Income-tax Act, 1961; the new Income-tax Act, 2025 applies separately from Tax Year 2026-27.

Update — 28 September 2026: CBDT changed the specified ordinary AY 2026–27 tax-audit report deadline from 30 September to 21 October 2026 and the related audited return deadline from 31 October to 21 November 2026. Form 3CEB and Q2 TDS remain on separate timelines. Official Income Tax Department announcement.

Why AY 2026-27 is a transition year for NRIs

This filing season is unusually important because two frameworks operate in parallel. Income earned during FY 2025-26 is reported in AY 2026-27 under the Income-tax Act, 1961 and the AY 2026-27 ITR forms. Income earned from 1 April 2026 onward belongs to Tax Year 2026-27 under the Income-tax Act, 2025 and will be returned in 2027. Mixing these two periods can cause wrong-form selection, missed disclosures and incorrect deadline assumptions.

Which ITR form should an NRI use for AY 2026-27?

ITR-2: the common form for NRIs without business income

The Income Tax Department states that ITR-2 is applicable to a non-resident individual who has income under heads other than Profits and Gains of Business or Profession. Typical examples include salary or pension, rent from Indian property, capital gains from shares or property, interest, dividends and other-source income.

ITR-3: where the NRI has business or professional income

ITR-3 is generally relevant where the non-resident individual has income from business or profession, together with any salary, house-property, capital-gains or other-source income. NRIs should not assume that the simplified resident-only presumptive forms are available merely because income is small.

AY 2026-27 return-filing due dates

• 31 July 2026: generally for NRI individuals filing ITR-2 and other non-business/non-audit individual cases.

• 31 August 2026: non-audit business or professional cases covered by the Budget 2026 due-date change.

• 21 November 2026: specified ordinary cases where tax audit is required (extended from 31 October).

• 30 November 2026: cases requiring a transfer-pricing report under section 92E.

The correct deadline depends on the return category and audit/transfer-pricing status. A late return can affect carry-forward of certain losses, interest exposure and the time available to correct errors, so classification should be resolved before the due date rather than after it.

What an NRI should reconcile before filing

• Indian salary, pension, rent, interest, dividends and capital gains with Form 26AS, AIS/TIS and broker or bank statements.

• TDS deducted by tenants, buyers, banks, companies, brokers and other Indian payers.

• Property-sale computations, including cost, holding period, exemptions claimed and any lower-deduction certificate used.

• Share and mutual-fund transactions, including special-rate capital gains and loss set-off.

• DTAA documents such as Tax Residency Certificate and Form 41 where treaty relief is claimed.

• Refund bank details. A non-resident without an Indian bank account can provide eligible foreign bank details where the return form permits.

Foreign income and foreign assets: NRI, RNOR and ROR are not the same

A common filing mistake is to treat every person who has lived abroad as exempt from foreign-asset reporting. The reporting position depends on residential status for the relevant year. Schedule FA is aimed at resident taxpayers with specified foreign assets or foreign-source income. Non-residents and RNORs generally do not fill Schedule FA, while an individual who has become Resident and Ordinarily Resident can have materially broader reporting obligations.

For AY 2026-27, Schedule FA captures specified foreign assets and accounts held during the calendar year ending 31 December 2025. Returning Indians should therefore determine residential status before deciding whether overseas bank accounts, custodial accounts, securities, insurance, immovable property, trusts, signing authority and other interests need disclosure.

DTAA relief and foreign tax credit

Where the same income is exposed to tax in India and another country, treaty relief may be available depending on the relevant DTAA article and the taxpayer’s treaty residence. The return should be consistent with the Tax Residency Certificate, Form 41/Form 10F position for the relevant period, and any foreign-tax-credit schedules or supporting evidence. Treaty relief should not be claimed merely because the taxpayer is an NRI; the specific treaty article and facts control the result.

NRI property and capital gains: return filing after TDS

High TDS does not necessarily equal the final tax liability. This is especially important when an NRI sells Indian property or receives income subject to non-resident withholding. The return is where the actual capital gain or taxable income is computed, eligible deductions/exemptions are claimed, TDS credit is matched and any excess withholding is claimed as refund.

Practical NRI filing checklist

• Confirm residential status for FY 2025-26 before selecting disclosures.

• Choose ITR-2 or ITR-3 based on whether business/professional income exists.

• Download AIS/TIS and Form 26AS and reconcile TDS before finalising income.

• Collect India and overseas statements before converting foreign-currency figures.

• Review property, securities and mutual-fund capital gains transaction by transaction.

• Check DTAA eligibility and supporting TRC/Form 41 or other treaty documents.

• Determine whether Schedule FA/FSI/TR disclosures apply based on residential status.

• Validate refund bank details and e-verify the return within the prescribed time.

Common mistakes NRIs should avoid

• Using a resident-only simplified ITR form.

• Treating TDS as final tax without computing the actual taxable income.

• Ignoring AIS/TIS mismatches on interest, securities or property transactions.

• Claiming treaty relief without checking the treaty article and documentation.

• Omitting a return because Indian tax was already withheld at a high rate.

• Filing Schedule FA automatically despite being NR/RNOR, or omitting it after becoming ROR.

• Confusing AY 2026-27 with Tax Year 2026-27 under the new Act.

Frequently asked questions

Can an NRI file ITR-2?

Yes. The Income Tax Department specifically lists ITR-2 as applicable to non-resident individuals where income does not include profits and gains of business or profession.

When does an NRI need ITR-3?

ITR-3 is generally used when a non-resident individual has business or professional income, including where other heads of income are also present.

Is the NRI filing deadline always 31 July 2026?

No. 31 July is typical for non-business, non-audit individual cases. Non-audit business cases, audit cases and transfer-pricing cases have later statutory due dates.

Does an NRI have to report every foreign bank account in Schedule FA?

Not merely because the person is an NRI. Schedule FA depends on Indian residential status and the specific return instructions. Non-residents and RNORs generally do not complete Schedule FA; ROR taxpayers can have extensive foreign-asset reporting.

Should an NRI file if TDS already exceeds the final tax?

Often yes, particularly where a refund is due or where the taxpayer must report taxable Indian income, capital gains or other required information. The return reconciles the final liability with tax already withheld.

Official references

Income Tax Department — Non-Resident Individual for AY 2026-27: https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-0

Income Tax Department — ITR-2 FAQs for AY 2026-27: https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/itr-2/itr-2-faqs

Income Tax Department — Budget 2026 FAQs on return-filing due dates: https://www.incometaxindia.gov.in/documents/20117/15766092/FAQs-Budget-2026%2BUpdated.pdf

Income Tax Department — AY 2026-27 vs Tax Year 2026-27 transition FAQs: https://www.incometax.gov.in/iec/foportal/node/11724

Income Tax Department — Schedule FA guidance: https://www.incometaxindia.gov.in/w/schedule_fa

Related PGT & Associates guides

NRI Tax Guide 2026: https://www.pgtandassociates.com/post/nri-tax-guide-2026-india-income-tax-dtaa-property-capital-gains

Schedule FA for Returning NRIs: https://www.pgtandassociates.com/post/schedule-fa-returning-nri

Returning to India — RNOR Tax Guide: https://www.pgtandassociates.com/post/returning-to-india-2026-rnor-tax-guide-nri-foreign-income-assets-fema

How PGT & Associates can help

NRI return filing often combines Indian-source income, capital gains, withholding tax, treaty claims and cross-border reporting. PGT & Associates can assist with residential-status review, ITR preparation, TDS reconciliation, DTAA documentation, foreign-asset reporting and related tax compliance. Advice should be tailored to the taxpayer’s facts, country of residence and transaction history.

Disclaimer: This article is for general professional information and does not constitute legal, tax or investment advice. Rules, forms and facts should be verified for the relevant taxpayer before filing.