1 month ago

NRIs Must Use Correct ITR Form

NRIs Must Use Correct ITR Form
Which ITR form should NRIs use? Why filing ITR 1 could be a costly mistake · businesstoday.in

Non-Resident Indians (NRIs) need to be careful when filing their income tax returns in India.

Many NRIs mistakenly use ITR-1, which is only for resident individuals.

Using the wrong form can cause problems like delays in refunds and notices from the tax department.

Most NRIs should use ITR-2, which is for those with income from salary, house property, capital gains, and other sources.

If an NRI has income from a business or profession, they should use ITR-3.

It's important to check your residential status, gather all necessary documents, and complete the e-verification process to ensure everything is filed correctly and on time.

Key facts

ITR-1
For resident individuals only.
ITR-2
For NRIs with income from salary, house property, capital gains, and other sources.
ITR-3
For NRIs with income from business or profession.
DTAA
Double Taxation Avoidance Agreement.
Form 26AS
Form for reconciling income and TDS.
AIS
Annual Information Statement.

Sources

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