Is foreign income taxable in India for an NRI?

Foreign income is not taxable in India for an NRI unless it is received from a business controlled or profession set up in India.

What documents should NRIs keep ready before filing?

The common documents required for filing include PAN, passport/visa details, Form 26AS, AIS, TDS certificates, NRO/NRE statements, and capital gains or property documents.

How can NRIs claim TDS refunds?

NRIs can claim TDS refunds by filing the correct ITR with accurate income and TDS details and ensuring the refund bank account is pre-validated.

NRI Income Tax & Compliance

Filing ITR for FY 2025-26? 10 Tips to Keep in Mind while filing ITR

Written by Shubham Jain

Updated on: July 14, 20265 mins Editorial Standards

Before you start filing your income tax return (ITR) for the FY 2025-26 (AY 2026-27), you need to take some necessary steps to ensure a smooth filing process. It includes gathering the necessary documents, verifying your income details, and selecting the accurate tax regime and ITR form.

According to the Income Tax Department, taxpayers are advised to file their returns before the deadline. This will help them avoid a last-minute rush and any potential mistakes. Do you know that the Income Tax Department has shared some tips to consider before filing the ITR for FY 2025-26? Keep reading further to know about these 10 tips shared by the Income Tax Department to ensure you stay updated and enjoy a compliant and easy filing process.

Key Takeaways

Before choosing the regime, compare your tax liability under both regimes and choose the correct ITR form based on income sources and residency status to avoid your return being marked as defective.
Keep all the documents ready in advance before filing, including bank statements, Form 16, interest certificates, and proof of investments.
Cross-check AIS, Form 26AS, and pre-filed personal details carefully to ensure accuracy.
Verify all the deduction claims properly, as incorrect reporting can trigger tax demands, delays, or scrutiny. Also, claiming excessive deductions to get higher refunds is considered illegal and may have its own consequences.
Filing the return late will attract penalties, interest, and possible loss of certain tax benefits.
E-verifying your return within the specified time window is important, or else the filed return will be considered invalid.

Select the Correct Tax Regime

You must compare tax liability under both regimes after considering all the deductions and exemptions. Then, you must choose the correct tax regime that can help you reduce your tax liability.

Choose the Right ITR Form

In India, there are seven different types of ITR forms, and every taxpayer needs to use the correct ITR form. The correct choice depends on your income sources, status of residency, and the overall income amount. Your return will be treated as defective by the Income Tax Department if you file using the wrong form.

Keep all the Important Documents Ready

To enjoy a much smoother and faster filing process, you must keep all the required documents handy. Here are some of the documents you must keep ready before you start the income tax return filing process:

Bank statements
Form 16 issued by your employer
Interest certificates from banks and post offices
Proof of investment and deduction, wherever applicable
Details of other income (if any)

Keeping these documents ready and handy will ensure you file and report your income accurately.

Check AIS and Form 26AS Carefully

Download and review your annual information statement (AIS) and Form 26AS before you start the filing process. Compare the details with your own records to find any mismatch. If you find any discrepancies, rectify it before you file.

Confirm the Pre-Filed Information

The Income Tax Department pre-fills the ITR form with several details. However, you must not assume that every detail provided in the form is correct.

You must verify your personal information to ensure there are no errors. Check your name, PAN, Aadhaar number, bank account details, email address, and mobile number. Additionally, you must also make sure that your Aadhaar is linked to your PAN card.

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Claim all the Deductions Correctly

Enter the correct amounts if you are eligible to claim deductions under the old tax regime or any other applicable provisions. Before you submit the return, make sure to cross-check your investments and expense details.

If you make mistakes in reporting the deductions, you may result in an additional tax demand. Or, you may face delays in processing your return.

Don't Submit Wrong Details to Claim a Higher Refund

To receive a larger tax refund, reporting over deductions, under-reporting income, or submitting wrong details is considered illegal. If any mismatch is found on your return, it will lead to scrutiny or notices from the Income Tax Department.

File Your ITR Before the Deadline

It's always advised to file your ITR return before the deadline. This will help you get sufficient time to correct mistakes (if any) and respond to any issues that may arise. Also, filing early helps you avoid any last-minute hassles or glitches.

Loss of Tax Benefits and Attracting Penalties

If you fail to file within the due date, you will attract a late filing fee and interest on unpaid taxes. Also, in some cases, you may even lose certain tax benefits.

Complete e-Verification After Filing

If you think that you have filed the ITR and now your job is done, you are wrong. After filing, you are required to e-verify the return within the specified time limit. Failing to do the same will lead to your return being treated as invalid.

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The Bottom Line

In short, filing the ITR for FY 2025-26 can be made much simpler by following the Income Tax Department's tips. As discussed, the tips include early verification of AIS and Form 26AS, choosing the right ITR form, filing before the due date, and more. Preparing properly and e-verifying the return on time will help you avoid penalties and ensure an easy filing process.

Moreover, if you wish to enjoy the ITR filing process with 100% accuracy and no hassle, connect with an expert at Savetaxs. At Savetaxs, we have an entire team of experts who are familiar with the entire ITR filing process. We can help you file your ITR with 100% accuracy, from choosing the correct ITR form to e-verifying the return; we can help you throughout the process. Contact us right away, as we are actively working 24/7 across all time zones.

Glossary

Annual Information Statement: Annual Information Statement Includes Taxpayers' Information, Including Securities, Interests, Dividends, and Transactions.
Income Tax: Income Tax, a Type of Direct Tax, is Imposed by the Government on the Income of Individuals or Organisations.
Income Tax Act: Income Tax Act, an Act to Manage and Govern the Direct Taxes, by Levying, Collecting, and Administering.
Income Tax Return: Income Tax Return, Filed by Taxpayers, Contains a Formal Record of the Collected Tax by the Government.
Tax Deducted at Source (TDS): The Full form of TDS is Tax Deducted at Source, which is a way to collect the income tax.
Income Tax Refund: Check income tax refund status online with PAN and AY under Section 237 after ITR verification.

Disclaimer

Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

About Author

Shubham Jain Founder & NRI Tax Advisor

Shubham Jain is the Founder of SaveTaxs and has extensive experience in Indian and NRI taxation. He advises individuals, NRIs, and businesses on tax filing, tax planning, capital gains, DTAA benefits, fund repatriation, and compliance matters. He regularly writes about taxation and related financial topics. His focus is on making complex tax concepts easy to understand. Through his articles, he helps taxpayers stay informed, avoid common mistakes, and stay compliant with Indian tax laws. See Full Bio

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Frequently Asked Questions

NRIs must file an ITR if their Indian-sourced income exceeds the basic exemption limit. The basic exemption limit is about ₹2.5 lakh under the old regime or higher under the new regime.

Although not necessary, it is often recommended to file if TDS was deducted or if they want to carry forward capital losses.

Most NRIs should use ITR-2 if they have Indian income from salary, house, property, capital gains, or dividends, and ITR-3 to report business or professional income from India.

No, NRIs generally cannot use ITR-1.

NRIs must report income that accrues, arises, or is received in India, such as rent, NRO interest, capital gains, and India-sourced dividends.