Who is NRI?
NRI – Non-Resident Individual is an individual who is not a resident of India for tax purposes. In order to determine whether an Individual is a Non-Resident or not, his residential status is required to be determined u/s 6 of the Income Tax Act, 1961 as given below:
An individual will be treated as a Resident in India in any previous year if he / she satisfies any of the following conditions:
- If he / she is in India for a period of 182 days, or more during the previous year or
- If he / she is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.
An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year.
However, in respect of an Indian citizen and a person of Indian origin who visits India during the year, the period of 60 days as mentioned in (2) above shall be substituted with 182 days. The similar concession is provided to the Indian citizen who leaves India in any previous year as a crew member or for the purpose of employment outside India.
The Finance Act, 2020, w.e.f. Assessment Year 2021-22 has amended the above exception to provide that the period of 60 days as mentioned in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose Total Income, other than Income from Foreign Sources, exceeds ₹ 15 lakh during the previous year.
The Finance Act, 2020 has also introduced new Section 6(1A) which is applicable from Assessment Year 2021-22. It provides than an Indian citizen earning Total Income in excess of ₹ 15 lakh (other than income from foreign sources) shall be deemed to be Resident in India if he / she is not liable to pay tax in any country.
Returns and Forms Applicable for Salaried Individuals for AY 2025-26
1. ITR-2 – Applicable for Non-Resident Individual
This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF), not having income under the head Profits and Gains of Business or Profession and who is not eligible for filing ITR-1.
2. ITR-3 – Applicable for Non-Resident Individual
This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF), having Income under the head Profits and Gains of Business or Profession and who is not eligible for filing ITR-1, 2 or 4
Forms Applicable
1. Form 12BB – Particulars of claims by an employee for deduction of tax (u/s192)
The form is provided by an Employee to his Employer(s) having Evidence or particulars of HRA, LTC, Deduction of Interest on Borrowed Capital, Tax saving Claims / Deductions for the purpose of calculating Tax to be Deducted at Source (TDS)
2. Form 16 – Details of Tax Deducted at Source on Salary (Certificate u/s 203 of the Income Tax Act, 1961)
It contains details of Salary paid, Deductions / Exemptions and Tax Deducted at Source for the purpose of computing tax payable / refundable
3. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for tax TDS on Income other than Salary
It is provided by Deductor to Deductee. This Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS deposited with the Income Tax Department.
4. Form 26 AS
It is provided by Income Tax Department (It is available on e-Filing Portal. It can be accessed by Login > e-File > Income Tax Return > View Form 26AS). It contains Tax Deducted / Collected at Source detail.
AIS (Annual information Statement)
It is provided by Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal). Go to e-filing portal > login > AIS. The form contains detail of Tax Deducted / Collected at Source, SFT Information, Payment of taxes, Demand / Refund. Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)
Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now available in AIS
5. Form 10E – Form for furnishing particulars of Income for claiming relief U/S 89(1) when salary is paid in arrears or advance,
This form is provided by An Employee to the Income Tax Department. It contains details such as Arrears / Advance Salary, Gratuity, Compensation on Termination, Commutation of Pension
6. Form 3CB-3CD
It is submitted by Taxpayer who is required to get his accounts audited by an Accountant u/s 44AB. It is to be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.
It is a report of Audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961
Form 3CEB
It is submitted by taxpayer who is required to obtain a report from an Accountant u/s 92E for entering into an international transaction or specified domestic transaction.
It is to be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.
This form is a report from an Accountant, relating to international transaction(s) and specified domestic transaction(s)
8. Form 3CE
Taxpayer who is required to obtain a report from an Accountant u/s 44DA for receipt of specified incomes from specified persons.
To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139. It is a report from an Accountant, relating to receipt of income by way of royalty or fees for technical services from Government or an Indian concern.
Source: Income tax portal
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