If you’re an Indian living abroad—whether in the U.S., U.K., UAE, Canada, or anywhere else—you’ve probably asked yourself: Do I need to file taxes in India even though I’m not living there anymore? The answer isn’t always a straightforward yes or no. It depends on a few key factors, like your residency status, type of income, and whether you want to claim refunds or avoid double taxation.
Let’s break it down in a simple, no-nonsense way.
Step 1: Understand Your Residential Status
The Indian Income Tax Department classifies individuals into:
- Resident
- Resident but Not Ordinarily Resident (RNOR)
- Non-Resident Indian (NRI)
Your tax obligations change drastically based on this.
So, who is an NRI?
If you spend less than 182 days in India during a financial year (April to March), you are generally considered an NRI for tax purposes.
NRIs are only taxed on income earned or received in India, not global income.
Step 2: Identify If You Have Indian Income
As an Indian expat, you may still have income sources in India such as:
- Interest from NRO savings/fixed deposits
- Rental income from property
- Capital gains from selling mutual funds or shares
- Pension or annuity
- Freelancing or consultancy income billed to Indian clients
If you have any taxable income in India exceeding ₹2.5 lakhs (basic exemption limit) in a financial year, you must file an Indian tax return, even if you’re an NRI.
Step 3: Know When You Should File—Even If You Don’t Have To
There are situations where you may not be required to file, but it’s still a good idea:
- To claim a refund of excess TDS (Tax Deducted at Source)
For example, banks deduct 30% TDS on NRO interest—even if your income is below the taxable limit. - To carry forward capital losses
If you want to offset stock market losses in future years. - To comply with DTAA (Double Taxation Avoidance Agreement)
Filing with Form 67 lets you claim foreign tax credit if you’re being taxed abroad as well. - If you’re planning to repatriate funds
Filing returns helps justify the source of income and makes repatriation smoother under FEMA rules.
When is the Due Date?
- The due date to file your Indian tax return is July 31st (unless extended by the government).
- For those requiring an audit (like business owners or freelancers), it extends to October 31st.
Pro Tip: Don’t Confuse NRE with NRO
- NRE account interest is tax-free in India.
- NRO account interest is taxable, and banks deduct TDS.
If you’re earning interest from NRO accounts, make sure to review your 26AS or AIS statements when filing.
Final Checklist for Indian Expats
Before you skip filing in India, ask yourself:
- ✅ Did I earn more than ₹2.5 lakhs in India?
- ✅ Was TDS deducted that I want to claim back?
- ✅ Do I want to report Indian capital losses?
- ✅ Am I using DTAA benefits?
- ✅ Am I planning to move money from India abroad?
If the answer to any of these is yes, you should file your ITR in India—even as an expat.
Need Help Filing from Abroad?
Good news—you can file Indian tax returns completely online from anywhere in the world. At RIWA Tax Services, we help Indian expats make sense of their tax obligations, file returns, claim refunds, and ensure compliance—without the jargon.
Contact us: +1 (972)-996-6644
Email us : info@theriwa.com Visit our website : https://theriwa.com/
