Is It Mandatory for NRIs to File ITR in India?

I'm based in Australia and have dividend income, rental income, and occasional capital gains from investments in India.

I file an ITR annually because it gives me an opportunity to report all my Indian income correctly and claim benefits under the Double Taxation Avoidance Agreement (DTAA), where applicable. Even if filing isn't mandatory in every situation, it can still be beneficial depending on your financial circumstances.

Since tax rules are updated periodically, I always check the latest filing requirements before submitting my return.

I live in the UK and only earn interest from my NRO account in India.

Initially, I thought filing wasn't required because the bank had already deducted TDS. However, after speaking with a tax consultant, I learned that filing depends on whether your total taxable income exceeds the applicable threshold and whether you need to claim any deductions or refunds.

Now I review my income every year before deciding whether I need to file.

I'm an NRI in Singapore and file an ITR in India every year because I have rental income and some capital gains.

In my case, TDS was deducted, but after calculating my actual tax liability, I realized I had paid more tax than necessary. Filing an ITR allowed me to claim a refund. It also helped keep my tax records updated, which was useful when applying for a home loan later.

Whether filing is mandatory depends on your overall tax situation, not just the fact that TDS has been deducted.

One thing I'd suggest is checking your AIS, Form 26AS, and TIS before deciding not to file.

I almost skipped filing because I thought my only income was rent, but my AIS showed additional interest income that I had forgotten about. It changed my tax calculation.

Also, if you've had TDS deducted in India and expect a refund, filing an ITR is generally necessary to claim it. Requirements can differ depending on your income sources, residential status, and applicable DTAA provisions, so it's worth reviewing the official guidance or consulting a tax professional if you're unsure.

My situation was slightly different. I live in Canada and only had interest from my NRE account, which is generally exempt if the eligibility conditions are satisfied. I didn't have rental income, capital gains, or any other taxable income in India.

After checking with a tax professional, I wasn't required to file an ITR because I didn't have taxable income in India that triggered a filing requirement.

However, one of my friends had property income and sold mutual funds in India. He had to file ITR-2 because of the capital gains. That's why it's difficult to compare one NRI's situation with another.