Which ITR Form Should an NRI File?

My situation was a little different because I run a consultancy in India while living in Dubai.

Since I had professional income, my accountant advised me to file ITR-3 instead of ITR-2. Along with my consultancy income, I also reported rental income and interest from my NRO account.

One thing I learned is that the choice of ITR form depends on the nature of your income, not simply your NRI status. Two NRIs can end up filing completely different forms depending on whether they have business income, capital gains, or only investment income.

I filed my own return from Canada this year through the Income Tax e-Filing portal.

My only Indian income was bank interest and capital gains from shares. Since there was no business or professional income, I also used ITR-2.

Before submitting the return, I reviewed my AIS, Form 26AS, and annual statements from the bank and broker. I also verified that my residential status was correctly selected because that's one of the first things the portal asks for.

If your case is more complex—for example, multiple properties, business income, or DTAA claims—it may be worth getting professional help to avoid errors.

I'm an NRI based in the UK, and my Indian income is very similar to yours—rental income, NRO interest, and a few mutual fund redemptions.

I initially thought I could use ITR-1 because my income wasn't very high, but I later learned that ITR-1 isn't available for NRIs. Since I didn't have any business income, I filed ITR-2.

Before filing, I matched everything with my AIS, Form 26AS, and TIS. I also checked my capital gains statement from my broker because one transaction wasn't reflected correctly in my own spreadsheet. Once everything matched, the filing process was fairly straightforward.