Returns and Forms Applicable for Non-Resident Individuals for AY 2026-27

One thing that often causes confusion is the difference between forms required for filing an ITR and supporting documents or certificates.

For example, Form 10E is relevant when you are claiming relief under Section 89(1), such as for eligible salary arrears. It is not a compulsory form for every NRI.

Similarly, Forms 3CB and 3CD relate to tax audit requirements, while Form 3CEB relates to specified international or domestic transactions requiring an accountant's report. These are applicable only when the relevant conditions are met.

Also, do not assume that living outside India automatically means you have no Indian tax filing obligation. Check your Indian taxable income, TDS, tax liability and the applicable return-filing conditions. You may also want to check whether filing is necessary to claim a refund of excess TDS.

Before filing, I usually check Form 26AS and AIS because the information reported by banks, employers and other deductors may not always match what I have in my own records.

These are some of the documents worth checking:

• Form 16, if you received salary from an Indian employer.
• Form 16A, for TDS on income other than salary, such as interest or rent.
• Form 26AS, to check tax deducted or collected and tax payments.
• AIS, to review reported financial transactions and other information.
• Bank interest certificates and rental income details.
• Capital gains statements from mutual funds or brokers.

You should also check whether the TDS shown in these records matches the income you are reporting. Form 16A is not something every NRI must obtain; it is relevant when tax has been deducted on applicable non-salary payments.

The ITR form mainly depends on the type of income you have in India, not simply on whether you are living abroad.

For AY 2026–27, the general distinction is:

• ITR-2: For an NRI who has income such as salary, pension, rental income, capital gains, interest or other sources, but no income taxable under the head Profits and Gains of Business or Profession.
• ITR-3: For an NRI who has income from a business or profession in addition to any other applicable income.

ITR-1 is not available to non-residents. ITR-4 is also not available to NRIs because it is intended for eligible resident taxpayers using presumptive taxation.

I would recommend checking the official ITR eligibility conditions before selecting a form. The Income Tax Department has separate guidance for ITR-2 and AY 2026–27.

I filed as an NRI previously and the forms I kept ready were more than just the ITR.

Depending on the circumstances, you may come across:

• Form 16 if you have salary income in India
• Form 16A for TDS on income other than salary
• Form 26AS
• AIS
• Form 10E in applicable cases involving relief for arrears/advance salary
• Tax audit forms such as Form 3CB-3CD where audit requirements apply
• Form 3CEB for certain international transactions
• Other forms depending on the specific transaction

The Income Tax Department's AY 2026-27 NRI guidance lists these forms and explains when they may apply.

For a straightforward NRI with only rental income and bank interest, though, don't assume that every form on the list has to be filed. Many of them are only relevant in specific circumstances.

Also, the Income Tax Department currently has the AY 2026-27 ITR-2 and ITR-3 utilities available, so it is worth using the current AY 2026-27 version rather than an older utility.

One thing that caused confusion for me was assuming that the ITR form depends mainly on the amount of income.

It doesn't work that way. The nature of income and residential status are important when deciding the applicable ITR.

For example, an NRI with house-property income, interest and capital gains may generally fall under ITR-2, while an NRI carrying on a business or profession may need ITR-3.

The Income Tax Department also has a “Help me decide which ITR form to file” service that uses residential status and income-related conditions to identify the applicable return and schedules.

Also remember that being an NRI does not mean that all income earned anywhere in the world automatically becomes taxable in India. Indian taxability depends on residential status and the nature/source of the income. The Income Tax Department explains that income accruing or arising in India, or deemed to accrue or arise in India, can be taxable for a non-resident.

So I would first establish the residential status for FY 2025-26 and then determine which Indian income needs to be reported.