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

One thing I'd recommend is not worrying about every tax form you see on the Income Tax Department website.

Some forms, like Form 12BB, are meant for employees to submit investment declarations to their employer for TDS purposes. Others apply only in specific situations, such as claiming Foreign Tax Credit or relief under certain provisions.

I prepared a simple checklist before filing:

• Determine residential status.
• Identify all Indian income.
• Decide whether business income exists.
• Choose the correct ITR.
• Verify TDS through Form 26AS and AIS.
• Check whether any additional forms are required.

Requirements can vary depending on your income, so it's always worth reviewing the official guidance before submitting the return.

My case was slightly different because I'm on an H1B visa in the US and also have consulting income from India.

Since I had professional income in addition to capital gains and bank interest, my CA filed ITR-3 instead of ITR-2.

A lot of people assume every NRI files ITR-2, but that's not always true. If business or professional income is involved, ITR-3 generally becomes applicable. The form selection depends more on the nature of income than simply being an NRI.

I also found it useful to compare AIS and Form 26AS before filing because some interest entries appeared there that I had forgotten about.

I filed my return last week from Canada as an NRI. My income consisted of rental income, NRO fixed deposit interest, and long-term capital gains from selling listed shares.

Based on my situation, ITR-2 was the correct form because I didn't have any business or professional income. I had initially selected ITR-1 by mistake, but the portal clearly showed that non-residents aren't eligible for it. The Income Tax Department guidance also lists ITR-2 for non-resident individuals who don't have business income.

I didn't need to file Form 67 because I wasn't claiming any Foreign Tax Credit. If you're paying tax abroad on income that's also taxable in India and want relief under a DTAA, then Form 67 may become relevant.

My advice is to first identify every source of income before choosing the return form.