ITR Filing 2025: What You Need to Know About New Rules for NRIs

The Income Tax Department has notified the ITR forms for FY 2024-25 (AY 2025-26). While ITR-1 and ITR-4 software utilities are available, the utility for ITR-2, which is commonly used by Non-Resident Indians (NRIs), is yet to be released. Several rule changes will impact how NRIs file their tax returns this year.

New Asset Reporting Threshold

NRIs filing ITR-2 now need to report Indian assets and liabilities only if their gross taxable income exceeds ₹1 crore in FY 2024-25. Foreign assets and liabilities are not required to be reported by NRIs in ITR-2.

Capital Gains Reporting Based on Date

A new rule separates capital gains reporting based on the date of sale. Transactions before July 23, 2024, will follow the old tax rates, while those after will use the new capital gains regime. The ITR-2 form has separate fields to report these correctly.

More Detailed Disclosures Required

The updated ITR forms ask for extra information. For example, if claiming a deduction under Section 80C for life insurance, you must provide the policy number. For NPS deductions, you’ll need to give your PRAN number.

Deadline Extended for ITR Filing 2025

The government has extended the ITR filing deadline to September 15, 2025, for salaried individuals, pensioners, and NRIs, as long as their accounts don’t need to be audited. This gives NRIs more time to file their returns properly.

Important Tip: File Form 10F

NRIs should file Form 10F to claim tax benefits under the Double Tax Avoidance Agreement (DTAA). There is no specific deadline, and the form is valid for one year.

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Conclusion

These updates bring clarity and extra time for NRIs filing tax returns in India. Stay informed, prepare your documents in advance, and don’t forget to claim benefits under DTAA where applicable.

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