Tax season in India triggers a very specific kind of anxiety in NRIs. You know you should probably file a return. You are not entirely sure if you need to. Your cousin’s friend’s CA gave contradictory advice. And the Income Tax department’s website looks like it was designed to test your patience.
Here is the simple version.
Do you need to file? If your total income in India (rental income, capital gains, interest on NRO/savings accounts, any other Indian-source income) exceeds the basic exemption limit of Rs 3 lakh per year, you must file. Even if TDS has already been deducted. Even if you owe nothing. Filing is mandatory.
If your only India income is NRE FD interest: That is tax-exempt. If you have no other Indian income, you technically do not need to file. But filing a nil return is still a good practice — it creates a record that helps if you ever face scrutiny.
The process: Register on the Income Tax e-filing portal (incometax.gov.in). Use ITR-2 form (most NRIs need this, not ITR-1). Enter your income details, claim TDS credits, and submit. E-verification through Aadhaar OTP is the fastest way to complete the process. The entire thing can be done in 30 minutes if your documents are ready.
Common NRI mistake: Not claiming TDS refunds. Banks deduct 30% TDS on NRO interest, but if your actual tax liability is lower, you are owed a refund. Thousands of NRIs leave refund money on the table every year simply because they do not file.
When to use a CA: If you sold property, have complex investment income, or earn from both India and abroad, hire a chartered accountant who specialises in NRI taxation. A good NRI-specialist CA costs Rs 5,000-15,000 per filing. That is cheap relative to the cost of getting it wrong.