Overview of tax returns, residency rules, tax slabs, and deductions for Non-Resident Individuals for Assessment Year 2026-27.
Residential Status and Applicability
Non-Resident Individual is an individual who is not a resident of India for tax purposes. In order to determine whether an Individual is a Non-Resident or not, his residential status is required to be determined u/s 6 of the Income Tax Act, 1961 as given below.
An individual will be treated as a Resident in India in any previous year if he / she is in India for a period of 182 days, or more during the previous year or if he / she is in India for a period of 60 days or more during the previous year and 365 days or more for 4 years immediately preceding the previous year.
An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year.
Applicable Income Tax Returns and Forms
ITR-2 is applicable for individuals and Hindu Undivided Families having income under any head other than Profits and Gains of Business or Profession.
ITR-3 is applicable for individuals and Hindu Undivided Families having income under the heads Salary/Pension, House Property, Profits or Gains of Business or Profession, Capital Gains or Income from Other Sources, and who are not eligible for filing ITR-1, 2 or 4.
Key Facts & Sources
- First residential condition threshold
- 182 days
- “If he / she is in India for a period of 182 days, or more during the previous year or”
- Second residential condition threshold
- 60 days
- “If he / she is in India for a period of 60 days or more during the previous year and 365 days or more for 4 years immediately preceding the previous year.”
- Income threshold for amended exception
- ₹ 15 lakh
- “exceeds ₹ 15 lakh during the previous year.”
- Deemed resident income threshold
- ₹ 15 lakh
- “It provides than an Indian citizen earning Total Income in excess of ₹ 15 lakh (other than income from foreign sources) shall be deemed to be Resident in India if he / she is not liable to pay tax in any country.”
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