ITR forms for NRIs for AY 2019-20

  • Blog|Income Tax|
  • 3 Min Read
  • By Taxmann
  • |
  • Last Updated on 10 May, 2021
For the purpose of taxation, the Income-tax Act, 1961 classifies an assessee either a resident or a non-resident. The residential status of an individual for the purpose of taxation is determined on the basis of his physical presence in India during the previous year (April 1 to March 31) and preceding previous years.

An Individual is said to be a resident of India if he is: 

  1. Physically present in India for a period of 182 days or more in the previous year, or
  2. Physically present in India for a period of 60 days or more during the relevant previous year and 365 days or more in aggregate in four preceding previous years. If a person doesn’t meet any of the above two conditions then he is said to be a non-resident in India for the purpose of taxation in India. Section 5 provides that a person, being a non-resident is liable for payment of tax in respect of the following incomes:
    • Any income received or deemed to be received in India by him or by any other person on his behalf, or
    • Any income which accrues or arises or is deemed to accrue or arise to him in India.

Product image

Thus, a non-resident Indian (NRI) is required to furnish his return of income if the aforesaid income exceeds the maximum exemption limit, i.e., Rs. 2,50,000. This limit shall be considered without giving effect to the provisions of section 10(38), 10A, 10B, 10BA, or deduction available under sections 80C to 80U. He can furnish his return of income in Form ITR -2 or ITR-3, depending on the nature of the income. It must be noted that an NRI cannot file a return of income in Form ITR-1.

If an NRI has income from business or profession then a return is required to be filed in Form ITR-3. In all other cases, ITR-2 can be used to file a return of income. In case the NRI has opted for a presumptive taxation scheme, the return has to be filed in ITR-3 only, up to Assessment Year 2018-19, an option to file return in ITR-4 was available to NRI who opted for presumptive taxation scheme. However, same is withdrawn w.e.f, Assessment Year 2019-20. The Central Board of Direct Taxes (CBDT) has also exempted certain classes of NRIs from the mandatory requirement of furnishing of ITRs. In the case of an NRI, furnishing of ITR isn’t required if such NRI has any of the following incomes on which TDS has been deducted and prescribed conditions have been fulfilled: 
  1. Investment income derived from a foreign exchange asset
  2. Long-term capital gains form such foreign exchange asset
  3. Income from participation in any game or sport in India (other than the winnings from lotteries, etc., as referred to under Section 115BB)
  4. Advertisement Income
  5. Income from contribution of articles relating to any game or sport in India in any newspapers, journals or magazines
  6. Any income received or receivable for performance as an entertainer in India
  7. Income by way of Interest on bonds as referred to in Section 115AC
  8. Income by way of dividend, other than those as referred to in Section 115-O, on Global Depository Receipts as referred to in Section 115AC.
  9. Income by way of dividend, other than those as referred to in Section 115-O
  10. Interest received from Government or Indian concern on monies borrowed or debt incurred by Government or Indian concern in foreign currency
  11. Interest received from an Infrastructure Debt Fund as referred to in Section 10(47)
  12. Interest on borrowings in foreign currency or monies borrowed by way of Rupee Denominated Bonds as referred to in Section 194LC
  13. Interest on the investment made by FII or QFI in Rupee Denominated Bond of an Indian company or  Government security as referred to in Section 194LD
  14. Distributed income being interest received or receivable from a Special Purpose Vehicle as referred to in Section 194LBA(2)

  15. Income from units, purchased in foreign currency, of a mutual fund, as specified in Section 10(23D)
  16. Income, other than business income, distributed by an investment fund located in International Financial Services Centre (IFSC) located in India.
Also Read:

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied