Indians residing in the United Arab Emirates who are required to file Indian income tax returns for the financial year 2025-26 must submit their returns by July 31, 2026. This filing corresponds to the Assessment Year 2026-27, and India’s Income Tax Department has activated forms ITR-1, ITR-2, ITR-3, and ITR-4 on its e-filing portal, with most non-resident Indians (NRIs) expected to use ITR-2 or ITR-3.

Filing obligations for NRIs do not end automatically with expatriate status. Individuals whose taxable income in India exceeds the basic exemption limits must file, with thresholds set at 250,000 rupees under the old tax regime and 400,000 rupees under the default new regime for 2025-26. Additionally, filing may be necessary to claim refunds on excess Tax Deducted at Source (TDS), report capital gains, carry forward investment or property losses, or correct errors related to a Permanent Account Number (PAN).

India taxes NRIs primarily on income sourced or deemed sourced within the country. This includes rental income from Indian properties, interest from Non-Resident Ordinary (NRO) accounts or taxable deposits, capital gains from Indian assets such as property or shares, dividends from Indian companies, and income from businesses linked to India. Transfers of earnings made abroad, such as salaries earned in the UAE and remitted to India, are not subject to Indian tax by default.

Determining residency status for tax purposes hinges on physical presence in India, not visa or employment location abroad. NRIs are advised to maintain passports and detailed travel calendars for April 1, 2025, to March 31, 2026, as residency tests may consider stays over multiple years. A change in status from non-resident to resident may alter the treatment of foreign income during the assessment year.

Form selection is a critical step. NRIs cannot use ITR-1; instead, those without business income generally file ITR-2, while ITR-3 applies to taxpayers with business or professional income. Filing with an incorrect form can lead to delays or processing errors.

Documentation must be comprehensive and well-organized. Key papers include PAN card, passport, UAE residence visa, Emirates ID, Indian bank details, Annual Information Statement (AIS), Form 26AS (now Form 168), TDS certificates, bank statements for NRO and Non-Resident External (NRE) accounts, rental agreements, capital gains statements, and proofs of deductions. Taxpayers should verify that pre-filled data on the portal aligns with their own records to avoid mismatches.

If discrepancies arise between AIS or Form 26AS and an individual’s records, taxpayers can submit corrections via the tax portal or contact the relevant deductor to rectify TDS reporting before filing. Ignoring such issues may result in refund delays or inquiries.

Once the return is submitted, verification must occur within 30 days for it to be valid. This can be completed electronically using Aadhaar OTP, net banking, or digital signatures. NRIs unable to verify electronically must mail a signed acknowledgment to the Centralized Processing Centre in Bengaluru.

Before filing, taxpayers should confirm they have selected the correct assessment year, declared their residential status accurately, chosen the appropriate ITR form, ensured consistency across AIS, Form 26AS, and TDS certificates, reported all income, maintained an active refund account in India, and completed any required self-assessment tax payments as well as e-verification procedures.

The Income Tax Department will provide round-the-clock support from July 25 to the July 31 deadline, aiding NRIs with compliance for the 2025-26 Indian tax filings.