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Jul 08, 2025
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NRIs' filing ITR in India should know these four income tax-related changes
The Income Tax Department has notified the income tax return (ITR) forms for FY 2024-25 (AY 2025-26). But, although software utilities for ITR-1 and ITR-4 have been released by the tax department, it still hasn't rolled out the software utilities for ITR-2 and the other ITR forms. Non-Resident Individuals (NRIs) mainly use ITR-2 to file their tax returns.
For FY 2024-25 (AY 2025-26), there have been quite a few updates in the Income Tax Act, 1961, such as new capital gains regulations and changes in the income tax slabs. This might leave NRIs wondering how these changes will affect their ITR filing.
ET Wealth Online explains the four updates that will affect ITR filing by NRIs in FY 2024-25 (AY 2025-26)
1) Threshold for reporting assets and liabilities increased: The government has increased the threshold for reporting assets and liabilities for individuals who would be filing ITR-2. Tarun Garg, Director, Deloitte India, says, "According to the new rule, an NRI filing ITR-2 is required to report his/her assets and liabilities only if his/her gross taxable income exceeds Rs 1 crore in FY 2024-25. It is important to note that NRIs are required to report their Indian assets and liabilities in ITR 2. Foreign assets and liabilities are not required to be reported by an NRI in the ITR-2 form."
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