Non-Resident Individual for AY 2026-27: Returns, Forms, Slabs and Deductions

How non-resident status is broadly determined

The department's guidance explains non-resident status with reference to section 6 of the Income-tax Act, 1961. An individual is generally treated as resident if either the stay in India is 182 days or more during the previous year, or the stay is 60 days or more during the previous year together with 365 days or more during the four immediately preceding years.

If neither of those basic conditions is satisfied, the individual is treated as non-resident for that previous year. The same guidance also notes special modifications for Indian citizens and persons of Indian origin visiting India, for crew members and persons leaving India for employment, and the Finance Act 2020 changes around the 120-day rule and deemed residency in certain high-income situations.

• Basic test 1: stay in India for 182 days or more during the previous year
• Basic test 2: stay in India for 60 days or more during the previous year plus 365 days or more during the four immediately preceding years
• If neither test is met, the individual is generally treated as non-resident for that year
• Special rules can modify the result for visiting Indian citizens, persons of Indian origin, seafarers, and certain Indian citizens with income above the stated threshold

Which ITR form is commonly relevant for a non-resident individual

The department's AY 2026-27 non-resident page lists ITR-2 and ITR-3 as the main return forms for non-resident individuals.

ITR-2 is meant for an individual or HUF, whether resident or non-resident, having income under heads other than profits and gains of business or profession. ITR-3 is meant for an individual or HUF having income from business or profession along with the other relevant heads of income.

• ITR-2: for non-resident individuals not having income from business or profession
• ITR-3: for non-resident individuals having income from business or profession
• The department page does not list ITR-1 for non-resident individuals
• ITR-4 is also not the listed non-resident route because its eligibility is built around resident taxpayers

Important forms and statements for non-resident taxpayers

The non-resident guidance page lists a set of forms that matter depending on salary claims, TDS, audits, foreign or technical-fee related reporting, and reconciliation before filing.

• Form 12BB: employee declaration for HRA, LTC, borrowed-capital interest, and other tax-saving claims used for salary TDS working
• Form 16: employer-issued salary TDS certificate
• Form 16A: TDS certificate for non-salary income
• Form 26AS: tax deducted or collected at source
• AIS: broader annual information statement showing TDS, TCS, SFT information, taxes paid, refund or demand details, and other information
• Form 10E: for relief under section 89(1) in cases such as arrears, advance salary, gratuity, termination compensation, or commuted pension
• Form 3CB-3CD: tax-audit report where audit under section 44AB applies
• Form 3CEB: accountant's report for international transactions or specified domestic transactions under section 92E
• Form 3CE: accountant's report for specified royalty or fees for technical services cases under section 44DA

Old and new regime position for AY 2026-27

The department guidance states that the new regime under section 115BAC remains the default regime for eligible individuals, HUFs, AOPs, BOIs and AJPs. Eligible taxpayers can still opt for the old regime.

In non-business cases, the regime choice can generally be exercised in the return itself within the due-date framework. In business or profession cases, Form 10-IEA is relevant for opting out of the default new regime, and the page also notes the restriction on re-entering the default new regime after opting out in those cases.

• New regime is the default regime for eligible non-corporate taxpayers covered by section 115BAC
• Non-business case: regime choice is normally exercised in the ITR
• Business or profession case: Form 10-IEA is relevant to opt out of the default new regime
• Re-entry into the default new regime after opting out is restricted in eligible business or profession cases

Tax slabs for non-resident individuals for AY 2026-27

The non-resident guidance page shows the same broad old-regime and new-regime slab structure as the general individual guidance, but it specifically notes that under the old regime the rates for a non-resident individual remain the same irrespective of date of birth. In other words, the resident senior-citizen and super-senior-citizen basic-exemption relaxation does not apply to the non-resident page's old-regime slab presentation.

• Old regime: up to Rs. 2,50,000 nil; Rs. 2,50,001 to Rs. 5,00,000 at 5 percent; Rs. 5,00,001 to Rs. 10,00,000 at Rs. 12,500 plus 20 percent above Rs. 5,00,000; above Rs. 10,00,000 at Rs. 1,12,500 plus 30 percent above Rs. 10,00,000
• New regime: up to Rs. 4,00,000 nil; Rs. 4,00,001 to Rs. 8,00,000 at 5 percent; Rs. 8,00,001 to Rs. 12,00,000 at Rs. 20,000 plus 10 percent above Rs. 8,00,000; Rs. 12,00,001 to Rs. 16,00,000 at Rs. 60,000 plus 15 percent above Rs. 12,00,000; Rs. 16,00,001 to Rs. 20,00,000 at Rs. 1,20,000 plus 20 percent above Rs. 16,00,000; Rs. 20,00,001 to Rs. 24,00,000 at Rs. 2,00,000 plus 25 percent above Rs. 20,00,000; above Rs. 24,00,000 at Rs. 3,00,000 plus 30 percent above Rs. 24,00,000
• Old-regime non-resident rates do not change based on age on the department's non-resident page

Surcharge, cess, and the rebate point that should be checked carefully

The non-resident department page shows surcharge at 10 percent for income above Rs. 50 lakh up to Rs. 1 crore, 15 percent for income above Rs. 1 crore up to Rs. 2 crore, 25 percent for income above Rs. 2 crore up to Rs. 5 crore in both regimes, and above Rs. 5 crore at 25 percent in the new regime and 37 percent in the old regime. It also states that enhanced surcharge is not levied on income under sections 111A, 112, 112A and dividend income to the extent applicable to non-residents, so the maximum surcharge on that tax is 15 percent subject to the listed exceptions.

The same page shows a section 87A rebate table for non-resident individuals. However, section 87A is traditionally worded for resident individuals, so this is one point where taxpayers should verify the current filing position and portal treatment carefully before relying on it in a live return.

• 4 percent health and education cess applies on income tax plus surcharge, if any
• New regime surcharge above Rs. 5 crore: 25 percent
• Old regime surcharge above Rs. 5 crore: 37 percent
• Maximum surcharge on tax for income under sections 111A, 112, 112A and dividend income is shown as 15 percent on the non-resident page, subject to the listed exceptions
• The section 87A treatment for non-residents should be checked carefully at the time of filing because the page and the statutory wording may need professional verification

Deductions highlighted for the new regime and the old regime

For the new regime, the non-resident guidance page highlights section 24(b) for let-out property interest, while also stating the loss set-off and carry-forward restriction noted on the portal.

For the old regime, the page points to a wider deduction basket including section 24(b), section 80C, section 80CCD(1B), section 80D, section 80E, section 80EE, section 80EEA, section 80EEB, section 80G, section 80GG, section 80GGA, section 80GGC, section 80TTA and certain business-linked deductions mentioned on the page.

• New regime: let-out property interest under section 24(b) remains relevant on the terms stated by the portal
• Old regime: self-occupied house-property interest can go up to Rs. 2 lakh in the qualifying section 24(b) cases stated by the portal
• Old regime: combined section 80C, 80CCC and 80CCD(1) cap remains Rs. 1.5 lakh
• Old regime: section 80CCD(1B) remains separately available up to Rs. 50,000 on the page's deduction summary
• Old regime: health-insurance, education-loan, donation, rent, savings-interest and other eligible deductions continue to matter subject to the legal conditions

A practical checklist before an NRI return is filed

The most common filing mistakes in non-resident cases come from form selection, residential-status assumptions, and incomplete reconciliation of TDS, foreign income, capital gains, and deductible claims. A careful review before return filing usually saves more time than correcting a wrong filing later.

• Confirm residential status first under section 6 for the relevant year
• Choose ITR-2 or ITR-3 only after checking whether business or profession income exists
• Review Form 16, Form 16A, AIS, and Form 26AS before filing
• Check whether foreign income, treaty issues, or foreign tax credit reporting needs extra forms or schedules
• Use Form 3CB-3CD, 3CEB, or 3CE only where the legal trigger actually applies
• Verify any rebate claim or portal prefill carefully in view of the resident-versus-non-resident wording issue around section 87A