Don’t miss this key tax deadline: UAE-based Indian expats urged to file ITRs on time
Capital gains tax is rising from July—file ITR now to avoid penalties and claim refunds!
Dubai: As the countdown begins for filing Income Tax Returns (ITR) for the financial year 2024-25 (assessment year 2025-26), Indian expats in the UAE are being reminded to get their paperwork in order—fast.
“Timely filing of your ITR can save you money, prevent penalties, and help you claim what’s rightfully yours,” stresses Dixit Jain, managing director at The Tax Experts DMCC, a Dubai-based tax advisory. “The last date to file your ITR is July 31, 2025—and it’s better not to wait till the last minute.”
What’s new this year?
Jain highlights a key change from July 23, 2024: the tax rate on capital gains has increased. For listed shares and securities:
Long-term capital gains (on holdings over 12 months) now attract a 12.5% tax, up from 10%.
Short-term capital gains (on holdings under 12 months) are taxed at 20%, up from 15%.
This means investors—especially those who trade regularly—need to keep their paperwork ready to calculate gains correctly and avoid overpaying or underreporting.
Also Read: How NRIs can file tax returns from the UAE
What documents do you need?
To ensure an accurate and smooth filing process, Jain says NRIs should arrange the following:
Bank statements (NRO, NRE, or resident accounts) for FY 2024–25
Rental agreements and rent receipts (if applicable)
Interest certificates (for FDs, bonds, FCNR, etc.)
Property documents (especially if sold during the year)
Capital gains reports (shares, mutual funds, or real estate)
Investment proofs (Sections 80C, 80D, NPS, etc.)
Aadhaar, PAN, passport (with UAE visa or Emirates ID)
Number of days spent in India (FY 2024–25 + previous 4 years)
Details of unlisted shares, if any
Home loan interest certificate (for claiming Section 24 deduction)
Why should NRIs bother?
Many NRIs assume that if tax is deducted at source (TDS), they don’t need to file an ITR. That’s not true. “Almost half of NRIs wrongly believe that TDS means no further tax filing is required,” says Jain. “In reality, filing is the only way to claim refunds and avoid penalties.”
In fact, a recent survey revealed that 90% of NRIs who had tax deducted but didn’t file returns could have received most of that tax back—but lost out by skipping the ITR process.
What income is taxable for NRIs?
Here’s what you must report in India:
Salary earned for work done in India or paid by the Indian government
Rental income from property in India (taxed at slab rates)
Interest income from NRO accounts (fully taxable), FDs, and bonds
Capital gains from shares, mutual funds, property, or gold
Business income from ventures controlled or operated in India
Note: Interest on NRE and FCNR deposits is exempt from Indian tax.
Filing early has real benefits
Filing before the deadline isn’t just about avoiding a ₹5,000 penalty. Jain outlines several major advantages:
Claim TDS refunds easily if excess tax was deducted
Carry forward losses on stocks or property to offset future gains
Establish income proof for loan, visa, and insurance applications
Support claims in compensation cases (especially for the self-employed)
Don’t delay—get compliant today
NRIs with income over INR250,000 (Dh12,488) must file a return—even if they think TDS has covered their dues. And if your income exceeds INR5 million (Dh249,772), you’re also required to disclose your Indian assets and liabilities.
“Start now,” Jain advises. “Get your documents together, determine your residential status, calculate your taxable income, and file early. This is the smartest way to avoid tax notices or missed refunds.”
With the July 31, 2025 deadline looming, UAE-based Indian expats are encouraged to act early—because when it comes to taxes, being late can cost you more than just money.
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