Why UAE NRIs must file ITRs in India this year
Even with no income in India, UAE NRIs can benefit by filing tax returns this year
Dubai: Let’s be honest — filing taxes in India might be the last thing on your mind when you’re working in the UAE. But if you're an Indian living here with any kind of connection back home — like a flat, a bank account, or investments — chances are, you may need to file a tax return in India this year.
Even if you don’t owe any tax, it might still make sense to file. Let’s break it down in the easiest way possible — who needs to file, why it helps, and how to do it online from your sofa in Dubai.
Do I really need to file Indian tax return?
If you’re earning ONLY in the UAE and have no income in India, the answer is: No, not legally required.
But if you have even one of the below, then yes — you probably do:
You earn rent from property in India
You have interest income from an NRO account
You made capital gains from selling property, shares, or mutual funds
You want to claim a refund of tax deducted in India (TDS)
You want to carry forward investment losses to the next year
You hold unlisted shares or are a director in an Indian company
You stayed in India long enough to be considered a ‘resident’ under Indian tax rules
The basic rule is: If your income in India is above ₹250,000 (around Dh11,500), you must file.
Also, if you had capital gains (like from selling stocks or property), you need to file even if the amount is below ₹250,000.
What income is actually taxable for NRIs?
Let’s keep it simple:
What’s not taxable:
Salary earned in the UAE
Interest from NRE and FCNR accounts
Money sent from abroad
What’s taxable in India:
Rent from Indian property
Interest from NRO accounts
Gains from selling property, stocks, or gold in India
Any income earned for services rendered in India
Income from a business based in India
How much tax do I pay if I need to file?
India uses slabs, just like many countries:
₹250,000-₹500,000 → 5%
₹500,000–₹1 million → 20%
₹1 million→ 30%
For capital gains (like stocks or property):
Long-term gains → 10–20%
Short-term gains → 15–30%
But here’s the catch: NRIs can’t use the ₹250,000 basic exemption to reduce capital gains tax. So even if the gain is small, tax applies.
What if I had no income in India this year?
Still, it might be a smart move to file a ‘zero return’. Why?
Keeps your record clean with the Indian tax department
Makes it easier to apply for home loans in India later
Useful proof if you move back to India
Lets you carry forward investment losses
Helps you repatriate money back to UAE if needed
Think of it like renewing your passport — not urgent, but smart to stay current.
What’s the deadline this year?
The deadline for most NRIs (non-audit cases) is: September 15, 2025
If you're under audit or have special cases (like transfer pricing), the deadlines are later — but most UAE NRIs fall under the regular category.
There may be an extension, but don’t count on it — better to file early!
How do I file taxes from Dubai?
No need to fly home — everything is online now.
Here's how to do it:
Go to: incometax.gov.in
Register or log in using your PAN number
On the dashboard, click ‘File Income Tax Return’
Use the option ‘Help me choose my ITR form’ if unsure
Fill in your income details (much of it is pre-filled now!)
Pay any tax due, if applicable
Click Preview and Submit
Then eVerify your return — using Aadhaar OTP (if linked), Indian bank account, or NetBanking
Tip: If none of the e-verify options work, you can print and post a signed form (ITR-V) to the tax department in Bengaluru.
Quick word about TDS..
If you’ve had TDS (tax deducted at source) on rent, dividends, or mutual fund returns — don’t assume you’re done.
Many NRIs miss out on refunds just because they didn’t file. You could be owed money!
Final checklist for UAE NRIs
Do you have income in India over ₹250,000?
Did you sell property or stocks in India?
Do you want to claim a refund or carry forward losses?
Do you plan to apply for a loan in India later?
Are you unsure of your residential status due to frequent travel?
If you said yes to any of these — go ahead and file. It’s easier than ever, and you’ll thank yourself later.
Final thought?
Filing Indian taxes as a UAE-based NRI is no longer complicated — it’s just one more digital task in your personal finance to-do list. Whether you’re investing in Indian property, sending money home, or just keeping your paperwork clean, filing a return — even a zero one — can work in your favour. So, simply put, peace of mind now equals less paperwork later.
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