7 Tax Mistakes NRIs Must Avoid This Filing Season
Avoid penalties. File right with iNRI experts.
Tax filing season can be tricky for NRIs. From choosing the wrong form to missing out on deductions, a few missteps can lead to penalties, delays, or even tax notices. Here are 7 common mistakes NRIs make, and how to avoid them:
❌ Mistake 1: Misreporting Residential Status
Your taxability depends on your residential status—not your visa or passport.
✅ How to Avoid it?
Use the number of days stayed in India over the last 1–2 years to correctly determine if you're NRI, RNOR, or Resident. If unclear, consult a tax expert.
❌ Mistake 2: Using the Wrong ITR Form
Many NRIs file ITR-1 or ITR-4 incorrectly.
✅ How to Avoid it? Use ITR-2 for capital gains, interest, and property; use ITR-3 if you have business or professional income in India.
❌ Mistake 3: Not Filing Form 67 for DTAA
Without this, you may lose your foreign tax credit.
✅ How to Avoid it? File Form 67 before your ITR to claim tax relief under the India–foreign country tax treaty.
❌ Mistake 4: Ignoring Foreign Income
If you're an RNOR or incorrectly report status, you may owe tax on foreign income too.
✅ How to Avoid it? Verify your residential status and report global income only if required.
❌ Mistake 5: Not Reconciling with Form 26AS / AIS
Mismatch with official records can flag your return.
✅ How to Avoid it? Always reconcile TDS, capital gains, and interest with Form 26AS and AIS before filing.
❌ Mistake 6: Filing Late
This leads to penalties and missed refund opportunities.
✅ How to Avoid it? File before July 31 (or the extended due date). If you’re late, file a belated return to stay compliant.
❌ Mistake 7: Not Taking Expert Help
DIY filing often results in missed forms, deductions, or incorrect reporting.
✅ How to Avoid it? Engage a tax expert who understands NRI tax laws, DTAA rules, and compliance for global assets.
Avoiding these 7 tax mistakes can save you stress, penalties, and lost refunds. With cross-border tax rules constantly evolving, iNRI’s team of expert tax professionals is here to help you file correctly, maximize benefits, and stay fully compliant—no matter where you live or earn.
Start your filing with confidence — https://app.goinri.com/india-tax-filing