July 31, 2026 marks the deadline for filing income tax returns for salaried taxpayers and pensioners, including Non-Resident Indians (NRIs). According to The Times of India, NRIs are required to report their Indian income in their tax returns, including salary for services rendered in India, rental income from property in India, interest from bank accounts, capital gains or other India-sourced income. The filing process follows the same Income Tax e-Filing portal using applicable ITR forms, with the applicable income tax return form generally being ITR-2 for NRIs without business or professional income.
Missing the July 31 deadline does not mean taxpayers lose the opportunity to file their return, but it comes at significant costs. Under Section 234F of the Income-tax Act, 1961, taxpayers may have to pay a late filing fee of up to ₹5,000, with individuals whose total income does not exceed ₹5 lakh restricted to a maximum late fee of ₹1,000. Additionally, taxpayers may face interest charges under Section 234A at 1% per month or part of a month from the original due date until the return is filed. A belated return can generally be filed until December 31, 2026, unless the government announces an extension. As CA Deepak Ukidave from K J Somaiya Institute of Management notes, accuracy remains just as important as timeliness, with taxpayers rushing to meet the deadline advised to first ensure correct ITR form selection and avoid minor typographical errors in PAN, Aadhaar, and bank details.
For NRIs with business or professional income, ITR-3 should be used, with a deadline of August 31, 2026. As reported by The Times of India, first-time filers must register on the Income Tax e-Filing portal at incometax.gov.in and ensure PAN, bank account, and contact details are updated. NRIs should review Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) to verify tax deducted at source, income details, and other reported transactions before filing. The filing process requires reporting details of days of stay in India and country of tax residence along with tax identification number in such country. CA Ukidave advises taxpayers to reconcile details in the Annual Information Statement (AIS), Taxpayer Information Summary (TIS) and Form 26AS with Form 16, bank statements and other financial records before filing.
According to The Times of India, NRIs should assess benefits available under a Double Tax Avoidance Treaty (DTAA) which India may have with their host country. As an example, for US tax residents (being Non-residents of India), the Indian tax on their India interest income cannot exceed 15 per cent. The filing process involves selecting the relevant assessment year (AY 2026-27 for financial year ended March 31, 2026), choosing applicable ITR form, verifying pre-filled details, reporting taxable income, calculating appropriate tax payable, and submitting the return through the e-filing portal.
While filing the return before the deadline is important, taxpayers should remember that simply uploading the ITR form is not enough. According to Angel One, taxpayers filing their ITR by July 31, 2026 can complete e-verification within 30 days to keep the original filing date valid. The Income Tax rules allow a separate timeline for verification, subject to certain conditions. Taxpayers who file their return on the last day can complete the verification process in August without affecting the original filing date, as long as they meet the 30-day deadline. However, if the return is verified after 30 days, the verification date may be treated as the filing date, which could result in the return being classified as a belated return. After successful verification, taxpayers should download and save the ITR acknowledgement for future reference, as a return that is not verified is treated as incomplete.
