How to file ITR as NRI with mutual fund holdings
Filing ITR as NRI with MF holdings requires accurate residential status declaration and Section 195 TDS claim. Most NRIs use ITR-2 (salary + capital gains + other income; no business). The filing process is similar to resident filing with NRI-specific schedules and DTAA considerations.
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Step-by-step procedure
See the procedure infobox above.
NRI ITR-2 schedule overview
| Schedule | Detail |
|---|---|
| Personal info | Status: NR; Country of residence |
| Schedule S | Salary (Indian source only) |
| Schedule HP | House property (Indian) |
| Schedule CG | Capital gains (MF, equity, property in India) |
| Schedule OS | Other income (Indian dividend, interest) |
| Schedule TDS | TDS claims including Section 195 |
| Schedule FA | Foreign assets (direct foreign holdings; not Indian MF) |
| Schedule SI | Special income rates |
| Schedule TR | Tax relief / DTAA |
For most retail NRIs: Schedule S (if Indian salary), CG, OS, TDS, TR (if DTAA applies).
Reporting MF capital gains
Same as resident:
- Schedule CG A2 for equity LTCG (Section 112A).
- Schedule CG A1 for equity STCG (Section 111A).
- Schedule CG B1 for debt MF (Section 50AA).
Section 195 TDS deducted by AMC flows to Schedule TDS-1.
Reporting MF dividends
Schedule OS:
- IDCW from Indian MFs: dividend income.
- TDS (Section 195) on dividend.
DTAA reporting
Schedule TR (Tax Relief):
- TDS deducted in India.
- Tax paid in country of residence (if double-taxed).
- DTAA rule for relief.
- Net Indian tax after DTAA.
Form 67 may be required for tax-credit claim (less common for NRI; typically applies to resident with foreign income).
Refund mechanism
If Section 195 TDS > actual tax liability:
- ITR computes refund.
- Refund credit to PAN-linked Indian bank (typically NRE / NRO).
- For amounts above thresholds: ECS to NRE / NRO; some cases require courier.
Cannot directly refund to foreign bank.
E-verification options for NRI
| Method | Detail |
|---|---|
| Aadhaar OTP | If Aadhaar linked + India mobile receives OTP |
| EVC via Indian bank | NRE / NRO bank issues EVC |
| Digital Signature Certificate (DSC) | India-issued DSC; cost ~Rs 1,500-3,000 |
| Net banking | Through Indian bank’s portal |
NRIs often use DSC for reliability across borders.
Filing deadlines
| Status | Original ITR | Belated | Revised |
|---|---|---|---|
| NRI (no audit) | 31 July | 31 December | 31 December |
| NRI (with audit) | 31 October | 31 December | 31 December |
Missing deadline forfeits carry-forward of losses; penalty under Section 234F may apply.
See also
- How to handle TDS Section 195 (MF NRI)
- How to claim DTAA benefit (MF NRI)
- How to invest in MF (NRI, repatriable)
- How to invest in MF (NRI, non-repatriable)
- How to redeem MF (NRI, repatriation)
- How to open NRI MF account
- How to update residential status (MF)
- How to comply with FEMA (MF NRI)
- How to handle PIO / OCI MF
- How to handle US / Canada NRI MF
- How to choose ITR form for MF
- How to report MF capital gains in ITR
- How to fill Schedule CG (MF)
- How to fill Schedule OS for MF dividend
- How to reconcile Form 26AS with MF transactions
- How to revise ITR (MF)
- Section 6 (residential status)
- Section 195 (NRI TDS)
- Section 90 (DTAA)
- DTAA
- Tax Residency Certificate (TRC)
- Form 10F
- Schedule FA
- Black Money Act 2015
- Mutual funds in India
- AMFI
- SEBI
External references
References
- Income Tax Act, 1961, Sections 6, 90, 195.
- CBDT ITR-2 instructions.
- AMFI Best Practice Guidelines on NRI compliance.
- Black Money (Undisclosed Foreign Income and Assets) Act, 2015.