Tax Consultant
1978 Points
Posted on 15 September 2026
For NRIs claiming DTAA benefits on NRO account income, the key requirement is a Tax Residency Certificate (TRC) from your country of residence, plus Form 10F filed on the income tax portal.
Common NRI ITR issues and how to resolve them:
Issue 1: TDS deducted at 30% on NRO interest but DTAA rate is lower.
Claim the DTAA benefit in your ITR under Schedule TR (Tax Relief). Attach TRC and Form 10F as supporting documents. The excess TDS is refunded after ITR processing. Banks apply DTAA only prospectively and do not reverse past excess TDS. The refund path is the ITR.
Issue 2: DTAA benefit rejected at bank level.
File ITR for the relevant assessment year to claim the refund. Belated return for AY 2026-27 (FY 2025-26 income) is allowed up to December 31, 2026.
Issue 3: Portal shows residential status issue.
In ITR-2, confirm status as NRI under Personal Information. Count days in India during FY 2025-26 and the 4 preceding years to determine the correct category (NR, RNOR, or OR).
Issue 4: Capital gains on NRO FD.
NRO FD interest is taxable income (not capital gains), subject to DTAA rate or 30% TDS without TRC. NRE FD interest is fully exempt from Indian tax.
Filing deadline for NRIs is the same as residents: July 31, 2026 for non-audit cases (belated returns up to December 31, 2026 with Rs 5,000 late fee).
This [NRI capital gains and ITR filing guide](https://taxgarden.in/blog/nri-capital-gains-tax-property-shares-tds-itr-india-guide) covers DTAA claim steps, Form 10F, and the refund process.