Tax experts advise overseas Indians to avoid last-minute errors as the income tax filing deadline approaches
PRAVASISAMWAD.COM
With the deadline for filing Indian Income Tax Returns (ITRs) for the 2025-26 financial year drawing closer, Non-Resident Indians (NRIs) living in the United Arab Emirates have been advised to complete the process well before the July 31 cut-off to avoid penalties, delays in refunds and compliance issues.
Tax professionals say many UAE-based Indians mistakenly believe they are exempt from filing returns because they earn their primary income overseas. However, NRIs are generally required to file an ITR in India if they receive taxable income from sources such as rental property, NRO account interest, dividends, capital gains or other investments located in India.
Experts also stress that tax deducted at source (TDS) does not remove the obligation to file a return. Filing is necessary to reconcile tax liabilities, claim eligible refunds and carry forward certain losses permitted under tax rules
To ensure a smooth filing process, taxpayers are advised to keep key documents ready, including PAN and Aadhaar details where applicable, bank statements, Form 26AS, the Annual Information Statement (AIS), rental income records, investment statements and proof of tax-saving deductions. Cross-checking pre-filled information before submission can help avoid discrepancies.
The Central Board of Direct Taxes (CBDT) has introduced technical improvements to the income tax e-filing portal ahead of the deadline to minimise system disruptions during the expected surge in filings. Officials have also urged taxpayers not to wait until the final days to submit their returns.
Tax advisers recommend that UAE-based NRIs verify their residential status, select the appropriate ITR form and complete e-verification after filing, as a return is not treated as valid until it has been successfully verified. Filing early can also speed up refund processing and reduce the risk of last-minute technical or documentation issues.
