Budget 2026 introduces staggered filing schedule, with different deadlines for salaried taxpayers and business owners
Non-Resident Indians (NRIs) in the United Arab Emirates who earn taxable income in India have been advised to prepare early for filing their Income Tax Returns (ITRs), following revised deadlines introduced under India’s Budget 2026.
Under the updated filing schedule, NRIs and other taxpayers filing ITR-1 or ITR-2, including salaried individuals, pensioners and investors, must submit their returns by 31 July 2026. Those with business or professional income who file ITR-3 or ITR-4 and are not subject to a tax audit have been given an extended deadline of 31 August 2026. Taxpayers whose accounts require an audit will continue to follow the later statutory deadline.
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Tax experts say many UAE-based NRIs mistakenly believe they do not need to file returns if tax has already been deducted at source (TDS)
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However, filing an ITR may still be necessary to claim refunds, report income correctly, carry forward eligible losses or comply with Indian tax laws
NRIs typically need to file returns if they have taxable income in India from sources such as rent from property, capital gains from investments, interest on certain bank deposits or business income. Income earned outside India is generally not taxable for individuals who qualify as non-residents under Indian tax rules, although income arising in India remains subject to tax.
Tax professionals have advised expatriates to gather essential documents well before the deadline, including their Permanent Account Number (PAN), Aadhaar where applicable, bank statements, investment records, capital gains details and tax deduction certificates. Early filing also helps avoid last-minute technical issues on the Income Tax Department’s online portal and speeds up the processing of refunds.
With a large Indian community residing in the UAE, advisers say timely compliance will help taxpayers avoid penalties while ensuring they receive any refunds or tax benefits for which they are eligible.
