ITR Filing for UAE NRIs in 2025: Who Should File and Why

If you’re an Indian living in the UAE, filing your income tax return (ITR) in India might not seem like a priority—especially if you don’t earn anything back home. But in 2025, filing a return could actually benefit you, even if you have zero tax liability. Whether it’s rental income, bank interest, or past investments, many NRIs have financial ties to India that require reporting.

Here’s a simplified guide to why and when UAE-based NRIs should file, what counts as taxable income, and how to complete the process online.

Do You Need to File a Tax Return in India?
You don’t need to file if your only income is from the UAE and you don’t earn anything in India. But you must file if:

You earn rental income in India
You receive interest from an NRO account
You’ve made capital gains from selling property, shares, or mutual funds
You want to claim a refund on TDS (tax deducted at source)
You need to carry forward investment losses
You hold unlisted shares or are a director in an Indian company
You qualify as a resident under Indian tax rules

Also, if your total income in India exceeds Rs 2,50,000, filing is mandatory. Even if it’s below that, capital gains still require you to file.

What Income Is Taxable for NRIs?

Not Taxable:

Salary earned in the UAE
Interest from NRE and FCNR accounts
Foreign remittances to India

Taxable in India:

Rent from Indian properties
Interest from NRO accounts
Capital gains from Indian assets (property, stocks, gold)
Business or service income sourced from India

How Much Tax Do NRIs Pay?
For most types of income, India follows a slab-based tax system:

Rs 2,50,000 to Rs 5,00,000 → 5%
Rs 5,00,000 to Rs 10,00,000 → 20%
Over Rs 10,00,000 → 30%

Capital Gains Tax:

Long-term gains → 10–20%
Short-term gains → 15–30%

Note: NRIs cannot use the basic exemption of Rs 2,50,000 to offset capital gains tax. So even small gains are taxed.

What If You Had No Income in India This Year?
Filing a “zero return” still offers benefits:

Keeps your tax record clean
Helpful for home loan applications in India
Allows you to carry forward capital losses
Eases future repatriation of funds
Useful proof if you return to India permanently

Important Deadline for NRIs
The ITR filing deadline for most UAE-based NRIs is September 15, 2025. This applies to individuals not subject to audit. Extensions are possible but not guaranteed, so filing early is advised.

How to File from the UAE
Filing is fully online—you don’t need to travel.

Visit incometax.gov.in
Log in with your PAN
Choose ‘File Income Tax Return’
Use the guided form selector
Enter income details (much is pre-filled)
Submit and eVerify using Aadhaar OTP, bank login, or NetBanking
If you can’t eVerify, post a signed copy of ITR-V to Bengaluru

A Quick Note on TDS Refunds
If tax was deducted on rent, mutual funds, or dividends, don’t assume you’re done. Many NRIs miss out on refunds simply because they didn’t file. Filing ensures any excess TDS is returned to you.

Checklist Before Filing

Income in India over Rs 2,50,000?
Sold any property or investments?
TDS deducted that you want refunded?
Plan to apply for a home loan in India?
Not sure of your tax residency status due to travel?

If you said yes to any of these, filing is the smart move.

Conclusion
As an NRI living in the UAE, filing taxes in India might feel optional—but it often makes financial and legal sense. Even a zero-income return helps maintain compliance, opens access to financial services, and makes future processes smoother. Think of it as part of responsible financial housekeeping.