NRI Financial Checklist for FY 2026–27: 12 Things to Do Before July 31

Key thresholds at a glance

• NRIs with Indian income above ₹4 lakh (new tax regime) or ₹2.5 lakh (old tax regime) must file ITR-2 by 31 July 2026. Additional mandatory filing triggers apply even below these limits — see Item 5.
• The NRO repatriation limit of USD 1 million reset on 1 April 2026.
• The secondary residency test threshold is 120 days (increased from 60 days under Finance Act 2020) for NRIs with Indian income above ₹15 lakh.
• DTAA benefits require a valid Tax Residency Certificate submitted to your Indian bank or broker.

India’s financial year began on 1 April 2026. For NRIs living in Europe, the months between April and July are the most consequential of the year. The ITR filing deadline of 31 July 2026 is approaching. TDS refunds from FY 2025–26 can only be claimed by filing on time. The 120-day secondary residency test under Section 6 of the Income Tax Act applies for the first time under the Income Tax Act 2025 recodification this year.

Waiting until March 2027 to think about any of this is how NRIs end up paying more tax than they owe, missing refunds, and scrambling with paperwork at year-end.

These 12 items are grouped by priority and function. Each one takes between 15 minutes and a few hours to complete. None of them require a chartered accountant to start, though a few will benefit from one.

Tick off each item as you complete it. Most NRIs finish this checklist in under a week.

All deadlines and thresholds reflect rules in force as of June 2026, including changes introduced under the Income Tax Act 2025 effective from 1 April 2026.

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What’s in This NRI Financial Checklist?

• Remittance & Transfer Checklist
• Tax Obligations Checklist
• Investments & Accounts Checklist
• Compliance & Documentation Checklist
• Quick Deadline Reference Table

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Remittance & Transfer Checklist

1. Set Your Remittance Strategy for FY 2026–27 Now, Not in March

The worst time to think about how you send money to India is when you urgently need to. The best time is now — when the full financial year is still ahead of you.

Pull your FY 2025–26 transfer history. Note the euro amount, the date, and the INR received on each transfer. Then compare each against the live EUR-INR rate on Google on that date. To understand how exchange rates affect the final amount your family receives, see this guide on EUR to INR real-time rates.

The gap between what you sent and what arrived is your FX cost for the year. Most NRIs are surprised to find they lost 1–2% on every transfer through hidden margins. On ₹50,000 per month in remittances, a 1.5% hidden margin costs approximately ₹9,000 per year — money that should have reached your family.

For FY 2026–27, use a provider like ScopeX that gives you 25 paise above the Google rate with zero fees — meaning the rate you see is the rate your family receives, with no deductions at either end.

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2. Check Your NRE and NRO Account Balances and Plan Repatriation Early

Understanding the difference between these two accounts is foundational for every NRI. For a detailed breakdown of how each account is taxed, see this guide on NRE and NRO account taxation.

NRE (Non-Resident External) accounts hold foreign income brought into India. Interest earned is tax-free in India and both principal and interest are fully and freely repatriable with no annual limit.

NRO (Non-Resident Ordinary) accounts hold Indian-sourced income — rent, dividends, pension. Interest on NRO accounts is taxable in India at 30% TDS. Repatriation from NRO accounts is capped at USD 1 million per financial year (April–March), and this limit resets on 1 April 2026. The limit is cumulative across all your NRO accounts combined — not per account.

For the rules on what can be moved out of an NRO account and how, see this detailed guide on transferring funds from an NRO account and a broader overview of NRI repatriation explained.

If you need to repatriate a large amount from an NRO account this year, plan the paperwork early. Under the Income Tax Act 2025 effective 1 April 2026, you will need Form 145 (which replaces the old Form 15CA) and Form 146 (which replaces the old Form 15CB) for taxable remittances above ₹5 lakh where a CA certificate is required. Your CA or bank will guide you — the process and compliance requirements remain substantively the same, with the form numbers updated under the new Act.

Starting early means you don’t lose months of your repatriation window.

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3. Set Rate Alerts for EUR-INR and Plan Transfers Around the Rate

The EUR-INR rate moves daily. You cannot time the market perfectly, but you can avoid sending money during obviously weak periods. Understanding the difference between the mid-market rate, spot rate, and customer rate helps you evaluate whether the rate you are being offered is fair.

Set a rate alert on Google or a currency tracking app. When EUR-INR crosses a level that works for your needs, send. Also be aware of how weekend FX rate locking works — rates quoted on Friday evenings may not reflect Monday morning market moves.

NRIs sending regularly from Germany to India, Ireland to India, France to India, Netherlands to India, Spain to India, Italy to India, Belgium to India, Austria to India, or Portugal to India can use ScopeX, which consistently offers 25 paise above the Google rate with zero transfer fees.

You can check today’s live EUR-INR rate and calculate your transfer on the ScopeX calculator.

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Tax Obligations Checklist

4. Start Tracking Your India Travel Days for FY 2026–27 From Day One

You are an NRI for income tax purposes if you spend fewer than 182 days in India during FY 2026–27 (1 April 2026 to 31 March 2027). If you cross this threshold, your global income becomes taxable in India.

(Source: Section 6 of the Income Tax Act 1961, as amended by the Finance Act 2020 and carried forward into the Income Tax Act 2025.)

There are two residency tests under Indian tax law:

• Primary test: 182 days or more in India in FY 2026–27 → classified as Resident. Global income taxable in India.
• Secondary test (in force since FY 2020–21, carried forward under the Income Tax Act 2025): 120 days or more in India in FY 2026–27 AND 365 days or more across the previous four financial years → may be classified as Resident (RNOR status). This threshold applies to Indian citizens and Persons of Indian Origin (PIOs) whose Indian income exceeds ₹15 lakh. The threshold was changed from 60 days to 120 days under the Finance Act 2020, effective from Assessment Year 2021-22. It is not a new rule for FY 2026–27, but it is easy to overlook.
• Deemed residency (in force since FY 2020–21): Indian citizens earning ₹15 lakh or more from Indian sources who are not liable to pay tax in any other country are treated as deemed residents of India, regardless of how many days they spend here. This primarily affects NRIs in zero-tax jurisdictions such as the UAE, Monaco, or Bermuda.

Important exception: The secondary test (120-day rule) does not apply to Indian citizens or PIOs who left India for employment abroad. For them, only the 182-day primary test applies.

Keep a travel log from April itself. If you visit India frequently for family, business, or property matters, count your days carefully throughout the year, not just in March when it may be too late to adjust.

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5. File Your ITR for FY 2025–26 Before 31 July 2026

This is the most time-sensitive item on this checklist.

The deadline to file your Indian Income Tax Return for FY 2025–26 is 31 July 2026. The basic income thresholds that trigger a mandatory filing obligation are ₹2.5 lakh under the old tax regime and ₹4 lakh under the new (default) tax regime. However, these thresholds are not the only triggers. You are required to file even if your Indian income falls below these limits in any of the following situations:

• Do you have any capital gains from equity shares or equity-oriented mutual funds? Unlike resident Indians, NRIs cannot offset capital gains against the basic exemption limit. If you sold Indian shares or equity mutual fund units at any profit during FY 2025–26 — regardless of the amount — you are required to file.
• TDS was deducted on any Indian income. If your bank deducted TDS on NRO account interest, or a tenant deducted TDS on rent, filing your ITR is the only way to claim a refund where the deduction exceeds your actual liability.
• You deposited more than ₹1 crore in an Indian bank account during FY 2025–26, or more than ₹50 lakh in a savings bank account. These high-value deposit thresholds independently trigger a mandatory filing requirement.
• You want to carry forward a capital loss from FY 2025–26. Losses can only be carried forward to future years if you file your ITR on or before the due date. Losses can be carried forward for up to 8 years.

Indian income that NRIs must report includes NRO account interest, rental income from Indian property, capital gains from selling Indian assets, and dividends from Indian companies. Use an income tax calculator to estimate your Indian tax liability before approaching a CA.

Key points for NRIs filing for FY 2025–26:

• The basic exemption limit under the new tax regime is ₹4 lakh for FY 2025–26 (increased from ₹3 lakh in FY 2024–25).
• The basic exemption limit under the old tax regime remains ₹2.5 lakh.
• NRIs cannot claim the Section 87A rebate, which allows zero tax up to ₹12 lakh for resident Indians under the new regime. This rebate applies only to resident taxpayers.
• A note on Schedule FA (foreign asset disclosure): this schedule requires disclosure of overseas assets and applies only to individuals classified as Resident and Ordinarily Resident (ROR) in India. As an NRI for FY 2025–26, you are not required to declare your foreign bank accounts or overseas assets in Schedule FA.

Start gathering your documents now: Form 16A (TDS certificates), NRO bank statements, and capital gains statements take time to collect and your CA will need all of them before they can file.

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6. Check Your TDS Deductions on FY 2025–26 Indian Income and Claim Refunds if Owed

Indian banks deduct TDS at 30% on NRO account interest before crediting it to your account. Understanding TDS for NRIs is the starting point for knowing whether you are owed a refund. Also refer to Section 195 of the Income Tax Act for the specific rules governing TDS on payments to NRIs.

NRIs in Germany, the Netherlands, France, Ireland, and other European countries all have active DTAAs with India. These typically reduce withholding tax rates on interest and dividends to 10–15%, depending on the treaty, compared to the default 30%. The DTAA framework explained for NRIs sets out how these treaties work and what you need to do to claim the reduced rate.

To claim a refund for over-deducted TDS on FY 2025–26 income:

• File ITR-2 before 31 July 2026

Ensure a valid Tax Residency Certificate (TRC) has been submitted to your Indian bank or broker

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7. Declare Indian Income in Your European Tax Return

If you are a tax resident in a European country, you are required to declare worldwide income, including income from India. This covers NRO interest, Indian rental income, dividends, and capital gains from selling Indian property or shares.

The India-Europe DTAAs allow you to offset Indian taxes paid against your European liability but only if you disclose the Indian income correctly in your European return.

How different European countries handle this:

In the UK, HMRC expects disclosure of foreign income and gains on your Self Assessment return. In Germany, your Finanzamt expects foreign income declared; global income is taxable from the point of residency. France and the Netherlands operate similarly all worldwide income must be declared with treaty relief applied where applicable.

Case study — Dublin

Sunita owns a flat in Bengaluru generating ₹18,000 per month in rent. Her Indian bank deducts 30% TDS on that income. Under the India-Ireland DTAA, she is entitled to offset this against her Irish liability.

For three years, she had not declared the Indian rental income on her Irish return. When her accountant reviewed her position in early 2026, the correction required two years of amended returns and a voluntary disclosure. The process took three months and cost more than the underpaid tax itself.

Had she declared it in year one, the DTAA offset would have reduced her Irish liability by approximately €800 annually and there would have been nothing to correct.

Addressing this at the start of FY 2026–27, not the end, prevents the same outcome

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Investments & Accounts Checklist

8. Review Your Indian Mutual Fund and Equity Holdings for the Year Ahead

If you sold Indian mutual funds or listed shares during FY 2025–26, you have capital gains to declare before 31 July 2026. A full breakdown of how capital gains tax for NRIs works will help you calculate your liability accurately before filing.

The rates that apply (effective for sales on or after 23 July 2024) are:

Asset Type	Holding Period	Tax Rate
Equity STCG (listed shares, equity funds)	Up to 12 months	20%
Equity LTCG (listed shares, equity funds)	Over 12 months	12.5% on gains above ₹1.25 lakh per year
Real estate LTCG (land, buildings, apartments)	Over 24 months	12.5% without indexation (for sales on or after 23 July 2024). 20% with indexation for sales before 23 July 2024.
Gold LTCG (physical gold, gold ETFs via MF route)	Over 24 months	12.5% without indexation (reduced from 36-month holding period by Budget 2024)
Debt mutual funds (purchased after 1 April 2023)	Any holding period	Taxed at applicable income tax slab rate (no LTCG treatment)

Important notes on the table above

Real estate LTCG: The holding period for property has always been 24 months (not 36 months). For sales on or after 23 July 2024, LTCG on property is taxed at 12.5% without indexation. For sales before that date, the old rate of 20% with indexation applies. For properties acquired before 23 July 2024 that are sold after that date, you can choose the more favourable of the two calculations, verify with your CA before filing.

Real estate STCG: If property is held for 24 months or less, the gain is short-term and taxed at the applicable income tax slab rate (not at a flat rate).

Gold: Budget 2024 reduced the holding period for gold LTCG from 36 months to 24 months and cut the rate to 12.5% without indexation for sales on or after 23 July 2024.

Debt funds purchased after 1 April 2023 are taxed at your applicable income slab rate regardless of holding period, they do not qualify for LTCG treatment.

For FY 2026–27 planning: If you hold equity positions close to the 12-month mark for LTCG treatment, note the acquisition dates now. Selling even one day before the 12-month mark moves your tax rate from 12.5% to 20%.

On loss harvesting: If you had loss-making positions in FY 2025–26 that you did not book before 31 March 2026, those losses cannot be carried forward unless you file your ITR before 31 July 2026. Losses can be carried forward for up to 8 years.

If you are planning new Indian mutual fund investments this year, use the SIP calculator to model regular investment returns or the SWP calculator to plan systematic withdrawals across FY 2026–27.

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9. Check if Your Indian Fixed Deposits Are Correctly Classified as NRE or NRO

NRE fixed deposits earn tax-free interest in India and the principal is fully repatriable. NRO fixed deposits earn taxable interest subject to 30% TDS.

If you opened an FD before you became an NRI and have not converted it, it may still be sitting in a resident account, which is a violation of FEMA regulations. The same applies to regular savings accounts that were not converted when your residential status changed.

Ask your Indian bank to confirm the classification of every FD and savings account in your name. If any remain in resident accounts, request conversion to NRO immediately. Doing this now means interest earned throughout FY 2026–27 is correctly classified from the start of the year and the correct TDS rate is applied consistently.

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10. Update Nominee Details on All Indian Investment Accounts

SEBI introduced mandatory nomination requirements for demat accounts and mutual fund folios. Accounts without a nominee on record can be frozen by the platform, blocking all transactions until the nominee is added.

Log in to your demat account, mutual fund folios, and Indian bank accounts. Confirm that a nominee is registered and the details are current. This takes 15 minutes and prevents a significant administrative problem later or in an emergency.

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Compliance & Documentation Checklist

11. Obtain a Tax Residency Certificate for FY 2026–27 Now

A Tax Residency Certificate is issued by your country of residence confirming that you are a tax resident there. Indian banks and brokers require it to apply the lower DTAA withholding rates on interest and dividends. Without one, you pay the default 30% TDS on all Indian income, even if the DTAA rate for your country is 10–15%.

Processing times typically run 4–6 weeks based on the issuing authority. Applying in June or July means you have your TRC ready before your Indian bank next credits interest to your NRO account.

Where to apply:

• UK: HMRC (Form RES1)
• Germany: Your local Finanzamt
• France: Direction des Finances Publiques
• Netherlands: Belastingdienst
• Ireland: Revenue Commissioners

Submit the completed TRC to your Indian bank to ensure the correct DTAA withholding rate is applied to income earned throughout FY 2026–27.

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12. Review and Renew KYC Across Indian Banks and Financial Institutions

The RBI has ongoing KYC (Know Your Customer) requirements for NRI accounts. Banks periodically require NRIs to re-submit proof of overseas address, passport copies, and OCI or visa documentation. Accounts with lapsed KYC get restricted you cannot initiate outward remittances, purchase mutual funds, or make new investments until the KYC is updated.

Log in to each Indian bank and investment portal and check your KYC status. If it shows as expired or pending, submit updated documents now. Waiting until your account is restricted means doing it under pressure usually at the exact moment you need to move money.

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Quick Financial Deadlines for NRIs — FY 2026–27

Action	Deadline	Who It Affects
File ITR-2 for FY 2025–26	31 July 2026	NRIs with Indian income above exemption limit, or with capital gains, or TDS deducted
Submit TRC to Indian bank for DTAA benefit	June–July 2026	NRIs claiming reduced TDS rates
Apply for Tax Residency Certificate	Apply now (4–6 week processing)	All NRIs with Indian income
KYC renewal for Indian bank accounts	Before restriction	All NRIs with Indian bank accounts
Capital gains statement from broker (FY 2025–26)	Before July 2026	Anyone who sold Indian funds or shares
Begin tracking India travel days FY 2026–27	From 1 April 2026	NRIs who visit India frequently
Confirm FD and savings account classification	As soon as possible	NRIs with pre-NRI resident accounts
Update nominee details on demat and MF accounts	As soon as possible	All NRIs with Indian investments
NRO repatriation (USD 1M limit resets 1 April 2027)	By 31 March 2027	NRIs with Indian income in NRO accounts

Summary for NRIs in Europe — FY 2026–27

The ITR filing deadline for FY 2025–26 is 31 July 2026. Filing is mandatory above ₹2.5 lakh (old regime) or ₹4 lakh (new regime), and also applies if you have any equity capital gains, had TDS deducted, or made high-value bank deposits — even if income is below these thresholds.

NRIs must track India travel days against the 182-day primary test and the 120-day secondary test (applicable for Indian income above ₹15 lakh, in force since FY 2020–21). NRO repatriation is capped at USD 1 million per financial year across all NRO accounts combined. DTAA benefits require a valid Tax Residency Certificate submitted to your Indian bank. Capital gains on equity are taxed at 12.5% LTCG or 20% STCG for NRIs. Real estate and gold LTCG are taxed at 12.5% (for sales on or after 23 July 2024) on a 24-month holding period. Debt funds purchased after 1 April 2023 are taxed at slab rate regardless of holding period.

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Frequently Asked Questions

Do NRIs pay income tax in India in 2026?

An NRI is taxed in India only on income earned or received in India such as NRO account interest, rental income, capital gains from Indian assets, and dividends from Indian companies. Income earned abroad is not taxable in India for an NRI.

What is the ITR filing deadline for NRIs for FY 2025–26?

The due date for filing ITR-2, the form most NRIs use for FY 2025–26 is 31 July 2026.

When is an NRI required to file ITR in India?

Filing is mandatory if your total Indian income exceeds the basic exemption limit: ₹2.5 lakh under the old tax regime or ₹4 lakh under the new (default) tax regime. But these thresholds are not the only triggers. You must also file if you have any short-term or long-term capital gains on equity shares or equity-oriented mutual funds (NRIs cannot offset capital gains against the basic exemption), if TDS was deducted on any Indian income and you wish to claim a refund, if you deposited more than ₹1 crore in an Indian bank in the year, or if you want to carry forward a capital loss to future years. Even if you are not legally required to file, it is worth doing if TDS has been deducted.

What is the income tax exemption limit for NRIs in FY 2025–26?

Under the old tax regime, the basic exemption limit is ₹2.5 lakh. Under the new tax regime (the default from FY 2025–26 onwards), the limit is ₹4 lakh. NRIs cannot claim the Section 87A rebate available to resident Indians under the new regime.

How much money can an NRI transfer from India to abroad in 2026?

NRIs can repatriate up to USD 1 million per financial year (April–March) from NRO accounts, subject to tax compliance. This limit is cumulative across all NRO accounts combined and does not carry forward if unutilised. For taxable remittances above ₹5 lakh, you will need Form 145 (the declaration, replacing old Form 15CA) and Form 146 (the CA certificate, replacing old Form 15CB) under the Income Tax Act 2025, effective from 1 April 2026. Funds in NRE and FCNR accounts are freely repatriable with no annual limit.

What is the LTCG tax rate for NRIs on Indian mutual funds in 2026?

For equity-oriented mutual funds and listed shares sold on or after 23 July 2024: LTCG (held over 12 months) is taxed at 12.5% on gains exceeding ₹1.25 lakh per year. STCG (held 12 months or less) is taxed at 20%. Debt funds purchased after 1 April 2023 are taxed at the applicable slab rate regardless of holding period. Real estate and gold LTCG are taxed at 12.5% without indexation on a 24-month holding period (for sales on or after 23 July 2024).

Do NRIs need to declare Indian income in their European tax return?

Yes. If you are a tax resident in a European country, you are required to declare worldwide income including Indian income. The India-Europe DTAAs allow you to offset Indian taxes already paid against your European liability but only if you disclose the Indian income correctly in your European return.

What is the difference between NRE and NRO accounts?

An NRE account holds foreign-earned income converted to INR; interest is tax-free in India and both principal and interest are freely repatriable with no annual limit. An NRO account holds Indian-sourced income such as rent, dividends, or pension; interest is taxable at 30% TDS and repatriation is capped at USD 1 million per financial year (cumulative across all NRO accounts).

What is the 120-day residency rule for NRIs?

Under Section 6 of the Income Tax Act, the secondary residency test threshold is 120 days for Indian citizens and PIOs whose Indian income exceeds ₹15 lakh. This rule was introduced by the Finance Act 2020 and has been in force since Assessment Year 2021-22 (FY 2020–21). It was carried forward into the Income Tax Act 2025 effective 1 April 2026. If you spend 120 days or more in India in FY 2026–27 AND 365 days or more across the previous four years, you may be classified as Resident (specifically RNOR status) for tax purposes. The 182-day primary test remains unchanged. The secondary test applies only to Indian citizens and PIOs visiting India — not to those who left India for employment abroad, for whom only the 182-day rule applies.

What is the deemed residency rule?

Indian citizens earning ₹15 lakh or more from Indian sources (excluding foreign income) who are not liable to pay tax in any other country are treated as deemed residents of India, regardless of how many days they spend here. This rule was introduced by Finance Act 2020 and primarily affects NRIs in zero-tax countries such as the UAE, Monaco, or Bermuda. Such individuals are classified as RNOR (Resident but Not Ordinarily Resident), which means their Indian income is taxable in India but their foreign-source income generally is not.

How does ScopeX help NRIs with remittances to India?

ScopeX offers EUR-to-INR transfers at 25 paise above the live Google exchange rate with zero transfer fees. There is no hidden margin between the rate shown and the amount your family receives. For NRIs sending regular remittances from Germany, Ireland, France, Spain, Netherlands, Belgium, Austria, Portugal, or Italy to India, this translates to meaningful savings over a full financial year compared to traditional bank transfers.

 

Disclaimer

The information in this article is intended for general informational purposes only and does not constitute financial, tax, legal, or investment advice. While every effort has been made to ensure accuracy as of June 2026, tax laws, FEMA regulations, and RBI guidelines are subject to change. Individual circumstances vary significantly and this checklist may not cover your specific situation. NRIs should consult a qualified Chartered Accountant licensed in India and, where relevant, a tax adviser in their country of residence before making financial decisions. For treaty-based relief under a DTAA, consult a professional familiar with both Indian and European tax law. ScopeX (scopex.money) is a remittance platform and does not provide tax, legal, or financial advisory services. References to tax rates, thresholds, and deadlines are provided for informational purposes only and should be independently verified.