ITR Season AY 2026-27: Deadlines and New Rules Every NRI Must Know

The Headline Deadline: July 31, 2026

For NRIs with income in India — rent, interest, capital gains — the due date to file your return for AY 2026-27 (income earned in FY 2025-26) is July 31, 2026. ITR-2, the form most NRIs use, was released on the e-filing portal on May 27, 2026, so there is no reason to wait.

If you have business or professional income (ITR-3/ITR-4, non-audit), you now get until August 31, 2026 — and this extension is a permanent change under the Finance Act, 2026, not a one-off.

This Is the Last Season Under the 1961 Act

The new Income Tax Act, 2025 came into force on April 1, 2026 — but it applies from Tax Year 2026-27 onwards. Your AY 2026-27 return is still governed by the familiar Income-tax Act, 1961. The first filing under the new law happens in 2027.

What's Changed for NRIs This Year

• New Tax Regime is the default — including for NRIs. But note carefully: the enhanced Section 87A rebate (income up to ₹12 lakh effectively tax-free) is available only to resident individuals. NRIs pay tax from the first rupee above the basic exemption limit — ₹4 lakh under the New Regime, ₹2.5 lakh under the Old.
• Aadhaar is now mandatory — from AY 2026-27 you must quote your 12-digit Aadhaar number; the Aadhaar Enrolment ID is no longer accepted.
• Expanded capital gains disclosure — the updated ITR forms require more granular capital gains reporting, and the July 23, 2024 before/after split has been removed.
• Don't accept a pre-filled ITR-1 — NRIs cannot file ITR-1 (Sahaj). If the portal defaults you into it, switch to ITR-2/ITR-3, or you'll receive a defective return notice.
• Returning NRIs: Form 10EE (for the Section 89A foreign retirement account benefit) must be filed by the ITR due date. Miss it, and the benefit is lost for the year entirely.

If You Miss the Deadline

• Late fee (Section 234F): ₹1,000 if total income is up to ₹5 lakh; ₹5,000 otherwise — plus 1% per month interest under Section 234A on unpaid tax.
• Regime lock-in: A belated return means you cannot switch to the Old Regime for that year.
• Losses lapse: Capital and business losses generally cannot be carried forward if the original return is late.
• Longer correction windows: Budget 2026 extended the revised-return deadline to March 31, 2027 (a fee applies after December 31, 2026), and an Updated Return (ITR-U) can now be filed up to 48 months after the assessment year ends.

Filing From Abroad?

We prepare and file NRI returns end-to-end — residential status computation, DTAA credit mapping, and coordination with your US or UK accountant. Book a call before the rush week of July 25–31.