Indian NRIs in the UAE: Essential Guide to ITR Filing Before July 31 Deadline

Dubai: Indian expatriates residing in the UAE face an important deadline as the Income Tax Returns (ITR) for the financial year 2025-2026 must be filed by July 31. For those who have yet to submit their returns, understanding the requirements and implications of missing this deadline is crucial.

Understanding ITR Filing Requirements

Dixit Jain, CEO and Managing Director of The Tax Experts DMCC, notes that many Non-Resident Indians (NRIs) in Dubai mistakenly believe that having income solely in Non-Resident External (NRE) accounts exempts them from filing an ITR. However, as NRIs often invest their NRE savings in mutual funds, shares, or other assets in India, they may generate capital gains or taxable income, necessitating the filing of an income tax return. Filing allows them to claim refunds for excess Tax Deducted at Source (TDS) and to benefit from the India-UAE Double Taxation Avoidance Agreement.

Even if an individual’s taxable income is below the basic exemption limit of INR 4 lakh, they may still be required to file an ITR under specific conditions outlined in the Income-tax Act. These conditions include:

• Deposits exceeding ₹1 crore in one or more current accounts.
• Foreign travel expenses exceeding ₹2 lakh during the financial year.
• Electricity bills exceeding ₹1 lakh during the financial year.
• TDS/TCS of ₹25,000 or more during the year (₹50,000 for senior citizens).
• Business turnover exceeding ₹60 lakh or professional receipts exceeding ₹10 lakh.
• Other specified situations under the Income-tax Act.

Steps for NRIs to File an Income Tax Return

Before initiating the tax return filing process, NRIs should ensure they have digital copies of the following documents:

• Details of income earned in India.
• Capital gains statements, if applicable.
• Tax Deducted at Source (TDS) certificates.
• Tax Residency Certificate (TRC), if claiming benefits under the India-UAE Double Taxation Avoidance Agreement.

Once these documents are prepared, NRIs can file their returns online through the Income Tax Department’s portal. After logging in with their Permanent Account Number (PAN) or Aadhaar, they should select the relevant assessment year, choose the appropriate ITR form, fill in their income details, verify the information, and submit the return electronically.

Important Dos and Don’ts

1. Do Confirm Filing Obligations: It is essential for NRIs to verify whether they are required to file an ITR, as income or investments in India may still necessitate filing.

2. Check for Tax Agreement Benefits: The India-UAE Double Taxation Avoidance Agreement (DTAA) prevents the same income from being taxed twice. However, these benefits are only accessible if the return is filed correctly.

3. Apply for the Tax Residency Certificate (TRC): Jain emphasizes the importance of the TRC, which confirms tax residency in the UAE and allows NRIs to claim benefits under the India-UAE tax treaty. The TRC can be applied for through the UAE’s EmaraTax portal, where users can log in with their UAE PASS and submit the required documents. The certificate is typically issued within five business days.

4. Don’t Overlook TDS Deductions: If NRIs have dividend income or income from Non-Resident Ordinary (NRO) accounts with TDS applied, filing an ITR may allow them to claim refunds or reduce tax liability. Under the India-UAE DTAA, certain dividend income may be taxed at a lower rate of 10 percent, provided the necessary documentation, including the TRC, is submitted.

Last-Minute Filing Advice

For those who have delayed filing their returns, Jain advises taking immediate action rather than waiting for all documents to be in order. If most data is available, filing the returns now allows for revisions later.

If unable to file by July 31, NRIs can still submit a belated return until December 31, 2026. However, missing the deadline incurs financial penalties, including a late filing fee of INR 5,000 for taxable incomes above ₹5 lakh, and INR 1,000 for incomes below this threshold. Interest may also accrue on any unpaid tax liability until the return is filed.

Filing after the due date may result in the inability to carry forward losses from the sale of mutual funds, shares, or property, which could affect future tax liabilities.

For more detailed guidance on filing your ITR, visit www.emirates247.com.

Read all the latest developments and breaking updates in the Latest News section.

Published on 2026-07-27 14:49:00 • By the Editorial Desk