How to File Your Income Tax Return (ITR) in India While Working in Australia
Introduction
If you are an Indian citizen working in Australia, you may still need to file an Income Tax Return (ITR) in India. Many NRIs get confused about whether they have to file a return, which income is taxable, and how the process works from abroad.
This guide explains the complete step-by-step process of filing ITR from Australia, what documents you need, how NRI taxation works, and the most common mistakes to avoid.
30 FAQs on Filing ITR in India While Working in Australia
1. Do NRIs working in Australia need to file ITR in India?
Short Answer: Yes, if you have taxable income in India.
Long Answer: As an NRI, you only pay tax in India on income earned or received in India—like rent, interest, capital gains, or business income. If this income crosses ₹2.5 lakh (before deductions), filing ITR is mandatory.
Long Answer: As an NRI, you only pay tax in India on income earned or received in India—like rent, interest, capital gains, or business income. If this income crosses ₹2.5 lakh (before deductions), filing ITR is mandatory.
2. What income is taxable in India for NRIs?
Short Answer: Any income sourced in India.
Long Answer: This includes rental income from property, interest on NRO accounts, capital gains on shares or property, income from Indian freelancing/business, and any amount received in India for services.
Long Answer: This includes rental income from property, interest on NRO accounts, capital gains on shares or property, income from Indian freelancing/business, and any amount received in India for services.
3. Is foreign salary taxed in India?
Short Answer: No for NRIs.
Long Answer: Salary earned for work done in Australia is foreign income and is taxable only in Australia, not in India. This is also supported by DTAA rules.
Long Answer: Salary earned for work done in Australia is foreign income and is taxable only in Australia, not in India. This is also supported by DTAA rules.
4. Can I file ITR from Australia online?
Short Answer: Yes.
Long Answer: You can log in to the Income Tax India portal from anywhere using your PAN, Aadhaar-linked mobile/email, and file your tax return completely online.
Long Answer: You can log in to the Income Tax India portal from anywhere using your PAN, Aadhaar-linked mobile/email, and file your tax return completely online.
5. Which ITR form should NRIs use?
Short Answer: Usually ITR-2.
Long Answer: NRIs with capital gains or foreign assets use ITR-2. If you have business income in India, use ITR-3.
Long Answer: NRIs with capital gains or foreign assets use ITR-2. If you have business income in India, use ITR-3.
6. Is Aadhaar mandatory for NRIs filing ITR?
Short Answer: No.
Long Answer: Aadhaar is not compulsory for NRIs, but if you have one, you can link it for easy e-verification. Without Aadhaar, you can still file using your PAN.
Long Answer: Aadhaar is not compulsory for NRIs, but if you have one, you can link it for easy e-verification. Without Aadhaar, you can still file using your PAN.
7. How can I e-verify ITR from Australia?
Short Answer: Through OTP or netbanking.
Long Answer: You can verify using Aadhaar OTP (if Indian mobile is active), net banking, bank account EVC, or by sending a signed ITR-V to Bangalore.
Long Answer: You can verify using Aadhaar OTP (if Indian mobile is active), net banking, bank account EVC, or by sending a signed ITR-V to Bangalore.
8. Do NRIs get basic exemption of ₹2.5 lakh?
Short Answer: Yes.
Long Answer: NRIs enjoy the same basic exemption but cannot claim certain deductions like 80CCF or senior citizen benefits unless specifically allowed.
Long Answer: NRIs enjoy the same basic exemption but cannot claim certain deductions like 80CCF or senior citizen benefits unless specifically allowed.
9. Is TDS deducted automatically on NRI income?
Short Answer: Yes.
Long Answer: Banks and tenants deduct TDS on rental income, NRO interest, and capital gains. If excess TDS is deducted, you must file ITR to claim a refund.
Long Answer: Banks and tenants deduct TDS on rental income, NRO interest, and capital gains. If excess TDS is deducted, you must file ITR to claim a refund.
10. Can I claim a refund of extra TDS deducted?
Short Answer: Yes.
Long Answer: If TDS deducted is higher than your actual tax liability, filing ITR is the only way to get the refund credited to your bank account.
Long Answer: If TDS deducted is higher than your actual tax liability, filing ITR is the only way to get the refund credited to your bank account.
11. Can NRIs use NRE accounts for refunds?
Short Answer: No.
Long Answer: Tax refunds are sent only to bank accounts that can accept INR — usually NRO or resident bank accounts.
Long Answer: Tax refunds are sent only to bank accounts that can accept INR — usually NRO or resident bank accounts.
12. Do NRIs need to report foreign income?
Short Answer: No.
Long Answer: NRIs do not need to report or pay tax on salary or income earned abroad, nor do they need to disclose foreign assets unless they become residents.
Long Answer: NRIs do not need to report or pay tax on salary or income earned abroad, nor do they need to disclose foreign assets unless they become residents.
13. Are rent agreements required for ITR?
Short Answer: Recommended.
Long Answer: A rent agreement and tenant PAN help support income declared and TDS deducted, especially if you face any IRS query.
Long Answer: A rent agreement and tenant PAN help support income declared and TDS deducted, especially if you face any IRS query.
14. Can NRIs claim home loan interest deduction?
Short Answer: Yes.
Long Answer: Section 24 allows NRIs to claim interest on a home loan, even if they live abroad, provided the property is in India.
Long Answer: Section 24 allows NRIs to claim interest on a home loan, even if they live abroad, provided the property is in India.
15. Can NRIs claim 80C deductions?
Short Answer: Yes.
Long Answer: You can claim PF withdrawal, life insurance, tuition fees, PPF (only existing accounts), and housing loan principal under 80C.
Long Answer: You can claim PF withdrawal, life insurance, tuition fees, PPF (only existing accounts), and housing loan principal under 80C.
16. Is PAN mandatory for NRIs filing ITR?
Short Answer: Yes.
Long Answer: PAN is essential for filing returns and for receiving refunds in India.
Long Answer: PAN is essential for filing returns and for receiving refunds in India.
17. How to file ITR without Indian mobile OTP?
Short Answer: Use netbanking or EVC.
Long Answer: You can verify through bank account EVC, demat EVC, or by uploading ITR-V via post to CPC Bangalore.
Long Answer: You can verify through bank account EVC, demat EVC, or by uploading ITR-V via post to CPC Bangalore.
18. Is capital gains on Indian shares taxable for NRIs?
Short Answer: Yes.
Long Answer: NRIs must pay tax on both short-term and long-term gains. TDS is deducted automatically by brokers; any refund is claimed via ITR.
Long Answer: NRIs must pay tax on both short-term and long-term gains. TDS is deducted automatically by brokers; any refund is claimed via ITR.
19. Do NRIs have a different tax slab?
Short Answer: No.
Long Answer: NRIs follow the same slab rates as resident Indians but with certain deduction limitations.
Long Answer: NRIs follow the same slab rates as resident Indians but with certain deduction limitations.
20. What if I don’t file ITR as an NRI?
Short Answer: You may face penalties.
Long Answer: Late filing fees, interest on tax, and refund delays can occur. In some cases, tax notices may be issued.
Long Answer: Late filing fees, interest on tax, and refund delays can occur. In some cases, tax notices may be issued.
21. Are Australian earnings taxed again in India?
Short Answer: No.
Long Answer: NRIs are taxed only on Indian income. Australian salary stays taxable only in Australia.
Long Answer: NRIs are taxed only on Indian income. Australian salary stays taxable only in Australia.
22. Do I need a CA to file ITR from Australia?
Short Answer: Not required.
Long Answer: The portal is easy to use for simple income like rent or interest. For capital gains or multiple properties, a CA is helpful.
Long Answer: The portal is easy to use for simple income like rent or interest. For capital gains or multiple properties, a CA is helpful.
23. Can I sign ITR-V from Australia?
Short Answer: Yes.
Long Answer: Print, sign, and courier the ITR-V to CPC Bangalore if you cannot e-verify.
Long Answer: Print, sign, and courier the ITR-V to CPC Bangalore if you cannot e-verify.
24. What documents do I need?
Short Answer: PAN, bank statements, Form 26AS.
Long Answer: Collect NRO interest statements, rent receipts, property documents, capital gain statements, and TDS certificates.
Long Answer: Collect NRO interest statements, rent receipts, property documents, capital gain statements, and TDS certificates.
25. Is NRE account interest taxable?
Short Answer: No.
Long Answer: NRE fixed deposits and savings account interest are fully tax-free for NRIs.
Long Answer: NRE fixed deposits and savings account interest are fully tax-free for NRIs.
26. Is NRO interest taxable?
Short Answer: Yes.
Long Answer: Banks deduct 30% TDS on NRO interest. You can claim refund through ITR if actual tax is lower.
Long Answer: Banks deduct 30% TDS on NRO interest. You can claim refund through ITR if actual tax is lower.
27. Can I claim TDS deducted by tenants?
Short Answer: Yes.
Long Answer: Tenant must file Form 15CA/15CB or deduct TDS using their tax account. This appears in your 26AS for refund.
Long Answer: Tenant must file Form 15CA/15CB or deduct TDS using their tax account. This appears in your 26AS for refund.
28. Does Australia report my income to India?
Short Answer: Only in specific cases.
Long Answer: Under global tax information-sharing agreements, major financial transactions can be reported. However, salary details typically remain within Australia unless suspicious.
Long Answer: Under global tax information-sharing agreements, major financial transactions can be reported. However, salary details typically remain within Australia unless suspicious.
29. Do I need to report foreign assets?
Short Answer: Not if you’re an NRI.
Long Answer: Only residents must report global assets. NRIs are exempt unless residency changes.
Long Answer: Only residents must report global assets. NRIs are exempt unless residency changes.
30. What is the deadline for NRI ITR filing?
Short Answer: 31 July every year.
Long Answer: If tax audit applies (rare for NRIs), the deadline extends to 31 October. Late fees apply for delayed filing.
Long Answer: If tax audit applies (rare for NRIs), the deadline extends to 31 October. Late fees apply for delayed filing.
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