There are two ways to file your income tax returns. As an NRI living outside India, the traditional way of filing the ITR is not feasible as it involves physically going to the Income Tax Department office.
However, the newer method that is e-filing requires you to file your return on the IT Departments website using the internet and is, therefore, more popular and convenient.
More importantly, NRI tax e-filing involves the same process as that for resident Indians. The process begins with registering yourself on the Income Tax Department’s online tax filing site and providing your PAN (Permanent Account Number) followed by choosing your desired way of e-filing (either by downloading the form, filling it offline and uploading it later or opting for the quick e-file option
and filling it online itself).
The next step involves choosing the requisite ITR form based on your head of income, filling it in and finally submitting it.
The last step is a verification of ITR V. This can be done electronically by mailing a signed copy of the ITR V to the processing centre in Bengaluru within 120 days of filing your return.
A common question that arises when thinking of NRI tax e-filing is the requirement of the Aadhar card. Firstly, to get a clear picture on this subject, you must understand that the Aadhar card is a unique identification issued to resident Indians and is based on the biometric and demographic data of the citizens of India.
So, only a resident Indian is entitled to sign up for the Aadhar card in India. That brings us again to the question of whether an Aadhar card is required for NRI tax e-filing, and the answer is no.
While it is mandatory for resident Indians to quote their Aadhar number during income tax return filing either electronically or manually, the Indian government has exempted NRIs
from the requirement of quoting Aadhar.
That means if you are an Indian living abroad in the UAE, USA, or any other country, an Aadhar card is not required for you to file your income tax returns back home
However, if you do possess an Aadhar card, there is no harm if you mention the number while filing your income tax return.
To learn more TDS for NRIs, click here
The above information is for general purposes. We recommend speaking with a certified tax advisor.