Missed the ITR Deadline? How NRIs Can Still Claim a TDS Refund for AY 2026–27

By TEAM NRITAX, FCA, Founder & Cross-Border Tax Expert · Published 2026-10-29

If you are a Non-Resident Indian (NRI) and missed the original income tax return filing deadline, you may still have an opportunity to file your return and claim a refund of excess tax deducted at source (TDS).

For Assessment Year (AY) 2026–27, 31 December 2026 is the usual deadline for filing a belated income tax return for eligible taxpayers, subject to applicable law, completion of assessment and any official extensions.

This is particularly relevant if your Indian bank deducted TDS on interest earned from your Non-Resident Ordinary (NRO) fixed deposit or if tax was deducted from rental income earned in India.

The important point is that TDS deducted is not necessarily the same as your final tax liability. Depending on your income, residential status and applicable tax rules, you may be eligible to claim a refund.

In this guide, we explain the belated ITR deadline, how NRI TDS refunds work, which documents you may need, and what to consider before filing.

1. Why NRIs May Be Eligible for a TDS Refund

Indian banks, tenants and other payers may deduct tax from certain payments made to NRIs. This deduction is intended to meet applicable tax obligations, but the amount deducted may not always equal the recipient's final tax liability.

Consider an example.

You earned interest on an NRO fixed deposit during Financial Year (FY) 2025–26. Your bank deducted TDS from that interest. When you calculate your total taxable income and applicable tax liability, you discover that the tax deducted may exceed the amount ultimately payable.

If you meet the applicable conditions, filing an income tax return may allow you to claim the excess amount as a refund.

However, a refund is not guaranteed. Eligibility depends on your income, residential status, applicable tax provisions, tax payments and credits, and other relevant circumstances.

Common situations worth reviewing

You may want to review your tax position if:

Your bank deducted TDS from NRO fixed deposit interest. TDS was deducted from rental income earned in India. Tax was deducted even though your final tax liability may be lower. You have multiple sources of Indian income and need to reconcile the tax deducted. You missed the original ITR deadline and want to check whether you can still file a belated return.

The first step is to review your income and tax records rather than assuming that the entire amount deducted is refundable.

2. What Is the Belated ITR Deadline for AY 2026–27?

A belated income tax return is a return filed after the applicable original due date under the Income-tax Act.

For AY 2026–27, 31 December 2026 is the usual belated-return deadline for eligible taxpayers. The applicable deadline may depend on the taxpayer's circumstances, whether an assessment has already been completed, and whether the government has issued an extension.

The relevant periods are:

Period What it means Financial Year 2025–26 Income earned from 1 April 2025 to 31 March 2026 Assessment Year 2026–27 The assessment year associated with FY 2025–26 Original return deadline Depends on the taxpayer category and applicable rules Usual belated-return deadline 31 December 2026 for eligible taxpayers, subject to applicable conditions

Not every taxpayer has the same original filing deadline. You should also not assume that a belated return remains available in every situation.

Practical advice: If you believe you may be eligible for a refund, review your documents early. Waiting until the deadline can leave little time to resolve discrepancies in your income or tax-credit records.

For the latest requirements, consult the official Income Tax Department website.

3. What Happens If You File a Belated Return?

Filing after the original deadline may have financial and procedural consequences.

Late-filing fee under Section 234F

A late-filing fee may apply under Section 234F, depending on the applicable provisions and your circumstances.

The commonly applicable fee structure is:

₹1,000 where the taxpayer's total income does not exceed ₹5 lakh.
₹5,000 in other applicable cases.

The fee's applicability depends on the law and the facts of the case. Confirm the amount applicable to your return before filing.

Interest and other tax liabilities

Interest may also be payable in certain circumstances, such as when tax remains unpaid. The applicable interest provisions depend on your tax position.

A late-filing fee and interest are separate matters. Whether either applies must be assessed based on your circumstances.

What happens to your refund?

If your return establishes that you have paid more tax than you owe, you may be eligible for a refund after the return is processed.

The amount and timing depend on your return, tax-credit records, verification and processing by the Income Tax Department. A refund should not be assumed until your tax position has been assessed.

4. Which ITR Form Should an NRI Use?

Choosing the correct income tax return form is essential.

The appropriate form depends on the nature of your income, your residential status and the eligibility conditions for the relevant assessment year.

ITR-2

ITR-2 may be appropriate for an individual NRI who has income such as:

Interest income. Rental income from Indian property. Capital gains. Other eligible income covered by the form.

The individual must satisfy the form's eligibility conditions and must not have income requiring ITR-3 or another return form.

ITR-3

ITR-3 may be relevant for individuals who have income chargeable under the head Profits and Gains of Business or Profession, subject to the form's eligibility conditions.

Do not choose an ITR form based on only one source of income. Consider all relevant income sources and the applicable instructions.

Before filing, verify the ITR form notified for AY 2026–27 and confirm that you meet its eligibility requirements.

For more information, consult the official ITR-2 filing guidance.

5. Documents NRIs Should Gather Before Filing

Having the relevant documents ready can help you reconcile your income and tax credits before filing.

Depending on your circumstances, you may need:

Form 16A: Where applicable, for TDS deducted on interest or other payments.
Form 26AS: To review tax credits reflected in your tax records.
Annual Information Statement (AIS): To review financial information reported to the Income Tax Department.
Bank statements: Particularly for relevant NRO accounts and interest income.
Fixed deposit interest certificates: To reconcile interest earned during FY 2025–26.
Rental income records: If you earned rent from Indian property.
PAN details: To ensure your tax records correspond to the correct taxpayer.
Previous income tax returns: Where relevant to your filing position.
Foreign tax payment records: If you are considering a foreign tax credit under applicable rules.

The documents required will depend on your income sources and tax position.

Review the figures carefully before filing. Differences between reported income, TDS credits and the information in your return may require clarification.

6. Can You Claim a Refund After Missing the Belated-Return Deadline?

Missing the belated-return deadline can make your situation more complicated, but you should not assume that every possible remedy is automatically unavailable.

Condonation of delay under Section 119(2)(b)

Depending on the circumstances, you may be able to request condonation of delay under Section 119(2)(b) of the Income-tax Act to seek permission to submit a refund claim after the applicable deadline.

Such relief is not automatic. Eligibility conditions, the prescribed procedure, supporting evidence and the competent authority's decision all matter.

Whether this route is available depends on your specific case and the applicable rules.

Can you use an updated return?

An updated return under Section 139(8A) is not a general alternative for claiming or increasing a refund.

The law restricts updated returns that would result in a refund or increase an existing refund. Therefore, do not assume that filing an updated return will allow you to recover excess TDS.

If you have missed the applicable filing deadline, seek case-specific advice before choosing a route.

For further guidance, consult the official Income Tax Department portal.

7. What NRIs Should Know About NRO Fixed Deposit TDS

NRO fixed deposits are a common source of Indian interest income for NRIs.

Banks generally deduct TDS on applicable NRO interest under the relevant tax provisions. The applicable rate and final tax treatment depend on the law, the nature of the income and any relevant treaty provisions.

A TDS deduction shown by your bank should therefore be reviewed alongside your total income and final tax position.

Check these three things

1. Interest earned

Confirm the total interest credited or accrued during FY 2025–26, as relevant to your tax calculation.

2. Tax deducted

Compare the TDS reported by your bank with the tax credits shown in your tax records.

3. Your final tax position

Consider your residential status, other Indian income, applicable tax provisions and any eligible credits or relief.

If tax has been deducted in excess of your final liability, filing an eligible return may allow you to claim a refund.

However, a particular TDS rate does not automatically mean you will receive that amount back. Your refund, if any, depends on your complete tax calculation and applicable rules.

8. Does Your Tax Regime Matter?

Your applicable tax regime can affect how your income is taxed and which deductions or exemptions may be available.

The rules governing the choice or change of tax regime depend on your circumstances and the applicable provisions.

Before filing a belated return, check:

Which tax regime applies to your situation.
Whether you are eligible to choose or change regimes at this stage.
Which deductions, exemptions or reliefs are available under the applicable rules.
Whether your return form and tax computation reflect the correct treatment.

Do not assume that the regime used in a previous year can automatically be selected again.

Because tax-regime rules can be technical, verify your eligibility for AY 2026–27 before submitting your return.

9. NRI Pre-Filing Checklist

Before filing your belated ITR, work through this checklist:

Confirm your residential status for FY 2025–26.

Identify all relevant Indian income sources.

Collect bank interest and rental income records, where applicable.

Review Form 26AS and AIS.

Reconcile the TDS claimed in your return.

Check the appropriate ITR form.

Verify the applicable tax regime and tax calculation.

Check whether a late-filing fee or interest applies.

Confirm that you are filing within the applicable deadline.

Complete the prescribed e-verification process after filing.

The Income Tax Department generally requires a return to be verified within 30 days of filing, subject to applicable rules and exceptions. Follow the verification instructions and timeline that apply to your return.

An unverified return may not be treated as validly filed. Do not leave verification until the last moment.

If you are unsure about residential status, treaty relief, the correct ITR form or the amount of refund you can claim, consider obtaining professional advice before filing.

10. How NRITAX Can Help

NRI tax filing can involve more than entering income figures into a form. Residential status, NRO interest, rental income, TDS credits and applicable tax rules may all need to be considered together.

NRITAX provides tools and services designed to help NRIs understand their tax position and explore their filing options.

Start with a free calculator

Use the relevant NRITAX calculators to begin reviewing your tax situation:

NRI Tax Residency Calculator: Review factors relevant to your residential status. Income Tax Calculator: Explore an indicative tax calculation based on the information you provide. DTAA Credit Calculator: Explore potential double-taxation relief considerations.

Calculator results are indicative and should not be treated as a substitute for a complete tax assessment.

Have a question? Ask Yukti

Yukti, the NRITAX AI tax assistant, can help you explore general tax questions and understand the information you may need before filing.

AI-generated guidance is not a substitute for professional review of complex or individual tax situations.

Speak to a Tax Advisor

If you have missed a filing deadline, have significant TDS credits or are uncertain about your refund eligibility, a one-to-one consultation may help you identify the next steps.

A Tax Advisor can review the facts you provide, discuss relevant tax considerations and help you understand your available options.

Book a 30-minute Tax Advisor consultation for ₹6,999 / $69.

Confirm the applicable price, consultation scope and booking availability on the NRITAX website before booking.

Explore NRITAX services

Final Takeaway

Missing the original ITR deadline does not necessarily mean you have lost the opportunity to claim an eligible TDS refund.

For AY 2026–27, 31 December 2026 is the usual deadline for filing a belated return for eligible taxpayers, subject to applicable law, assessment completion and any official extension.

The important steps are to review your Indian income, reconcile TDS, choose the appropriate ITR form, check any late-filing consequences and verify your eligibility before submitting the return.

If you believe excess tax was deducted from your NRO interest, rental income or other Indian income, start by reviewing your tax records.

Don't guess your refund eligibility. Understand your tax position before you file.

Explore the free tax calculators or speak to an NRITAX Tax Advisor to determine the appropriate next step for your circumstances.

Official Resources

For authoritative information, consult:

Income Tax Department — Official Portal Income Tax Returns — Official Guidance ITR-2 Filing Guidance

Disclaimer

This article is for general informational purposes only and does not constitute tax, legal or financial advice. Tax treatment depends on individual circumstances and the law applicable to the relevant assessment year. Deadlines, fees, filing eligibility, tax-regime rules, refund procedures and other legal provisions should be verified against official Income Tax Department guidance and applicable law before acting. A refund is not guaranteed. Consult a qualified Tax Advisor for advice specific to your circumstances.