(INDIA) — January 31, 2027 is the India-side deadline that can make or break your migration-year tax paperwork if you moved mid‑year from India to Australia and will be filing for tax year 2026 (returns filed in 2027).
For many Indian professionals, the migration year creates two parallel tax filings. India uses FY 2026–27 (1 April 2026 to 31 March 2027). Australia uses 1 July 2026 to 30 June 2027. The filing calendar mismatch is where mistakes happen.
The core issue is residency classification. In India, RNOR (Resident but Not Ordinarily Resident) and ROR (Resident and Ordinarily Resident) decide whether foreign income is taxed in India. The DTAA (India–Australia tax treaty) then prevents double taxation, usually through a foreign tax credit.
📅 Deadline Alert: For Indian residents who must claim a foreign tax credit in India, Form 67 is due on or before the India ITR due date. For most non‑audit individuals, that is typically July 31 after the financial year ends. Missing Form 67 can block the foreign tax credit.
The migration-year trap: RNOR vs ROR decides where relief is claimed
A mid‑year move often results in RNOR in India. RNOR status usually means:
- Indian‑source income stays taxable in India.
- Foreign salary earned after leaving India is generally not taxable in India, if it is not received in India.
- You usually do not need Form 67 because you are not claiming a foreign tax credit in India.
If you are ROR, India taxes worldwide income. That includes post‑move Australian salary. In that case, you often need DTAA foreign tax credit in India. That triggers Form 67.
Quick comparison: RNOR vs ROR (India) in a migration year
| Item | RNOR (India) | ROR (India) |
|---|---|---|
| Indian salary earned in India | Taxable | Taxable |
| Foreign salary after migration | Often not taxable in India | Taxable in India |
| Foreign asset disclosure (ITR Schedule FA) | Often not required if not taxable | Usually required |
| DTAA credit claim in India | Usually no | Often yes |
| Form 67 (India) | Usually not required | Typically required |
This classification is under India’s Income‑tax Act residency rules, not U.S. rules.
Deadline summary table (tax year 2026 context)
These dates are the ones most migrants track. Always confirm your exact due dates, because audit status and local relief can change them.
| Tax event | Who it affects | Typical due date | Extension available |
|---|---|---|---|
| India ITR filing for FY 2026–27 | Individuals without audit | July 31, 2027 | Yes, if India allows (varies) |
| India Form 67 (FTC statement) | India filers claiming DTAA foreign tax credit | On or before July 31, 2027 | Tied to ITR due date |
| Australia return (individual) for 2026–27 | Australian tax residents | Date varies by lodgment method | Yes, often via agent |
| U.S. return (Form 1040 / 1040‑NR) for tax year 2026 | U.S. citizens/residents and some nonresidents | April 15, 2027 | To October 15, 2027 |
| FBAR (FinCEN Form 114) for 2026 | U.S. persons with foreign accounts | April 15, 2027 | Automatic to October 15, 2027 |
U.S. filing rules apply only if you are a U.S. tax resident or U.S. person. See IRS Publication 519 (U.S. Tax Guide for Aliens) at irs.gov/pub/irs-pdf/p519.pdf.
What happens if you miss the deadline
Missing migration-year deadlines creates two common problems.
Do not rely on DTAA alone to avoid filing; if you’re claiming foreign tax credits, ensure Form 67 is prepared and submitted by the India ITR deadline to prevent denial of credits.
- You may lose the foreign tax credit claim in India.
– Form 67 is a frequent failure point for ROR taxpayers.
– If you claim DTAA relief in India, missing or late Form 67 can result in the credit being denied under Indian procedures.
- You may be taxed twice until corrected.
– Even when the DTAA fixes double taxation, each country can still require reporting.
– A late credit claim can mean cash flow pain, plus interest.
⚠️ Warning: Do not assume “DTAA means I don’t report it.” In many cases, you must report income in both countries and claim credit in one.
Extension and special relief notes
- India: Extension rules depend on India’s annual notifications and your filing profile. If you expect a foreign tax credit claim, plan for Form 67 before the ITR due date.
- Australia: Deadlines often depend on whether you use a registered tax agent.
- U.S. disaster relief: If you are also a U.S. taxpayer, IRS disaster relief can shift deadlines for affected locations. Check irs.gov/newsroom and irs.gov/individuals/international-taxpayers.
Practical preparation tips for migrants (India–Australia)
Use a paper trail that supports both the income sourcing and the tax credit.
- Keep India payroll records, such as Form 16, and proof of tax paid.
- Keep Australia payslips, payment summaries, and residency start evidence.
- Document workdays in each country for the split-year period.
- Maintain currency conversion workings for credit calculations.
- Confirm whether you are RNOR or ROR early. It drives the entire approach.
Action items for tax year 2026 (filed in 2027)
- Confirm India residency classification (RNOR vs ROR) for FY 2026–27.
- If you are ROR and claiming DTAA credit in India, prepare Form 67 before July 31, 2027.
- If you have any U.S. tax connection, confirm residency under IRS Publication 519, and track April 15, 2027 and FBAR deadlines.
⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.
This guide outlines critical tax deadlines and residency rules for professionals moving from India to Australia. It highlights the importance of the RNOR vs. ROR classification in determining India’s tax reach on foreign salary. Key compliance steps include filing Form 67 by July 31, 2027, to claim foreign tax credits under the DTAA, thereby preventing double taxation on income earned during the migration year.
