ITR
Old or new regime for an NRI
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Facts
NRIs can choose between the regimes just like residents. For FY 2025-26, the new regime is default; without business income you can choose the old regime in a return filed by the due date.
Provisions and law
- Sec 115BAC, Income-tax Act 1961 (now Sec 202, Income-tax Act 2025)New tax regime as default with an option to opt out.
Analysis
If you have big deductions like home loan interest on a self-occupied house and 80C, compare both. Many NRIs have few deductions, so the new regime often wins. A belated return generally cannot opt for the old regime. Compute both before deciding.
Conclusion
- List deductions.
- Compute tax under both regimes.
- Choose the lower.
- Opt for old regime only if filing by due date.
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