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The Sec 87A rebate, which makes income up to ₹12 lakh tax free under the new regime for FY 2025-26, is only for resident individuals. NRIs pay tax as per slabs without that rebate.
ITR
NRIs do not get the Sec 87A rebate
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Provisions
Sec 87A, Income-tax Act 1961 (now Sec 156, Income-tax Act 2025); Sec 115BAC, Income-tax Act 1961 (now Sec 202, Income-tax Act 2025)
Analysis
Say your Indian income is ₹10 lakh under the new regime. Slab tax is ₹40,000 plus cess. A resident would get a rebate and pay nil; an NRI pays about ₹41,600. Plan for this when estimating refunds.
Close
- Compute slab tax on Indian income.
- Do not apply the rebate as an NRI.
- Compare old and new regime.
- File ITR-2.
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