Navigating the latest tax changes? Here’s a detailed guide on the new income tax rules for NRIs in FY 2025-26 to help you stay compliant and optimize your financial planning.
🧾 Key Tax Changes for NRIs in FY 2025-26
- Revised Income Tax Slabs
The Union Budget 2025 has introduced new tax slabs under the default tax regime
- Income up to ₹4 lakh: No tax
- ₹4 lakh – ₹8 lakh: 5%
- ₹8 lakh – ₹12 lakh: 10%
- ₹12 lakh – ₹16 lakh: 15%
- ₹16 lakh – ₹20 lakh: 20%
- ₹20 lakh – ₹24 lakh: 25%
- Above ₹24 lakh: 30%
Additionally, the standard deduction has been increased to ₹75,000, making income up to ₹12.75 lakh tax-free under the new regime.
- Updated Tax Residency Rules
Effective from April 1, 2026, the criteria for determining tax residency have been revised:
- 182-day rule: Remains unchanged.
- 120-day rule: For high-income NRIs earning ₹15 lakh or more in India, the threshold for being considered a resident is reduced to 120 days of stay in India.
- Introduction of ITR-U Form
The Income Tax Department has introduced the ITR-U form, allowing taxpayers to file updated returns within four years from the end of the relevant assessment year. This provides NRIs an extended window to rectify any omissions or errors in their tax filings.
- Changes in TDS Provisions
Under the new tax bill, NRIs can now apply for lower TDS certificates but will no longer be eligible for nil TDS certificates. This means that while you can reduce the TDS rate on your income, complete exemption is not available.
🛡️ NRI Nivesh: Your Partner in Tax Compliance
At NRI Nivesh, we specialize in assisting NRIs with:
- Understanding and adapting to new tax regulations.
- Filing accurate and timely income tax returns.
- Optimizing tax liabilities through strategic planning.
Our team ensures that you remain compliant with Indian tax laws while maximizing your financial benefits.
❓ Have Questions About the New Tax Rules?
How do these changes impact your financial planning as an NRI? Share your thoughts or questions with us.
Stay informed and compliant with NRI Nivesh—your trusted partner in navigating the complexities of Indian taxation.
