The Union Budget 2025 ushers in several significant tax reforms that directly benefit Non‑Resident Indians (NRIs), aiming for greater simplicity, fairness, and investment-friendly norms. Under the new NRI tax changes budget 2025, individuals earning up to Rs. 12 lakh (post standard deduction) enjoy a full exemption, thanks to the enhanced rebate of Rs. 60 000 under Section 87A. Salaried NRIs using the Rs. 75 000 standard deduction can effectively earn up to Rs. 12.75 lakh tax‑free.
What are the Revised Tax Slabs for FY 2025 to 26?
Rs. 0 to Rs. 4 L: Nil
Rs. 4 to Rs. 8 L: 5%
Rs. 8 to Rs. 12 L: 10%
Rs. 12 to Rs. 16 L: 15%
Rs. 16 to Rs. 20 L: 20%
Rs. 20 to Rs. 24 L: 25%
Above Rs. 24 L: 30%
These changes shift more income into lower brackets, easing the burden. The limit for interest deduction has been doubled from Rs. 50 000 to Rs. 1 lakh for senior citizens. While primarily targeting residents, NRIs with Indian investments may also benefit.
The annual threshold for TDS on rent rose from Rs. 2.4 lakh to Rs. 6 lakh. Inward remittance threshold under the Liberalised Remittance Scheme (LRS) increased from Rs. 7 lakh to Rs. 10 lakh, simplifying compliance and reducing procedural burdens.
The proposed New Income Tax Bill 2025 may allow NRIs to calculate long‑term capital gains on equity after factoring in currency fluctuations, reducing gains inflated by rupee appreciation.
NRIs should opt for the new regime with standard deduction and rebate benefits, update TDS/TCS compliance for rent and remittance, and closely monitor the forex‑adjustment provision under the upcoming tax bill.
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What are the NRI Tax Changes Budget 2025?
gauri49
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2025-07-21T16:02:23+00:00 2025-07-31T14:57:02+00:00Comment
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