The Income-Tax Department has notified all I-T return forms for the financial year 2025-26 i.e. the assessment year 2026-27. Further, the department has enabled Excel Utility for ITR-1 (Sahaj), ITR-2 and ITR-4 (Sugam) forms on its e-filing portal for FY26 / AY27.
For the current tax year, the deadline for individual taxpayers filing ITR is 31 July 2026. Further, for those using 3 and 4, the deadline is 31 August 2026. Taxpayers who miss the July deadline can still file a delayed return by 31 December.
Are NRIs, foreigner subject to income tax in India?
As per India’s income tax laws, it is one’s residential status and not citizenship, nationality or passport that determines tax liability. Thus, non-resident Indians () and even foreigners are subject to income-tax if they have lived in the country for a certain period of time and the nature of their earnings. There are also certain conditions under which income earned outside India may also be subject to Indian tax.
When are NRIs, foreigners liable for income-tax?
As per the rules, residential status i.e. number of days lived in the country will determine whether an NRI is subject to . Under Section 6(1) of the Income Tax Act, a foreign citizen becomes a “resident” if they meet either of these conditions:
- Stay in India for 182 days or more during the financial year (1 April to 31 March)
- Stay in for 60 days or more in the current financial year and have spent 365 days or more in India across the preceding four financial years.
For NRIs or persons of Indian origin visiting India, they will be considered a resident:
- If their total other than foreign-sourced income exceeds ₹15 lakh,
- If they have been in India for at least 120 days in the relevant financial year and more than 365 days in four preceding financial years.
What are the tax slabs for NRIs?
|
Old Tax Regime |
New Tax Regime u/s 115BAC of Income Tax Act,1961 |
||
|---|---|---|---|
|
Income Tax Slab |
Income Tax Rate |
Income Tax Slab |
Income Tax Rate |
|
Up to ₹2,50,000 |
Nil |
Up to ₹4,00,000 |
Nil |
|
₹2,50,001 – ₹5,00,000 |
5% above ₹2,50,000 |
₹ 4,00,001 – ₹ 8,00,000 |
5% above ₹4,00,000 |
|
₹5,00,001 – ₹10,00,000 |
₹ 12,500 + 20% above ₹ 5,00,000 |
₹8,00,001 – ₹12,00,000 |
₹20,000 + 10% above ₹8,00,000 |
|
Above ₹10,00,000 |
₹1,12,500 + 30% above ₹10,00,000 |
₹12,00,001 – ₹16,00,000 |
₹60,000 + 15% above ₹12,00,000 |
|
|
₹16,00,001 – ₹20,00,000 |
₹1,20,000 + 20% above ₹16,00,000 |
|
|
|
₹20,00,001 – ₹24,00,000 |
₹2,00,000 + 25% above ₹20,00,000 |
|
|
Above ₹24,00,000 |
₹3,00,000 + 30% above ₹24,00,000 |
||
What are the applicable Surcharge Rates for NRIs?
| Income Limit | Surcharge Rate on the amount of Income Tax (New Tax Regime) | Surcharge Rate on the amount of Income Tax (Old Tax Regime) |
|---|---|---|
|
Up to ₹50 lakh |
Nil |
Nil |
|
₹50 lakh to ₹1 crore |
10% |
10% |
|
₹1 crore to ₹2 crore |
15% |
15% |
|
₹2 crore to ₹5 crore |
25% |
25% |
|
Above ₹5 crore |
25% |
37% |
According to the notice on the official I-T e-filing portal, the enhanced surcharge of 25% and 37% is not levied, from income chargeable to tax under sections 111A, 112, 112A and dividend income to the extent applicable to non-residents.
Hence, the maximum rate of on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.
What is the applicable rebate for NRIs?
Applicable rebate under Section 87A of Income Tax Act,1961 is allowed for NRIs up to 100%, subject to a maximum limit depending on tax regimes as under:
|
Tax regime |
Rebate Limit |
Rebate condition |
|---|---|---|
|
New Tax Regime |
₹60,000 |
Taxable income shall not exceed ₹12,00,000 |
|
Old Tax Regime |
₹12,500 |
Taxable income shall not exceed ₹5,00,000 |
There is a Health and Education cess applied at 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes, the notice added.
What marginal relief can be claimed by NRIs?
can be claimed from surcharge if:
- Amount of income earned exceeds ₹50 lakh, ₹1 crore, ₹2 crore or ₹5 crore respectively under old tax regime as under, and
- Amount of income earned exceeds ₹50 lakh, ₹1 crore and ₹ 2 crore respectively under as under.
|
Net Income Range |
Marginal Relief |
|
|---|---|---|
|
Exceeds (Rs) |
Does not exceed (Rs) |
|
|
50 Lakh |
1 Crore |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of ₹50 Lakh by more than the amount of income that exceeds ₹50 Lakhs under both the tax regimes. |
|
1 Crore |
2 Crore |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore under both tax regimes. |
|
2 Crore |
5 Crore |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs. 2 crores by more than the amount of income that exceeds Rs. 2 crores under both tax regimes. |
|
5 Crore |
– |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs. 5 crores by more than the amount of income that exceeds Rs. 5 crores under old tax regime |
Can you NRIs be taxed twice?
Double Taxation Avoidance Agreements () ensure that a person does not suffer tax on the same income in two countries. For example, if a person earns rental income in India and at the same time, he is a tax resident in Canada, then both countries can claim the right to tax this income.
In such cases, DTAA will determine which country is entitled to the primary right to tax, and what relief (tax credit / exemption) can be claimed.
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