Income tax slabs: new regime (default)
| Income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
The rebate that makes income up to ₹12 lakh tax-free applies to residents only. NRIs pay tax on income above ₹4 lakh.
Income tax slabs: old regime (NRIs)
| Income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The higher exemption limits for senior citizens (₹3 lakh and ₹5 lakh) apply to residents only.
Surcharge and cess
| Total income | New regime | Old regime |
|---|---|---|
| ₹50 lakh – ₹1 crore | 10% | 10% |
| ₹1 – 2 crore | 15% | 15% |
| ₹2 – 5 crore | 25% | 25% |
| Above ₹5 crore | 25% | 37% |
Surcharge on long-term capital gains and dividends is capped at 15%. A 4% health and education cess applies on tax plus surcharge.
Capital gains for NRIs
| Asset | Long-term after | LTCG rate | STCG rate |
|---|---|---|---|
| Property (land, building) | 24 months | 12.5%, no indexation | Slab rates |
| Listed shares, equity mutual funds | 12 months | 12.5% above ₹1.25 lakh a year | 20% |
| Unlisted shares | 24 months | 12.5% | Slab rates |
| Debt mutual funds (bought after 1 April 2023) | n/a | Always slab rates | |
TDS on payments to NRIs
Under section 393(2) of the Income-tax Act, 2025 (formerly section 195):
| Payment | Base rate | With 4% cess, before surcharge |
|---|---|---|
| Long-term gain on property | 12.5% | 13% |
| Short-term gain on property | 30% | 31.2% |
| Rent | 30% | 31.2% |
| NRO interest | 30% | 31.2% |
| Dividends | 20% | 20.8% |
| STCG on listed equity | 20% | 20.8% |
| LTCG on listed equity (above ₹1.25 lakh) | 12.5% | 13% |
A treaty (DTAA) rate applies instead where it's lower and you've provided a TRC and Form 10F. How to claim it.
Old vs new section and form numbers
| What | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| Residential status | Section 6 | Section 6 |
| TDS on payments to non-residents | Section 195 | Section 393(2) |
| Lower or nil TDS certificate | Section 197, Form 13 | Section 395, Form 128 |
| Remittance forms | Form 15CA / 15CB | Form 145 / 146 |
| Nil-TDS declaration (residents only) | Form 15G / 15H | Declaration under section 393(6) |