Is the Section 87A Rebate Available to NRIs in Their New Tax Regime?

No, NRIs are not allowed to claim a rebate under section 87A even if they have opted for the new tax regime.

NRI Income Tax & Compliance

Can NRIs Choose New Tax Regime in India?

By Pankaj Shaw |Last Updated: January 27, 2026

Can NRIs Choose New Tax Regime in India?

Yes, NRIs can opt for a new tax regime while filing their ITR. The new tax regime offers relaxed tax rates with expanded slab limits. However, the new regime has removed some major tax exemptions and deductions.

In this blog, we will understand how the new tax regime impacts the taxable income of an NRI, including the benefits, tax treatment of NRI-specific income, and more.

Pankaj Shaw(Tax Expert)

Mr Shaw brings 8 years of experience in auditing and taxation. He has a deep understanding of disciplinary regulations and delivers comprehensive auditing services to businesses and individuals. From financial auditing to tax planning, risk assessment, and financial reporting. Mr Shaw's expertise is impeccable.

Frequently Asked Questions

Yes, NRIs can change their tax regime while filing the income tax return.

Choosing the best regime depends entirely on your personal income sources and allowable deductions.

Yes, the new tax regime can be beneficial for NRIs with lower Indian-sourced income and fewer deductions, as it offers lower slab rates and a few eligible deductions.

No, the NRE account interest is not taxable under the new tax regime.

Yes, NRIs without professional or business income can switch between tax regimes each year. Whereas NRIs with business income can switch to the old regime only once in their lifetime.

Can NRIs Choose New Tax Regime in India?

Frequently Asked Questions

Can We Change the Tax Regime While Filing the ITR?

Which Tax Regime is Better for NRIs?

Is the New Tax Regime Beneficial for NRIs?

Are NRE Account Interest Taxable Under the New Regime?

Can NRIs Switch Between the Old and the New Tax Regime Every Year?

Can NRIs Choose New Tax Regime in India?

Frequently Asked Questions

Can We Change the Tax Regime While Filing the ITR?

Which Tax Regime is Better for NRIs?

Is the New Tax Regime Beneficial for NRIs?

Are NRE Account Interest Taxable Under the New Regime?

Can NRIs Switch Between the Old and the New Tax Regime Every Year?