Do Slabs Apply the Same to NRIs?

Yes, for NRIs, only their Indian income is taxed; DTAA credits are available.

How to Choose the Tax Regime While Filing?

For 2025-26, the new income tax regime is the default. But you can still choose the old tax regime when filing your ITR if it is beneficial for you.

NRI Income Tax & Compliance

Income Tax Slabs For FY 2025-26 (AY 2026-27): New Vs Old Regime

By Pankaj Shaw |Last Updated: February 5, 2026

Income Tax Slabs For FY 2025-26 (AY 2026-27): New Vs Old Regime

The new tax regime is now the default, offering significant tax relaxations in the slab rates for FY 2025-26, while the income tax slabs for the old tax regime remain unchanged.

In this blog post, we will discuss the income tax slabs for FY 2025-26 under the new and old rate regimes, and the tax-free income under both regimes for NRIs and Indian residents.

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

For salaried individuals, the new regime is great, whereas the old tax regime is for property owners claiming 24(b) losses/80C investments and more.

The ITR filing deadlines for NRIs are July 31, 2026, for non-audit cases.

The health and education cess is 4%, and the surcharge is for 10% ( Rs 50 Lakhs - 1 Cr ), 15% ( Rs 1 - 2 Cr ), 25% ( Rs 2 - 5 cr), and is capped at 25% in the new tax regime, which is above ( Rs 5 Cr).

NRIs filing their income tax return in India can choose between ITR-2 and ITR-3 forms. You can elect the regime while filing the ITR itself. You can switch the tax regimes annually at the filing time, but in the case where business income is involved, you will need Form 10-IEA to switch to the old regime.

The benefits of the new tax regime include lower rates, a high tax exemption limit, and a standard deduction of Rs 75,000. However, the limitations are that no deductions are available under sections 80C, 80D, HRA, or 24 B.

Income Tax Slabs For FY 2025-26 (AY 2026-27): New Vs Old Regime

Frequently Asked Questions

Which Tax Regime Suits the NRIs Best?

ITR Filing Deadlines for NRIs?

What are the Surcharge Rates and Health Cess for FY 2025-26?

How do NRIs Choose Between the Old and the New Tax Regime?

What are the Key Benefits and the Limitations of the New Tax Regime?

Income Tax Slabs For FY 2025-26 (AY 2026-27): New Vs Old Regime

Frequently Asked Questions

Which Tax Regime Suits the NRIs Best?

ITR Filing Deadlines for NRIs?

What are the Surcharge Rates and Health Cess for FY 2025-26?

How do NRIs Choose Between the Old and the New Tax Regime?

What are the Key Benefits and the Limitations of the New Tax Regime?