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

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.