Non-Resident Individual for AY 2025-26

 

Returns and Forms Applicable for Salaried Individuals for AY 2025-26

 

 

Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines, please refer Income Tax Act, Rules and Notifications.

 

 

Non-Resident Individual is an individual who is not a resident of India for tax purposes. In order to determine whether an Individual is a Non-Resident or not, his residential status is required to be determined u/s 6 of the Income Tax Act, 1961 as given below: 

 

An individual will be treated as a Resident in India in any previous year if he / she satisfies any of the following conditions:
1. If he / she is in India for a period of 182 days, or more during the previous year or
2. If he / she is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year.

However, in respect of an Indian citizen and a person of Indian origin who visits India during the year, the period of 60 days as mentioned in (2) above shall be substituted with 182 days. The similar concession is provided to the Indian citizen who leaves India in any previous year as a crew member or for the purpose of employment outside India.

 The Finance Act, 2020, w.e.f. Assessment Year 2021-22 has amended the above exception to provide that the period of 60 days as mentioned in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose Total Income, other than Income from Foreign Sources, exceeds ₹ 15 lakh during the previous year. 

 The Finance Act, 2020 has also introduced new Section 6(1A) which is applicable from Assessment Year 2021-22. It provides than an Indian citizen earning Total Income in excess of ₹ 15 lakh (other than income from foreign sources) shall be deemed to be Resident in India if he / she is not liable to pay tax in any country.

 

1. ITR-2 - Applicable for Non-Resident Individual
This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF). Not having income under the head Profits and Gains of Business or Profession. Who is not eligible for filing ITR-1

 

2. ITR-3 - Applicable for Non-Resident Individual
This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF). Having Income under the head Profits and Gains of Business or Profession. Who is not eligible for filing ITR-1, 2 or 4

 

Forms Applicable

 

1. Form 12BB - Particulars of claims by an employee for deduction of tax (u/s192)
Provided by Details provided in the form An Employee to his Employer(s) Evidence or particulars of HRA, LTC, Deduction of Interest on Borrowed Capital, Tax saving Claims / Deductions for the purpose of calculating Tax to be Deducted at Source (TDS)

 

2. Form 16 - Details of Tax Deducted at Source on Salary (Certificate u/s 203 of the Income Tax Act, 1961)
Provided by Details provided in the form Details provided in the form Salary paid, Deductions / Exemptions and Tax Deducted at Source for the purpose of computing tax payable / refundable

 

3. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for tax TDS on Income other than Salary
Provided by Details provided in the form Deductor to Deductee Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS deposited with the Income Tax Department.

 

4.

Form 26 AS  AIS  (Annual information Statement) Provided by: Income Tax Department (It is available on e-Filing Portal: Login > e-File > Income Tax Return > View Form 26AS) Details provided in the form: Tax Deducted / Collected at Source. Provided by: Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal)  Go to e-filing portal > login > AIS Details provided in the form: Tax Deducted / Collected at Source SFT Information Payment of taxes Demand / Refund Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)

 

Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now  available in AIS

 

5. Form 10E - Form for furnishing particulars of Income for claiming relief U/S 89(1) when salary is paid in arrears or advance
Provided by Details provided in the form An Employee to the Income Tax Department Arrears / Advance Salary Gratuity Compensation on Termination Commutation of Pension

 

6. Form 3CB-3CD
Submitted by Details provided in the form Taxpayer who is required to get his accounts audited by an Accountant u/s 44AB. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.   Report of Audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961

 

7. Form 3CEB

Submitted by Details provided in the form Taxpayer who is required to obtain a report from an Accountant u/s 92E for entering into an international transaction or specified domestic transaction. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139. Report from an Accountant, relating to international transaction(s) and specified domestic transaction(s)

 

8. Form 3CE

Submitted by Details provided in the form Taxpayer who is required to obtain a report from an Accountant u/s 44DA for receipt of specified incomes from specified persons. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139. Report from an Accountant, relating to receipt of income by way of royalty or fees for technical services from Government or an Indian concern.

 

Tax Slabs for AY 2025-26***

• The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.

 

• In "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).

 

• In case of eligible taxpayers having income from business and profession, new tax regime is default regime. If assessee wants to opt out of new tax regime, they can furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA. However, option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime for eligible taxpayers having income from business and profession.

 

1. Tax rates for Non Resident Individual are as under:

 

Old Tax Regime			New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	*Surcharge	Income Tax Slab	Income Tax Rate	*Surcharge
Up to ₹ 2,50,000	Nil	Nil	Up to ₹ 3,00,000	Nil	Nil
₹ 2,50,001 - ₹ 5,00,000	5% above ₹ 2,50,000	Nil	₹ 3,00,001 - ₹ 7,00,000	5% above ₹ 3,00,000	Nil
₹ 5,00,001 - ₹ 10,00,000	₹ 12,500 + 20% above ₹ 5,00,000	Nil	₹ 7,00,001 - ₹ 10,00,000	₹ 20,000 + 10% above ₹ 7,00,000	Nil
₹ 10,00,001- ₹ 50,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	Nil	₹ 10,00,001 - ₹ 12,00,000	₹ 50,000 + 15% above ₹ 10,00,000	Nil
₹ 50,00,001- ₹ 100,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	10%	₹ 12,00,001 - ₹ 15,00,000	₹ 80,000 + 20% above ₹ 12,00,000	Nil
₹ 100,00,001- ₹ 200,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	15%	₹ 15,00,001- ₹ 50,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	Nil
₹ 200,00,001- ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	25%	₹ 50,00,001- ₹ 100,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	10%
Above ₹ 500,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	37%	₹ 100,00,001- ₹ 200,00,000	₹ 1,40,000 + 30% above ₹ 15,00,000	15%
			Above ₹ ₹ 200,00,001	₹ 1,40,000 + 30% above ₹ 15,00,000	25%

 

*Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.

***Note: Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.

Marginal relief can be claimed from surcharge if the amount of income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively 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 Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs
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
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 crore by more than the amount of income that exceeds Rs. 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. 5 crore by more than the amount of income that exceeds Rs. 5 crore.

 

Investments / Payments / Income on which I can get Tax Benefit

 

Following deductions will be available to a taxpayer opting for the New Tax Regime u/s 115BAC:

 

1. Section 24(b) – Deduction from Income from House Property on interest paid on housing loan:

Nature of Property	Purpose of loan	Allowable (Maximum limit)
Let Out	Construction or purchase of house property	Actual value without any limit

 

 

2. Tax deductions specified under Chapter VIA of the Income Tax Act  

Section 80CCD(2)

Deduction towards contribution made by an employer to the Pension Scheme of Central Government For all categories of employers   Deduction limit of 14% of salary

 

Section 80CCH

Deduction in respect of contribution to Agnipath Scheme

Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund   Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund    Allowed a deduction in the computation of total income of the whole of the amount so contributed

Tax deductions in the Old Tax Regime

1. Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is  ₹ 2 lakh. Interest on loan u/s 24(b) allowable is tabulated below:

Nature of Property	When loan was taken	Purpose of loan	Allowable (Maximum limit)
Self-Occupied	On or after 1/04/1999	Construction or purchase of house property	₹ 2,00,000
	On or after 1/04/1999	For Repairs of house property	₹ 30,000
	Before 1/04/1999	Construction or purchase of house property	₹ 30,000
	Before 1/04/1999	For Repairs of house property	₹ 30,000
Let Out	Any time	Construction or purchase of house property	Actual value without any limit

 

Tax deductions specified under Chapter VIA of the Income Tax Act  

Section 80C, 80CCC, 80CCD (1)
Deduction towards payments made to  80C Life Insurance Premium Provident Fund Subscription to certain equity shares Tuition Fees National Savings Certificate Housing Loan Principal Other various items   Combined deduction limit of ₹ 1,50,000 80CCC Annuity plan of LIC or other insurer towards Pension Scheme 80CCD(1) Pension Scheme of Central Government

 

Section 80CCD(1B)
Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)	Deduction limit of ₹ 50,000

 

Section 80CCD(2)

Deduction towards contribution made by an employer to the Pension Scheme of Central Government If the Employer is a PSU or Others   Deduction limit of 10% of salary If the Employer is Central or State Government ​ Deduction limit of 14% of salary

 

Section 80CCH

Deduction in respect of contribution to Agnipath Scheme

Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund ​ Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund    Allowed a deduction in the computation of total income of the whole of the amount so contributed

 

Section 80D

Deduction towards payments made to Health Insurance Premium & Preventive Health check up For Self / Spouse or Dependent Children   ₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit For Parents  ​ ₹ 25,000 (₹50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage   For Self/    Spouse or Dependent Children  ​ Deduction limit of ₹ 50,000 For Parents   Deduction limit of ₹ 50,000

 

80E
Deduction towards interest payments made on loan for higher education of self or relative	Total amount paid towards interest on loan taken

 

80EE
Deduction towards interest payments made on loan taken for Acquisition of Residential House Property where the loan is sanctioned between 1st April 2016 to 31st March 2017	Deduction limit of ₹ 50,000 on the interest paid on loan taken

 

80EEA
Deduction towards interest payments made on loan taken for Acquisition of Residential House Property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 and deduction should not have been claimed u/s 80EE	Deduction limit of ₹ 1,50,000 on the interest paid on loan taken

 

80EEB
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023	Deduction limit of ₹ 1,50,000 on the interest paid on loan taken

 

80G

Deduction towards donations made to certain funds, charitable institutions, etc. Donation are eligible for deduction under the below categories: Without any limit   100% deduction 50% deduction Subject to qualifying limit   100% deduction 50% deduction   Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹2,000/-.

 

80GG
Deduction towards rent paid for house and applicable only for whom HRA is not part of salary. Least of the following shall be allowed as deduction: Rent paid reduced by 10% of total income before this deduction ₹ 5,000 per month 25% of total income before this deduction Note: Form 10BA to be filed for claiming this deduction.

 

 

80GGA

Deduction towards donations made for Scientific Research or Rural Development. Donation are eligible for deduction under the below categories: Research Association or University, College or other Institution for: Scientific Research Social Science or Statistical Research Association or institution for  Rural Development Conservation of Natural Resources or for afforestation PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project  Funds notified by Central Government for: Afforestation Rural Development National Urban Poverty Eradication Fund as setup and notified by Central Government Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2,000 or if gross total income includes income from Profit / Gains from Business / Profession.

 

80GGC
Deduction towards Donations made to Political party or Electoral Trust	Deduction of total amount paid through any mode other than cash.

 

80IA
Undertaking engaged in Developing, Maintaining and Operating any Infrastructure Facility (only Indian Company), Industrial Parks (any Undertaking), any Power Undertaking, Reconstruction or Revival of Power Generating Plants (Indian Company) shall be entitled to claim deduction (subject to certain conditions)	100% of profit for 10 consecutives AY falling within a period of 15 / 20 AY beginning with the AY in which Assessee develops / begins operating and maintaining infrastructure facility No deduction shall be allowed to any enterprise which starts the development or operation and maintenance of the infrastructure facility on or after the 1st April 2017. (No deduction shall be allowed if development, operation, etc. started after specified dates for specified business)

 

80IAB
Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in development of Special Economic Zone (subject to certain conditions)	100% of profit for 10 consecutives AY out of 15 AY beginning from the year in which a Special Economic Zone has been notified by the Central Government No deduction to an Assessee, where the development of Special Economic Zone begins on or after 1st April 2017

 

80IB

Deduction towards Profits and Gains from specified business. 100% of profit for 10 years from the AY in which it is approved by prescribed authority (if approved after 31st March 2000 but before 1st April 2007) The deduction under this section is available to an Assessee whose gross total income includes any Profits and Gains derived from the business of: Industrial Undertaking including an SSI in J&K Commercial Production and Refining of Mineral Oil Processing, Preservation and Packaging of Fruits or Vegetables, Meat and Meat Products or Poultry or Marine or Dairy Products; Integrated Business of Handling, Storage and Transportation of Food Grains; (Subject to certain conditions) Indian Company with scientific and industrial research and development as its main object and approved by prescribed authority shall be entitled to claim deductions  100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings from the AY in which it is approved by prescribed authority (if approved before 1st April 1999)

 

80IBA
Profit and Gains derived from Developing and Building Housing Projects	100% of profit subject to various conditions specified

 

80IC
Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states (subject to certain conditions)	100% of profits for first 5 AY and 25% (30% for a Company) for next 5 AY to manufacture or produce specified article or thing

 

 

80IE
Deduction to certain Undertakings set up in North - Eastern states (subject to certain conditions)	100% of profits for 10 AY subject to various conditions specified

 

80JJA
Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste (subject to certain conditions)	​ 100% of profits for 5 AY where the Gross Total Income of an Assessee includes any Profits and Gains derived from the Business of Collecting and Processing or treating of Biodegradable Waste

 

 

80JJAA
Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies (subject to certain conditions).	30% of additional employee cost for 3 AY, subject to certain conditions

 

80TTA
Deduction on interest received on Saving Bank Accounts by Individual (other than Senior Citizen) / HUF.	​ Deduction limit of ₹ 10,000/-