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 |
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This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF).
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2. ITR-3 - Applicable for Non-Resident Individual |
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This return is applicable for Individual (whether Resident or Non-Resident) and Hindu Undivided Family (HUF).
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Forms Applicable
1. Form 12BB - Particulars of claims by an employee for deduction of tax (u/s192) |
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2. Form 16 - Details of Tax Deducted at Source on Salary (Certificate u/s 203 of the Income Tax Act, 1961) |
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3. Form 16A – Certificate u/s 203 of the Income Tax Act, 1961 for tax TDS on Income other than Salary |
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4. |
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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 |
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6. Form 3CB-3CD |
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7. Form 3CEB |
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8. Form 3CE |
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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.
- Tax rates for Non Resident Individual are as under:
Old Tax Regime |
New Tax Regime u/s 115BAC |
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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% |
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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 |
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Exceeds (Rs.) |
Does not exceed (Rs.)
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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:
- 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 |
- Tax deductions specified under Chapter VIA of the Income Tax Act
Section 80CCD(2) |
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Deduction towards contribution made by an employer to the Pension Scheme of Central Government
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Section 80CCH
Deduction in respect of contribution to Agnipath Scheme
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Tax deductions in the Old Tax Regime
- 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 |
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Before 1/04/1999 |
Construction or purchase of house property |
₹ 30,000 |
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Before 1/04/1999 |
For Repairs of house property |
₹ 30,000 |
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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) |
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Deduction towards payments made to
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Section 80CCD(1B) |
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Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1) |
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Section 80CCD(2) |
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Deduction towards contribution made by an employer to the Pension Scheme of Central Government
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Section 80CCH
Deduction in respect of contribution to Agnipath Scheme
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Section 80D |
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Deduction towards payments made to Health Insurance Premium & Preventive Health check up
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
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80E |
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Deduction towards interest payments made on loan for higher education of self or relative |
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80EE |
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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 |
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80EEA |
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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 |
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80EEB |
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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 |
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80G |
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Deduction towards donations made to certain funds, charitable institutions, etc. Donation are eligible for deduction under the below categories:
Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹2,000/-. |
80GG |
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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:
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80GGA |
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Deduction towards donations made for Scientific Research or Rural Development. Donation are eligible for deduction under the below categories:
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 |
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Deduction towards Donations made to Political party or Electoral Trust |
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80IA |
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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 |
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80IAB |
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Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in development of Special Economic Zone |
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80IB |
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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:
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80IBA |
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Profit and Gains derived from Developing and Building Housing Projects |
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80IC |
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Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states (subject to certain conditions) |
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80IE |
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Deduction to certain Undertakings set up in North - Eastern states (subject to certain conditions) |
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80JJA |
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Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste (subject to certain conditions) |
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80JJAA |
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Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies (subject to certain conditions). |
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80TTA |
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Deduction on interest received on Saving Bank Accounts by Individual (other than Senior Citizen) / HUF. |
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