Is income tax rebate under 87A applicable to NRIs?

Income Tax
1

As a non-resident (NRI) can I avail 87A rebate against my income in India? My income is under ₹12L

2

Hello @dhruvi1901 ,

Section 87A is only applicable to Resident Individuals. If you are a non-resident then your income will be normally taxed as per the revised slab rates under the new tax regime.

You can check the revised slab rates here.

3

Alright, I checked the revised tax rates. I intend to book my equity profits (capital gains) next year in FY 2025-26.

Income from 0 to 4 lakh has no tax, so can I book profits upto ₹4 lakh so that I do not have to pay any tax?

4

@dhruvi1901 ,

The income slab of ₹0-4L is called the basic exemption limit (BEL). In case of NRIs, they do not get the benefit of BEL against their capital gains income. So your capital gains will be taxed as per the applicable rates.

However, if you have other income sources such as rent from Indian property or interest income, you would not have to pay any tax upto ₹4 lakh for such normal slab rate income. (Capital gains income are also called special rate incomes).

Hope this helps