Income-tax Act, 2025
Income-tax Act, 2025: A Guide to Key Changes for NRIs
Sections, forms and compliance requirements — concise guidance for non-resident Indians navigating the renumbered Income-tax Act, 2025.
Income-tax Act, 2025: A Guide to Key Changes for NRIs – Sections, Forms and Compliance Requirements
For NRIs, the new Income-tax Act, 2025 is more of a restructuring and renumbering exercise than a complete change in taxation. Most NRI tax principles, DTAA benefits, capital gains provisions, and foreign asset taxation continue substantially as before. However, several section numbers, forms, and compliance procedures have changed.
1. Introduction of “Tax Year”
One of the biggest structural changes is the replacement of Previous Year (PY) and Assessment Year (AY) with a single concept called Tax Year. This is intended to reduce confusion, especially for international taxpayers and NRIs.
Old System
- Previous Year 2025-26
- Assessment Year 2026-27
New System
- Tax Year 2026-27
2. NRI Taxation Provisions Renumbered
The special NRI taxation regime has largely been retained, but section numbers have changed. The Income Tax Department has clarified these provisions are substantially unchanged.
Section 115D → Section 213
Taxation of investment income of NRIs.
Section 115E → Section 214
Concessional tax on specified investments.
Section 115F → Section 215
Capital gains exemption on reinvestment.
Section 115G → Section 216
Return filing exemption for certain NRIs.
Section 115H → Section 217
Continuation of benefits after becoming resident.
3. Return Filing Exemption for Certain NRIs Continues
This benefit continues under Section 216 of the new Act when income is only investment income or long-term capital gains and appropriate TDS has been deducted.
4. DTAA and Foreign Tax Credit Forms Changed
Form 10F → Form 41
DTAA declaration.
Form 67 → Form 44
Foreign Tax Credit (FTC).
Form 15CA → Form 145
Foreign remittance declaration.
Form 15CB → Form 146
CA certificate for remittance.
Form 61B → Form 166
FATCA / CRS reporting.
5. TDS Forms Renumbered
Form 16 → Form 130
Form 16A → Form 131
Form 24Q → Form 138
Form 26Q → Form 140
Form 27Q → Form 144
Form 26AS → Form 168
6. Form 15G / 15H Replaced
The declaration forms for non-deduction have been consolidated into Form 121.
7. Residence Provisions Continue
Residence provisions remain, now starting from Section 6 of the Income-tax Act, 2025.
8. Foreign Remittance Compliance
Revised Form 145 (earlier 15CA) and Form 146 (earlier 15CB) continue to apply for remittances and certificates.
9. No Major Change in DTAA Benefits
DTAA benefits continue; treaty relief claim methods are substantially the same though form and section references changed.
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