Is income up to 12 lakh tax-free in the new regime?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerFor FY 2025-26, under the new regime, a resident individual with taxable income up to ₹12 lakh pays no tax, because the Section 87A rebate wipes out the tax on income up to that level. For salaried people the ₹75,000 standard deduction pushes the break-even to about ₹12.75 lakh. The rebate is for residents — NRIs don’t get it.

How the 12 lakh works

You still fall in the slabs, but the Section 87A rebate cancels the resulting tax up to ₹12 lakh of taxable income. Salaried people also get the ₹75,000 standard deduction.

Who doesn't get it

The rebate applies to residents under the new regime only — NRIs are not eligible. Confirm current limits.

NRI Taxation

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This answer is general information for NRIs, not tax advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.