3 min
03-April-2025
The Union Budget 2025 has introduced several key changes to India’s income tax rules that directly impact both resident taxpayers and Non-Resident Indians (NRIs). With a focus on simplification, transparency, and widening the tax base, the government has revised tax slabs, raised rebate limits, and introduced changes to rental income treatment, property sale TDS rules, and the Liberalised Remittance Scheme (LRS). One of the major highlights includes the new 120-day NRI residency rule and updated global income taxation norms. These measures are designed to make compliance easier while ensuring fair contribution from all taxpayers. Whether you live in India or abroad, understanding these changes is crucial for better financial planning. This article breaks down each update in simple language to help you navigate the 2025 tax landscape with clarity and confidence.
Frequently asked questions
What is the NRI Bill 2025?
The NRI Bill 2025 refers to the proposed legislative updates aimed at redefining the tax and residency rules for Non-Resident Indians. It includes changes like the 120-day residency threshold, global income taxation rules, and simplified compliance norms. The bill seeks to align NRI tax responsibilities with global standards while protecting their financial interests.
What is the 4 year rule of NRI?
The 4-year rule under Indian tax law states that an individual becomes a Resident but Not Ordinarily Resident (RNOR) if they’ve been an NRI for 9 out of the last 10 years or have stayed in India for 729 days or less in the last 7 years. This status limits taxation on global income.
How can NRI save tax in India?
NRIs can save tax in India by using exemptions under the Double Taxation Avoidance Agreement (DTAA), investing in tax-free instruments like NRE accounts, and claiming deductions under Section 80C. Proper classification of residential status and timely filing of returns also help avoid unnecessary tax liabilities and penalties. Strategic planning is essential.
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Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
Explore and apply for co-branded credit cards online.
Invest in fixed deposits and mutual funds on the app.
Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
Shop from over 100+ brand partners that offer a diverse range of products and services.
Use specialised tools like EMI calculators, SIP Calculators
Check your credit score, download loan statements, and even get quick customer support—all on the app.
Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.