An NRI Earning More Than 15 Lakh In India Is No More An NRI: New Income Tax Bill 2025

Pragya Pathak

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Updated: 16-04-2025 at 12:40 PM

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The government of India is all set to announce the New Income Tax Bill of 2025 in the parliament today. The New Bill is expected to be an upgraded version of the old Income Tax Act of 1961 which will make the lives of people much easier and efficient.

There will be several provisions in the Income Tax Bill of 2025 and one of the provisions expected to be added in the bill is concerning Non-Resident Indians (NRIs) who earn more than Rs. 15 lakh in India.

The old Income Tax Act of 1961 didn’t have any specific provisions for those Non-Resident Indians (NRIs) who earn more than Rs. 15 lakh in India. It could be due to various reasons like balancing the tax laws of India and whichever country the NRI resides in but the New Bill is expected to figure out a way to establish and maintain that balance.

Read the news article to know what exactly is the expected provision concerning NRIs earning more than Rs. 15 lakh in India.

NRIs As Residents

The Indian government is expected to announce the New Income Tax Bill of 2025 in the parliament today. People from all parts of the nation are eagerly waiting for the announcement. One of the expected provisions in the Income Tax Bill of 2025 would concern Non-Resident Indians (NRIs) earning more than Rs. 15 lakh in India.

Till now, they weren’t required to pay any taxes on the income they generate in India however, this is going to change now. All those Non-Resident Indians (NRIs) earning more than Rs. 15 lakhs in India will now be categorised as ‘Residents’.

This re-categorisation of NRIs as Residents would force them to pay the necessary income tax and prevent them from getting away with taking extra advantage of their residency status.

Eligibility Criteria

This expected provision is for those individuals who fulfil the following eligibility or identification criteria:

Those individuals who spend at least 182 days in India in a Tax Year, or
Individuals who are in India for 60 days or more in a Tax Year; this doesn’t include those people who leave the nation as crew members of an Indian Ship or for employment purposes, or
Individuals who have stayed in India for 365 days or more in the past 4 years.
Please note that NRIs who are visiting India as tourists don’t come under this provision unless they earn more than Rs. 15 lakh. In such a case, the 60-day rule will be extended to a 120-day rule.

Conclusion

The New Income Tax Bill of 2025 is expected to change the existing scenario of NRIs wherein they earn more than Rs. 15 lakh in India without having to pay a single penny in taxes. Their apparent ‘foreign income’ has been untaxed for decades which was one of the major loopholes of the old Income Tax Act of 1961. The Income Tax Bill of 2025 is not only expected to be efficient but fair as well.

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