rebate 87 A

There is a common misconception among many NRIs that income up to ₹12 lakh is completely tax-free. This understanding is incorrect.
The benefit arises due to the rebate under Section 87A, which can make income up to ₹12 lakh effectively tax-free under the new tax regime — however, this rebate is available only to resident individuals.
NRIs are not eligible to claim the Section 87A rebate. Therefore, for NRIs, tax becomes payable once the taxable income exceeds the basic exemption limit applicable under the chosen tax regime i. e rs. 2.5 lakhs in old tax regime and Rs. 4 lakhs in new tax regime.