For the Assessment Year 2022-23, non-resident individuals have the option to choose between the existing tax regime or the new tax regime, which offers lower tax rates (under Section 115BAC of the Income Tax Act).
If a taxpayer opts for the reduced rates in the new tax regime, they will not be eligible for certain exemptions and deductions, such as those available under Sections 80C, 80D, 80TTB, and HRA, which are offered in the existing tax regime.

The rates of surcharge and the Health & Education cess remain the same under both tax regimes. The surcharge rates are as follows:

• 10% surcharge on taxable income above ₹50 lakh up to ₹1 crore.
• 15% surcharge on taxable income above ₹1 crore up to ₹2 crore.
• 25% surcharge on taxable income above ₹2 crore up to ₹5 crore.
• 37% surcharge on taxable income above ₹5 crore.

The maximum surcharge on income, such as dividends or income from sources like short-term capital gains, long-term capital gains, and income from securities, is 15%.

The applicable education cess rate is 4%.

Feel free to reach out to us to determine which tax regime is more advantageous for your situation.