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NRI Tax Calculator India FY 2025-26

Calculate your Indian tax liability as a Non-Resident Indian. Covers income tax on rental income, FD interest, salary, and capital gains. Compare NRE vs NRO FD returns side-by-side. Compute property sale LTCG with Section 54 and 54EC exemptions. Check DTAA treaty benefits for 25+ countries.

Type of income earned/received in India
Gross amount before TDS deduction
Your country of tax residence for treaty benefits

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How to Use This Calculator

NRI Tax on Indian Income tab

Select your income type (FD interest, rental income, capital gains, or salary), enter the annual amount, and choose your DTAA country to see treaty benefits. The calculator shows your Indian tax liability, TDS deducted at source, and any refund you can claim by filing an ITR.

NRE vs NRO FD tab

Enter your deposit amount, FD interest rate, and tenure. See a side-by-side comparison of NRE (tax-free) vs NRO (30% TDS) fixed deposit returns. The calculator shows the tax saved by choosing NRE, effective yield after tax for NRO, and maturity values for both.

Property Sale by NRI tab

Enter purchase price, sale price, and holding period. The calculator computes LTCG at 12.5% (post Budget 2024, no indexation), TDS by the buyer, and exemptions under Section 54 (reinvest in property) and Section 54EC (NHAI/REC bonds). Expand "More options" to enter reinvestment amounts.

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NRI Taxation Rules

NRIs (Non-Resident Indians) are taxed only on income that is earned, received, or deemed to accrue or arise in India. Foreign income is not taxable in India.

Who is an NRI?
A person who stays in India for less than 182 days during the financial year
(Section 6 of the Income Tax Act)

NRI Taxable Income (India only):
• Rental income from Indian property
• Interest on NRO account / Indian FDs
• Capital gains from sale of Indian assets
• Salary for services rendered in India
• Business income from Indian operations

Tax-Free for NRI:
• NRE account interest — fully tax-exempt
• FCNR deposit interest — fully tax-exempt
• Foreign income — not taxable in India

TDS Rates (Section 195):
Interest / Rental: 30% + surcharge + 4% cess
Property LTCG (> 2 years): 12.5% + surcharge + cess
Property STCG (≤ 2 years): 30% (slab rates)
Salary: Slab rates (new regime available)

Key Exemptions:
Section 54: Reinvest LTCG in residential property (within 2 years)
Section 54EC: Invest up to ₹50L in NHAI/REC bonds (within 6 months)
Section 54F: Reinvest sale consideration in residential property

NRE vs NRO vs FCNR:
NRE: Foreign earnings, tax-free interest, fully repatriable
NRO: Indian income, 30% TDS on interest, repatriation up to USD 1M/year
FCNR: Foreign currency FD, tax-free interest, fully repatriable

NRIs can opt for the new tax regime (lower slab rates). However, the Section 87A rebate is NOT available to NRIs under either regime — so income up to ₹12 lakh is not tax-free for NRIs, unlike resident taxpayers.

Example

Rajesh — NRI in Dubai with Indian rental income and NRO FD

Rajesh is an NRI working in Dubai. He earns ₹6,00,000/year rental income from a flat in Mumbai and has ₹25,00,000 in an NRO FD at 7% p.a. He wants to know his Indian tax liability and whether to move funds to NRE.

Step 1: Rental income tax

Gross rental income₹6,00,000
Standard deduction (30%)−₹1,80,000
Taxable rental income₹4,20,000
TDS deducted by tenant (30% of gross)₹1,80,000
Actual tax at slab rates~₹1,000 (new regime)
Refund claimable on ITR~₹1,79,000

Step 2: NRO FD interest

NRO FD deposit₹25,00,000
Interest @ 7% p.a.₹1,75,000
TDS @ 30% + surcharge + cess−₹60,690
Net interest received₹1,14,310
Effective yield after tax4.57% p.a.

Step 3: If Rajesh moved to NRE FD

NRE FD deposit₹25,00,000
Interest @ 7% p.a.₹1,75,000
TDS₹0 (tax-free)
Net interest received₹1,75,000
Tax saved by NRE₹60,690/year

Verdict

Rajesh should file an ITR to claim ~₹1.79 lakh refund on excess rental TDS. He should also move foreign earnings to an NRE account to save ₹60,690/year in FD interest tax. UAE has a DTAA with India — interest rate under DTAA is 12.5%, which could further reduce his NRO tax if he obtains a TRC from UAE.

FAQ

Under Section 6 of the Income Tax Act, an individual is an NRI if they are present in India for less than 182 days during the financial year. For Indian citizens or PIOs with Indian income exceeding ₹15 lakh, the threshold is 120 days (they become RNOR if they meet this but not 182 days). NRIs are taxed only on Indian-sourced income — foreign salary, investments, and bank interest are not taxable in India.
NRE (Non-Resident External): For depositing foreign earnings. Interest is tax-free in India. Both principal and interest are fully repatriable. Joint holding allowed only with another NRI.

NRO (Non-Resident Ordinary): For managing Indian income (rent, dividends, pension). Interest is taxable at 30% + surcharge + cess with TDS. Repatriation limited to USD 1 million per financial year after tax compliance.

FCNR (Foreign Currency Non-Resident): Term deposits in foreign currency (USD, GBP, EUR, etc.). Interest is tax-free in India. Fully repatriable. Eliminates currency conversion risk on maturity.
Yes, NRIs can opt for the new tax regime under Section 115BAC from FY 2023-24 onwards. The new regime offers lower slab rates (0% up to ₹4L, 5% for ₹4-8L, 10% for ₹8-12L, etc.) but limited deductions. Important: The Section 87A rebate (up to ₹60,000) is NOT available to NRIs under either regime. This means income up to ₹12 lakh is not tax-free for NRIs, unlike resident taxpayers.
For property transfers on or after 23 July 2024, long-term capital gains are taxed at a flat 12.5% without indexation. Previously, LTCG was taxed at 20% with indexation benefit (which could significantly reduce tax for older properties). The holding period for long-term remains 2 years. NRIs can still claim exemptions under Section 54 (reinvest in residential property) and Section 54EC (invest up to ₹50L in NHAI/REC bonds). The buyer must deduct TDS at 12.5% plus surcharge and cess on the full sale consideration.
India has Double Taxation Avoidance Agreements with over 100 countries. DTAA can reduce withholding tax rates on interest, dividends, royalties, and other income. For example, interest income TDS can drop from 30% to 10-15% depending on the treaty. To claim DTAA benefits, you need: (1) a Tax Residency Certificate (TRC) from your country of residence, and (2) Form 10F filed with Indian tax authorities. Common DTAA rates for interest: USA 15%, UK 15%, Germany 10%, Singapore 15%, UAE 12.5%, Mauritius 7.5%.

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