NRI Income Tax Calculator
Work out your Indian income tax on India-sourced income — salary, rent, NRO interest, and capital gains — with an accurate old vs new regime comparison for NRIs.
India-Sourced Income Only
NRE and FCNR account interest is fully tax-exempt in India — don't include it here.
Better Regime: New
You save ₹9,360 vs the other regime · Effective rate: 2.2%
New Regime ✓
Old Regime
| Income Type | Typical TDS Rate |
|---|---|
| NRO interest | 30% |
| Rent paid by tenant (Section 195) | 31.2% |
| Property sale — long-term gains | 12.5% |
| Property sale — short-term gains | 30% |
TDS rates are indicative and deducted at source by the payer — if your actual tax liability (shown above) is lower, you can claim a refund by filing an ITR. DTAA benefits, if applicable, aren't modeled here.
How NRI Taxation Works in India
Once you qualify as a Non-Resident Indian for a financial year (broadly, if you spend fewer than 182 days in India, with some additional conditions for high-income individuals), India taxes you only on income that arises within the country — not your global earnings. Common sources include rent from property you still own in India, interest on NRO savings or fixed deposits, capital gains from selling Indian shares, mutual funds, or property, and salary if you perform services physically in India.
The tax slabs themselves are the same as for residents, but NRIs lose access to the Section 87A rebate — the mechanism that brings tax to zero for residents under a certain income threshold. This means even a small amount of India income can attract real tax for an NRI where a resident with the same income would pay nothing. TDS is also typically deducted at higher rates than for residents, since the payer usually can't verify your final tax slab — any excess can be reclaimed by filing an Indian income tax return.
Frequently Asked Questions
Is an NRI's foreign income taxed in India?
No. NRIs are taxed in India only on income that is earned, received, or accrued in India — such as rent from Indian property, salary for services performed in India, NRO account interest, or capital gains on Indian assets. Income earned and received abroad is not taxable in India for an NRI.
Do NRIs get the Section 87A tax rebate?
No. Section 87A rebate — which can zero out tax for residents with taxable income below ₹5 lakh (old regime) or ₹12 lakh (new regime) — is only available to resident individuals. NRIs pay full slab-rate tax on their India income regardless of how small it is.
Is NRE or FCNR account interest taxable in India?
No, interest earned on NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) accounts is fully exempt from Indian income tax, as long as you maintain NRI status. Only NRO (Non-Resident Ordinary) account interest is taxable.
What TDS rate applies when an NRI sells property in India?
The buyer must deduct TDS under Section 195 — typically around 12.5% on long-term capital gains or up to 30% (plus surcharge and cess) on short-term gains, deducted on the full sale value in many cases rather than just the gain. If your actual tax liability works out lower, you can claim the difference back by filing an Indian income tax return.
Can DTAA reduce an NRI's tax liability in India?
Yes, if India has a Double Taxation Avoidance Agreement (DTAA) with your country of residence, you may be able to claim a lower withholding rate or credit for tax paid in India against your home-country tax liability. DTAA benefits are country-specific and aren't modeled in this calculator — consult the relevant treaty or a tax advisor.