NRI Tax Liability Calculator
Estimate Indian tax on NRI income — rent (standard deduction and Section 24), NRO vs NRE interest, property and mutual fund gains, Chapter VI-A (80C), illustrative DTAA relief, and TDS vs final liability. Updated for FY 2025-26 style slabs; figures are educational only.
Personal details
Tax regime (slab portion)
Interest on loan for this property, deductible from house property income subject to conditions.
Net rent minus municipal tax, then 30% standard deduction on net annual value, then Section 24 interest → taxable rent for this estimate.
Estimated final tax payable (India)
₹6,84,375
Total tax before DTAA
₹8,34,375
DTAA relief (illustrative)
₹1,50,000
Total TDS deducted (model)
₹7,02,200
Income breakdown
- Taxable rent
- ₹2,23,200
- NRO interest (taxable)
- ₹2,50,000
- NRE / FCNR (tax-free)
- ₹80,000
- Capital gains
- see tax lines below
Tax summary
- Tax on slab income
- ₹0
- Property LTCG (20%)
- ₹8,00,000
- Equity STCG (15%)
- ₹0
- Equity LTCG (12.5%)
- ₹34,375
- Debt LTCG (12.5%)
- ₹0
TDS & net outcome
- TDS on rent
- ₹1,87,200
- TDS on NRO FD
- ₹75,000
- TDS on capital gains
- ₹4,40,000
- Refund (+) or balance due (−)
- +₹17,825
- Net income after tax
- ₹46,45,625
- Effective tax rate
- 14.0%
Insights
- NRE / FCNR interest (₹80,000) is tax-free in India for NRIs.
- DTAA relief reduces estimated Indian tax by ₹1,50,000 (subject to treaty article and documentation).
- TDS (₹7,02,200) may exceed final tax (₹6,84,375) — you could claim a refund of about ₹17,825 in your ITR, subject to verification.
NRI taxation basics in India
If you are a non-resident, India typically taxes you on income that arises here— for example rent from a flat in Mumbai, interest on an NRO account, or gains on selling shares on an Indian exchange. Your worldwide income is not fully in scope the way it is for residents; instead, the focus is on Indian sources and the rules that attach to each head of income.
Keywords people search with include NRI tax on rental income, NRO FD TDS rate for NRI, capital gains tax for NRI selling property in India, and DTAA relief for NRIs. This page ties those topics into one flow so you can see how rent, interest, and gains stack before deductions, treaty relief, and TDS.
What income is taxable in India for NRIs?
Common taxable items include rent (after house-property adjustments), interest on NRO deposits, and capital gains on Indian securities or immovable property. Interest on NRE and many FCNR deposits is usually exempt for non-residents, which is why the calculator keeps that bucket separate from taxable interest.
Salary for work done outside India, foreign dividends, and many offshore receipts do not appear here because they are outside the scope of this India-source estimator.
DTAA explained with a simple example
Suppose you pay tax abroad on the same Indian rent or gain that India also taxes. A double taxation avoidance agreement may let you claim credit for foreign tax up to limits, or in some situations allocate taxing rights so that income is not doubly taxed without relief. Our tool caps relief at the smaller of foreign tax paid and estimated Indian tax so you do not see impossible refunds.
In a real filing you must match the treaty article, attach proof, and follow return schedules; the numbers here are only for orientation before you speak to a professional.
How to reduce NRI tax legally
- Use the old regime when Chapter VI-A deductions (such as 80C) genuinely apply to your slab income and improve the net position versus the new regime.
- Claim home loan interest and municipal taxes correctly against rental income.
- Structure deposits so that NRE is used for permissible remittable savings where interest should stay exempt in India.
- File for lower or nil TDS certificates when your assessed tax is below standard deduction rates.
- Report foreign tax paid and claim DTAA benefits in the ITR when eligible.
Frequently asked questions
What income is taxable in India for an NRI?
Non-residents are generally taxed in India only on income that accrues or arises in India, or is received in India, depending on the nature of income and applicable rules. Common examples include rent from property in India, interest on NRO accounts, capital gains on sale of Indian assets, and certain other Indian-source receipts. Interest on NRE and FCNR deposits is typically exempt in India for NRIs. Exact treatment depends on facts, residential status, and the year of assessment.
What is DTAA and how does it help NRIs?
A Double Taxation Avoidance Agreement is a treaty between India and another country that allocates taxing rights and provides relief when the same income could be taxed in both places. Common methods include tax credit (foreign tax may reduce Indian tax subject to limits) and exemption in some cases. Relief is claimable in your return with supporting documents, not automatic.
Why is TDS often high for NRIs?
Payers such as tenants and banks often deduct tax at source at prescribed rates or at rates applicable in the absence of a lower-deduction certificate. Rates can differ from your final tax on the return. If TDS exceeds your assessed liability after deductions and treaty relief, you may claim a refund through your income-tax return, subject to processing and verification.
Is NRO FD interest taxable for NRIs?
Yes. Interest on NRO deposits is generally taxable in India. Banks may deduct TDS on such interest. You report it in your return and reconcile it with Form 26AS and certificates.
Is NRE or FCNR interest taxable in India?
For non-residents, interest on NRE and FCNR deposits is typically exempt from Indian tax under current rules. This calculator treats that interest as tax-free for estimation. Confirm with your bank and tax adviser for your specific accounts and year.
How is rental income from Indian property taxed for NRIs?
Rental income is generally offered under the head income from house property. From the annual rent you typically deduct municipal taxes, claim a standard deduction of thirty percent of the net annual value, and deduct interest on a home loan for the property under Section 24 subject to conditions. The result is taxable under the applicable regime along with your other income.
How are capital gains on Indian property calculated for NRIs?
Short-term gains on immovable property are usually taxed at slab rates as part of normal income. Long-term gains on property may be taxed at a concessional rate with indexation where applicable. This tool uses a simplified split: gains on property held up to two years as short-term (slab) and beyond that as long-term at twenty percent on the gain for illustration. Actual indexation and holding-period rules should be verified for your sale.
What rates apply to equity and mutual fund gains for NRIs?
Listed equity and equity-oriented funds often attract short-term capital gains tax at fifteen percent on gains when holding is short, and long-term gains may be taxed above an annual exemption threshold at rates that change with the law. This calculator uses fifteen percent for short-term equity gains and twelve point five percent on long-term gains above the exemption for estimation. Debt funds are modelled with short-term gains in the slab and long-term gains at a flat illustrative rate.
Can NRIs claim Section 80C and other deductions?
Chapter VI-A deductions such as Section 80C are generally available only under the old tax regime when you file with that regime and meet conditions. The new regime has different deduction rules. This calculator applies your entered 80C and other deduction amounts only against income taxed at slab rates under the regime you select.
Is this NRI tax calculator legal or financial advice?
No. It is an educational estimator using simplified rules, rounded slabs, and illustrative DTAA and TDS. Surcharge, cess nuances, residential variations, RNOR rules, and treaty article limits are not fully modelled. Use a qualified chartered accountant or tax adviser for filing decisions.