NRI Income Tax Calculator (Tax, TDS and Refund)
Enter your Indian income for tax year 2026-27: NRO interest, rent, dividends and capital gains on shares and mutual funds. See the tax you actually owe under each regime, the TDS already deducted, and whether filing an ITR gets you a refund.
Your Indian income, tax year 2026-27
Interest on NRE accounts and FCNR deposits is tax-free for an NRI, so leave it out.
For the rented property. Rent is taxed after property tax and a flat 30% deduction for repairs, less the loan interest.
Listed shares and equity mutual funds. Held 12 months or less is short-term (20%); longer is long-term (12.5% above ₹1.25 lakh).
Gains on debt funds bought after 1 April 2023, Indian salary, pension or interest from other sources.
Deductions and TDS (optional)
Section 123 (old 80C: life insurance, ELSS, an existing PPF, children's school fees), section 126 (old 80D: health insurance) and similar. Only reduce slab-rate income.
If blank, we estimate it at the standard rates banks, tenants and fund houses use for NRIs.
Tax you owe in India
TDS deducted
Effective tax rate
Tax owed as a share of your gross Indian income
How the tax adds up
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This calculator applies the Income-tax Act, 2025 for tax year 2026-27 (1 April 2026 to 31 March 2027) to an individual who is a Non-Resident for the year. It uses domestic rates, not treaty rates, and doesn't apply marginal relief on surcharge or set off losses. The TDS estimate assumes income under ₹50 lakh (no surcharge on TDS). Results are indicative; a chartered accountant should check your return.
Worked example: an NRI in the US with a flat and an NRO FD
Illustrative example, using the calculator’s defaults. You live in the US and are an NRI for 2026-27. In India you earn ₹3 lakh of interest on an NRO FD, rent your flat out for ₹30,000 a month (₹10,000 property tax), receive ₹20,000 of dividends and book a ₹2 lakh long-term gain on an equity fund.
- Taxable rent is ₹2.45 lakh: ₹3.6 lakh less property tax, less the 30% deduction.
- Interest plus rent is ₹5.45 lakh at slab rates. Under the new regime that is ₹7,250 of tax.
- Dividends at 20% add ₹4,000. The equity gain above ₹1.25 lakh, ₹75,000 at 12.5%, adds ₹9,375.
- With 4% cess, the tax you owe is ₹21,450. The old regime would cost ₹36,270.
But the bank, your tenant and the fund house deducted about ₹2.2 lakh of TDS between them, mostly 31.2% on the interest and the full rent. File a return and about ₹1.98 lakh comes back as a refund. Don't file, and that money stays with the tax department.
How NRI income is taxed in India
As an NRI, India taxes only income that arises or is received in India. Your salary abroad and your foreign investments stay outside it. What's left falls into two groups.
Taxed at slab rates: NRO interest, rent (after property tax and the flat 30% deduction), Indian salary or pension, and gains on debt funds bought after 1 April 2023. In 2026-27 the new regime charges nothing on the first ₹4 lakh, then 5% to 30% in ₹4 lakh steps. The old regime starts at ₹2.5 lakh.
Taxed at flat rates: dividends at 20%, short-term gains on listed shares and equity funds at 20%, and long-term equity gains at 12.5% on the part above ₹1.25 lakh a year.
Two rules make NRIs pay more than residents on the same income:
- No rebate. The rebate that makes income up to ₹12 lakh tax-free in the new regime is for resident individuals only. An NRI with ₹6 lakh of NRO interest still pays slab tax on the part above ₹4 lakh.
- No basic exemption against capital gains. A resident with low income can use the unused part of the ₹4 lakh (or ₹2.5 lakh) exemption against short- and long-term equity gains. An NRI can't, so short-term gains are taxed from the first rupee and long-term gains from the first rupee above ₹1.25 lakh.
Surcharge applies above ₹50 lakh of total income (10%), ₹1 crore (15%) and ₹2 crore (25%), capped at 15% on dividends and equity gains. A 4% health and education cess sits on top of everything.
TDS on NRI income: why it's usually too high
Anyone paying an NRI must deduct tax under section 393(2) of the Income-tax Act, 2025 (old section 195). The payer doesn't know your other income or your slab, so they deduct at the top rate:
- NRO interest: 30% plus cess, so 31.2%.
- Rent: 31.2%, which tenants usually take on the full rent, not on the taxable 70%.
- Dividends and short-term equity gains: 20% plus cess, so 20.8%.
- Long-term equity gains: 12.5% plus cess, so 13%.
- Debt fund gains: 31.2%.
If most of your Indian income is interest and rent, and it is under ₹15–20 lakh, the TDS is almost always more than your real tax. The difference comes back only if you file an ITR. Check what was actually deducted in your Annual Information Statement (AIS) or Form 26AS on the income tax portal, and enter it above for an exact answer.
Tax treaties can cut the rate further
India's tax treaty with your country of residence often caps Indian tax on interest and dividends, commonly at 10% to 15%. To use the treaty rate you need a tax residency certificate from that country and Form 10F, given to the bank before it deducts tax or claimed in your return. This calculator uses domestic rates, so with a treaty your tax can be lower still. We cover the treaties with the US, UK and UAE.
Not sure you're an NRI this year? Check with the NRI days calculator first. If you're RNOR or resident, the rules on this page don't apply.
