Non-Resident Taxation

NRI Income Tax Calculator (India)

Compute Indian income tax liability for NRIs on Indian rental income, NRO deposits, mutual funds, and capital gains under Budget 2024 tax rules.

Indian Sourced Incomes

Tax Regime

NRE / FCNR Interest (₹)

100% Tax-Exempt u/s 10(4)(ii)

Gross Indian Rental Income (₹)

₹

NRO Savings / FD Interest (₹)

₹

Equity LTCG (Listed Stocks/MFs) (₹)

₹

Taxed at 12.5% u/s 112A above ₹1.25L.

Property / Other LTCG (₹)

₹

Taxed at 12.5% u/s 112 without indexation.

NRI Restrictions in India:

• Section 87A rebate (₹25k) is NOT available to NRIs (resident-only benefit).

• Standard 30% deduction on rental income applies under Section 24(a).

Tax Computation NRI Status

Net Rental Income After 30% Standard Ded u/s 24(a)

₹2,52,000

Regular Slab Tax (Rent + NRO) ₹5,100

Special Rate Capital Gains Tax Equity 12.5% + Property

₹9,375

Total Indian Tax Liability (+4% Cess) ₹15,054

DTAA Tax Credit: You can claim Foreign Tax Credit (FTC) in your country of residence (USA, UK, UAE, etc.) by filing Form 67.

Income Tax Rules for Non-Resident Indians (NRIs)

Under Section 5(2) of the Income Tax Act, 1961, an NRI is taxed only on income that is received, accrues, or arises in India. Income earned outside India is not taxable in India.

NRE vs NRO Bank Accounts

NRE (Non-Resident External) & FCNR: Interest earned is 100% tax-free in India under Section 10(4)(ii). Principal & interest are freely repatriable.

NRO (Non-Resident Ordinary): Interest earned is fully taxable in India and subject to 30% TDS under Section 195 (plus cess/surcharge) or lower DTAA rates.

DTAA Relief & Form 67 (Double Taxation)

Under Double Taxation Avoidance Agreements (DTAA) signed between India and over 85 countries, NRIs can avoid double taxation. By submitting a Tax Residency Certificate (TRC) and Form 10F, NRIs can access concessional TDS rates or claim foreign tax credit.

NRI Income Tax Rate Matrix (FY 2024-25)

Income Head	Applicable Tax Rate	TDS Deduction Section
Rental Income (House Property)	Normal Slab Rates (after 30% standard ded)	Sec 195 (30% + Cess)
NRO Bank FD / Savings Interest	Normal Slab Rates	Sec 195 (30% or DTAA rate)
Listed Equity LTCG (> 12 Months)	12.5% (Above ₹1.25L exemption)	Sec 195 (12.5% + Cess)
Listed Equity STCG (≤ 12 Months)	20% Flat	Sec 195 (20% + Cess)
Real Estate / Unlisted LTCG	12.5% (Without Indexation)	Sec 195 (12.5% + Cess)

Frequently Asked Questions

Is an NRI entitled to the ₹3 Lakh basic exemption limit?

Yes. NRIs are entitled to the basic exemption limit (₹3,00,000 in New Regime / ₹2,50,000 in Old Regime) against regular slab income (rental, interest). However, special rate LTCG/STCG cannot adjust unexhausted basic exemption.

Can an NRI claim Section 87A rebate of ₹25,000?

No. Section 87A rebate is statutory restricted to Resident Individuals only. NRIs cannot claim the rebate even if total income is below ₹7 Lakhs.

How can an NRI get a refund for excess TDS deducted by bank/buyer?

NRIs can file their Income Tax Return (ITR-2 or ITR-3) in India before July 31st to claim a direct bank refund of excess 30% TDS deducted under Section 195.