Ask Veda

TaxClue AI · Active
Namaste! I'm Veda — TaxClue's AI compliance assistant. 🙏

Ask me anything about GST, ITR, Company registration, Trademark, FSSAI or any compliance topic. When you're ready, I'll connect you with our expert for a callback.
Share your details — our expert will call you
Powered by TaxClue · India's Trusted Compliance Platform
FY 2025–26 · AY 2026–27 · For Non-Residents

NRI Income Tax Calculator

Work out the tax on your India-sourced income as a non-resident — slabs, surcharge and 4% cess, with the important catch that the Section 87A rebate does not apply to NRIs.

🗓️ Basic details
Financial year
Tax regime
A non-resident's basic exemption is ₹2,50,000 in both regimes — the higher senior-citizen exemption is not available to NRIs. Only income that arises or is deemed to arise in India is taxed here.
🇮🇳 India-sourced income
India taxable income Total income arising / accruing in India
of which Salary income Optional — enables ₹75k/₹50k std. deduction
Enter the total India taxable income first. If any part of it is salary taxable in India, add it in the second box so the standard deduction applies. Foreign income of a non-resident is not taxed in India and should be excluded.
📉 Deductions Old regime
80C ELSS, LIC, ULIP, PPF* — max ₹1.5L
80D Health insurance — up to ₹50k
Home loan interest Sec 24(b) — max ₹2L
Other 80G, 80TTA (NRO savings)…
*NRIs cannot open a new PPF/NSC account but can invest in ELSS, life insurance and repay principal on an Indian home loan under 80C. 80DD/80DDB and the senior-citizen 80TTB are not available to non-residents. The new regime ignores the deductions above.

Slab-wise breakdown

◆ Free NRI Tax Review

Get your NRI return + DTAA relief filed by a CA

We check residential status, claim treaty relief and refund excess TDS on your India income.

✓ We'll contact you shortly!

Disclaimer: Indicative estimate for a non-resident individual on India-sourced income. Actual tax may vary with special-rate income (LTCG/STCG, interest, royalty), DTAA relief and TDS already deducted. Rates per Finance Act 2025.

How NRIs are taxed in India

A non-resident is taxed in India only on India-sourced income — salary earned or received in India, rent from Indian property, capital gains on Indian assets, and interest from NRO deposits. Foreign salary and overseas income are outside the Indian net. The basic exemption is ₹2,50,000, and critically, the Section 87A rebate is not available to NRIs, so tax is charged from the first slab above the exemption with no nil-tax-up-to-₹12L (new) or ₹5L (old) benefit that residents enjoy.

India only
Non-residents are taxed only on income arising or received in India
₹2.5L
Basic exemption — no higher senior-citizen limit for NRIs
No 87A
Section 87A rebate is not available to non-residents
DTAA
Treaty relief avoids double tax on the same income

Slabs that apply to NRIs — FY 2026-27

NRIs use the same slab rates as residents, but without the 87A rebate. The ₹2,50,000 basic exemption applies in both regimes; the higher ₹3L / ₹5L exemption for seniors does not apply to a non-resident, whatever their age.

New Regime — FY 2026-27
Up to ₹4,00,000Nil
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%
No 87A rebate for NRIs — tax is charged from the ₹4L slab onward with no nil-up-to-₹12L benefit.
Old Regime — NRI
Up to ₹2,50,000Nil
₹2,50,001 – ₹5,00,0005%
₹5,00,001 – ₹10,00,00020%
Above ₹10,00,00030%
The ₹2,50,000 exemption applies regardless of age for a non-resident — no ₹3L / ₹5L senior benefit. A 4% health & education cess applies on top of tax in both regimes.

Worked example — the 87A difference

This is where an NRI's bill differs sharply from a resident's. On ₹9,00,000 of India income in the new regime, a resident pays nothing because the 87A rebate wipes out the tax — but a non-resident pays the full slab tax plus cess.

₹9,00,000 India income · new
0 – ₹4L₹0
₹4L – ₹8L @ 5%₹20,000
₹8L – ₹9L @ 10%₹10,000
+ 4% cess₹1,200
NRI pays₹31,200
₹9,00,000 same income · resident
Slab tax before rebate₹30,000
Less: 87A rebate- ₹30,000
+ 4% cess₹0
Resident pays₹0
₹12,00,000 India income · new
Slab tax (0/5/10%)₹60,000
Less: 87A rebate₹0
+ 4% cess₹2,400
NRI pays₹62,400
Same slabs, very different outcome: at ₹9L a resident pays ₹0 while an NRI pays ₹31,200 — purely because the 87A rebate is denied to non-residents. Enter your own India income above to see your exact figure.

Key concepts for non-residents

India-sourced income only

A non-resident is taxed only on income that accrues, arises or is received in India — Indian salary, rent from Indian property, capital gains on Indian shares/property, and NRO interest. Global income and foreign salary are not taxable in India.

No Section 87A rebate

The 87A rebate is available only to resident individuals. An NRI cannot claim it, so there is no nil-tax band up to ₹12L (new) or ₹5L (old). Tax is charged from the first slab above the ₹2.5L basic exemption.

TDS on NRI income

Payers deduct TDS at source on NRI income — commonly 30% on NRO interest, 20% on long-term gains and slab/flat rates on rent and other income. TDS is often higher than the final liability, so filing a return to claim the refund is usually worthwhile.

DTAA relief

India's Double Taxation Avoidance Agreements let you avoid being taxed twice on the same income — either a lower treaty rate (e.g. reduced TDS on interest) or a foreign tax credit in your country of residence. A Tax Residency Certificate and Form 10F are usually needed to claim it.

Frequently Asked Questions
What income is taxable in India for an NRI?

Income received or deemed to be received in India, and income that accrues or arises or is deemed to accrue or arise in India — Indian salary, rent from Indian property, capital gains on Indian assets, and interest on NRO deposits. Foreign income is outside the Indian net.

Can an NRI claim the section 87A rebate?

No. The rebate is available only to a resident individual. An NRI pays tax from the first rupee above the basic exemption limit.

Can an NRI use the basic exemption limit against capital gains?

Not for long-term gains under section 112 or 112A, nor for short-term gains under section 111A. A resident may adjust unutilised basic exemption against those gains; a non-resident cannot.

Is NRE interest taxable?

No. Interest on an NRE account and on an FCNR deposit is exempt while the person is a non-resident under FEMA. Interest on an NRO account is fully taxable, with TDS deducted at 30% plus surcharge and cess.

Which regime applies to an NRI?

Both regimes are available, and the new regime is the default. Deductions such as 80C and 80D remain available to an NRI under the old regime, though some — 80TTB, 80U and 80DD among them — are limited to residents.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.