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Nri Tax Calculator — Calculations & Slabs for FY 2026-27

Enter your India-sourced income, residency status, and tax treaty country to compute TDS liability and net tax payable under the Income Tax Act as an NRI for FY 2025-26.

1. Income & Residence specifications

Frequently Asked Questions (FAQ)

Who is classified as a Non-Resident Indian (NRI) for tax purposes?

An individual is classified as an NRI in India if they do not meet the residency criteria. Generally, this means they spend less than 182 days in India during the financial year, or less than 365 days across the preceding 4 years along with less than 60 days in the current year.

Is NRI income taxed differently in India?

NRIs are only taxed on income earned or received in India (such as Indian salary, rental income, interest on NRO accounts, or capital gains). Global income earned outside India is entirely tax-exempt in India. NRIs are taxed under standard slabs, but do not get the Section 87A rebate.

What is DTAA and how does it benefit NRIs?

DTAA stands for Double Taxation Avoidance Agreement. It is a treaty signed between India and other countries to ensure that NRIs are not taxed twice on the same income. Under DTAA, tax rates on interest income, royalties, etc., are capped (typically at 10% to 15%) which is lower than the flat 30% TDS rate on NRO deposits.

What are the TDS rates on NRO fixed deposits for NRIs?

Banks deduct a flat 30% TDS (plus surcharge and cess, totaling ~31.2%) on interest earned in Non-Resident Ordinary (NRO) accounts. This is much higher than resident TDS rates. However, if a DTAA is active, NRIs can submit tax residency certificates to lower the TDS rate to 10%-15% depending on the country.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

💡 What Does This Calculator Do?

This calculator estimates the tax payable in India by Non-Resident Indians (NRIs) on their Indian-sourced income (such as salary, rental income, capital gains, or bank FD interest). It computes flat TDS rates, standard NRI slabs, and models tax reductions under Double Taxation Avoidance Agreements (DTAA).

📋 How to Use It

  1. 1
    India Income Type: Select the type of income earned in India (Salary/Professional, Rental, FD Interest, or Capital Gains).
  2. 2
    Income Amount: Enter the gross amount earned in Indian Rupees.
  3. 3
    Country of Residence: Select your current country of residence (e.g., USA, UK, UAE, Canada).
  4. 4
    DTAA Available: Select whether you have availed DTAA benefits to lower the withholding tax rate.

🧬 The Logic Explained Simply

  • The Concept: NRIs are only taxed on income earned or received within India. Rent and salary are taxed under standard progressive slabs (0-2.5L: 0%, 2.5-5L: 5%, 5-10L: 20%, 10L+: 30%), but NRIs do not get the Section 87A rebate. Rental income gets a standard 30% deduction. NRO FD interest faces a flat 30% TDS, but under DTAA, this withholding tax rate is typically capped at 15% or 10% for treaty countries.
  • The Formula:
  • Taxable Rental Income = Gross Rent × 70% (after 30% standard deduction)
  • Taxable Salary/Gains = Gross Income
  • Base Tax on Slabs = Computed progressive tax (excluding rebate)
  • FD Interest Tax (No DTAA) = FD Interest × 30%
  • FD Interest Tax (With DTAA) = FD Interest × 15% (USA)
  • Final Tax = Base Tax + 4% health and education cess

💡 Real-World Calculation Breakdown

For example, you are an NRI living in the USA. You earn ₹3,00,000 in interest on your NRO Fixed Deposit and have ₹12,00,000 in professional income in India. You file with DTAA benefits active.

  • For NRO FD Interest (₹3,00,000):
  • With DTAA, the tax rate is capped at 15% instead of 30% flat TDS.
  • Tax on interest = ₹3,00,000 × 15% = ₹45,000
  • For Professional Income (₹12,00,000):
  • progressive slabs apply (0-2.5L @0%, 2.5-5L @5%, 5-10L @20%, 10L+ @30%).
  • Tax = ₹0 (up to 2.5L) + ₹12,500 (2.5L-5L) + ₹1,00,000 (5L-10L) + ₹60,000 (10L-12L @30%) = ₹1,72,500 (no 87A rebate for NRI)
  • With DTAA credit, let's assume a nominal treaty benefit of 10% credit = ₹17,250. Net slab tax = ₹1,55,250
  • Combined Base Tax = ₹45,000 + ₹1,55,250 = ₹2,00,250
  • Cess (4%) = ₹2,00,250 × 4% = ₹8,010
  • Total Indian Tax Due = ₹2,08,260

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