Why does NRI Desk show mid-market rates?

Mid-market rates are a neutral benchmark. The amount you actually receive is usually lower after bank or remittance provider spreads and fees.

Can I rely on the remittance comparison as a quote?

No. The comparison is indicative and helps shortlist providers. Always confirm the live quote in the provider app before transferring money.

Are NRI loan calculations exact?

The EMI formula matches the standard reducing-balance method, but banks may add fees, insurance, prepayment rules or eligibility conditions.

NRI income tax slabs in India: old vs new regime for FY 2025-26

NRIs pay Indian income tax only on India-source income. The new tax regime is the default from FY 2023-24 with lower slab rates but no deductions. The old regime allows 80C, 80D and other deductions. Special flat rates apply to capital gains (15% STCG equity, 10% LTCG equity, 12.5% property LTCG) regardless of regime.

New regime is default but old regime allows 80C/80D deductions

NRIs are taxed in India only on India-source income. The new tax regime (default from FY 2023-24) has lower slab rates up to 30% but no deductions. The old regime allows 80C (₹1.5 lakh), 80D (₹75,000) and other deductions — better if total deductions exceed ₹3–4 lakh. Capital gains on equity and property are taxed at flat rates regardless of regime.

Key points

New regime is default — From FY 2023-24, the new tax regime is the default. To claim 80C/80D, explicitly opt for the old regime when filing ITR.
Capital gains are flat-rate — Equity STCG is 15%, equity LTCG (above ₹1.25 lakh) is 10%, property LTCG is 12.5% — these flat rates apply regardless of which regime you choose.
Basic exemption: ₹3 lakh (new) / ₹2.5 lakh (old) — The basic exemption is ₹3 lakh under the new regime and ₹2.5 lakh under the old regime for NRIs below 60.

NRI tax slabs FY 2025-26

New tax regime (default):

Up to ₹3 lakh: Nil

₹3–7 lakh: 5%

₹7–10 lakh: 10%

₹10–12 lakh: 15%

₹12–15 lakh: 20%

Above ₹15 lakh: 30%

Note: rebate under Section 87A is not available to NRIs — basic exemption applies but not the full rebate.

Old tax regime:

Up to ₹2.5 lakh: Nil

₹2.5–5 lakh: 5%

₹5–10 lakh: 20%

Above ₹10 lakh: 30%

Surcharge: 10% on income above ₹50 lakh (up to ₹1 crore); 15% above ₹1 crore; 25% above ₹2 crore (old regime, with relaxations in new regime).

Health and Education cess: 4% on tax plus surcharge.

Special rates applicable to NRIs

Equity STCG (under 12 months): 15% flat rate under Section 111A.

Equity LTCG (above 12 months, above ₹1.25 lakh): 10% flat rate under Section 112A.

Debt MF / other LTCG: 12.5% without indexation (post-FY 2024-25 budget change).

Property LTCG (above 24 months): 12.5% without indexation (post-FY 2024-25 budget change).

NRO interest: 30% (no slab benefit — taxed at flat rate as 'special income' for NRIs).

These special rates apply regardless of whether you opt for the old or new regime.

Frequently asked questions

Should an NRI choose old or new regime?

If your India-source income is primarily NRO interest or capital gains at flat rates, regime choice may not matter — flat-rate income is taxed at flat rates regardless. Regime choice matters for non-special-rate income (salary from Indian employer, rental income, etc.) where deductions make the old regime worthwhile.

Is there a tax-free basic exemption for NRIs?

Yes — ₹3 lakh (new regime) or ₹2.5 lakh (old regime). But Section 87A rebate (up to ₹12,500 under old, ₹25,000 under new) is not available to NRIs. The exemption reduces regular income tax but special-rate incomes are taxed separately.

Do NRI tax slabs change every year?

Slab rates can change with the Union Budget. The FY 2025-26 rates on this page were current at the review date — check the Income Tax portal each year for updates.