NRI tax calculator: estimate India tax on NRO, capital gains and property
NRIs pay Indian income tax on India-source income including NRO interest (TDS at 30%), short-term capital gains on shares (15%), long-term capital gains on mutual funds (10% above ₹1 lakh), and rental income. The basic exemption and DTAA relief may reduce the net liability.
NRO interest is taxed at 30% TDS
NRIs are taxed in India only on India-source income. NRO interest attracts 30% TDS. Short-term equity gains are taxed at 15% and long-term equity gains above ₹1 lakh at 10%. DTAA may allow a credit for India tax paid against your country-of-residence tax.
Key points
- NRO interest — NRO FD interest is subject to 30% TDS (plus surcharge and cess) — NRIs can reclaim excess TDS via ITR if total income is below the slab threshold.
- Capital gains — Short-term equity gains: 15%. Long-term equity gains above ₹1 lakh: 10%. Debt fund gains: taxed as per slab. Indexation rules changed from FY 2024-25.
- DTAA credit — Tax paid in India can be credited against your residence-country tax liability under the applicable DTAA — retain Form 16A (TDS certificate) as evidence.
India tax rates for NRIs
NRO interest: 30% TDS + 4% cess (effective ~31.2%) on interest income. Filing ITR allows refund if total India income is below the basic exemption (₹3 lakh for individuals below 60).
Equity mutual funds and shares: STCG 15% if held under 12 months; LTCG 10% on gains above ₹1.25 lakh per year (exempt below). Debt funds: gains taxed at applicable slab rate.
Rental income: taxable at applicable slab rate after 30% standard deduction on gross rent. TDS by tenant at 31.2% where applicable.
Property sale: STCG (held under 24 months) at slab rate; LTCG (held 24+ months) at 12.5% without indexation (from FY 2024-25) or 20% with indexation — choose lower. Buyer must deduct TDS at 12.5% on full sale value.
How to estimate your India tax
Add all India-source income: NRO interest, rental income, dividends, capital gains.
Apply the relevant rate or slab to each income type.
Subtract TDS already deducted (shown on Form 26AS or AIS).
If net tax payable exceeds ₹10,000, advance tax may be due.
File ITR to claim TDS refunds, carry forward losses, and obtain a tax clearance if needed for large repatriation.
Frequently asked questions
Do NRIs pay tax on NRE FD interest?
No. NRE FD interest is fully exempt from Indian income tax as long as NRI status is maintained.
Is there a basic exemption for NRIs?
Yes — ₹3 lakh for individuals below 60. However, special-rate incomes (capital gains) are taxed at flat rates regardless of the basic exemption.
How do I claim DTAA relief on TDS deducted in India?
Submit a Tax Residency Certificate (TRC) from your country of residence to the payer or bank. File ITR in India and claim the DTAA benefit or Foreign Tax Credit in your country of residence.