Non-resident taxation is not the resident calculation with a different label. An NRI gets no Section 87A rebate (tax starts from the first rupee above Rs 4 lakh in the new regime), no senior-citizen exemption limits, and cannot set the unused basic exemption against capital gains. Dividends are taxed at a special flat 20 percent, NRE interest hinges on FEMA – not income-tax – residency, and Chapter XII-A offers optional concessional rates most calculators ignore. This calculator computes tax the NRI way: only India-taxable income, every non-resident switch applied, both regimes compared. First confirm you ARE non-resident with our residential status calculator.
Step 1 – Year, regime and salary
Only salary for work physically performed in India (or Government of India salary to an Indian citizen posted abroad) is taxable to a non-resident – regardless of where it is credited. Foreign salary for work done abroad does NOT go in this calculator. Standard deduction (Rs 75,000 new / Rs 50,000 old) is applied automatically.
Step 2 – Interest, dividends and other income
Step 3 – Capital gains on Indian assets (transfers on/after 23-Jul-2024 rates)
Non-resident switches applied automatically: no indexation option on property (that alternative is resident-only), no basic-exemption adjustment against these gains, first-proviso forex computation note for shares bought in foreign currency. From FY 2026-27 the Income-tax Act 2025 (s.72(6)) additionally restores the foreign-currency computation for UNLISTED shares – if that applies to you, compute the gain accordingly before entering.
Only for assets bought in convertible foreign exchange (Indian shares, public-company debentures/deposits, Government securities). Gross basis – no deductions. Do NOT also enter these amounts in the fields above. Reinvestment within 6 months can exempt the LTCG fully u/s 115F.
Step 4 – Deductions and taxes paid
80TTA (up to Rs 10,000 on NRO savings interest) is applied automatically from Step 2. 80TTB, 80DD, 80DDB and 80U are resident-only and excluded.
Computation Statement – Old vs New Regime
NRI Income Tax – Frequently Asked Questions
Which income of an NRI is taxable in India?
Only income received in India or accruing/arising (or deemed to accrue) in India – section 5(2). Typical items: salary for work done in India, rent from Indian property, capital gains on Indian shares and property, NRO interest, dividends from Indian companies. Foreign salary, foreign rent and foreign interest are outside Indian tax for a non-resident.
Does an NRI get the Section 87A rebate?
No. The rebate is only for residents, in both regimes. A resident with Rs 11 lakh income in the new regime pays nil; a non-resident with the same income pays about Rs 46,800. This is the single biggest difference generic calculators get wrong for NRIs.
What basic exemption limit applies to an NRI?
New regime: Rs 4,00,000 (same as residents). Old regime: Rs 2,50,000 regardless of age – the Rs 3,00,000 senior and Rs 5,00,000 super-senior limits are for RESIDENT senior citizens only.
Can an NRI adjust the unused exemption limit against capital gains?
No. The provisos allowing residents to set the unexhausted basic exemption against 111A/112/112A gains do not extend to non-residents. An NRI with zero other income and Rs 2,00,000 of STCG u/s 111A pays the full 20 percent on the whole gain.
How are NRI capital gains taxed after the 2024 changes?
For transfers on or after 23 July 2024: listed equity STCG (111A) 20 percent; listed equity LTCG (112A) 12.5 percent above the Rs 1.25 lakh annual exemption; all other LTCG (112) including property, gold and unlisted shares 12.5 percent WITHOUT indexation. The 20-percent-with-indexation option for pre-July-2024 property is available only to residents. Debt mutual funds bought after 1 April 2023 are always slab-rate STCG u/s 50AA.
How is TDS deducted when an NRI sells property?
The buyer must deduct u/s 195 on the ENTIRE sale price – effectively about 13 to 14.95 percent for long-term property (12.5 percent plus surcharge and cess) and up to 35.88 percent for short-term – unless you obtain a lower-deduction certificate in Form 13 u/s 197 so that TDS applies only to the actual gains. The buyer needs a TAN and files Form 27Q. The 1 percent TDS u/s 194-IA does NOT apply to NRI sellers.
How are NRI dividends taxed?
Flat 20 percent (plus surcharge and cess) on gross dividend u/s 115A – not slab rate. Companies deduct TDS u/s 195 accordingly. If your country’s DTAA caps dividend tax lower (UK/UAE/Germany 10 percent, Singapore/Australia 15 percent, Saudi Arabia 5 percent), claim the treaty rate with a Tax Residency Certificate and Form 10F. US and Canada residents: the treaty cap for individuals is 25 percent, so the Indian domestic rate is already better.
Is my NRE and FCNR interest exempt?
NRE interest is exempt u/s 10(4)(ii) only while you are a person resident outside India under FEMA – and FEMA residency ends immediately when you return to India to stay, even if you are still non-resident under the Income-tax Act that year. FCNR(B) interest is exempt u/s 10(15)(iv)(fa) for non-residents AND RNOR, so it survives your return until you become ordinarily resident. NRO interest is always taxable.
What is Chapter XII-A and should I opt for it?
An optional regime (sections 115C-115I) for NRIs holding assets bought in convertible foreign exchange: 20 percent flat on investment income and 12.5 percent on long-term gains from such assets, on gross basis without deductions – plus a full LTCG exemption u/s 115F if you reinvest the net consideration within 6 months, and no need to file a return u/s 115G if such income has full TDS. Worth it when the flat rate beats your slab; this calculator lets you put eligible income in the XII-A fields to compare.
Which deductions can an NRI claim in the old regime?
80C up to Rs 1.5 lakh (life insurance premium, ELSS, children’s tuition in India, home-loan principal, stamp duty) – but NRIs cannot open PPF, NSC, SCSS, Sukanya Samriddhi or post-office deposits; 80D health insurance; 80E education-loan interest; 80G donations; 80TTA up to Rs 10,000 on NRO savings interest. Not available: 80TTB, 80DD, 80DDB, 80U, and the new regime blocks all of these anyway (except 80CCD(2)).
Does the 15% surcharge cap help NRIs?
Yes. Surcharge on tax on dividends and capital gains u/s 111A/112/112A is capped at 15 percent even when income exceeds Rs 2 crore (where surcharge otherwise reaches 25-37 percent). The new regime also caps overall surcharge at 25 percent. This calculator applies the caps and marginal relief automatically.
Do NRIs pay advance tax? What about 234B/234C interest?
Yes, if net tax liability after TDS exceeds Rs 10,000. Where Indian payers deducted correct TDS (NRO interest 30 percent, dividends 20 percent, property TDS u/s 195), little liability may remain. If you have a shortfall, pay before 31 March to limit 234B – estimate it with our 234A/B/C calculator.
Which ITR form and what is the due date?
Non-residents cannot use ITR-1 – file ITR-2 (or ITR-3 with Indian business income). Due date for AY 2026-27: 31 July 2026 for ITR-2, 31 August 2026 for ITR-3/4 non-audit; belated returns until 31 December 2026. Confirm with our ITR form selector.
I might actually be RNOR, not NR. Does this calculator apply?
Mostly yes – RNOR taxpayers are taxed like non-residents on the SCOPE of income (foreign income stays exempt unless from a business controlled in India), but RNOR gets resident treatment for the 87A rebate, senior-citizen limits and exemption adjustment. Check your exact status with the residential status calculator first; if you are RNOR, use our advanced calculator with resident status for the tax math.
Did FY 2026-27 change anything for NRIs?
Rates are identical – the Income-tax Act 2025 only renumbers sections (115A becomes 207, 115E becomes 214, 111A/112/112A become 196/197/198). One real change: from FY 2026-27, non-residents can again compute unlisted-share capital gains in the original foreign currency (s.72(6)), which strips out rupee-depreciation from the taxable gain – a significant saving on old holdings.