NRI Salary & Tax CalculatorFY 2025-26
For an NRI, Indian tax turns on one question asked before any other: how many days were you here? This calculator settles your residential status under Section 6 — including the 120-day trap and RNOR — and then estimates tax on your India-source income, with the non-resident rules correctly applied. Most notably, the ₹12 lakh tax-free headline does not apply to you.
Highlights
- Residency decided under Section 6, with each test shown and the reasoning spelled out.
- Handles the 182-day test, the 60+365 limb, the 120-day high-income rule and deemed residency.
- Detects RNOR, the two-to-three year window that returning NRIs should be planning around.
- Applies genuine non-resident tax rules: no 87A rebate, no senior-citizen exemption, no 80TTB.
- Separates exempt NRE/FCNR interest from fully taxable NRO interest.
Your residential status for FY 2025-26
Non-Resident
Non-Resident (NRI) for this financial year
Indian tax payable
₹54,600
Effective rate 4.85% on India-source income, new regime
Still to pay after TDS
₹54,600
Exempt income
₹60.00 L
Foreign salary and NRE/FCNR interest
Monthly take-home from India salary
₹95,450
Extra tax vs a resident
₹54,600
Mostly the denied 87A rebate
A resident with identical income would pay ₹0. You pay ₹54,600, because the Section 87A rebate is available only to residents.
How your status was decided
- In India 182 days or more this year45 days counted against a 182-day threshold.
- In India 182+ days this year and 365+ days over the last 4 years45 days this year and 200 days across four preceding years. Indian citizen or PIO visiting India, so the 60-day limb is relaxed to 182 days.
- Deemed resident: Indian citizen, Indian income above ₹15 lakh, not taxed elsewhereDoes not apply.
Threshold applied to the secondary test: 182 days
What this means for your tax
- Income earned or accrued in India is taxable; foreign salary and foreign investments stay outside the Indian net.
- The Section 87A rebate is not available to non-residents, so tax applies from the first rupee above the basic exemption.
- NRE and FCNR interest is exempt; NRO interest is fully taxable.
- Higher TDS rates apply to NRI income, and a DTAA claim needs a Tax Residency Certificate plus Form 10F.
Exempt and specially treated income
- Foreign salary is outside India's tax net while you are non-resident.
Compliance checklist
- Tenants and buyers must deduct TDS on payments to an NRI, often at rates well above your actual liability — file a return to claim the refund.
- A lower or nil deduction certificate u/s 197 avoids over-withholding rather than waiting a year for the refund.
- To claim DTAA relief you need a Tax Residency Certificate from your country of residence plus Form 10F.
- Filing is required if Indian taxable income exceeds the basic exemption, or to claim a refund of excess TDS.
- Advance tax applies if the liability after TDS exceeds ₹10,000.
Everything is calculated in your browser. Nothing you enter is sent to a server or stored.
Residency is decided by day count, not by passport or visa
Indian tax residency has nothing to do with citizenship, OCI status or which country issued your visa. It is decided each financial year by how many days you were physically present in India, tested against thresholds that shift depending on your circumstances.
You are a resident if you spent 182 days or more in India during the year. Failing that, you are still a resident if you spent 60 days or more here and 365 days or more across the preceding four years. That 60-day limb is where the complications begin.
- Left India for employment abroad during the year: the 60-day limb relaxes to 182 days.
- Indian citizen or PIO visiting India: also relaxed to 182 days.
- But if you are visiting and your Indian income exceeds ₹15 lakh, it tightens to 120 days.
- Deemed resident: an Indian citizen with over ₹15 lakh of Indian income who pays tax nowhere else is a resident regardless of days.
The 120-day rule catches high-earning NRIs who visit often
This is the change that trips up NRIs with substantial Indian assets. If you are an Indian citizen or PIO visiting India, your Indian-source income exceeds ₹15 lakh in the year, and you spend 120 days or more here with 365 days across the previous four years, you become a resident — even though you would have been safe at 181 days under the old rules.
The saving grace is that residency arising purely through this limb makes you RNOR rather than ordinarily resident, so your foreign income stays outside the Indian tax net. But you are now filing as a resident, and the compliance burden changes.
If you are close to the line, the practical advice is unglamorous: keep a dated record of every entry and exit. Immigration stamps and boarding passes are what settle this if it is ever questioned.
RNOR is the window returning NRIs should plan around
Resident but Not Ordinarily Resident is a genuinely useful middle status. Your Indian income is taxable, but your foreign income largely is not, and interest on FCNR and RFC deposits stays exempt. Most NRIs returning to India permanently hold RNOR for two to three financial years.
That window is the natural time to sell appreciated foreign assets, close out foreign retirement accounts, and repatriate money, because those gains generally escape Indian tax while you are RNOR. Once you become ordinarily resident, your worldwide income becomes taxable in India and you must report foreign assets in Schedule FA.
You qualify as RNOR if you were non-resident in nine of the ten preceding years, or if you spent 729 days or fewer in India across the preceding seven years.
Why NRIs pay tax where residents pay none
The Section 87A rebate that makes income up to ₹12 lakh effectively tax-free under the new regime is written for "an individual resident in India". Non-residents are excluded. An NRI with ₹12 lakh of Indian salary pays real tax on it, while a resident on identical income pays nothing — this calculator shows both figures side by side so the gap is visible rather than assumed.
Two further asymmetries: NRIs never get the higher senior-citizen basic exemption, whatever their age, and Section 80TTB on deposit interest is unavailable. The ₹50,000 or ₹75,000 standard deduction on salary does apply.
On the other side of the ledger, NRE and FCNR interest is fully exempt, which is why parking funds in NRE rather than NRO deposits is usually the single largest tax lever available to an NRI.
TDS on NRI income is deliberately over-withheld
Tenants paying rent to an NRI, and buyers purchasing property from one, are required to deduct TDS at rates set well above what most NRIs actually owe. Property sales are the worst case, where TDS is deducted on the entire sale value rather than on the gain.
You have two options. File a return and claim the refund, which works but locks up your money for the best part of a year. Or apply for a lower-deduction certificate under Section 197 before the transaction, which fixes the problem at source. The second is almost always worth the paperwork on a large transaction.
To claim a reduced treaty rate under a DTAA you need a Tax Residency Certificate from your country of residence plus Form 10F. Without both, the payer will apply the domestic rate.
Methodology
- Day counts are tested against the primary 182-day limb and the secondary limb, with the threshold adjusted for employment abroad, visiting status and Indian income above ₹15 lakh.
- Deemed residency u/s 6(1A) is checked for Indian citizens with Indian income above ₹15 lakh who are not liable to tax elsewhere.
- RNOR is determined from the ten-year residency history and the 729-day seven-year limb.
- Indian rental income gets the flat 30% standard deduction u/s 24(a).
- The same income is also computed as a resident, so the cost of non-residency is shown explicitly.
Scope and assumptions
- Estimates for FY 2025-26 (AY 2026-27); residential status is determined separately for each financial year.
- DTAA relief, treaty rates and foreign tax credit are not modelled — they need country-specific advice.
- Only India-source income is included; foreign income is shown for context but not taxed for non-residents.
- Day counting is by physical presence in India, and the day of arrival and departure both usually count.
FAQ
How do I know if I am an NRI for tax purposes?
You are a non-resident for a financial year if you spent fewer than 182 days in India, and you also fail the secondary test of 60 days in India plus 365 days across the preceding four years. The 60-day threshold relaxes to 182 days if you left India for employment or are an Indian citizen or PIO visiting. Enter your day counts above and the calculator applies each test and explains the result.
What is the 120-day rule for NRIs?
If you are an Indian citizen or PIO visiting India, your Indian-source income exceeds ₹15 lakh, and you spend 120 days or more in India with 365 days over the preceding four years, you become a resident. Below ₹15 lakh of Indian income the threshold stays at 182 days. Residency triggered only by this rule makes you RNOR, so foreign income remains exempt.
Do NRIs get the ₹12 lakh tax-free benefit under the new regime?
No. The Section 87A rebate is available only to resident individuals, so the ₹12 lakh zero-tax headline does not apply to NRIs. An NRI with ₹12 lakh of Indian salary pays tax of roughly ₹54,600 for FY 2025-26, where a resident on the same income pays nothing. The calculator shows both numbers so you can see the difference.
Which income is taxable in India for an NRI?
Income earned, accrued or received in India: salary for services rendered in India, rent from Indian property, capital gains on Indian shares and property, and interest on NRO deposits. Your foreign salary and foreign investments stay outside the Indian tax net while you are non-resident.
Is NRE interest taxable in India?
No. Interest on NRE and FCNR deposits is fully exempt while you are a non-resident, which makes them substantially more attractive than NRO deposits. NRO interest is taxable at your slab rate with TDS usually deducted at 30% plus cess. The exemption ends when you return and become a resident.
What is RNOR status and why does it matter?
Resident but Not Ordinarily Resident applies if you were non-resident in nine of the ten preceding years, or spent 729 days or fewer in India over the preceding seven years. Indian income is taxable but most foreign income is not, and FCNR/RFC interest stays exempt. Returning NRIs typically hold RNOR for two to three years — the ideal window to repatriate foreign assets and sell appreciated foreign holdings.
Do NRIs have to file an income tax return in India?
You must file if your Indian taxable income exceeds the basic exemption limit, and you should file if excess TDS has been deducted and you want the refund. Given how aggressively TDS is withheld on NRI rent and property sales, filing is often worth it even when not strictly mandatory.
Can NRIs claim 80C deductions?
Yes, under the old regime, with restrictions. Life insurance premiums, ELSS, principal repayment on a home loan and tuition fees all qualify. New PPF and Senior Citizens Savings Scheme accounts cannot be opened by NRIs. Section 80TTB on deposit interest is unavailable, though 80TTA on savings interest is allowed.
How is rental income from Indian property taxed for NRIs?
Gross rent gets a flat 30% standard deduction u/s 24(a), plus municipal taxes paid and home loan interest. The balance is taxable at slab rates. Your tenant must deduct TDS at 30% plus cess on the gross rent, which usually exceeds your real liability — a Section 197 lower-deduction certificate or a return filed for refund fixes that.
Do NRIs pay advance tax?
Yes, if your Indian tax liability after TDS exceeds ₹10,000 for the year. This commonly bites on rental income and capital gains where TDS does not fully cover the liability. Use the advance tax calculator to work out the instalments and any 234B/234C interest.
How does a DTAA reduce my Indian tax?
India's double taxation avoidance agreements often cap the rate on interest, dividends and royalties below the domestic rate, and decide which country taxes what. To claim treaty benefit you need a Tax Residency Certificate from your country of residence and Form 10F. Treaty positions are country-specific, so this calculator applies domestic rates only.
Does the day of arrival count towards my stay in India?
The generally accepted position is that both the day of arrival and the day of departure count as days in India. If you are anywhere near a 120-day or 182-day threshold, count conservatively and keep your immigration stamps and boarding passes, since those are the records that settle the question.