NRI Tax Estimator — Budget 2025
FY 2025-26 · No Section 87A for NRIs · 4% cess
| Income Source | Taxable Amount | Rate | Tax |
|---|
Our step-by-step guide covers FY 2025-26 in full. Free.
Budget 2025 vs Budget 2026 — NRI Slab Comparison
New regime (default) · NRIs cannot claim Section 87A rebate
| Income Slab | Budget 2025 (FY 2025-26) | Budget 2026 (FY 2026-27) | Change |
|---|---|---|---|
| Up to ₹3,00,000 | Nil | Nil | Same |
| ₹3L – ₹7L | 5% | 5% | Same |
| ₹7L – ₹10L | 10% | 10% | Same |
| ₹10L – ₹12L | 15% | 15% | Same |
| ₹12L – ₹15L | 20% | 20% | Same |
| ₹15L – ₹20L | 25% | 25% | Same |
| Above ₹20L | 30% | 30% | Same |
| Equity LTCG (above ₹1.25L) | 12.5% | 12.5% | Same |
| Equity STCG | 20% | 20% | Same |
| Property LTCG (held 2+ yrs) | 12.5% | 12.5% | Same |
| NRO Interest | 30% flat | 30% flat | Same |
Budget 2026 (Income Tax Act 2025, live April 1) uses identical slabs and capital gains rates as Budget 2025. Changes are procedural: new ITR forms, simplified penalties, FAST-DS amnesty. Your tax liability for the same income is unchanged between the two years.
How NRI Taxation Works in 2025-26 and 2026-27
As an NRI, you pay Indian tax only on income earned or accrued in India. Foreign salary, overseas savings, and international investments fall outside India's tax net entirely. Taxable Indian income includes: NRO interest, rental income from Indian property, capital gains on Indian assets, and dividends from Indian companies.
Why Budget 2026 Shows the Same Tax as Budget 2025
Budget 2026 introduced the new Income Tax Act 2025, effective April 1, 2026 — but all tax rates are identical to Budget 2025. The same slabs, the same 12.5% LTCG on equity, the same 30% on NRO interest. What changed: new ITR form layouts, cleaner legislative language, penalty reforms (minor errors now attract fixed fees, not prosecution), and the FAST-DS foreign asset amnesty scheme. The "Compare Both" mode in this tool will show you identical numbers for both years — which itself is useful if you're timing a transaction across the April 1 boundary and wondering whether the year matters.
The Section 87A Gap for NRIs
Resident Indians get a Section 87A rebate making income up to ₹7 lakh effectively zero tax. NRIs are excluded from this in both years. Tax starts from ₹3 lakh upward under the new regime's basic exemption with no rebate offset — a real difference for NRIs with moderate Indian income like NRO interest plus rent.
TDS Is Pre-Deducted — File Your ITR to Claim the Refund
Banks deduct TDS on NRO interest at 30% automatically. Brokers deduct TDS on equity redemptions. Property buyers deduct TDS from your sale proceeds. All of this appears in Form 26AS. When you file your ITR and your actual liability is lower than TDS paid, the difference is refunded to your pre-validated Indian bank account. Many NRIs leave significant refunds unclaimed simply by not filing.