Personal Tax Rates for NRIs in India
Personal Tax Rates for NRIs in India
In the case of Non-Resident Indians (NRIs), income accrued or arising in India is taxable in India only. Before knowing personal tax rates for NRIs in India, here are some examples of income that will be taxable in India.
- Interest income from fixed deposits, bonds and NRO accounts,
- Rent from from Property in India,
- Capital Gain from sale of shares, Mutual Funds etc. in India,
- Capital Gain on sale of property in India,
- Salary earned for work done in India or paid by the Indian Government,
- Business income from ventures controlled or operated in India,
Salary and Rental Income are taxed at Slab Rates. Here are the slab rates as per the new and old tax regimes.
The Slab Rates as per the Old Tax Regime:
| Tax Slabs (INR) | Tax Slabs (USD (Appx)) | Tax Rate | Surcharge | Cess |
| 0 to 250000 | 0 to 2924 | 0% | 0% | 0% |
| 250001 to 500000 | 2924 to 5847 | 5% | 0% | 4% |
| 500001 to 1000000 | 5847 to 11695 | 20% | 0% | 4% |
| 1000001 to 5000000 | 11695 to 58473 | 30% | 0% | 4% |
| 5000001 to 10000000 | 58473 to 116945 | 30% | 10% on Full Tax | 4% |
| 10000001 to 20000000 | 116945 to 233891 | 30% | 15% on Full Tax | 4% |
| 20000001 to 50000000 | 233891 to 584727 | 30% | 25% on Full Tax | 4% |
| Above 5000000 | Above 584727 | 30% | 37% on Full Tax | 4% |
Slabs as per the new tax regime:
| Tax Slabs (INR) | Tax Slabs (USD (Appx)) | Tax Rate | Surcharge | Cess |
| 0 to 300000 | 0 to 3508 | 0% | 0% | 0% |
| 300001 to 700000 | 3508 to 8186 | 5% | 0% | 4% |
| 700001 to 1000000 | 8186 to 11695 | 10% | 0% | 4% |
| 1000001 to 1200000 | 11695 to 14033 | 15% | 0% | 4% |
| 1200001 to 1500000 | 14033 to 17542 | 20% | 0% | 4% |
| 1500001 to 5000000 | 17542 to 58473 | 30% | 0% | 4% |
| 5000001 to 10000000 | 58473 to 116945 | 30% | 10% | 4% |
| 10000001 to 20000000 | 116945 to 233891 | 30% | 15% | 4% |
| Above 20000000 | Above 233891 | 30% | 25% | 4% |
Important Points:
- New Tax Regime is clearly beneficial for High income NRIs (Income > 5Cr)
- NRI’s are not eligible for rebate.
- NRI’s can claim Income Tax Exemptions/Deductions as per eligibility
- The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income.
- NRI’s can claim Marginal Relief on Surcharge.
- NRI can claim 30% Standard Deduction on Rental Income
Capital Gain on Sale of Immovable Property in India:
If the property is held for more than 2 years, it will be a LTCG, else it will be STCG.
If Immovable Property sold after 22.07.2024: The LTCG is taxed at the rate of 12.5% and STCG is taxed at slab rates.
If Immovable Property before 23.07.2024: The LTCG is taxed at the rate of 20% (with indexation benefit), and the STCG is taxed at slab rates.
TDS on Purchase of Property from NRI
Capital Gain on Sale of Equity Shares/ Equity Orinted Mutual Fund in India:
If held for more than 1 year, it will be a LTCG, else it will be STCG.
- Tax on LTCG will be 10% if sold before 23.07.2024
- Tax on LTCG will be 12.5% if sold after 22.07.2024
- Tax on STCG will be 15% if sold before 23.07.2024
- Tax on STCG will be 20% if sold after 22.07.2024
Tax on Foreign Currency Convertible Bonds (FCCBs), Foreign Currency Exchangeable Bonds (FCEB), Global Depository Receipts (GDRs) of an Indian company or a Public Sector Undertaking (PSU)
- Tax on LTCG will be 10% if sold before 23.07.2024
- Tax on LTCG will be 12.5% if sold after 22.07.2024
- 10% on Interest Income or Dividend Income
Tax on Other Incomes:
- 20% on dividend income [10% on dividend received from a unit in an International Financial Services Centre]
- 20% on Interest Income
- 20% on Royalty and Fees for Technical Services
Due Date of Filing ITR:
The due date for filing the income tax return is 15th September 2025 where Audit is not applicable.
Can NRI File ITR-1 or ITR-4:
No, an NRI cannot file ITR-1 or ITR-4 as they are considered as simple returns. Individuals can either file ITR 2 or ITR 3.