NRI Taxation Calculator
Calculate tax liability for Non-Resident Indians on Indian income with DTAA considerations
NRIs are taxed differently compared to resident Indians. Key points to understand:
- Only income received, accruing, or arising in India is taxable for NRIs
- NRIs can claim benefits under Double Taxation Avoidance Agreements (DTAA)
- Different TDS rates apply to various income types for NRIs
- Certain deductions available to residents may not be available to NRIs
- NRIs can receive tax exemption on specific investments like NRE accounts
NRI Tax Calculation Results
Net Tax Liability in India
After applying DTAA benefits and tax credits
| Total Indian Income | ₹ 0 |
|---|---|
| Total Deductions | ₹ 0 |
| Taxable Income | ₹ 0 |
| Income Tax | ₹ 0 |
| Surcharge | ₹ 0 |
| Health & Education Cess | ₹ 0 |
| Gross Tax Liability | ₹ 0 |
| Relief under DTAA | ₹ 0 |
| Tax Credits | ₹ 0 |
| Net Tax Liability | ₹ 0 |
Income & Tax Breakdown
Income Breakdown
| Income Source | Amount (₹) | Applicable TDS Rate | TDS Amount (₹) | DTAA Rate | DTAA Benefit (₹) |
|---|
DTAA Benefits
Double Taxation Avoidance Agreement (DTAA) between India and your country of residence helps prevent taxation of the same income in both countries.
NRI Tax Compliance
- File ITR-2 for income from property and capital gains
- TDS is typically deducted at higher rates for NRIs
- Maintain foreign bank details and report in your Indian tax returns
- For claiming DTAA benefits, obtain a Tax Residency Certificate (TRC)
- Interest from NRE accounts is tax-exempt in India
NRI Taxation Guide & Tutorial
Understanding NRI Taxation
Non-Resident Indian (NRI) taxation follows specific rules under the Income Tax Act, with different treatment for various types of income earned in India. Understanding these rules and available benefits under Double Taxation Avoidance Agreements (DTAA) is crucial for tax optimization.
Taxable Income in India
- Income received in India
- Income accruing in India
- Income deemed to accrue in India
- Income from Indian assets
Key Considerations
- DTAA benefits availability
- Higher TDS rates for NRIs
- Special NRE/NRO accounts
- Tax residency certificate needed
Residential Status and Tax Implications
| Status | Criteria | Tax Implications |
|---|---|---|
| Non-Resident Indian (NRI) |
|
Only Indian income taxable |
| Resident but Not Ordinarily Resident (RNOR) |
|
Indian income + Foreign business income controlled from India |
| Resident |
|
Global income taxable in India |
Income Types and TDS Rates
| Income Type | TDS Rate for NRIs | DTAA Benefit Available |
|---|---|---|
| Interest Income | 20% | Yes |
| Rental Income | 30% | Yes |
| Capital Gains (Short-term) | 30% | Yes |
| Capital Gains (Long-term) | 20% | Yes |
| Professional/Business Income | 30% | Yes |
How to Use the Calculator
Enter Residential Details
Select assessment year, residential status, and country of residence for DTAA benefits.
Input Income Details
Enter various sources of Indian income like salary, rental, interest, capital gains, etc.
Add Deductions & Credits
Include eligible deductions, foreign tax credits, and TDS details.
Review Tax Calculation
Check detailed breakdown of tax liability with DTAA benefits applied.
Frequently Asked Questions
NRI status is determined based on:
- Primary Criteria:
- Stay in India less than 182 days
- Purpose of stay
- Previous years' presence
- Additional Factors:
- Citizenship status
- Employment location
- Permanent establishment
Taxable income includes:
- Indian Source Income:
- Income earned in India
- Rental income from Indian property
- Interest from Indian banks
- Deemed Indian Income:
- Income from Indian business connection
- Capital gains from Indian assets
- Royalty/FTS from India
DTAA benefits application:
- Requirements:
- Tax Residency Certificate
- Form 10F submission
- PAN card mandatory
- Benefits:
- Lower tax rates
- Exemption from double taxation
- Special provisions by country
Account types comparison:
- NRE Account:
- Foreign earnings only
- Tax-free interest
- Fully repatriable
- NRO Account:
- Indian earnings
- Interest taxable
- Limited repatriation
Filing requirements for NRIs:
- Tax Return Filing:
- ITR-2 for most cases
- July 31st deadline
- Digital signature required
- Additional Forms:
- Form 10F for DTAA
- Schedule FA for foreign assets
- Form 15CA/CB for remittances