NRI Tax Calculator India

No, NRE (Non-Resident External) FD interest is completely tax-free in India for NRIs. This is one of the biggest tax advantages for NRIs. However, if your residential status changes to Resident (182+ days in India), NRE interest becomes taxable. NRO FD interest is always taxable at 30% with TDS.

An NRI must stay less than 182 days in India during a financial year (April-March) to maintain NRI status. If you stay 182 days or more, you become a Resident and all your global income may become taxable in India. There's also a 60-day rule for Indian citizens — if you've been in India for 365+ days in the preceding 4 years, the limit is 60 days instead of 182.

DTAA (Double Taxation Avoidance Agreement) is a treaty between India and 90+ countries to prevent the same income from being taxed twice. For example, if India taxes FD interest at 30% but DTAA with USA caps it at 15%, you pay only 15%. To claim DTAA benefit, you need a Tax Residency Certificate (TRC) from your country of residence.

NRI TDS rates are higher than resident rates: FD/NRO interest at 30% (plus surcharge and cess = ~31.2%), rental income at 30%, long-term capital gains on property at 20% (with indexation), short-term capital gains at 30%. NRIs should file ITR even if TDS is deducted to claim refunds if actual tax is lower.

NRIs must file ITR in India if their total India income exceeds ₹2.5 lakh (basic exemption limit). Even if income is below this limit, filing is recommended to claim TDS refunds — banks deduct 30% TDS on NRO/FD interest, which may be more than actual tax liability. Filing also helps in claiming DTAA benefits.