Income Tax · NRI Slabs

Income Tax Slab For Nri (India, 2026)

Updated for 2026 · Claw Editorial

An NRI (non-resident Indian) is taxed in India only on income that arises or is received in India, not on worldwide income. The slab rates an NRI pays on that India income are broadly the same as for residents under the chosen regime, but a few benefits that residents enjoy are not available to NRIs. This explainer sets out the slabs, the differences, and the TDS that is often deducted before you even file.

01What income is taxed in India

Your residential status for a year decides what India can tax. An NRI is taxed in India on income that accrues, arises or is received in India. Income earned and kept abroad is generally outside the Indian net.

Common India-taxable income for an NRI includes:

• Rent from property situated in India.
• Interest on NRO deposits and certain other India deposits.
• Capital gains on Indian shares, mutual funds and property.
• Salary received in India or for services rendered in India.

Residential status is a factual test based on days present in India, and getting it right is the first step, because it changes everything that follows.

02The slab rates that apply

On the India income that is taxed as ordinary income, an NRI pays at the normal slab rates for the regime chosen. The new regime is the default, with the old regime available by opting in. The new-regime slabs, as notified for the year, are broadly:

Surcharge applies at higher incomes and cess is added on the tax. The old regime keeps its own slabs with the familiar deductions. The important point for NRIs is which benefits do not apply, covered next.

03Benefits NRIs do not get

Two differences catch NRIs out most often.

• No higher senior-citizen exemption. Resident senior and super-senior citizens get a higher basic exemption limit. An NRI gets only the general basic exemption, regardless of age.
• The small-income rebate may not apply. The rebate that makes income up to a threshold effectively tax-free for residents is generally not available to a non-resident. So an NRI can owe tax at income levels where a resident would owe nothing.

Certain deductions also work differently for NRIs. For how to claim credit for tax paid abroad, see Form 67 of the Income Tax Act.

04TDS on NRO income

Tax is often deducted at source before an NRI receives India income, frequently at higher rates than for residents. Interest on an NRO account, for example, is subject to TDS at a notified rate for non-residents, and gains and rent can attract TDS too.

This matters for two reasons. First, the TDS may be more than your actual tax, in which case you file a return to claim a refund. Second, a tax treaty between India and your country of residence can reduce the TDS rate if you provide the right documents. For how interest is paid on refunds, see the income tax refund interest rate.

05Special rates and treaty relief

Some NRI income is taxed at special flat rates rather than slabs. Long-term and short-term capital gains on listed securities, for instance, have their own rates, and certain investment income of NRIs is taxed at concessional flat rates under special provisions.

On top of the domestic law, a Double Taxation Avoidance Agreement (DTAA) between India and your country of residence can lower the rate or give credit for tax paid in one country against the other. Claiming treaty benefits needs supporting documents such as a Tax Residency Certificate. Because the interaction of slabs, special rates and treaties gets technical, confirm your position for the specific year and country.

06How Claw Tax helps

Claw Tax and Accounts is an online tax, GST and accounting service for India that connects you with a verified chartered accountant at a fixed, published price, with a Claw reviewer checking every filing before it is submitted.

If your only India income is, say, modest NRO interest with correct TDS, filing yourself on the portal is free and quite doable. NRI returns get complicated fast when there are capital gains, treaty relief to claim, a refund of excess TDS to recover, or a residential-status question, and that is where reviewed help pays off.

With Claw Tax and Accounts, a verified chartered accountant works out your residential status, applies the right slabs and any treaty relief, and files the NRI return at a fixed published price, with a Claw reviewer checking it before submission. You also get reminders before the next deadline.

This is not tax advice; a verified CA handles your specifics.

07Frequently asked questions