For FY 2025-26 (AY 2026-27), an NRI's Indian salary and rent are taxed at slab rates, long-term gains on immovable property and unlisted assets at 12.5% without indexation, listed-equity LTCG at 12.5% above ₹1.25 lakh, STCG on listed equity at 20%, NRO interest at slab with 30% TDS, and dividends commonly at 20% TDS under Section 195. Surcharge and 4% health & education cess apply on top. This page is the rates reference; the step-by-step filing process — ITR-2 vs ITR-3, the 31 July deadline and DTAA claim — lives at /guides/how-nris-file-income-tax-in-india.
Last reviewed: June 2026 · Updated for AY 2026-27
India taxes your India-sourced income and leaves your foreign income alone. What matters is the rate per income head — and that NRI income is usually subject to TDS first, refundable on filing. Surcharge and the 4% health & education cess apply on top of every rate below. This is a rates reference; for the ITR form, deadline and e-verification steps see /guides/how-nris-file-income-tax-in-india.
The reference table below sets the headline rate for each type of India income an NRI can earn in FY 2025-26 (assessment year 2026-27). Surcharge and 4% cess apply on top.
| India income | Rate (FY 2025-26) |
|---|---|
| Salary for services rendered in India | Slab rates |
| Rent / house property | Slab rates, after 30% standard deduction; TDS under Sec 195 |
| Immovable property — long-term gain (held > 24 months) | 12.5% without indexation (post 23 July 2024) |
| Immovable property — short-term gain | Slab rates |
| Listed equity / equity mutual funds — LTCG (Sec 112A) | 12.5% on gains above ₹1.25 lakh/year |
| Listed equity / equity mutual funds — STCG (Sec 111A) | 20% |
| Other long-term assets (unlisted shares, bonds, gold) | 12.5% |
| NRO interest | Slab rates; TDS at 30% |
| Dividends from Indian companies | Taxable; TDS commonly 20% under Sec 195 (DTAA may reduce) |
| NRE / FCNR interest | Exempt under Section 10 |
The Section 87A rebate is NOT available to non-residents, and the basic exemption cannot be set off against capital gains taxed under Section 111A or 112A. These two carve-outs are the most common reason an NRI return is rejected as wrongly computed.
Almost every payment to an NRI is covered by Section 195 and deducted at source — often more than the real liability. Reduce it upfront with a DTAA rate (TRC + Form 10F) or reclaim the excess by filing a return. The filing walkthrough — form, deadline, e-verification — is at /guides/how-nris-file-income-tax-in-india, and a full advisory engagement sits at /services/nri-taxation.
Hold repatriable surplus in NRE/FCNR for tax-free interest, keep NRO only for genuinely Indian income, use the DTAA to cut TDS on interest and dividends, and pick old vs new regime on the numbers.
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