Skip to content

No power of attorney. Ever.

🏠 Free tool

NRI rental income tax calculator: tax, TDS and refund

As an NRI, rent from a property in India is taxed in India: rent minus municipal tax paid, less a flat 30%, less home-loan interest, at normal slab rates with no rebate. Your tenant must also deduct TDS — 31.2% of the rent for most landlords — so many NRIs overpay and get money back by filing a return. Enter the rent and your costs to see the tax under both regimes, the TDS and the likely refund.

Free · No sign-up · Runs privately in your browser· Figures checked 7 October 2026

Which year?
₹
₹
Only what you actually paid in the year
₹
Interest only — not the principal
More options (co-owned, other income, TDS)
₹
e.g. NRO interest. NRE interest is tax-free.
₹
Life insurance, ELSS, loan principal, health cover
₹
e.g. by the bank on NRO interest
TDS your tenant deducts from your rent

Your tax on this rent (new regime, Tax year 2026-27)

₹0

The tenant holds back ₹1,31,040 (31.2% of ₹4,20,000).

File an Indian return (ITR-2) and about ₹1,31,040 should come back to your Indian bank account.
Your share of rent for the year₹4,20,000
Less municipal tax paid− ₹12,000
Net annual value₹4,08,000
Less 30% standard deduction− ₹1,22,400
Less home-loan interest− ₹0
Income from house property₹2,85,600

New regime (default)Lower tax

Income from the property₹2,85,600
Total taxable income in India₹2,85,600
Income tax (incl. surcharge + 4% cess)₹0
Refund when you file your return₹1,31,040

Old regime

Income from the property₹2,85,600
Total taxable income in India₹2,85,600
Income tax (incl. surcharge + 4% cess)₹1,851
Refund when you file your return₹1,29,189
How this was worked out

Rent is taxed as income from house property under sections 21–22 of the Income-tax Act, 2025: rent minus municipal tax you actually paid, less a flat 30%, less interest on a loan for the property. For a let-out property the interest has no upper limit.

Non-residents pay slab rates with no rebate: new regime nil up to ₹4 lakh, then 5% steps every ₹4 lakh up to 30% above ₹24 lakh; old regime nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above. Surcharge applies above ₹50 lakh, plus 4% cess. A loss is set off up to ₹2 lakh only in the old regime (section 109).

Your tenant must deduct TDS under section 393(2) at 30% plus surcharge and 4% cess — 31.2% for most landlords — on the rent paid to you, whatever the amount. The TDS counts as tax you have paid; the difference comes back when you file.

Estimates for an individual non-resident owner, using rates for FY 2025-26 and tax year 2026-27 (unchanged by Budget 2026), last checked on 7 Oct 2026. Rounding, other income types, a tax treaty or a lower-deduction certificate can change the figure. Confirm with a chartered accountant before you file.

How to use it

  1. Enter the rent per month (or for the year), how many months it was let, the municipal tax you paid and any home-loan interest.
  2. If you co-own the property, own other Indian income (like NRO interest) or claim 80C, open ‘More options’ and add them.
  3. Compare the new and old regime cards — the lower one is highlighted — and read the TDS your tenant holds back.
  4. Use the refund (or amount still to pay) to plan your Indian return (ITR-2), and check the figures with a chartered accountant.

How is rental income taxed for NRIs in India?

Rent from Indian property is ‘income from house property’ and is taxable in India whatever your residence. Start with the rent for the year and subtract municipal or property tax you actually paid in that year — that gives the net annual value. Take off a flat 30% standard deduction for repairs and upkeep (you don’t need bills), then the interest on any loan taken to buy, build or repair the property.

Worked example: rent ₹30,000 a month for 12 months = ₹3,60,000. Less ₹10,000 municipal tax = ₹3,50,000. Less 30% (₹1,05,000) = ₹2,45,000 of taxable income. With no other Indian income, that is below the basic exemption in both regimes, so the tax is nil.

What TDS does a tenant deduct on rent paid to an NRI?

A tenant paying rent to a non-resident must deduct tax at source at 30% plus 4% cess — 31.2% — on the rent, with surcharge on top only for very large amounts (above ₹50 lakh a year). Unlike rent paid to residents, there is no minimum: it applies from the first rupee. The rule is section 195 of the old Act and, from tax year 2026-27, section 393(2) of the Income-tax Act, 2025.

The tenant needs a TAN, must deposit the TDS, file the quarterly non-resident TDS return and give you a TDS certificate. The 2026 change letting buyers use their PAN instead of a TAN covers property purchases only, not rent. On ₹3,60,000 of rent, TDS is ₹1,12,320 — in the example above all of it comes back as a refund when you file.

New regime or old regime — which is better for an NRI landlord?

New regime (the default): nil up to ₹4 lakh, then 5% for each ₹4 lakh slab up to 30% above ₹24 lakh. Old regime for non-residents: nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above — with no higher limit for senior citizens, because that applies only to residents. NRIs don’t get the section 87A rebate in either regime, so the ‘no tax up to ₹12 lakh’ headline doesn’t apply to them.

The old regime can win when you have a large loan: a house-property loss of up to ₹2 lakh can reduce your other Indian income, and the rest is carried forward for 8 years. In the new regime that loss is simply lost. You choose the regime in your return each year, but only in a return filed by the due date — a late return is taxed under the new regime.

How do I get the excess TDS back?

File an Indian income tax return — ITR-2, since NRIs can’t use ITR-1 — showing the rent and claiming the tenant’s TDS as a credit. Check that the TDS appears against your PAN in Form 26AS / AIS first; the tenant must quote your correct PAN. The refund is paid into an Indian bank account in your name, usually your NRO account.

If the TDS each year is far more than your real tax, you can apply for a lower or nil deduction certificate (section 395 from 1 April 2026; section 197 before), which tells the tenant to deduct less. For FY 2025-26 the due date for most NRIs was 31 July 2026.

Do I also pay tax on this rent where I live?

Usually yes — most countries tax residents on worldwide income. Under India’s tax treaties, rent from property in India may be taxed in India, and your country of residence then gives a credit for the Indian tax, so you shouldn’t pay twice on the same income. The treaty doesn’t reduce the tenant’s TDS on rent.

Keep your Indian return, TDS certificates and the tax computation together; you will need them for the foreign tax credit at home. A chartered accountant who works with NRIs can handle both sides.

Questions people ask

30% plus 4% cess, which is 31.2% of the rent, with surcharge only above ₹50 lakh a year. There is no threshold — it applies to any rent paid to a non-resident. The tenant deducts it under section 195 (section 393(2) of the Income-tax Act, 2025 from April 2026).

Yes. The 30% deduction on the net annual value of a let-out property applies to NRIs in both the new and the old regime, without any proof of expenses.

Yes, with no upper limit on the interest for a let-out property. In the old regime a resulting loss of up to ₹2 lakh can be set off against other Indian income and the rest carried forward for 8 years; in the new regime the property’s income can’t go below zero.

No. The rebate is only for residents, in both regimes. An NRI with ₹6 lakh of taxable rent pays tax on it even though a resident with the same income wouldn’t.

Yes if total Indian income is above the basic exemption limit, and in practice almost always, because filing is the only way to get back the TDS the tenant deducted. NRIs file ITR-2.

Related tools

NRI Repatriation Calculator

How many years to send your sale money abroad under the USD 1 million NRO limit.

Use free tool

Keep or Sell Land Calculator

Keep and wait, or sell and invest abroad? Compare both after tax and currency moves.

Use free tool

Helpful guides

Ready to see your land for yourself?

Tell us the village or drop a pin — it takes about two minutes. We confirm the boundary with you before your first report.

Protect my land From $15/month · No power of attorney