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All NRIs

NRI TDS refund estimator

Tax is taken from NRO interest and rent at 31.2% before you see it. Your actual Indian tax is often much lower.

Illustration of an Indian tax calculation comparing TDS withheld with a possible refund

NRIWallah team

Updated November 2026 · 2 min read

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Why NRIs are owed refunds

Interest on an NRO account and rent from an Indian property are taxed at source at 31.2% when paid to a non-resident. That is 30% under section 195 plus the 4% cess. The rate does not depend on how much you earn. An NRI with ₹3 lakh of deposit interest and nothing else would owe no tax at all on it under the new regime, because the first ₹4 lakh of slab income is untaxed. The bank still deducts about ₹94,000.

The money comes back only through a return. Many NRIs never file one, because they assume TDS settles the matter, so the excess stays with the government.

Tax regime

We've started with the new regime, which applies unless you opt out when you file. Try the old one if you have 80C or 80D payments or a home loan on a let property.

Your income ledger has for this year.

Indian income for the year (₹)

Tax already deducted (₹)

Estimated result

How the estimate is worked out

The tool follows the rules for a non-resident individual for FY 2025-26 and FY 2026-27:

  • NRO interest, rent and other income are added up and taxed at slab rates. Rent counts after a flat 30% deduction for repairs, less property tax and home loan interest on the let property, the same calculation as the rent TDS calculator.
  • Dividends are taxed at 20%, short-term gains on listed shares and equity funds at 20%, and long-term gains at 12.5% above ₹1.25 lakh. Long-term gains on property are taxed at 12.5% without indexation, as the property sale TDS calculator explains. A non-resident cannot use the unused basic exemption against any of these.
  • NRE and FCNR interest is left out, because it is usually exempt while you are non-resident.
  • The ₹12 lakh rebate under the new regime is not applied. It is for residents only.

If you keep an Indian income ledger, the estimator can fill the boxes for any financial year from it.

What it leaves out

Treaty rates, marginal relief on the surcharge above ₹50 lakh, and income from a business or profession are not included. Income from salary in India is also left out. If your status changed during the year because you moved, the residence rules in the day tracker decide which rules apply. Treat the figure as an estimate to check against your Form 26AS before filing.

Help with filing

US return preparation

Use TaxBuddyUS for US and India cross-border tax support.
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Common questions

Payments of interest and rent to a non-resident fall under section 195, which has no threshold and no slab: the payer deducts 30% plus cess from the first rupee. A resident earning the same amount would see 10% or nothing. The payer cannot know your other income, so the law takes the full rate and leaves you to claim back the excess by filing.
File an Indian income tax return for the year, usually ITR-2, by 31 July after the year ends. Check that every deduction appears in Form 26AS or the Annual Information Statement first, because the refund is matched against them. Refunds are paid to an Indian bank account pre-validated on the e-filing portal, usually an NRO account.
The new regime applies unless you opt out when you file. It has lower slab rates and a ₹4 lakh nil band but no 80C, 80D or 80TTA deductions. The old regime can come out lower if you pay life insurance, PPF or health insurance premiums, or have a home loan on a let property. The estimator lets you try both.
Often, for interest and dividends. Most of India’s tax treaties cap tax on interest at 10% to 15%. To use the treaty rate you usually need a tax residence certificate from your home country and Form 10F, given to the bank before it deducts, or claimed in the return. The estimator uses India’s own rates and does not apply a treaty rate.
A lower or nil deduction certificate under Form 13 (now Form 128) lets a bank or tenant deduct at a lower rate for the year. It suits steady income such as rent. The lower TDS certificate guide covers the application.

Every rate and threshold here is sourced, dated and shown on the page — but tax rules change, and we would rather be told than be wrong. Reports go to the team that maintains the tool. If you can point at the official source, that gets it fixed fastest.

No account needed. We don't publish your email or add you to anything.

How we source and review these numbers is set out in our methodology.

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