NRI Income Tax Slab Rates In India 2025

Many NRIs are unsure about how their income in India is taxed. While the NRI income tax slab rates are the same as Indian residents under the old tax regime, the tax applicability of income for NRIs has a number of unique conditions.

The major difference lies in how the income is taxed and what income is considered taxable for NRIs. Let’s break it down.

Who is an NRI for Tax Purposes?

An NRI is an individual who does not meet the minimum stay requirements in India in a financial year. This is less than 182 days in India or less than 60 days in India and less than 365 days in the last four years.

If you don’t meet these conditions, you’re categorised as an NRI.

Are NRI Income Tax Slab Rates Different From Residents?

The simple answer is no. NRI income tax slab rates are the same as those for resident individuals under the old tax regime. But, 

• NRIs cannot use the new tax regime with lower tax rates.
• NRIs cannot claim many of the deductions available that residents can, like 80C on investment-linked options abroad or standard deduction on salary.

NRI Income Tax Slab Rates: Old Regime

Here you can see the NRI income tax slab rates for 2024–25 (AY 2025–26):

Additionally, take into account 4% health & education cess along with surcharge (if income exceeds ₹50 lakh).
 

What Income is Taxable for NRIs?

A common confusion for NRIs is which parts of their income are taxable. Keep in mind that NRIs pay tax only for the income that is earned or received in India.

This includes:

• Salary earned in India
• Rental income from property in India
• Capital gains from stocks or property in India
• Interest from NRO accounts
• Business income in India

These are not counted  as taxable income for NRIs:

• Foreign salary
• Income earned outside India
• Interest from NRE/FCNR accounts
• Investments or business income outside India

TDS Rules

It might be good knowledge to know that TDS is deducted at higher rates for NRIs:

• Rental income – 30%
• NRO interest – 30%
• Property sale – 20–30% depending on the holding period

If NRIs want a refund or if they think the TDS is deducted incorrectly, they must file an ITR promptly.

Takeaways

Understanding how different tax rules apply to NRIs can help them plan their wealth and savings better while avoiding unnecessary TDS or deductions. Despite the NRI income tax slab rate being in line with residents as per the old tax regime, they cannot be taxed under the new regime.