NRI Income Tax Rates & Tax Slabs – NRIs, PIOs, OCIs

Every assessee is liable to pay Income Tax on their Taxable Income in India. Similarly, NRIs are also liable to pay tax on their income, which is earned in India e.g. Interest Income, Rental Income, Capital Gains etc. Every Year, Indian Budget is presented by the Finance Minister of India. One of the major key and first part of Income Tax Proposals of this budget is Income Tax Rates.

Hereunder, Tax Rates and Tax Slabs are explained for NRIs, PIOs and Other Non-Residents:

NRI Income Tax Slabs In India

Taxable Income Range (Rs) Tax Rate (%)
Equal/Less Than Rs 250,000 Nil
Between Rs 250,000 To 500,000 5
Between Rs 500,000 To 1,000,000 20
More Than Rs 1,000,000 30


Particulars A B C
Gross Total Income (from various sources) 400,000 800,000 1,500,000
Deductions 150,000 150,000 150,000
Total Taxable Income 200,000 650,000 1,350,000
Tax Nil 42,500 217,500

Other Important Tax Factors - NRIs, OCIs, PIOs, Other Non-Resident Individual

  • Cess: On the tax calculated as per above calculations, there is a Cess @4%, which is chargeable on the tax calculated as per above calculations. This Cess is applicable on all assessees including NRIs, OCIs, PIOs, Other Non-Resident Individuals.
  • Surcharge: If Total Taxable Income Exceeds certain amount then there are surcharge also applicable on all individual assessees including NRIs, OCIs, PIOs, Other Non-Resident Individuals. Rates of surcharge are
    1. 10% If Taxable Income Exceeds Rs 50 Lakh
    2. 15% If Taxable Income Exceeds Rs 1 Crore
    3. 25% If Taxable Income Exceeds Rs 2 Crore (Wef AY 2020-21)
    4. 37% If Taxable Income Exceeds Rs 5 Crore (Wef AY 2020-21)
  • Surcharge is levied on basic tax calculated as per the Tax Slabs.
  • Above Tax Rates and Slabs are applicable for FY 2021-22 as well FY 2022-23

New Tax Slabs (Applicable From FY 2020-21 onwards)

  • Further, new tax slab rates have also been provided wef Budget 2020.
  • These new tax slabs are available wef FY 2020-21. This is also applicable for FY 2021-22 and FY 2022-23.
  • These slabs are also applicable for all Non-residents i.e. NRIs, OCIs, Other Foreign citizens, Expatriates.
  • According to these slabs, a person can avail lower tax rates under these slabs and forego various deductions.
  • A comparison analysis can be done of New Tax Slab tax with Old Tax Slab tax, and accordingly Tax Slab can be chosen.
  • For Non-residents, the new tax slabs are generally beneficial as they do not avail benefit of various deductions.
  • Here is a link of New Tax Slabs to read more on these Tax Rates.

NRI Tax Service – Services & Credentials - Wrt NRI/OCIs/PIOs/Foreign Citizens

  • Specialised Team equipped with understanding, experience and expertise in handling tax matters for Non-Residents ie NRIs, OCIs, PIOs, Expats, Foreign Citizens etc.
  • One Umbrella for all kind of services for NRIs.
  • Presence of associates and offices across the corner in India as well Abroad.
  • Specific packages for NRIs i.e. NRI Income Tax Return, NRI 15CA 15CB, NRI Tax Advisory, NRI Value Added Services, NRI Capital Gain Tax Implication, NRI Property Sale, NRI TDS Exemption Certificate.

NRI Tax Rates, NRI Tax Slabs - Usefulness For Non-Residents

Above information is helpful in clarifying various questions of NRIs, Expatriates and Other Non-Residents, such as:

  • What are the NRI Tax Rates or NRI Tax Slabs in India?
  • Whether there are some special income tax rates for NRIs and other Non-Residents in India.
  • What are the basic tax exemption slab limit for NRIs or Foreign Citizens in India?
  • I am an NRI. I need a Tax Consultant for NRI Tax Matters Services in Delhi India?
  • I am looking for Tax Consultant Services for NRI Taxation Matters?