NRI Tax Slabs
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Key Takeaways: Resident Indians pay income tax based on their income. Do these income slabs also apply to NRIs? Read more here.
As an NRI, you earn income abroad, but you may also have income in India. If your income from sources in India is beyond the basic exemption limit, you will have to pay Indian income tax. The rules for taxes are slightly different for you than Indian residents. You have to know how to file your tax returns and which tax rates apply to you. While you will find more information on NRI income tax returns here, let us look at specific income tax slabs below.
Know What is Taxable in India 
You may have more than one source of income in India, but only some are taxable. Here are the categories based on taxability.
Tax can be levied on:
- Income received for services provided in India
- Profit earned on the transfer of assets located in India
- Rental income from property owned in India
- NRO fixed deposit interest earned in India
- Capital gains on mutual funds
- Interest earned in an NRO account
- Gifts received from non-family members in India >INR 50,000
Tax is not levied on:
- Interest earned on FCNR or NRE Account
- Long-term capital gains on equity mutual funds up to INR 1 lakh
- Dividends earned on stocks of companies In India
- Gifts received from relatives
- Gifts received from non-family members <INR 50,000
NRI Income Tax Slab Rates for Individuals
The levied tax depends on the income earned. However, please note that senior citizens and super senior citizens are taxed differently.  [2a]
|Taxable Income Slabs (INR)||Tax rates|
|0 to 2.5 lakh||Nil|
|2.5 lakh to 5 lakh||5%|
|5 lakh to 7.5 lakh||10%|
|7.50 lakh to 10 lakh||15%|
|10 lakh to 12.5 lakh||20%|
|12.5 lakh to 15 lakh||25%|
If your income in India exceeds INR 50 lakh, you are liable to pay surcharges as below [2a]:
|Range of Income (INR)||Rate of surcharge|
|50 lakh to 1 crore||10 %|
|1 crore to 2 crore||15 %|
|2 crore to 5 crore||25 %|
|>5 crore||37 %|
The enhanced Surcharge rate of 25% and 37% is not applicable for tax under sections 111A, 112A and 115AD. The maximum surcharge allowed for income under these sections is 15%.
- Short-term capital gain (111A)
- Long-term capital gain (112A)
- Short-term or long-term capital gain (115AD(1)(b)).
Health and Education Cess
The income tax amount is increased further after including Health and Education Cess. The current rate of Cess is 4% across all income slabs irrespective of residency status.
Final Note: Once you’ve established your NRI income tax slab rates, the next step is to compute and file income tax returns. Like resident Indian citizens, NRIs have to file and submit their returns before a specific date. In India the last date to file returns is 31st July of any financial year .
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*Disclaimer: This article is for information purpose only and is not a tax advice by DBS Bank. Sound professional advice should be taken before making any investment decisions. The bank will not be responsible for any tax loss/other loss suffered by a person acting on the above.