NRI Rental Income Tax Calculator 2026-27

Key points

Rent from Indian property is always taxable in India.
You get a 30% standard deduction plus full home-loan interest on a let-out property.
Tenants must deduct 31.2% TDS on rent paid to an NRI, even if they're individuals.
NRIs don't get the rebate that makes income up to ₹12 lakh tax-free for residents.

How NRI rental income is taxed

Rent from property in India is taxable in India for NRIs, whatever country you live in. It's taxed under "income from house property":

Step	Amount
Annual rent received	Gross annual value
Less municipal taxes you paid	= Net annual value
Less 30% standard deduction	Covers repairs, maintenance, etc. Claimed automatically, no bills needed
Less home loan interest	Full interest for a let-out property
= Income from house property	Added to other Indian income and taxed at slab rates

New regime vs old regime

New regime (default): lower slab rates and a ₹4 lakh nil-tax band. A loss from house property can't reduce other income or be carried forward.
Old regime: higher rates and only a ₹2.5 lakh nil-tax band for NRIs. A house-property loss can be set off up to ₹2 lakh, and the rest carried forward for 8 years. Deductions under the old 80C/80D (life insurance, ELSS, health insurance) are allowed.

NRIs don't get the rebate that makes income up to ₹12 lakh tax-free for residents. Even a modest rental income can attract some tax.

TDS by your tenant

Any tenant paying rent to an NRI must deduct TDS at 31.2% (30% plus 4% cess) and deposit it. That applies even to individual tenants and even if the rent is small. Many tenants don't know this, and if they don't deduct, the department can pursue them. Tell your tenant up front, or apply for a lower-deduction certificate (Form 128) if your actual tax is lower.

Example

Vikram, an NRI in London, rents out his Gurugram flat for ₹40,000 a month. He pays ₹10,000 municipal tax and ₹3 lakh home-loan interest, and has ₹5 lakh of other Indian income.

Income from house property: ₹4,80,000 − ₹10,000 − 30% − ₹3,00,000 = ₹29,000
Total Indian tax, new regime: about ₹6,700
TDS his tenant should deduct: about ₹1,49,760. Filing a return gets most of it back.

Frequently asked questions

Is rental income in India taxable for NRIs?

Yes. Rent from property located in India is always taxable in India, whatever your residential status or country of residence.

What is the TDS on rent paid to an NRI?

30% plus 4% cess (31.2%), plus surcharge for very high rents. The tenant must deduct it, deposit it, and give you a TDS certificate.

Can NRIs claim the 30% standard deduction?

Yes. The 30% deduction on net annual value is available to everyone, including NRIs, with no bills needed.

Can I claim home loan interest on a rented property?

Yes, the full interest is deductible for a let-out property. Under the new regime, though, a resulting loss can't be set off against other income or carried forward.

Should NRIs choose the old or new tax regime?

It depends. The new regime usually wins if you have few deductions. The old regime can win if you have a house-property loss or large 80C/80D deductions. Our calculator shows both.

Do I have to file a tax return in India for rental income?

Yes, if your total Indian income is above the basic exemption limit, or if you want a refund of excess TDS. Most NRIs with rental income should file.

Sources

Important: This calculator gives an estimate based on the Income-tax Act, 2025 as we understand it on 25 October 2026. It doesn't replace advice from a chartered accountant. See our disclaimer.