NRI TDS Calculator

What is the arithmetic behind the NRI TDS figure?

This tool uses straight percentage arithmetic. It chooses a rate from a built-in table for the payment type, multiplies that rate by a base amount to get the TDS, adds 4% of that TDS as cess, and subtracts the total from the amount entered to show the net payment. For the two property options the base is the sale consideration minus the cost of acquisition; for every other type the base is the amount typed in.

What happens if the cost of acquisition is higher than the sale amount?

The gain is floored at zero, so the TDS, the cess and the total are all ₹0 and the net payment equals the amount entered. The capital gain line appears for both property options and shows ₹0 in that case. The tool does not carry the loss anywhere and does not apply any exemption beyond the zero floor.

Which percentages are built into the tool?

The stored percentages are 12.5% for the long-term property option, 30% for the short-term property option, rental and other, and 20% for interest, dividend and royalty. They are the figures built into this tool, labelled FY 2025-26 and using Income-tax Act, 1961 section numbers; the Income-tax Act, 2025, in force from 1 April 2026, renumbers these provisions (for example Section 393 for non-salary payments), which the tool does not reflect. Indian tax rules change in nearly every Union Budget and the tool is not updated automatically, so the Income Tax Department or a qualified chartered accountant governs the actual percentage.

What does the country selector change?

Only the interest and dividend options. For those two the selector swaps in a different built-in percentage for the country chosen: for interest, 15% for five of the countries and 20% for the UAE and “none”; for dividend, between 10% and 25%. For all other payment types the selector has no effect, and the tool does not test any rule about who qualifies for a rate.

Is surcharge included?

No. Only a 4% cess on the TDS amount is added. One note line for rent mentions a surcharge, but the arithmetic never applies one, so higher-income cases can come out lower than a figure that includes it.

What do the section labels in the result mean?

They are text labels stored beside each percentage, such as “Sec 195” or “Sec 112 / 195”, using Income-tax Act, 1961 numbering, and they do not alter the calculation. They are shown for reference only and should be confirmed with a current source, since the tool does not verify them.

What does the tool leave out?

It does not decide whether a payment is taxable, whether an exemption applies, whether a lower rate can be obtained, how residency is determined or how a refund might be claimed. The tip line mentions a lower-deduction certificate, but the tool does not compute one. A zero amount, which is also what a cleared box becomes, produces zeros throughout.