Maturity of an NRI fixed deposit: tax-free NRE against NRO after 31.2% TDS or a DTAA rate
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 30 Oct 2026.Interest on an NRE fixed deposit is not taxed in India, while NRO interest has TDS of 31.2% (30% plus 4% cess), or a lower treaty rate with a Tax Residency Certificate. On ₹10 lakh at 7% for one year, both earn ₹71,859, and the NRO deposit loses ₹22,420 to TDS.
FY 2026-27 · Rates and rules read from the sources listed on this page (the earliest on 30 Oct 2026); they may have changed since.
Enter the "Deposit amount", then the tenure in "Tenure, years" and "and months".
Enter the "NRE FD rate" and "NRO FD rate" your bank quotes for that tenure.
Under "TDS on NRO interest", choose the Income-tax Act rate or "Treaty rate, with TRC".
Switch "Show" between "NRO deposit" and "NRE deposit" to compare the two maturity values.
Read which ends ahead and by how much, then press "Share result" to copy a link.
A non-resident Indian can hold two kinds of rupee fixed deposit, and the same deposit at the same rate can end with very different amounts. This calculator works out both side by side: the interest, the tax India deducts, and the maturity value.
NRE: no Indian tax. Interest on a Non-Resident (External) account is left out of total income under section 11 and Schedule IV of the Income-tax Act, 2025, for an individual who is a person resident outside India under FEMA. The test is FEMA residence, so the exemption stops once you return to live in India and the account is redesignated. Your country of residence may still tax the interest.
NRO: TDS at 31.2%. NRO interest falls under section 393(2), Table serial 17. The Finance Act, 2026 sets the rate for a non-resident Indian at 30%, plus 4% health and education cess, which is 31.2%. Surcharge is added only when the interest passes ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) or ₹5 crore (37%).
The treaty rate. Under section 159, a resident of a country with a tax treaty can have the treaty rate applied when it is lower, after giving the bank a Tax Residency Certificate and the other documents the rules prescribe. Treaty rates on interest differ by country, so enter the rate from your treaty or from your bank.
How the numbers are worked out. Interest compounds quarterly, the usual practice of Indian banks, with simple interest for any months after the last full quarter. On the NRO deposit, TDS is taken from the deposit once every twelve months, so later years earn interest on the smaller balance. A bank does it at 31 March and at maturity, so its figure can differ by a few rupees.
The calculator does not work out your final tax in India, which may be lower than the TDS and refunded when you file a return, and it does not cover FCNR deposits. The rates of law were checked on 29 September 2026; the interest rates are yours to enter.
No. Interest on a Non-Resident (External) account is left out of total income under section 11 and Schedule IV of the Income-tax Act, 2025, for an individual who is a person resident outside India under FEMA. Once you return to live in India, the account must be redesignated and the interest becomes taxable. Your country of residence may tax it anyway.
Banks deduct 30% under section 393(2), plus 4% health and education cess, so 31.2% of the interest. Surcharge is added only when the interest passes ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) or ₹5 crore (37%). These are the Finance Act, 2026 rates, checked on 29 September 2026.
Give your bank a Tax Residency Certificate from the government of the country you live in, with the other documents the rules prescribe, usually before the interest is credited. Section 159 of the Income-tax Act, 2025 then lets the bank apply the treaty rate when it is lower than 31.2%. Treaty rates on interest differ by country, so check yours.
For money earned abroad, an NRE deposit usually ends ahead because its interest is not taxed in India, and both principal and interest can be sent back freely. An NRO deposit is for income earned in India, such as rent or pension. Compare both here at your bank's rates: on ₹10 lakh at 7% for a year, the gap is ₹22,420.
Yes, if your total income in India is taxed at less than what was deducted. File an Indian income-tax return for the year, declare the interest and claim the TDS shown in your tax credit statement; the excess is refunded. The calculator shows the TDS the bank deducts, not the tax you finally owe.
No. FCNR deposits are held in a foreign currency, so their value in rupees depends on the exchange rate, which this calculator does not model. FCNR interest has its own tax treatment, which is not covered here either. Use this page for rupee NRE and NRO fixed deposits with quarterly compounding.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about NRE / NRO FD Calculator and anybody who knows can answer. No account needed.
Same job, other tools: Intraday Brokerage Calculator – Charges on a trade squared off the same day, with the price it has to reach to break even · STT Calculator – Securities transaction tax by segment, at the rates in force since 1 April 2026 · PF Calculator – What your PF account will hold when you retire.
On the related tools: Step-up SIP Calculator – See how raising your SIP every year changes the final corpus.
More for India: all 48 India calculators.