NRI Yield Calculator India 2026
Calculate rental yield, TDS deducted under Section 195, net cashflow after DTAA benefits, projected property value, and total return — then benchmark against SBI FD and Nifty 50. The only repatriation simulation calculator built for NRI property investors.
The benchmark: A ₹75L property earning ₹25,000/month has a gross yield of 4.0% — falling to 2.8% net after 30% TDS. Add 7% appreciation over 5 years and the total return is approximately ₹36L on a ₹75L base. Against an SBI FD at 7.1%, the property wins only on appreciation — the rental yield alone trails fixed income after TDS.
How the formulas work
Gross rental yield is the simplest measure: annual rent divided by property value. It ignores taxes, vacancies, and maintenance.
Gross Yield = (Monthly Rent × 12) / Property Value × 100
TDS under Section 195 is deducted by the tenant at 30% (standard) on every payment to a non-resident. The effective rate depends on whether a DTAA treaty applies and whether you hold a Lower Deduction Certificate (Form 13).
TDS per year = Annual Rent × TDS Rate Net Annual Rent = Annual Rent × (1 − TDS Rate)
Projected property value uses compound annual growth:
Projected Value = Property Value × (1 + Appreciation%)^Years
Total return combines cumulative post-TDS rent income and the capital appreciation gain (not compounded):
Total Return = (Net Annual Rent × Years) + (Projected Value − Property Value)
TDS rate card — Section 195 (2026)
| Scenario | TDS Rate | How to achieve |
|---|---|---|
| Standard NRI rental income | 30% | Default — no action needed |
| DTAA benefit (US, UK, UAE, Canada, Singapore) | 15–20% | Submit Form 10F + Tax Residency Certificate to tenant |
| Lower Deduction Certificate | As per order (often 10%) | Apply in Form 13 on TRACES portal 2–3 months before rent starts |
Surcharge and health & education cess (4%) apply on top of the base TDS rate for income above ₹50L/year. The calculator uses the base rate — actual TDS may be marginally higher for high-value properties.
Frequently asked questions
What TDS rate applies to rental income for NRIs?
Under Section 195 of the Income Tax Act, the tenant must deduct TDS at 30% (plus applicable surcharge and cess) on rental payments to an NRI. If the NRI holds a Lower Deduction Certificate from the income tax department, the rate can be 10% or less. DTAA (Double Taxation Avoidance Agreement) with certain countries (e.g., USA, UK, UAE, Canada) may allow a reduced rate — typically 15–25% — if Form 10F and Tax Residency Certificate are submitted.
How do NRIs repatriate rental income from India?
Rental income credited to an NRO account can be repatriated up to USD 1 million per financial year after paying applicable taxes and providing Form 15CA/15CB (CA certificate). Funds in an NRE account are freely repatriable. Most NRIs keep rental income in NRO and repatriate the post-tax surplus annually.
What is the difference between gross yield and net yield for NRIs?
Gross rental yield is (annual rent / property value) × 100 — no deductions. Net yield after TDS removes the TDS deducted by the tenant. The actual effective yield further reduces by property maintenance (1–2% of value/yr), property management fees (8–10% of rent), and insurance. Use this calculator as a starting ceiling; subtract these costs for a conservative floor.
Can NRIs claim TDS credit when filing Indian tax returns?
Yes. TDS deducted by the tenant appears in Form 26AS. File ITR-2 or ITR-3 (if business income) and claim the TDS as advance tax credit. If total tax liability is lower than TDS deducted, you receive a refund. Most NRIs with only rental income fall in the 20–30% slab but claim DTAA benefits to lower the effective rate.
Is rental income from India taxable in the country of residence?
Generally yes — most countries tax global income for tax residents. However, DTAA with India prevents double taxation: you pay tax in India (via TDS), then credit that against the tax due in your country of residence. The net result is you pay the higher of the two countries' tax rates, not both in full.
What is a realistic appreciation rate for Indian residential property?
Prime micro-markets in Bengaluru (Whitefield, Sarjapur, Electronic City) and Hyderabad (HITEC City, Gachibowli) have seen 10–14% CAGR over 2020–2025. Mumbai Western Suburbs and Pune IT corridors: 8–11%. Conservative estimate for underwriting: 7–8% nominal. Do not project >10% over 10+ years without location-specific evidence.
How does this calculator handle reinvestment of rental income?
This calculator shows simple cumulative return (netAnnualRent × years + appreciation gain) without compounding reinvested rent. For a compounded simulation, reinvest the post-TDS cashflow at your assumed return rate separately. The simple model is the most conservative and common basis for NRI property decisions.
Related tools
- Rental Yield Calculator — gross yield without NRI TDS logic
- Home Loan EMI Calculator — NRI home loan EMI with amortization
- Stamp Duty Calculator — state-wise stamp duty for NRI purchases
- NRI Hub — guides, RERA compliance, and state-wise NRI property rules