Explore the key rules for standard deductions, surcharge, and tax slabs for the current financial year.
Good news: If you earn salary abroad, you get an automatic ₹75,000 deduction. You don't need receipts or proof.
Surcharge is extra tax on top of your income tax. It applies when your taxable income exceeds ₹50 lakh.
Your foreign income is added to any other income (salary, interest, etc.) and taxed at slab rates. There's no special flat rate for foreign income—it's treated as regular income. Health & Education Cess of 4% applies on top of (tax + surcharge).
| Income Range | Tax Rate |
|---|---|
| ₹0 – ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Aspect | Resident Individual | Non-Resident Indian |
|---|---|---|
| Global income taxable? | Yes. All worldwide income is taxable. | No. Only India-source income is taxable. |
| Foreign salary taxable? | Yes, fully taxable in India. | Only if received/accrued in India. |
| Section 87A rebate? | Yes, if income ≤ ₹12 lakh. | No rebate applies. |
| ITR form? | ITR-2 + Schedule FSI/TR | ITR-2 / ITR-3 + Schedule FSI/TR |
| Foreign Tax Credit? | Yes, under Rule 128. | Limited conditions. |
Filing foreign income correctly is crucial to avoid penalties.
ITR-2 is mandatory for residents earning foreign income. You must include Schedule FSI/TR (Foreign Source Income). Freelancers may need ITR-3 depending on their business structure.
Built on official standards and verified by certified professionals
Last Updated: 1 February 2025
Toolisky Team
Specialized in financial tools, calculation precision, and policy compliance.
Chartered Accountant & International Income Specialist
Calculations verified against official guidelines and industry regulations.
This Foreign Income Tax Calculator India FY 2025-26 — Free is built on official guidelines and verifiable sources:
Primary source used for validating logic and accuracy standards.
Taxation of foreign source income for residents and non-residents
Relief for taxes paid on foreign income
This tool is for informational and educational purposes only.This calculator estimates tax on payments from abroad (YouTube, AdSense, freelance). Tax treatment depends on residential status and foreign tax treaties.
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