'Real tax burden could be 40%...': CA explains why NRIs feel the financial squeeze beyond official rates
For NRIs, this hidden tax explains why changes in visa rules or employment can create significant stress. The challenge isn’t just paying taxes; it’s about ensuring sufficient funds remain for education, healthcare, housing, and family security.
- Oct 2, 2025,
- Updated Oct 2, 2025 10:02 PM IST
When it comes to finances, the numbers on paper rarely tell the whole story — especially for Non-Resident Indians (NRIs) navigating changing visa and job scenarios. In a recent post on X (formerly Twitter), CA Nitin Kaushik highlighted a financial reality that often goes unnoticed: the “real” tax NRIs pay is far higher than the official rate.
On an annual income of ₹60 lakh in India (FY 2025-26), the official income tax sits at around 27%, amounting to ₹17 lakh. But Kaushik points out that this figure hides a critical component: unavoidable living costs, particularly private education.
“Education is the second tax nobody counts,” Kaushik writes. With private schooling costing between ₹3-4 lakh per child annually, a family with two children can easily spend ₹6-8 lakh per year. Combined with income tax, this pushes the total outflow to nearly ₹24 lakh — effectively raising the real financial burden to approximately 40% of income.
For NRIs, this hidden tax explains why changes in visa rules or employment can create significant stress. The challenge isn’t just paying taxes; it’s about ensuring sufficient funds remain for education, healthcare, housing, and family security. “Nearly half your income is gone before you even account for lifestyle, EMIs, or groceries,” Kaushik warns.
The key takeaway, according to Kaushik, is that financial planning cannot rely solely on official tax rates. Families must budget for high-cost essentials and maintain investment buffers to prevent official rates from silently ballooning into much higher effective expenses.
“True wealth isn’t about what you earn — it’s about what you keep,” he emphasises. Ignoring the hidden costs may make a 27% tax seem manageable until reality hits closer to 40%.
Kaushik’s insights serve as a reminder for NRIs and Indian families alike: a realistic view of finances extends beyond statutory obligations to include the everyday, often unavoidable costs of living.
When it comes to finances, the numbers on paper rarely tell the whole story — especially for Non-Resident Indians (NRIs) navigating changing visa and job scenarios. In a recent post on X (formerly Twitter), CA Nitin Kaushik highlighted a financial reality that often goes unnoticed: the “real” tax NRIs pay is far higher than the official rate.
On an annual income of ₹60 lakh in India (FY 2025-26), the official income tax sits at around 27%, amounting to ₹17 lakh. But Kaushik points out that this figure hides a critical component: unavoidable living costs, particularly private education.
“Education is the second tax nobody counts,” Kaushik writes. With private schooling costing between ₹3-4 lakh per child annually, a family with two children can easily spend ₹6-8 lakh per year. Combined with income tax, this pushes the total outflow to nearly ₹24 lakh — effectively raising the real financial burden to approximately 40% of income.
For NRIs, this hidden tax explains why changes in visa rules or employment can create significant stress. The challenge isn’t just paying taxes; it’s about ensuring sufficient funds remain for education, healthcare, housing, and family security. “Nearly half your income is gone before you even account for lifestyle, EMIs, or groceries,” Kaushik warns.
The key takeaway, according to Kaushik, is that financial planning cannot rely solely on official tax rates. Families must budget for high-cost essentials and maintain investment buffers to prevent official rates from silently ballooning into much higher effective expenses.
“True wealth isn’t about what you earn — it’s about what you keep,” he emphasises. Ignoring the hidden costs may make a 27% tax seem manageable until reality hits closer to 40%.
Kaushik’s insights serve as a reminder for NRIs and Indian families alike: a realistic view of finances extends beyond statutory obligations to include the everyday, often unavoidable costs of living.