TDS for NRO fixed deposits

I am an NRI and have funds in my NRO account which I wanted to put in a fixed deposit. The bank tells me that I wil have to pay TDS at 30 % along with education tax etc. My total income in India is less than the taxable limits, as such I should'nt be paying any tax. I believe a resident can submit the form 15G to have no tax deducted at source but this is not applicable for non resident. I am told that the option is to pay the TDS and claim refund from Tax dept by submitting the return. My questions are: 1) Is this the actual situation? 2) Is there any other way I can do a bak deposit without TDS? 3) How reliable is the Tax refund process. Indrajit

asked Jan 13 '12 at 19:58 by indru45 1111


For NRO account, bank is liable to deduct TDS at 30 per cent (plus educational cess). There is no way to avoid this as 15G and 15H are not applicable for NRIs.

You would need to compute your actual tax liability at the end of financial year. File income tax return and claim refund for extra tax deducted.

Tax refund process has improved in last 2-3 years due to online return filing. You should file return online to get refund faster.

answered Jan 15 '12 at 17:23 by pankaj 5.2k320

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Dear Pankaj, I am a NRI since the last 16 years but have been filing my IT returns since 2006 as I bought property and started to have rental income. My rental income comes into my NRO account. This I show as income in my IT returns. However, I have made several investments in Mutual funds from my NRE accounts. Am I required to show income from these Mutual Funds in my Tax returns (these are Non taxable as investments are made from NRE account). Also, I think the interest from any NRE account also should not figure in my Tax returns as income. Please confirm. Thanks and best regards Subrato Sen
(Jan 17 '12 at 14:47) sensubrato
Interest earned in NRE accounts are non taxable, but I am not sure about returns generated from investment. As per my view, income generated from investment should be taxable if they fall into taxabliity. Returns from equity based mutual funds are non taxable if holding period is more than a year.
(Jan 22 '12 at 21:36) pankaj
how can i get bact more tds deducted from nro fixed deposit @30.9% insted of 12.9% as i signed a decl. from 1/7/2011 to 1/3/2012 they deducted @30.9% and from 1/4/2012 to 1/8/2012 @12.9% with the consideration of decl.
(Sep 23 '12 at 19:19) divya narendra
You would need to file income tax returns to get income tax refund.
(Sep 23 '12 at 20:06) pankaj
please write me a processor because i am nri. how can i file a return on line and for refund what i have to do. now i am trying to get my tds certificate in my pan card account because this pan card i had get before eight month. so please advice me or give your mobile number i will call you. my mobile number is 00971505762845
(Sep 23 '12 at 22:26) divya narendra
You can read how to file income tax return online here: http://www.pankajbatra.com/india/file-income-tax-return-online-yourself/ You can check TDS details in form 26AS here: https://incometaxindiaefiling.gov.in/portal/form26ASInfo.do
(Sep 23 '12 at 22:54) pankaj
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Asked: Jan 13 '12 at 19:58

Seen: 4,803 times

Last updated: Sep 23 '12 at 22:54