How to get tax exemption for domestic deposits for nri


Querist : Anonymous (Querist) 11 January 2013


I am a NRI. I don't have any income (or income through properties)in India. I would like to deposit Rs. 22,00,000 as Domestic Deposit. Commonly TDS will be deducted @ 10% (if PAN is submitted) on the FD interest. I want to avoid this TDS and I found below things from the web :

1. FORM 15G : Since, I don't have any income in India. can I Submit this form to avoid TDS and AM I eligible?
Ex :
Principal : Rs 20,00,000
Interest : 8.00%
Interest Paid on maturity : 1,60,000 (which is less than income limit of Rs 1,80,000)

2. Tax Exemption Certificate

I read few article that I can get Tax Exemtion Certificate for certain period which can be used to avoid TDS. Is it correct ? How can I apply for it ? Whats te process ?

Please suggest me on this.

Thanks for your help in Advance.

@VaibhavJ (Expert)
11 January 2013

Hey Hi,

If you open NRE A/c no interest will be taxable.

Please refer article:


Querist : Anonymous (Querist) 11 January 2013

@Vaibhav - Thanks for the reply. I already have NRE accunt and having term deposits on NRE(for which FD interests are not taxable).

But I have some amount on my savings account which I need to go for Domestic Deposit (Not NRO/NRE). I would like to know how to avoid TDS.

1. can I submit FORM 15G ?
2. Do I need to apply for Tax Exemption certificate ?
3. Anythng else I can do ?

You need to be the querist or approved CAclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x
Download GST App    |    x