DTAA

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Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 A NRI settled at UAE having Other Income from India and the Interest Income from Money remitted to NRE A/c and then transfer to NRO A/c and put into FD and receives the Interest on FD.

On Which rate of Tax he liable to pay Income Tax on Other Income from Indian Source and on Interest Earned on NRO account from money transfer from NRE.

And DTAA applies to Only Interest Income or whole Income

CS Bijoy

CS Bijoy (Expert)
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12 July 2011 In the definition only mention that the Income Earned and Accrued in India is Taxable there is no specific word for Interest so DTAA will apply on the total income. If PAN is provided than the normal rate will be charged and in case No PAN than 20% TDS will deduct.

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2011 Thanks CS Bijoy,

If you aware of India-UAE Treaty can you give me some guidance on the following issues.
1) To become a resident of UAE any Condition required to fulfill.
2) Tax Rate Applicable to Income Under the head Business Income, Capital Gains, House Property Income, Income From Other Source ie Interest & dividend.
3) Procedure to be followed to get the lower rate of TDS on Interest earned on NRO Bank FD.
4) Methods to be followed for Tax Calculation under DTAA

CA. Rakesh Shah

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