Dtaa provision applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2014 Sir,

Suppose a person is an Indian citizen residing in Dubai and was a Non-resident for A.Y. 2011-2012. He earned during that year, interest on F.D from his NRO account in India, on which the bank had deducted TDS at the rate of 12.5 percent. India is having Double Taxation Avoidance Agreement (DTAA) with U.A.E. My query is whether an NRI can claim tax payable at 12.5 percent on Interest on F.D. in India? An A.O said that NRI has to pay tax at the rate of 30 percent. Please clarify.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 January 2014 in such case first u need to give evidence of the dtaa between india and foriegn country and then give the relevant article of DTAA mentioning the relief given in it.

Dhiraj Yadav CEO

Dhiraj Yadav CEO (Expert)
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08 January 2014 To my view, since the income has accrued and earned in India, benefit of DTAA will not be available in this case. However if there is no other income which is taxable in the hands of individual , he can claim the benefit of basic exemption and get the TDS refunded from IT department.

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