TSD Query pertaining to Captial Gain - NRI in Saudi Arabia
This query is : Resolved
13 August 2025
Would like to know how to redcue TDS if India passport holders are workin in Sadui ARabia (NRI).
Saudi government issues ZATCA certificate only to provide proof of tax residency here in KSA.
Want to know aboutn Form 10F? Can I fill form 10F after filling retunr for A.Y 205-26?
If suppose I filel form 10F after filing ITR-2 for F.Y. 2024-25, what is the repecusions? and I can file revised ITR-2?
Saudi government issues ZATCA certificate only to provide proof of tax residency here in KSA.
Want to know aboutn Form 10F? Can I fill form 10F after filling retunr for A.Y 205-26?
If suppose I filel form 10F after filing ITR-2 for F.Y. 2024-25, what is the repecusions? and I can file revised ITR-2?
13 August 2025
✅ 1. Basic Rule – TDS for NRIs on Capital Gains
If you're an NRI under the Income Tax Act and earn capital gains (e.g., from sale of property or mutual funds) in India:
TDS is deducted at source on the capital gains at applicable rates (usually 20% + surcharge + cess).
This applies even if you have no total tax liability after computing exemptions/deductions.
However, if you are a tax resident of another country (Saudi Arabia), you may avail benefits of the DTAA (Double Taxation Avoidance Agreement) between India and Saudi Arabia to reduce or avoid TDS — if the DTAA allows.
✅ 2. Documents Needed to Claim DTAA Benefit
To reduce TDS under DTAA, you must submit the following to the deductor (payer in India) before the payment is made:
Tax Residency Certificate (TRC) issued by the foreign (Saudi) government — i.e., ZATCA certificate.
Form 10F (self-declaration as per Rule 21AB).
PAN (Permanent Account Number).
Declaration of beneficial ownership and non-existence of a PE (if required).
Without these, deductor will not apply DTAA rates, and TDS will be deducted at full rate.
❓ Can Form 10F Be Submitted After Filing ITR?
Yes, you can submit Form 10F after filing the ITR, but this won’t reduce the TDS already deducted.
Form 10F is required before receiving income to claim lower TDS. Submitting it after return filing won't reduce the TDS already withheld, but you can use it to support a refund claim in your ITR.
📝 Can You File Revised ITR if You Submit Form 10F Later?
If you've already filed ITR without claiming DTAA relief, but now have obtained TRC and filled Form 10F:
Yes, you can file a Revised ITR (for AY 2025-26) before 31st December 2025.
In the revised return, claim relief under DTAA, show the capital gain, and mention that you are a tax resident of Saudi Arabia.
✅ Steps to Take Now
Obtain ZATCA Tax Residency Certificate.
Fill Form 10F (can be done online on Income Tax portal via your NRI login).
Revise ITR (if needed) to claim TDS refund or DTAA benefit.
Keep records in case CPC or AO issues any notice.
⚠️ Important Points
Saudi Arabia has no income tax on individuals, so the DTAA between India and Saudi Arabia may have limited benefits, depending on the type of income.
However, you can still claim refund for excess TDS through your ITR.
You must submit TRC + 10F to the deductor for TDS relief in future years to avoid excess deduction.
If you're an NRI under the Income Tax Act and earn capital gains (e.g., from sale of property or mutual funds) in India:
TDS is deducted at source on the capital gains at applicable rates (usually 20% + surcharge + cess).
This applies even if you have no total tax liability after computing exemptions/deductions.
However, if you are a tax resident of another country (Saudi Arabia), you may avail benefits of the DTAA (Double Taxation Avoidance Agreement) between India and Saudi Arabia to reduce or avoid TDS — if the DTAA allows.
✅ 2. Documents Needed to Claim DTAA Benefit
To reduce TDS under DTAA, you must submit the following to the deductor (payer in India) before the payment is made:
Tax Residency Certificate (TRC) issued by the foreign (Saudi) government — i.e., ZATCA certificate.
Form 10F (self-declaration as per Rule 21AB).
PAN (Permanent Account Number).
Declaration of beneficial ownership and non-existence of a PE (if required).
Without these, deductor will not apply DTAA rates, and TDS will be deducted at full rate.
❓ Can Form 10F Be Submitted After Filing ITR?
Yes, you can submit Form 10F after filing the ITR, but this won’t reduce the TDS already deducted.
Form 10F is required before receiving income to claim lower TDS. Submitting it after return filing won't reduce the TDS already withheld, but you can use it to support a refund claim in your ITR.
📝 Can You File Revised ITR if You Submit Form 10F Later?
If you've already filed ITR without claiming DTAA relief, but now have obtained TRC and filled Form 10F:
Yes, you can file a Revised ITR (for AY 2025-26) before 31st December 2025.
In the revised return, claim relief under DTAA, show the capital gain, and mention that you are a tax resident of Saudi Arabia.
✅ Steps to Take Now
Obtain ZATCA Tax Residency Certificate.
Fill Form 10F (can be done online on Income Tax portal via your NRI login).
Revise ITR (if needed) to claim TDS refund or DTAA benefit.
Keep records in case CPC or AO issues any notice.
⚠️ Important Points
Saudi Arabia has no income tax on individuals, so the DTAA between India and Saudi Arabia may have limited benefits, depending on the type of income.
However, you can still claim refund for excess TDS through your ITR.
You must submit TRC + 10F to the deductor for TDS relief in future years to avoid excess deduction.
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