DTAA with US - Interest & Dividend

Hello,

For an NRI (U.S. citizen), my understanding is that the tax rate on interest income is 15% and on dividends is 25% as per the DTAA.

Is my understanding correct?

If yes, how should these incomes be disclosed in ITR-2 so that the applicable 15% / 25% tax rates can be claimed?

Replies (1)

For an NRI (U.S.Citizen), under the Double Taxation Avoidance Agreement (DTAA) between India and the U.S., the tax rates you mentioned are generally correct:

Interest income: 15%

Dividends : 25%

To disclose these incomes in ITR-2 and claim the appliable tax rates under DTAA;

  1. Report the interest and dividend incomes in the relevant sections of ITR-2.
  2. Claim the benefit of DTAA in the "Details of income from outside India" section or where applicable.
  3. Ensure you have the necessary documents to support the DTAA benefit claim. 

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