I am having two NRO accounts.One in Axis Bank and another in ICICI Bank.Both the account are opened as NRO accounts.I am getting interest on saving balance as well as on Fixed Deposit.But the problem is one bank is deducting TDS on interest @ 10% under section 194 and another is deducting TDS @ 30.9% under section 195. I want to file the return and claim refund.
Please guide me the way to file the return.
Thanks in Advance....
NRO account are taxable as other interest income. For sb interest avail 80tta and FD and NRO show as other bank interest. If they are below the taxable limit avail the TDS credit and you will get your refund.
Thanks Nihar Ranjan Rout but my question is that why bank is deducting 10 % and 30.9% the different rate of TDS on the same kind of deposit.
NRO and NRE are usually held by NRIs, may be because of that they are confused on the issue of the TDS rate under 195, one visit to them should solve the excess TDS deduction.
The interest income earned on NRE account is tax free and not liable to tax in India so Why the bank get confused over the rate of deduction of TDS ?
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