Hi,
One of my friends in United Arab Emirates who has NRO deposits in India got a TDS deduction of 17 lakhs on an interest pay out of 57 Lakhs. The amount was put in NRO account based on the ill advice of the bank Manager. He is having a tax residency certificate in United Arab Emirates for the relevant assessment years. Can he claim lesser rate of TDS deduction @ 15% based on the Double taxation avoidance agreement between India and United Arab Emirates? If not what is the use of taking Tax Residency certificate in UAE?
Can anyone please suggest a way out to reduce the tax burden incurred by him. Thanks & best regards.
CAclubindia
