I am a NRI.
There is a DTAA between my resident country and India.
I have Interest Income earned on Fixed Deposits in India.
The Bankers are asking me for a Tax Residency Certificate, for a lower rate of TDS on the Interest .
Do I have to get a TRC to avail lower TDS? or Can I let the Bank deduct tax at a higher rate, and claim the same as refund?
Dear Friend,
With effect from financial year 2012-13, India made it mandatory for all foreigners, including non-residents to obtain a Tax Residency Certificate with certain prescribed details from their country of residence in order to claim benefits of the Double Taxation Avoidance Agreement (DTAA).
The complete notification for this was released in September 2012, and hence financial year 2013-14 is the first full year when this will become applicable.
so it is advisable to get this TRC to avoid higher rate deduction of TDS
Regards
Praveen
So, it is only higher rate of TDS?
I can always claim the excess deduction as refund later on?
Chirag N Shah & Associates
Mumbai
CA Inter
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