Key points
- Treaty rates on interest are typically 10%–15%, against 31.2% default TDS on NRO interest.
- You need a Tax Residency Certificate from your country and Form 10F filed online in India.
- Give both to your bank before interest is credited, and renew every year.
- Missed it? Claim the treaty rate in your Indian return and get a refund.
India has tax treaties, called Double Taxation Avoidance Agreements (DTAAs), with over 90 countries. For NRIs the most useful benefit is a lower tax rate on Indian interest and dividends. Banks deduct 31.2% on NRO interest by default, but treaty rates are typically 10%–15%. To claim the lower rate you need two documents: a Tax Residency Certificate (TRC) and Form 10F.
Treaty rates on interest for popular countries
| Country of residence | Treaty rate on interest | Default NRO TDS |
|---|---|---|
| United States | 15% | 31.2% |
| United Kingdom | 15% | |
| Canada / Australia / Singapore | 15% | |
| United Arab Emirates | 12.5% | |
| Saudi Arabia, Qatar, Kuwait, Oman | 10% | |
| Germany, Japan, New Zealand | 10% |
Rates are for interest received by individuals. See all supported countries in our NRO interest calculator.
Step 1: Get a Tax Residency Certificate
A TRC is issued by the tax authority of the country where you live. It confirms that you're tax-resident there for a period. Examples:
- US: Form 6166 from the IRS (apply with Form 8802)
- UK: certificate of residence from HMRC
- UAE: Tax Residency Certificate from the Federal Tax Authority (EmaraTax portal)
- Canada: certificate of residency from the CRA
- Australia: certificate of residency from the ATO
The TRC should cover the Indian tax year (April–March) in which you're claiming the benefit. Many NRIs need certificates covering two calendar years.
Step 2: File Form 10F online
Form 10F is a self-declaration with details the TRC may not contain: your status, nationality, tax identification number in your country, period of residence and address. It must be filed electronically on the Indian income tax e-filing portal. Log in with your PAN, open the e-file forms section, select Form 10F, attach your TRC, and e-verify. If the Income-tax Rules, 2026 have given it a new number by the time you file, the portal lists the treaty-relief declaration under its new name.
Step 3: Give both to your bank
Submit the TRC, the Form 10F acknowledgement, a copy of your PAN and a short declaration that you have no permanent establishment in India to your NRO branch. Do this before interest is credited. Most banks apply the lower rate only from the date they process your documents. Renew every year.
If your bank still deducted 31.2%
You can claim the treaty rate in your Indian tax return and get the difference refunded, provided you hold a valid TRC and Form 10F for the year. If your total Indian income is below the basic exemption, you may get the whole TDS back.
Don't forget your home country
The treaty also decides who gets to tax what. In most cases you'll report the Indian interest in your home-country return too and claim a foreign tax credit for the Indian tax paid, so you aren't taxed twice.
Try the calculator
NRO Interest & DTAA CalculatorTax and TDS on NRO, NRE and FCNR interestFrequently asked questions
Is Form 10F mandatory for NRIs?
Do I need a new TRC and Form 10F every year?
Can I claim the DTAA rate if my bank already deducted 31.2%?
Does the DTAA apply to NRE interest?
A chartered accountant who works with NRIs can get a lower-TDS certificate, file your return and handle repatriation paperwork.
Sources
This guide is general information based on the law as at 25 October 2026, not tax or legal advice.