NRI BankingAccounts & DepositsNRO Rupee AccountChanges in DTAA benefits for NRO A/c holders

As per the recent amendments to the Income-tax Act, 1961, vide Finance Act, 2013, NRO account-holders who wish to avail DTAA benefits have to mandatorily obtain Tax Residency Certificate (TRC), and furnish duly signed and verified Form No.10F and copy of Permanent Account Number (PAN) card to the bank. This is applicable for all NRO account-holders who wish to avail DTAA benefits with effect from 1-4-2013.

TRC is issued by the tax/government authority of the country where the non-resident Indian resides. Kindly contact the Tax Department or Finance Ministry in your country or your professional accountant/tax consultant in the country where you reside for the procedure to obtain TRC.

Form No.10F is prescribed under rule 21AB(1) of the Income-tax Rules, 1962, for providing information under section 90(5) or section 90A(5) of the Income-tax Act, 1961. Form No.10F has to be duly signed and verified by the NRO account-holder availing DTAA benefits. Click here for Form No.10F.

In case you have registered for DTAA benefits earlier or wish to register for the same now, kindly provide duly signed and verified Form No.10F and copy of PAN card to avail the DTAA benefits for FY 2013-14, failing which, the interest paid/credited on your NRO accounts will be subjected to Tax Deduction at Source (TDS) at 30.90%. Further, it may be noted that once the TDS has been paid to the credit of the Central Government, the bank cannot refund or adjust the same subsequently. Hence, kindly expedite your document submission to avail the DTAA benefits and to avoid any inconveniences in future.

It may be noted that from FY 2013-14, duly signed and verified Form No.10F and copy of PAN card are required to be submitted at the beginning of every financial year and not later than 15th April, to avail the DTAA benefits. For example, to avail the DTAA benefits for FY 2014-15, duly signed and verified Form No.10F and copy of PAN card should be submitted by 15-4-2014.

Request for issuance of TRC

DTAA rates as on 01/04/2013