DOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA):
Double Taxation Avoidance Agreement (DTAA) is an agreement between two countries/territories with an objective to avoid double taxation on the same declared asset in two different countries/territories. DTAA is defined under Section 90 & 90A of the Income Tax Act, 1961. Under the current DTAA provisions an NRI customer can enjoy reduced rate of Tax Deducted at Source (TDS) on interest paid/credit in NRO rupee deposits in India.

DOCUMEMTS REQUIRED:
The following documents are to be submitted by the NRI depositor to avail benefit of lower rate of TDS under DTAA:

• Form 10F (Click to download format)
• Tax Residency Certificate (TRC) in original (Click to download application format)
• Self Declaration from NRI (Click to download format)
• Self attested copy of PAN Card
• Self attested copy of Passport and VISA/PIO Card

All the above documents are mandatory to avail benefit of reduced rate of TDS under DTAA.

HOW TO OBTAIN TRC:
NRI customer should approach the Tax / Government Authorities of the country/territory where he/she is resident to obtain the TRC (download application format of TRC). They may also check with their Tax Consultant in their country / territory of residence on the procedure to obtain the same. Format for applying for TRC in your country/territory of residence is being provided to you by the Bank for your convenience so that you do not miss out any of the mandatory details required to be mentioned in the TRC. You should check in your country/territory of residence if there is any format prescribed for applying for a TRC and use the same instead of the above letter format.

IMPORTANT :
Kindly note that no other document is acceptable in lieu of Tax Residency Certificate (TRC) to avail benefit of reduced rate of TDS under DTAA. A fresh tax declaration (i.e. DTAA Annexure and Form 10F) and TRC has to be submitted to the bank upon the expiry of the period for which DTAA rate is being applied for the NRO deposits. The DTAA rate will be applicable for the period mentioned on the Tax Residency Certificate (TRC).

RATES OF TDS UNDER DTAA FOR VARIOUS COUNTRIES
(In Alphabetical Order)

• Rate of TDS for the countries with which India has not signed DTAA :       30% where interest paid in a

FY is less than Rs. 10 lacs.

33% where interest paid in a FY is Rs. 10 lacs or more.

Note : Above TDS rate are excluding Education Cess, Higher Education Cess and Other Cess, if any.