NRIs, here’s how you can claim tax benefits under DTAA

NRIs, here’s how you can claim tax benefits under DTAA We have some good news for Non Resident Indians (NRIs), who are yet fidgeting over new policies that the Modi-government has introduced, can claim tax benefits as per the Double Taxation Avoidance Agreement (DTAA). This agreement fundamentally happens between two countries to help their citizens avoid tax related hazards.

As per an Economic Times report, India has signed the DTAA with several countries. As per the agreement, the provision of the Income Tax applies to the assessee to an extent they provide maximum benefits to him during the assessment. Provisions of the DTAA prevail over the statutory provisions. NRIs residing in any of the DTAA countries can avail of tax benefits provided under DTAA by timely submission of the following documents.

Tax residency certificate (TRC): The Tax Residency Certificate (TRC) can be obtained from the government of the country where the NRI resides. The mandatory information for TRC is the name, status (individual, company, firm etc), address, nationality, country, tax identification number of the person in that country, tax status and period for which the tax certificate is issued. The TRC containing details mentioned above should be duly verified by the government of the country or the specified territory of which the NRI claims to be a resident for the purposes of tax.

If the TRC is not submitted within the timeline required by the deductor, the deductor (eg. Bank) will deduct tax on NRO deposits at the presently applicable rate of 30.9%.

Self declaration-cum-indemnity form: This form is to be submitted in the format prescribed by the particular bank. Information such as account number, country of residence, period for which TRC is submitted, tax rate applicable under DTAA needs to be mentioned in the form.


Other documents: The NRI is required to submit a self attested copy of PAN card, passport and visa. If the passport has been renewed during the financial year, a copy of PIO card will also have to be submitted.

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