NRI TDS Rates in India — Salary, Rent, Capital Gains, Bank Interest (2026)
NRI TDS rates India — salary (Section 192), rent (194-I), capital gains (194-IA, 195), bank interest (193), dividend (194). DTAA rates + Form 15CB + 15CA.
TDS is deducted at higher rates for NRIs vs resident Indians. In this guide, we cover all the NRI TDS rates, DTAA relief, and how to claim lower / nil TDS.
NRI TDS Rates (Section-wise)
| Section | Income Type | TDS Rate (Normal) | DTAA Rate (US / UK) |
|---|---|---|---|
| 192 | Salary (Indian employer) | Slab rate (as per ITR) | Varies (DTAA) |
| 193 | Interest on NRO FD / savings | 30% | 15% (US) / 10-15% (UK) |
| 194-IA | Sale of property by NRI buyer | 1% of sale value | — (depends on DTAA) |
| 194-I | Rent paid to NRI landlord | 30% | — (Varies) |
| 194 | Dividend to NRI | 20% | 15-25% (varies) |
| 195 | Other income (technical fees, royalties, business) | 20% | Varies (DTAA) |
| 194B | Lottery / game show | 30% | — (no DTAA relief) |
| 194BB | Horse race winnings | 30% | — |
| 194N | Cash withdrawal (bank) | 2% / 5% | — (no DTAA relief) |
NRI Tax Rates on Different Incomes
1. Salary (Section 192)
TDS on salary is deducted by the employer at slab rates (same as residents). The employer can apply DTAA relief if the employee provides TRC + Form 10F. Otherwise, the employee claims refund by filing ITR.
2. Rental Income (Section 194-I)
Tenant deducts 30% TDS on rent paid to NRI landlord. Can be reduced under DTAA. Landlord can apply for lower / nil TDS certificate from the IT officer (Section 197).
3. Capital Gains on Property (Section 194-IA)
Buyer deducts 1% TDS on sale value (if > ₹50L) of property. NRI seller must file ITR to claim refund (if applicable). For NRI seller, the buyer must also obtain TAN + deduct TDS.
4. Interest on NRO FD / Savings (Section 193)
Bank deducts 30% TDS on interest paid to NRO account. For DTAA countries (US, UK, Singapore, etc.), reduced rate (10-15%) can be claimed by providing TRC + Form 10F.
5. Interest on NRE / FCNR (Section 193)
TDS not applicable on interest earned on NRE / FCNR deposits (NRE is fully repatriable and tax-free in India for the interest). FCNR principal + interest is also fully repatriable.
6. Dividend (Section 194)
Indian company deducts 20% TDS on dividend paid to NRI shareholder. Reduced DTAA rate (15-25%) available for some countries.
7. Capital Gains on Indian Stocks / MF (Section 195)
Broker / MF deducts TDS on capital gains. For NRI, the rates are: STCG 15% (Section 111A), LTCG 10% (Section 112A, > ₹1L). DTAA may reduce further.
DTAA — Double Tax Avoidance Agreement
India has DTAA with 90+ countries. DTAA rates override the normal TDS rates. Common DTAA rates (NRI TDS):
| Country | Interest | Dividend | Royalty / Fees |
|---|---|---|---|
| USA | 15% | 15% / 25% | 15% / 20% |
| UK | 10% / 15% | 10% / 15% | 15% |
| Singapore | 15% | 10% / 15% | 15% |
| UAE | 5% / 12% | 10% | 10% |
| Canada | 15% | 15% / 25% | 15% / 20% |
| Australia | 15% | 15% | 15% |
| Germany | 10% | 10% | 10% |
How to Claim DTAA Relief
- Step 1: Obtain Tax Residency Certificate (TRC) from the country of residence
- Step 2: Provide TRC + Form 10F + self-declaration to the deductor (employer, bank, tenant, buyer)
- Step 3: Deductor applies DTAA rate while deducting TDS
- Step 4: File ITR in India (ITR-2 for non-business NRI, ITR-3 for business NRI)
- Step 5: Claim DTAA relief in ITR (Schedule FSI + Schedule TR)
- Step 6: Claim credit for foreign tax paid (Section 90 / 91)
Lower / Nil TDS Certificate (Section 195 / 197)
If your total Indian income is below the basic exemption (₹2.5L), you can apply for a lower / nil TDS certificate from the IT officer. Application: Form 13. Documents: PAN, Aadhaar, TRC, Form 10F, ITR history, foreign asset disclosure, computation of Indian income.
Form 15CB + 15CA — Foreign Remittance
- Form 15CB: CA certificate verifying the nature of remittance + DTAA applicability. Required for remittance > ₹5L.
- Form 15CA: Self-declaration by the remitter. Filed online on the IT portal.
- Required for: foreign remittance of any kind (rent, salary, dividend, capital gains, property sale, etc.)
Frequently Asked Questions
Q: Is NRI TDS higher than resident TDS?
A: Yes. Most NRI TDS rates are 30% (vs 10-20% for residents). This is to ensure higher compliance. DTAA relief can reduce the rates.
Q: How to reduce NRI TDS?
A: Three ways: (1) Apply for DTAA relief (provide TRC + Form 10F), (2) Apply for lower / nil TDS certificate (Section 197), (3) File ITR and claim refund of excess TDS.
Q: What if my NRI TDS is deducted at higher rate than DTAA?
A: File ITR and claim refund of the excess TDS. You can also provide TRC to the deductor before the FY ends to apply DTAA rate going forward.
Q: Is NRE account interest taxable in India?
A: No. Interest earned on NRE account is tax-free in India. Interest on NRO account is taxable at 30% (DTAA rate if applicable).