What rate of TDS does my Indian bank deduct on NRO interest if I live in Belgium?

By default your bank deducts 30% under Section 195 — the non-resident rate. With a valid Form 10F and a Tax Residency Certificate from FPS Finance / SPF Finances, the India-Belgium treaty brings that down to 15% on the interest. Anything deducted above the treaty rate before your paperwork was on file can be reclaimed through your Indian return.

Can I get back TDS that was already over-deducted on my NRO account?

Yes. The over-withheld amount is reclaimed by filing your Indian income tax return: the bank's TDS shows against your PAN in Form 26AS, you compute the tax actually due at the 15% treaty rate, and the excess is refunded with Section 244A interest. Missed prior years can usually be picked up through a condonation request within the CBDT's window.

What paperwork do I need as an NRI in Belgium to claim the lower NRO TDS rate?

Two core documents: a Tax Residency Certificate issued by FPS Finance / SPF Finances, and Form 10F filed on the Indian e-filing portal. Together they tell your bank to apply the India-Belgium treaty rate of 15% instead of the 30% default. The TRC has to be renewed each period it covers, otherwise the bank reverts to the full rate.

Belgium NRIs · NRO TDS Recovery

NRO account TDS recovery for NRIs in Belgium

Your Indian bank deducts tax on NRO interest at the full non-resident rate — the India-Belgium treaty lets you bring it down and reclaim the excess.

If you live in Belgium and hold an NRO fixed deposit or savings account in India, your bank deducts tax at source on the interest at 30% — the default Section 195 rate for a non-resident. The India-Belgium tax treaty caps that interest withholding at 15% (Article 11: 15% general treaty cap (10% on bank-loan and credit-sale interest)), so for most Belgian NRIs the gap between the two is over-withheld tax you are entitled to recover. To claim the lower rate you file Form 10F backed by a Tax Residency Certificate from your country of residence, and any tax already over-deducted comes back as a refund when you file your Indian return.

Request a free CA call

India-Belgium key facts: nro tds recovery

Default Section 195 rate	30%
India-Belgium DTAA treaty rate	15%
Your saving via the treaty	15%
Treaty article / basis	Article 11: 15% general treaty cap (10% on bank-loan and credit-sale interest)
Your TRC issuing authority	FPS Finance / SPF Finances

Rates reflect India's domestic Section 195 withholding and the India-Belgium treaty. Surcharge and cess apply on top where relevant.

How it works on the India side

Indian banks apply TDS on NRO interest under Section 195 at the 30% non-resident rate (plus surcharge and cess) unless you have given them a valid Form 10F and Tax Residency Certificate showing you qualify for the treaty rate. Once those are on file, the bank deducts at the lower DTAA rate going forward.

For interest the bank has already over-deducted, the route is your income tax return: the TDS the bank deposited shows in your Form 26AS and AIS against your PAN, you compute your actual liability at the treaty rate, and the difference is refunded with interest under Section 244A. Past years that were missed can often still be recovered through a condonation request, within the window the CBDT allows.

What changes because you live in Belgium

Belgian residents are taxed on worldwide income, with a communal surcharge of up to 9% stacked on federal tax that reaches 50%, and a foreign tax credit for the Indian tax paid. The point that decides an Antwerp diamond family's Indian tax is the size of the stake: India taxes gains on a holding of at least 10%, while a portfolio holding below 10% is taxable only in Belgium. Map the holding before any Indian share sale, because the treaty article that applies turns on that 10% line.

Frequently asked questions

Common questions from Belgian NRIs

Go further

Read the full guide, or see your country's complete picture

DTAA TDS recovery service Belgium NRI tax guide — all income types & DTAA rates

NRO TDS Recovery sorted, by an Indian CA who works with Belgian NRIs

Tell us your situation and a practising Chartered Accountant will confirm the rate that applies, the paperwork you need, and what you can reclaim — on a free call, no obligation.

Request a free CA call

No card, no obligation. All filing work is handled by ICAI-registered practising Chartered Accountants.