5 Assessment Years of Overpaid TDS. Still Recoverable.

In simple terms: it's a formal request to the Income Tax Department saying “I missed the deadline to file for a refund, but I have a genuine reason, and here's my claim.”

Section 119(2)(b) of the Income-tax Act gives the CBDT (Central Board of Direct Taxes) the power to accept late claims. For NRIs, the “genuine reason” is usually straightforward: you didn't know about DTAA benefits, or your CA didn't claim them.

You can go back up to 5 Assessment Years (CBDT Circular 11/2024). So in 2026, the earliest still-recoverable Assessment Year under the rolling 5-AY window is AY 2021-22 (FY 2020-21); AY 2020-21 closed on 31 March 2026.

Under Section 244A, India pays you simple interest at 6% per annum on delayed refunds. So if you're recovering TDS from FY 2021-22 (4 years ago), you don't just get the excess TDS back, you get it plus 4 years of interest at 6%.

Example: If your annual DTAA savings is ₹40,000 and you recover 5 past years:

Plus your current year savings of ₹40,000. Grand total: ₹2,76,000.

That's not theoretical. This is what Gulf NRIs with modest FD portfolios regularly recover through us.

You can't do this through the normal ITR filing process. Here's what's involved:

1. Prepare a written application to the Principal Commissioner of Income Tax

2. State your case: NRI status, DTAA treaty reference, reason for delay

3. Attach supporting documents: TRC for relevant years, Form 10F, 26AS showing excess TDS, PAN card, passport copy

4. Submit through the income tax portal or by post to the jurisdictional Commissioner

5. Wait for the order, typically 3-6 months

6. Once approved, the refund is processed like a normal ITR refund

The success rate for genuine DTAA claims is high. You're not asking for a special favor, you're asking India to honor its own treaty.

This is where having a CA who specializes in DTAA condonation matters. The application needs to cite specific treaty articles, demonstrate the excess, and present a compelling case. Our CAs do this daily.