Kuala Lumpur to Mumbai: India-Side Changes 2024-26
TL;DR
Your India-Malaysia DTAA gives you some of the best rates: 10% on interest, 5% on dividends. Unchanged. But Section 148, Budget 2024 LTCG, Form 10F, and Black Money Act have all moved.
TrustNRI Editorial · Reviewed by ICAI-registered Chartered Accountants
Your treaty rates, among India's best
India-Malaysia DTAA: 10% interest, 5% dividends. Capital gains source-country taxed. The 5% dividend rate is among the lowest India has signed with anyone. Unchanged in 2024-26.
Malaysia has a large Indian-origin population (about 2 million), many with substantial ties to India via family property, NRO accounts, and Indian mutual funds. The unclaimed treaty recovery here is significant.
Why KL Indians are about to get a 3-year reopening window
**Section 148 time limits** cut to 3 years 3 months / 5 years 3 months from the older 10-year cap. Finance Act 2024, effective September 2024.
**Faceless mandate** for reassessment notices enforced by Supreme Court (July 2025).
**Budget 2024 LTCG** — 12.5% flat without indexation on NRI property sales from 23 July 2024. Hits mid-held properties hardest.
**Black Money Act safe harbour** raised to ₹20L from 1 October 2024 (Finance (No. 2) Act 2024 amendment).
If you have an open Section 148 notice or a scheduled Indian property sale, these changes are directly relevant.
LHDN TRC and Form 10F
Malaysia's Inland Revenue Board (Lembaga Hasil Dalam Negeri, LHDN) issues the TRC. The process is through the MyTax portal and takes 2-4 weeks.
On the Indian side, Form 10F is now mandatory e-filing on the Income Tax portal. If your previous Indian CA filed paper Form 10F, that workflow is over, the portal requires electronic filing for all NRIs.
The 5% dividend rate alone can save a Malaysia NRI with ₹3 lakh in annual Indian dividends around ₹45,000 per year (20% → 5% on ₹3L). Over 5 past years with condonation and Section 244A interest, that compounds fast.
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