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

By default your bank deducts 30% under Section 195 — the non-resident rate. With a valid Form 10F and a Tax Residency Certificate from Receita Federal do Brasil (RFB), the India-Brazil 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 Brazil to claim the lower NRO TDS rate?

Two core documents: a Tax Residency Certificate issued by Receita Federal do Brasil (RFB), and Form 10F filed on the Indian e-filing portal. Together they tell your bank to apply the India-Brazil 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.

Brazil NRIs · NRO TDS Recovery

NRO account TDS recovery for NRIs in Brazil

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

If you live in Brazil 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-Brazil tax treaty caps that interest withholding at 15% (Article 11: 15% general treaty cap on Indian-source interest), so for most Brazil 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.

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India-Brazil key facts: nro tds recovery

Default Section 195 rate	30%
India-Brazil DTAA treaty rate	15%
Your saving via the treaty	15%
Treaty article / basis	Article 11: 15% general treaty cap on Indian-source interest
Your TRC issuing authority	Receita Federal do Brasil (RFB)

Rates reflect India's domestic Section 195 withholding and the India-Brazil 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 Brazil

Brazilian residents are taxed on worldwide income at rates up to 27.5%, with a foreign tax credit for the Indian tax paid. The India-Brazil treaty was refreshed by a 2022 protocol now in force and effective in India from FY 2026-27; for a typical portfolio investor the 15% caps are unchanged, but a professional-services earner should note the new 10% Fees-for-Technical-Services rule. The Atestado de Residencia Fiscal is now issued digitally through the Receita Federal e-CAC portal and certifies a stated period rather than expiring.

Frequently asked questions

Common questions from Brazil NRIs

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

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