DTAA Tax Rates for NRIs: India's Treaty Withholding Rates by Country (52-Country Reference)

How to use these rates

DTAA rates, Frequently asked questions

Which country has the lowest interest TDS rate under India's DTAA?

Mauritius, at 7.5% under Article 11 of the 1982 treaty. This is the lowest general interest withholding cap in any of India's bilateral DTAAs (UAE's 5% applies only to interest on a loan granted by a bank or similar financial institution, under Article 11(2)(a), so NRO FD interest gets 12.5%; Mauritius's 7.5% applies universally to post-31-March-2017 debt-claims). Most other Indian treaties cap interest at 10%, 12.5% or 15%. To use any treaty rate, the NRI must file a valid Tax Residency Certificate (TRC) and Form 10F (Form 41 for income from 1 April 2026) with the Indian deductor before TDS is withheld.

Do I need Form 10F if I already have a TRC?

Yes. Form 10F is a separate declaration mandated under Rule 21AB of the Income-tax Rules and is required whenever any field prescribed in the rule is missing from your TRC, which is almost always the case for foreign-issued TRCs. For income up to 31 March 2026, Form 10F applies; for income from 1 April 2026, file Form 41 (Rule 75 of the Income-tax Rules 2026). E-file the form on the Income Tax e-filing portal (login → e-File → Income Tax Forms), attach the TRC, and provide both to your Indian bank, AMC or registrar.

How do I claim DTAA refunds for past Assessment Years?

Under CBDT Circular 11/2024 (read with Section 119(2)(b) of the Income-tax Act), the Commissioner of Income Tax can condone delay and allow you to file a belated refund claim for up to five Assessment Years preceding the current one. The process: file the missed ITR-2 with DTAA schedule and Form 10F, attach a Section 119(2)(b) condonation petition to the jurisdictional CIT, and pursue the refund. A condoned claim comes back as principal only: Circular 11/2024 makes it a condition that no Section 244A interest is admissible on a belated refund claim. NRIs with NRO FDs that have been at the default 30% TDS for years recover the largest amounts via this route.

Why does the DTAA give me zero savings on Indian dividends if I'm in the US or Canada?

Both the India-US (Article 10(2)) and India-Canada (Article 10(2)) treaties bifurcate the dividend rate: 15% applies only when the recipient is a COMPANY owning at least 10% of the Indian payer's voting power. For individual portfolio investors, the treaty cap is 25%, higher than India's domestic Section 195 rate of 20%. Since India already applies the lower domestic 20%, individual American and Canadian NRIs get no treaty relief on Indian dividends. The real relief lever is the Foreign Tax Credit on Form 1116 (US) or T1 line 40500 / 47900 (Canada).

What is the default Indian withholding rate if no DTAA applies?

Under Section 195 of the Income-tax Act, the defaults for non-residents are: 30% plus surcharge and cess on interest (NRO FDs, bonds, savings interest); 20% on dividends from Indian companies; 12.5% on long-term capital gains from listed equity above the ₹1.25L exemption (Section 112A, post-Budget 2024); 12.5% on long-term gains from immovable property (30% if short-term), which buyers usually apply to the whole sale value unless a lower-deduction certificate is obtained (effective about 14.95% with surcharge and cess at the top bracket, after the Budget 2024 change to Section 112); and 31.2% on rental income (30% + 4% cess). All of these can be reduced where a DTAA prescribes a lower rate AND the NRI has filed TRC + Form 10F (Form 41 for income from 1 April 2026).

Do Bahrain and Nigeria NRIs get any treaty rate from India?

No. India and Bahrain have only a Tax Information Exchange Agreement (TIEA, signed 31 May 2012, in force 11 April 2013), TIEAs share data, they do not cap withholding rates. India and Nigeria have no comprehensive DTAA. For NRIs in both countries the full Section 195 defaults apply (30% on interest, 20% on dividends, etc.). The available relief levers are: Section 197 / Form 13 for a lower-deduction certificate (useful for property sales), Section 119(2)(b) condonation for past-year over-withholding where total Indian income was below the basic exemption limit, and Section 91 unilateral relief if you actually paid the source-country tax on the same income.

Are DTAA rates applied at source by Indian banks and AMCs?

It depends on the income type. For NRO interest under Section 195, banks may apply the treaty rate if a valid TRC and Form 10F (Form 41 for income from 1 April 2026) are on file; many default to 30% anyway, and any excess is refunded through the ITR. For mutual fund IDCW distributions, Section 196A allows the AMC to apply the treaty rate at source if the unitholder files TRC + Form 10F with the Registrar (CAMS, KFintech) BEFORE the distribution date. For property sale TDS under Section 195, a pre-sale Lower Deduction Certificate (Form 128 under Section 395; Form 13 under Section 197 for a sale before 1 April 2026) is the only way to apply a reduced rate at source. For dividends from Indian listed companies, the company's registrar will apply the treaty rate at source if TRC + Form 10F are on file.

How long is a TRC valid, and how often must I refile Form 10F?

TRC validity depends on the issuing country. UAE FTA, Singapore IRAS, Saudi ZATCA and Bahrain NBR issue TRCs valid for one calendar year (or the local tax year). HMRC (UK), DGFiP (France), CRA (Canada) and IRS Form 6166 (US) are issued per tax year. For India, the relevant period is the Indian financial year (1 April to 31 March), so most NRIs refile both the TRC and Form 10F annually before the FY rollover to avoid the bank reverting to the 30% default on the next interest credit.

Sources and citations

• Department of Revenue, Ministry of Finance, India's bilateral DTAA list (incometaxindia.gov.in). The authoritative public list of every comprehensive DTAA and limited agreement India has signed; treaty PDFs link from this page.
• CBDT, Circular No. 11/2024 (PDF), read with Section 119(2)(b) of the Income-tax Act, on condonation of delay for refund claims up to 5 Assessment Years.
• Income-tax Act, 1961, Section 195 (TDS on non-resident payments), Section 196A (mutual fund distribution at treaty rate), Section 197 / Rule 28AA (Lower Deduction Certificate / Form 13; Section 395 / Form 128 from 1 April 2026), Section 112A (12.5% LTCG on listed equity, post-Budget 2024), Section 244A (refund interest at 6% p.a. on a return filed in time; none on a condoned claim).
• Income-tax Rules, 1962, Rule 21AB (TRC particulars), Rule 21AB(2) read with Form 10F (replaced by Form 41 for income from 1 April 2026, Rule 75 of the Income-tax Rules, 2026).
• Indian Supreme Court, Assessing Officer (International Taxation) v. Nestlé SA (October 2023), settling the MFN clause interpretation for OECD-member treaties (relevant for France, Switzerland, Netherlands dividend and interest rates).
• Country-specific TRC issuers, UAE Federal Tax Authority (tax.gov.ae), IRS Form 6166 (Form 8802 application), HMRC Certificate of Residence, IRAS Certificate of Residence, CRA Certificate of Residency, DGFiP Attestation de résidence fiscale, MRA Mauritius (e-services.mra.mu), and equivalents.

Rates and statutory references on this page are reviewed every quarter. For country-specific guidance, TRC process, treaty article references, and worked examples for typical NRI portfolios, see the per-country pages linked from each row above. For an interactive lookup that returns all 5 rates for a chosen country, use the DTAA rate lookup tool.