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

By default your bank deducts 30% under Section 195 — the non-resident rate. With a valid Form 10F and a Tax Residency Certificate from Vero (Finnish Tax Administration), the India-Finland treaty brings that down to 10% 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 10% 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 Finland to claim the lower NRO TDS rate?

Two core documents: a Tax Residency Certificate issued by Vero (Finnish Tax Administration), and Form 10F filed on the Indian e-filing portal. Together they tell your bank to apply the India-Finland treaty rate of 10% instead of the 30% default. The TRC has to be renewed each period it covers, otherwise the bank reverts to the full rate.

Finland NRIs · NRO TDS Recovery

NRO account TDS recovery for NRIs in Finland

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

If you live in Finland 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-Finland tax treaty caps that interest withholding at 10% (Article 11: 10% treaty cap on Indian-source interest), so for most Finnish 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-Finland key facts: nro tds recovery

Default Section 195 rate	30%
India-Finland DTAA treaty rate	10%
Your saving via the treaty	20%
Treaty article / basis	Article 11: 10% treaty cap on Indian-source interest
Your TRC issuing authority	Vero (Finnish Tax Administration)

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

Finnish residents are taxed on worldwide income, stacking a flat municipal tax of 4.7% to 10.9% on the national progressive tax, with a credit for the Indian tax paid. Watch the treaty rate: the revised 2010 treaty cut the Indian dividend cap from 15% to 10%, but several popular Indian tax portals still quote the old 15%, so confirm your accountant applies the current 10%. Vero issues the certificate of fiscal residence free through the MyTax portal.

Frequently asked questions

Common questions from Finnish NRIs

Go further

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

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

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

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