France NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in France

Dividends from Indian companies are withheld at the non-resident rate before they reach you in France. Here's the treaty position and how to reclaim any excess.

When an Indian company pays you a dividend while you live in France, the company withholds tax at source before the money reaches you. India's default withholding on non-resident dividends is 20% under Section 393(2), the successor to Section 195. The India-France treaty position is more favourable, capping the rate at 10% for individual residents, a real saving over the 20% default (Article 11). To claim it you need Form 41, the successor to Form 10F, and a Tax Residency Certificate on file with the company or your broker.

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India-France key facts: dividend tax

Default non-resident TDS rate	20%
India-France DTAA treaty rate	10%
Your saving via the treaty	10%
Treaty article / basis	Article 11: 10% on portfolio dividends
Your TRC issuing authority	DGFiP (Direction Générale des Finances Publiques), local SIE/SIP

Rates reflect India's domestic withholding under Section 393(2) (Section 195 until 31 March 2026) and the India-France treaty. Surcharge and cess apply on top where relevant.

How it works on the India side

Since the 2020 shift back to classical dividend taxation, dividends from Indian companies are taxable in the shareholder's hands and the company deducts TDS before paying. For a non-resident the default is 20% under Section 393(2) (Section 195 until 31 March 2026), plus surcharge and cess, and Section 115A taxes those dividends at 20% of the gross amount with no expenses allowed. A lower rate only ever comes from a treaty, and only where that treaty writes one for individuals: several of India's treaties reserve the reduced dividend rate for companies holding a large stake in the Indian payer, and some countries have no treaty with India at all, so portfolio investors there stay at the domestic rate.

Where a lower individual rate does apply, you claim it with Form 41 (formerly Form 10F) and a Tax Residency Certificate lodged with the company or broker, and any dividend withheld at the higher rate before your paperwork was on file is reclaimed through your Indian return. Where no lower rate applies, the 20% is generally your final Indian tax, so the questions worth asking are whether the payer withheld more than the correct rate and surcharge, and whether the country you live in gives you a credit for that Indian tax.

What changes because you live in France

France runs a reporting duty that's separate from what you owe. Every Indian account you opened, held, used or closed during the year goes on form 3916 / 3916-bis alongside your 2042 return, even a dormant NRO holding a few hundred rupees, even in a year it paid you nothing, and the same form catches Indian life-insurance and capitalisation policies (articles 1649 A and 1649 AA CGI). Miss one and the fine is 1,500 euro per account, per year, not per return. Skip a declaration in a year your foreign accounts together, Indian ones included, top 50,000 euro at any point, and DGFiP gets ten years instead of three to reassess the income tied to them (LPF article L. 169), which is exactly what a property sale or a large redemption landing in your NRO triggers.

Frequently asked questions

Common questions from French NRIs

India's default is 20% under Section 393(2), but the India-France treaty caps it at 10% for individual residents, a saving of 10%. To get the lower rate you file Form 41 with a Tax Residency Certificate from DGFiP (Direction Générale des Finances Publiques), local SIE/SIP. Any excess withheld beforehand is reclaimed on your Indian return.

Yes. With Form 41 and a Tax Residency Certificate on file, the treaty rate of 10% applies instead of the 20% default, a 10% reduction. Dividends withheld at the higher rate before your paperwork was lodged are reclaimed when you file your Indian return.

Go further

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

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Dividend Tax sorted, by an Indian CA who works with French NRIs

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