Income type guide
NRO Account Interest TDS
Your NRO savings and FD interest hit 30% TDS, even the small balance your salary lands in each month. DTAA Article 11 drops that to 10–15%. Most NRIs miss that even NRO savings interest qualifies for the treaty rate.
For Gulf NRI on NRO Interest
Default at-source TDS in India: 30%. Treaty rate (after Form 10F / Form 41 + TRC): 12.5%. Saving = 17.5 percentage points.
Article 11
How it works
What happens to your nro interest as an NRI
Banks deduct 30% under Section 195 on all NRO interest, savings, FDs, RDs. Unlike NRE, NRO is taxable both under FEMA and the Income-tax Act. DTAA Article 11 applies identically to NRO savings and NRO FD; file Form 10F + TRC with the bank to lock in the treaty rate at source, or recover in the ITR.
30%
Default TDS rate
Varies
DTAA rate by country
Gulf NRI — what changes for you
Country-specific overlay on NRO Interest
Indian tax IS your only tax
UAE has no personal income tax on individual savings interest, dividends, or capital gains. So the India-side rate (after DTAA reduction) is the FULL tax bite — no further drag in your country. NRE / FCNR exempt-in-India income flows through tax-free both sides. NRO / dividend income gets reduced via DTAA where treaty caps apply (UAE 12.5% on interest; Saudi 5% on dividends; etc.), and that reduced rate is your only cost.
NRO Interest rates by country
What each country's treaty says
Sorted by savings potential. 29 countries with a DTAA benefit, 2 with the same rate.
Mauritius
Article 11 — 7.5% with TRC + Form 10F. The lowest GENERAL interest cap in any India DTAA. (UAE has a 5% sub-rate for interest paid on a loan granted by a bank/financial institution under Article 11(3); Mauritius's 7.5% applies universally on post-31-March-2017 debt-claims.)
Default → DTAA
30%→7.5%
Oman
Article 11 — 10% cap, unchanged by the 2025 protocol. Better than UAE's 12.5%.
Default → DTAA
30%→10%
Saudi Arabia
Article 11
Default → DTAA
30%→10%
Qatar
Article 11 — 10% cap retained in the 2025 revised treaty
Default → DTAA
30%→10%
Germany
Article 11 — 10% treaty cap on Indian-source interest
Default → DTAA
30%→10%
Netherlands
Article 11 — 10% treaty cap on Indian-source interest
Default → DTAA
30%→10%
Kuwait
Article 11
Default → DTAA
30%→10%
France
Article 12 — 10% treaty cap on Indian-source interest
Default → DTAA
30%→10%
Ireland
Article 11 — 10% treaty cap on Indian-source interest
Default → DTAA
30%→10%
Switzerland
Article 11 — 10% treaty cap on Indian-source interest
Default → DTAA
30%→10%
Malaysia
Article 11 — 10% with TRC + Form 10F
Default → DTAA
30%→10%
Japan
Article 11 — 10% with TRC + Form 10F
Default → DTAA
30%→10%
South Korea
Article 11 of the 2015 revised treaty — 10% with TRC + Form 10F
Default → DTAA
30%→10%
Hong Kong
Article 11 of the 2018 India-HK CDTA — 10% with TRC + Form 10F
Default → DTAA
30%→10%
New Zealand
Article 11 — 10% with TRC + Form 10F
Default → DTAA
30%→10%
South Africa
Article 11
Default → DTAA
30%→10%
Kenya
Article 11
Default → DTAA
30%→10%
Sweden
Article 11 — 10% treaty cap on Indian-source interest
Default → DTAA
30%→10%
Norway
Article 11 — 10% treaty cap on Indian-source interest
Default → DTAA
30%→10%
Thailand
Article 11 — 10% with TRC + Form 10F
Default → DTAA
30%→10%
Indonesia
Article 11 — 10% with TRC + Form 10F
Default → DTAA
30%→10%
Philippines
Article 11 — 10% if paid in respect of a loan granted by a bank, 15% in other cases. Most NRO interest qualifies for the 10% rate via Indian banks.
Default → DTAA
30%→10%
UAE
Article 11
Default → DTAA
30%→12.5%
US
Article 11, caps Indian interest withholding at 15% for US-resident beneficial owners. Applies to NRO FDs, NRO savings, Indian bonds. NRE FD interest is exempt in India but still 100% taxable on your US 1040 as worldwide income, the treaty does not change that, and there is no FTC because India levied no tax.
Default → DTAA
30%→15%
UK
Interest article (post-2013 protocol numbering: Article 12; pre-protocol: Article 11) — 15% general treaty cap; 10% sub-cap for interest paid to a bona fide bank; 0% (exempt) for interest paid to governments / RBI. India-UK is one of the few major Indian treaties where general interest is capped at 15%, not 10%.
Default → DTAA
30%→15%
Singapore
Article 11. DBS/UOB/Citi NRO interest TDS drops from 30% to 15% with TRC + Form 10F
Default → DTAA
30%→15%
Canada
Article 11, caps interest withholding at 15% for Canadian-resident beneficial owners.
Default → DTAA
30%→15%
Australia
Article 11, capped at 15% with TRC + Form 10F
Default → DTAA
30%→15%
Denmark
Article 11 — 15% treaty cap for individuals. Article 11(3)(a) carves out a 10% rate ONLY where the beneficial owner of the interest is a bank or similar financial institution, not when an Indian bank pays interest to an individual. For an NRO FD paid to you as an individual NRI, the 15% rate applies.
Default → DTAA
30%→15%
Same rate under DTAA (2 countries)
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