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

By default your bank deducts 30% under Section 195 — the non-resident rate. With a valid Form 10F and a Tax Residency Certificate from Urzad Skarbowy (local tax office, National Revenue Administration), the India-Poland 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 Poland to claim the lower NRO TDS rate?

Two core documents: a Tax Residency Certificate issued by Urzad Skarbowy (local tax office, National Revenue Administration), and Form 10F filed on the Indian e-filing portal. Together they tell your bank to apply the India-Poland 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.

Poland NRIs · NRO TDS Recovery

NRO account TDS recovery for NRIs in Poland

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

If you live in Poland 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-Poland tax treaty caps that interest withholding at 10% (Article 12: 10% treaty cap after the 2013 protocol (was 15%)), so for most Poland 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-Poland key facts: nro tds recovery

Default Section 195 rate	30%
India-Poland DTAA treaty rate	10%
Your saving via the treaty	20%
Treaty article / basis	Article 12: 10% treaty cap after the 2013 protocol (was 15%)
Your TRC issuing authority	Urzad Skarbowy (local tax office, National Revenue Administration)

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

Polish residents are taxed on worldwide income, with a foreign tax credit for the Indian tax paid, and a 4% solidarity levy on annual income over one million zloty that your Indian income counts toward. The one thing to get right is the treaty rate itself: the 2013 protocol cut the Indian interest and dividend caps from 15% to 10%, in force for income from 1 April 2015, but stale withholding charts still show the old 15%. Make sure your accountant credits at the current 10%.

Frequently asked questions

Common questions from Poland NRIs

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

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

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