Singapore NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Singapore

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

When an Indian company pays you a dividend while you live in Singapore, 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-Singapore treaty position is more favourable, capping the rate at 15% for individual residents, a real saving over the 20% default (Article 10). 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-Singapore key facts: dividend tax

Default non-resident TDS rate	20%
India-Singapore DTAA treaty rate	15%
Your saving via the treaty	5%
Treaty article / basis	Article 10: 15% for individual Singapore residents (the 10% sub-rate applies only when the beneficial owner is a company holding ≥25% of the dividend-paying Indian company's capital)
Your TRC issuing authority	IRAS (Inland Revenue Authority of Singapore)

Rates reflect India's domestic withholding under Section 393(2) (Section 195 until 31 March 2026) and the India-Singapore 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 Singapore

Singapore levies no capital-gains tax and doesn't tax unremitted foreign income, so on the gains side the India-side tax is usually the whole story. One genuine edge case to watch: Indian listed equity bought before 1 April 2017 is grandfathered under the treaty's Third Protocol, and those gains are exempt in both India and Singapore, while post-April-2017 holdings are taxed in India. The same folio can hold both treatments depending on when each lot was bought.

Frequently asked questions

Common questions from Singapore NRIs

India's default is 20% under Section 393(2), but the India-Singapore treaty caps it at 15% for individual residents, a saving of 5%. To get the lower rate you file Form 41 with a Tax Residency Certificate from IRAS (Inland Revenue Authority of Singapore). 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 15% applies instead of the 20% default, a 5% reduction. Dividends withheld at the higher rate before your paperwork was lodged are reclaimed when you file your Indian return.

Go further

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

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