What tax is withheld on Indian dividends for an NRI in Tanzania?

India's default is 20% under Section 195, but the India-Tanzania treaty caps it at 10% for individual residents — a saving of 10%. To get the lower rate you file Form 10F with a Tax Residency Certificate from Tanzania Revenue Authority (TRA); any excess withheld beforehand is reclaimed on your Indian return.

Can I reduce the tax withheld on my Indian dividends?

Yes. With Form 10F 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.

Tanzania NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Tanzania

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

When an Indian company pays you a dividend while you live in Tanzania, the company withholds tax at source before the money reaches you. India's default withholding on non-resident dividends is 20% under Section 195. The India-Tanzania treaty position on dividends is more favourable — it caps the rate at 10% for individual residents, a real saving over the 20% default (Article 10: 10% general treaty cap (5% only for a company holding at least 10%)). To claim it you need Form 10F and a Tax Residency Certificate on file with the company or your broker.

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India-Tanzania key facts: dividend tax

Default Section 195 rate	20%
India-Tanzania DTAA treaty rate	10%
Your saving via the treaty	10%
Treaty article / basis	Article 10: 10% general treaty cap (5% only for a company holding at least 10%)
Your TRC issuing authority	Tanzania Revenue Authority (TRA)

Rates reflect India's domestic Section 195 withholding and the India-Tanzania 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 Section 195 at 20% (plus surcharge and cess). Whether a treaty rate is available depends on the specific treaty — for many countries the lower dividend rate is written only for companies holding a large stake in the Indian payer, which means individual portfolio investors stay at the domestic rate.

Where a lower individual rate does apply, you claim it with Form 10F and a Tax Residency Certificate lodged with the company or broker, and any quarter withheld at the higher rate before your paperwork was on file is reclaimed through your Indian return. Where no lower rate applies, the dividend still goes on your return, and the real relief sits on your home-country side as a foreign tax credit for the Indian tax already paid.

What changes because you live in Tanzania

Tanzanian residents are taxed on worldwide income at rates up to 30%, with a foreign tax credit for the Indian tax paid. Work from the revised 2011 treaty, effective in India from FY 2012-13, which set the current 10% interest and dividend caps and replaced the older agreement. For the established merchant families holding real stakes in Indian companies, India taxes those share gains, so map the holding before a sale rather than treating it as a surprise.

Frequently asked questions

Common questions from Tanzania NRIs

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