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

India's default is 20% under Section 195, but the India-UAE 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 Federal Tax Authority (FTA); 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.

UAE NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in UAE

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

When an Indian company pays you a dividend while you live in United Arab Emirates, 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-UAE 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). 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-UAE key facts: dividend tax

Default Section 195 rate	20%
India-UAE DTAA treaty rate	10%
Your saving via the treaty	10%
Treaty article / basis	Article 10
Your TRC issuing authority	Federal Tax Authority (FTA)

Rates reflect India's domestic Section 195 withholding and the India-UAE 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 United Arab Emirates

The UAE has no personal income tax, so there is no second layer and no foreign tax credit to chase — the India-side tax shown here is the entire story. That makes claiming the treaty rate pure saving: every point you bring the Indian withholding down by stays in your pocket, with nothing owed in the UAE on the same income.

Frequently asked questions

Common questions from Gulf NRIs

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NRI ITR for interest, rent and dividend income UAE NRI tax guide — all income types & DTAA rates

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

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