UK NRIs · Dividend Tax
Dividend tax on Indian shares for NRIs in UK
Dividends from Indian companies are withheld at the non-resident rate before they reach you in UK — here's the treaty position and how to reclaim any excess.
India-UK key facts: dividend tax
| Default Section 195 rate | 20% |
| India-UK DTAA treaty rate | 10% |
| Your saving via the treaty | 10% |
| Treaty article / basis | Dividends article (post-2013 protocol numbering: Article 11) — 10% general dividend rate for individual UK residents |
| Your TRC issuing authority | HM Revenue & Customs (HMRC) |
Rates reflect India's domestic Section 195 withholding and the India-UK 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 Kingdom
UK residents report this Indian income through Self Assessment, on the foreign pages (SA106), claiming a foreign tax credit for the Indian tax already paid. Since the April 2025 abolition of the non-dom remittance basis, Indian income is taxable as it arises even if it never leaves your NRO account — and HMRC's nudge letters, driven by CRS data shared automatically by Indian banks and AMCs, are already landing.
Frequently asked questions
Common questions from British Indians
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Dividend Tax sorted, by an Indian CA who works with British Indians
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