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

By default your bank deducts 30% under Section 195 — the non-resident rate. With a valid Form 10F and a Tax Residency Certificate from General Department of Taxation (provincial Department of Taxation), the India-Vietnam 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 Vietnam to claim the lower NRO TDS rate?

Two core documents: a Tax Residency Certificate issued by General Department of Taxation (provincial Department of Taxation), and Form 10F filed on the Indian e-filing portal. Together they tell your bank to apply the India-Vietnam 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.

Vietnam NRIs · NRO TDS Recovery

NRO account TDS recovery for NRIs in Vietnam

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

If you live in Vietnam 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-Vietnam tax treaty caps that interest withholding at 10% (Article 11: 10% treaty cap on Indian-source interest), so for most Vietnam 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-Vietnam key facts: nro tds recovery

Default Section 195 rate	30%
India-Vietnam DTAA treaty rate	10%
Your saving via the treaty	20%
Treaty article / basis	Article 11: 10% treaty cap on Indian-source interest
Your TRC issuing authority	General Department of Taxation (provincial Department of Taxation)

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

Vietnamese residents are taxed on worldwide income at rates up to 35%, with a foreign tax credit for the Indian tax already paid. One quirk of this treaty catches accountants out: capital gains sit in Article 14, not the usual Article 13 (which is Technical Fees here), so a share sale referenced to the wrong article can misstate India's taxing right. The 2026 personal-income-tax reform changes only the Vietnamese-side brackets, not the Indian treaty position.

Frequently asked questions

Common questions from Vietnam NRIs

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

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

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