Hey there!
I would like to believe, I am a financial expert.Let me shed some light on TDS on NRO account.TDS stands for Tax Deducted at Source, and it's a tax that's deducted at the time of payment or credit of certain incomes, including interest earned on savings accounts. Keep reading to know more.
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Is TDS deducted on NRO accounts?
The answer is yes, TDS is deducted on interest earned on NRO savings accounts. The current rate of TDS on NRO account interest is 30%, but it can vary depending on the type of income and the tax treaty between India and the country where the account holder is a resident.
It's essential to note that if the account holder is a resident of a country that has a tax treaty with India, they may be eligible for a lower rate of TDS on NROsavings account. In such cases, they would need to provide their Tax Residency Certificate (TRC) to the bank to avail of the lower rate.
TDS on NRO accounts is not just limited to TDS on NRO account interest, it also includes other types of income like rent, dividends, and royalties. In short, any income earned by a non-resident Indian (NRI) in India is subject to TDS. Tax Deducted at Source is not the final tax liability for people and NRIs may be required to file an income tax return in India if their total income exceeds the basic exemption limit.
I would suggest you go through the website of the Income Tax department to learn more about it. This is all from my end on TDS on NRO account.
Read more:
How to make TCS payments online? TDS on property above 50 lakhs? How to calculate interest on late payment of TDS?
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Is TDS deducted on NRO accounts?
Anonymous
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2023-04-21T12:39:34+00:00 2023-04-28T17:47:09+00:00Comment
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