Tag Archives: tax exemption certificate

TDS Exemption for Non Resident Indians


Mr. Shah has been a Non Resident Indian for around 3 years now. When he took up the current assignment abroad, he did the usual banking formalities of converting his existing savings a/c in India into an NRO a/c. He had about 10 lakhs saved from his income earned in India, which he invested in an NRO fixed deposit @ 9.5 % p.a.At the end of the financial year, he realised that he had received only Rs 63,000/- as interest out of the Rs 95,000/- , and around 32,000/- has been deducted as taxes, at the applicable rate of 33.99 % p.a for NRO accounts. Now, Mr. Shah doesn’t actually have to pay tax, as he has no other Indian Income apart from this, and the total interest income is less than the exemption limit of Rs 1.5 lakhs p.a. Now, the only way he can claim this tax back is to go through the process of filing his returns which otherwise wasnt required.

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