TDS on NRO · 30% default — how to drop it to 15% (US DTAA) and what 15CA / 15CB actually do
Banks deduct 30% TDS on every rupee of NRO interest by default. US tax residents can drop it to 15% via DTAA + Form 10F. To repatriate from NRO, you also need Form 15CA + 15CB.
TDS on NRO interest · 30% default
Banks deduct 30% TDS + applicable surcharge + 4% cess on every rupee of interest credited to your NRO account. That's the default. It applies to interest on NRO savings, NRO FDs, NRO RDs.
Lowering the TDS rate via DTAA
If your country has a DTAA with India (US, UK, UAE etc), you can apply for a reduced rate. For US tax residents the DTAA-reduced rate on interest is 15% (vs default 30%).
Submit to your bank annually:
- Form 10F — declaration of foreign tax residency
- Tax Residency Certificate from your foreign tax authority
- PAN copy
Form 15CA / 15CB · for repatriation from NRO
To repatriate funds from your NRO account abroad (USD 1 million per FY limit), you need:
- Form 15CA — self-declaration filed online with Income Tax department
- Form 15CB — CA certificate verifying source of funds + tax paid (required for amounts > ₹5 lakh)
Banks won't process the outward remit without both. Budget 3-5 working days for the CA process.
Form 15G / 15H · NOT for NRIs
Form 15G (under 60) and 15H (60+) are for residents only. NRIs cannot use them. Banks asking you to "submit 15G to avoid TDS" don't understand NRI rules — push back.
Recovering excess TDS
If you've paid TDS at 30% but your DTAA rate is 15%, you can either:
- Claim refund via filing Indian ITR-2
- Adjust against other Indian tax liability