How to Claim DTAA Relief & TDS Refunds as an NRI (2026): TRC, Form 10F & ITR-2 Filing Guide
Cut 31.2% NRO TDS to 10–15% under DTAA: treaty rate matrix for USA, UK, UAE, Canada, Singapore and Australia, getting a TRC, filing Form 10F and ITR-2 refunds.
Table of contents
What a DTAA does for you
India has Double Taxation Avoidance Agreements (DTAAs) with more than 90 countries. A DTAA decides which country can tax each type of income and often caps the tax the source country can charge. For NRIs, the most useful part is the cap on Indian tax on interest and dividends, which is usually far below the 30% domestic rate.
You can use a DTAA in two ways: ask the payer (your bank or company) to deduct TDS at the treaty rate upfront, or let them deduct the higher rate and claim the excess back in your Indian tax return. Either way, you can then claim credit in your home country for the Indian tax paid.
Treaty rates for major countries
| Country of residence | Interest | Dividends | Royalties / FTS |
|---|---|---|---|
| USA | 15% (10% for loans by banks) | 15% / 25% | 15% |
| UK | 15% (10% for banks) | 10% / 15% | 15% |
| UAE | 12.5% (5% for banks) | 10% | 10% |
| Canada | 15% | 15% / 25% | 15% to 20% |
| Singapore | 15% (10% for banks) | 10% / 15% | 10% |
| Australia | 15% | 15% | 10% to 15% |
Compare these to Indian domestic TDS on NRO interest of 31.2% and on dividends of 20% plus surcharge and cess. A UAE resident with ₹5 lakh of NRO interest can save around ₹93,000 in TDS by using the treaty.
Domestic law can be better
You can always choose whichever is more beneficial, the DTAA or domestic law. For capital gains on listed shares, domestic rates are often lower than treaty provisions allow.
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Getting a Tax Residency Certificate
| Country | Issuing authority | How | Time |
|---|---|---|---|
| USA | IRS | Form 8802 to obtain Form 6166 certification; fee USD 85 | 45–60 days |
| UK | HMRC | Online certificate of residence request through your Government Gateway account | 2–6 weeks |
| UAE | Federal Tax Authority (EmaraTax) | Online application with passport, Emirates ID, visa, salary certificate, 6-month bank statements, tenancy contract; fee about AED 1,000+ | 5–10 working days |
| Canada | CRA | Request a certificate of residency (letter) through My Account or by mail | 4–8 weeks |
| Singapore | IRAS | Online through myTax Portal | Around 10 working days |
| Australia | ATO | Request a residency certificate by form or through a tax agent | About 4 weeks |
Apply early
Banks usually ask for a TRC covering the Indian financial year. Apply as soon as the new year starts so the bank applies the lower rate from April.
Filing Form 10F online
A TRC usually does not show every detail Indian law requires, such as your Indian PAN, address in the foreign country, and the period of residence. Form 10F fills the gap. Since 2023 it must be filed electronically on the Income Tax e-filing portal.
- Log in to the e-filing portal with your PAN. If you do not have PAN, NRIs can register without PAN for Form 10F purposes.
- Go to e-File, Income Tax Forms, File Income Tax Forms, and choose Form 10F.
- Select the financial year and enter your nationality, tax identification number in your home country, period of residence and address.
- Attach your TRC (PDF).
- Verify using a digital signature certificate or electronic verification code (EVC through net banking or Aadhaar OTP; NRIs without Aadhaar typically use DSC or net banking EVC).
- Download the acknowledgement and send it to your bank with the TRC and a no-PE declaration.
PAN status matters
If your PAN still shows resident status, banks may refuse DTAA rates. Update your residential status first.
Claiming a refund through ITR-2
If TDS was already deducted at the higher rate, you can claim the excess back by filing your Indian return. Most NRIs with interest, rent, dividends and capital gains use ITR-2. Those with business or F&O income use ITR-3.
- Download Form 26AS and the Annual Information Statement (AIS) to see all TDS credited to your PAN.
- Collect bank interest certificates and Form 16A.
- Select residential status as Non-Resident and enter your foreign address and TIN.
- Report income under the correct heads and apply the DTAA rate in Schedule SI or the relevant section, quoting the treaty article.
- Fill Schedule FA only if you are resident; NRIs do not report foreign assets.
- Enter an Indian bank account (NRO is fine) for the refund. Refunds cannot go to foreign accounts.
- File by 31 July (or the extended date) and e-verify within 30 days.
- Track the refund status; most are processed in 1–3 months.
If you miss the deadline, you can file a belated return by 31 December, but you may lose the ability to carry forward some losses.
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Claiming credit in your home country
- USA: claim foreign tax credit on Form 1116 for Indian tax paid; Indian tax that exceeds the treaty rate is not creditable, which is why claiming the DTAA rate in India matters.
- UK: claim foreign tax credit relief on the self-assessment foreign pages.
- Canada: claim the foreign tax credit on Schedule 1 / T2209.
- Australia: claim a foreign income tax offset.
- UAE and Singapore: generally no personal tax on this income, so Indian tax is the final cost.
Keep TDS certificates, ITR acknowledgements and exchange rate references for at least six years.
Frequently asked questions
Disclaimer: This guide is educational and reflects rules as understood in November 2026. Tax, FEMA and citizenship rules change frequently. Confirm with a qualified CA/CPA or lawyer and the official source before acting. Read full disclaimer.