Reducing NRO TDS
Asked by NRI Prism · 27 Oct 2026 · 1 answer
What is a UAE Tax Residency Certificate, and will it really bring my NRO interest TDS down? (Asked by NRI Client through Contact Us section)
1 answer
NRI Prism · ✓ Verified Banking Professional · 27 Oct 2026
Yes. A TRC can cut the TDS on your NRO interest from about 31% to 12.5%. What is it? A certificate from the UAE Federal Tax Authority confirming you are a UAE tax resident for a calendar year. Why it helps: Without it, your bank deducts about 31% TDS on NRO interest. The India–UAE tax treaty caps tax on this interest at 12.5%. To get the lower rate, the bank needs your TRC plus Form 10F. Example: ₹2 lakh of NRO interest means about ₹62,400 deducted without a TRC, versus about ₹25,000 with one. That's roughly ₹37,000 kept in your account. Who qualifies: You spent 183 days or more in the UAE in the year. Or you spent 90 days or more, hold a UAE residence permit, and have a home or job in the UAE.
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