Treaty rates on interest and dividends
| Country | Interest | Dividends | Notes |
|---|---|---|---|
| United StatesInterest: 10% if paid to a bank. Dividends: 15% for a company holding 10% or more. Treaty dividend rate is 25%, so India's 20% applies. | 15% | 20% | Interest: 10% if paid to a bank. Dividends: 15% for a company holding 10% or more. Treaty dividend rate is 25%, so India's 20% applies. |
| United Arab EmiratesInterest: 5% if paid to a bank. | 12.5% | 10% | Interest: 5% if paid to a bank. |
| United KingdomInterest: 10% if paid to a bank. Dividends: 15% from property investment vehicles. | 15% | 10% | Interest: 10% if paid to a bank. Dividends: 15% from property investment vehicles. |
| CanadaDividends: 15% for a company holding 10% or more. Treaty dividend rate is 25%, so India's 20% applies. | 15% | 20% | Dividends: 15% for a company holding 10% or more. Treaty dividend rate is 25%, so India's 20% applies. |
| Australia | 15% | 15% | |
| SingaporeInterest: 10% if paid to a bank. Dividends: 10% for a company holding 25% or more. | 15% | 15% | Interest: 10% if paid to a bank. Dividends: 10% for a company holding 25% or more. |
| Saudi Arabia | 10% | 5% | |
| QatarDividends: 5% for a company holding 10% or more. | 10% | 10% | Dividends: 5% for a company holding 10% or more. |
| Kuwait | 10% | 10% | |
| OmanDividends: 10% for a company holding 10% or more. | 10% | 12.5% | Dividends: 10% for a company holding 10% or more. |
| Germany | 10% | 10% | |
| New Zealand | 10% | 15% |
The rate for an individual investor. India's own rates without a treaty are 30% on NRO interest and 20% on dividends, plus surcharge and cess; you pay whichever is lower.
How to claim the treaty rate
- Get a tax residency certificate (TRC) from the tax authority of the country you live in, for the period the income is earned. India will not apply a treaty rate without one.
- File Form 41 on the income tax e-filing portal. It replaced Form 10F from 1 April 2026 under section 159 of the Income-tax Act, 2025. It asks for your tax identification number abroad, your country of residence and your address there.
- Give both to your bank, fund house or company before the interest or dividend is paid, with your PAN.
- Missed it? The tax deducted at the full rate is not lost. Claim the treaty rate in your Indian return and the difference comes back as a refund.
Which rate in the table applies to you
- NRO deposits and savings: the interest rate. Where a treaty has a lower rate "if paid to a bank", that is for interest earned by banks, not by you.
- NRE and FCNR deposits: no Indian tax at all, so no treaty is needed.
- Dividends from shares and mutual funds: the dividend rate for an individual. The lower rates in the notes are for companies holding a large share of the company paying the dividend.
- Capital gains, rent and property: most treaties let India tax these at its own rates. See income tax for NRIs.
Tax in your home country
The treaty decides how much India may take, not whether your home country taxes the income. The US, UK, Canada, Australia, Germany and New Zealand tax residents on worldwide income, including NRE interest that India exempts, and give a credit for tax already paid in India. The UAE, Saudi Arabia, Qatar and Kuwait do not tax individuals on their income, so for NRIs there, the Indian tax is the only tax.
See what the treaty rate does to an NRO deposit, against a tax-free NRE one, with the NRI FD calculator.
Frequently asked questions
What TDS rate applies on NRO interest under the DTAA?
The interest rate in your country's treaty with India, if you give the bank a tax residency certificate and Form 41: for example 12.5% for the UAE and 15% for the US. Without them, the bank deducts 30% plus cess.
What is Form 41?
The declaration a non-resident gives to claim a tax treaty rate under section 159 of the Income-tax Act, 2025. It replaced Form 10F from 1 April 2026 and is filed online on the income tax e-filing portal. It asks for your tax identification number, country of residence and address, and goes with a tax residency certificate.
Can I get a tax residency certificate if my country has no income tax?
Often yes. The UAE, for example, issues tax residency certificates to individuals who meet its residence conditions, even though it does not tax their income. Ask the tax or finance authority of the country you live in.
Will I be taxed twice on the same interest?
Not if the treaty is used properly. India taxes the interest at source, at the treaty rate; your country of residence taxes it as part of your income and gives credit for the Indian tax, up to its own tax on that income. Keep the bank’s TDS certificate as proof.
Does the treaty lower tax on property or rent in India?
No. Treaties let India tax income from property in India, such as rent and capital gains on a flat, at its own rates. Your home country gives credit for that tax instead.
Sources
- Income Tax Department – India’s tax treaties (DTAA texts)
- CalcGuru – India DTAA rates by country, 2026
- India Briefing – Form 41 replaces Form 10F under the Income-tax Act, 2025
- Income Tax Department – e-filing portal (Form 41)
Last checked on 13 October 2026. Treaty rates are caps set in each treaty and its protocols. Check the treaty text for your situation, or ask a chartered accountant, before relying on a rate for a large amount.