TDS for NRIs — a quick 2026 reference for banking customers

nri-bank

NRIs meet TDS most often through their Indian bank accounts — every quarter, the bank deducts tax at source on NRO interest, sometimes on dividend credits, and at every fixed-deposit maturity. The rates are higher than residents pay on equivalent products. This page is the short banking- side reference: current rates at a glance, how TDS certificates get to you, how to verify the Department's record of what was deducted, and what to do when the bank statement and the portal disagree.

For the full TDS deep-dive — including rental, property- sale Section 195 mechanics, DTAA relief through PAN + TRC + Form 10F, Section 197 Lower-Deduction Certificate, and refund reconciliation — see TDS on NRI income in India.

Current TDS rates at the bank — 2026

Income stream	Rate	Note
NRE savings / FD / RD interest	Nil	Tax-exempt under Section 10(4)(ii)
FCNR deposit interest	Nil	Tax-exempt under Section 10(15)(iv)
NRO savings / FD / RD interest	30% + surcharge + cess	Section 195 domestic rate for NRIs
Dividend from Indian company	20% + surcharge + cess	Treaty typically lower; DTAA relief available
Interest on corporate bonds / debentures	20%	For NRI holders
Interest on Government bonds	Treaty rate or 20%	DTAA often concessional
Mutual fund redemption (taxable categories)	As applicable to the fund type	STT on equity redemption; separate Section 196A rates on debt
Capital gains on listed equity STCG	20%	Post-July-2024 Budget rate
Capital gains on listed equity LTCG	12.5% on gains above ₹1,25,000	Post-July-2024 Budget rate
Capital gains on debt / other LTCG	12.5% without indexation	Post-July-2024
Rent paid to NRI landlord (by tenant)	30% + surcharge + cess	Tenant deducts under Section 195
Property sale consideration paid to NRI seller (by buyer)	12.5% LTCG / slab STCG + surcharge + cess	Tenant deducts under Section 195 on full consideration unless Section 197 certificate reduces it

Surcharge and cess stack on top of the base rate:

Surcharge at 10% / 15% / 25% / 37% by income band (capped at 15% for most incomes in the new regime).
Health and Education Cess at 4% on tax plus surcharge, applied uniformly.

A practical rule: NRO FD interest effectively attracts roughly 31.2% to 35.88% all-in depending on surcharge.

The Section 206AA 20% floor

Without a valid PAN on file with the bank, Section 206AA applies a 20% minimum TDS rate — elevating some rates (e.g., 10% treaty rate floored to 20%) and eliminating DTAA relief entirely. Keep PAN operative. See PAN for NRIs and PAN without Aadhaar.

TDS certificates — Form 16A

The TDS "receipt" is Form 16A, a quarterly certificate issued by each deductor showing:

Deductor's TAN (Tax Deduction Account Number).
Deductee's PAN.
Section under which tax was deducted (Section 195 for NRI-credited interest is the usual).
Quarter and financial year.
Gross amount paid.
TDS amount.
Challan number through which the deductor paid the TDS to the government.
Digital signature of the deductor.

Where you get Form 16A from

Your NRO bank issues Form 16A quarterly (Q1 = April–June, Q2 = July–September, etc.). Typically emailed to the registered email or available in net-banking under "Tax Certificates" / "e-Documents".
Tenant-deducted Form 16A — if a tenant deducts TDS on rental payments, the tenant issues Form 16A via the Traces portal.
Buyer-deducted Form 16A on property sale — buyer issues via Traces after filing Form 27Q.

When Form 16A is due

Quarterly, typically within 15 days of the ** TDS return due date** for that quarter:
- Q1 Form 16A: around 15 August.
- Q2: 15 November.
- Q3: 15 February.
- Q4: 15 June.

Banks usually issue early (within a week of filing their Form 27Q / Form 26Q for the quarter).

Verifying TDS on the e-Filing portal

Form 16A from the bank shows what the bank said it deducted. The definitive record is the **Income Tax Department**'s own system, which runs on the Traces portal and surfaces to taxpayers through two complementary reports.

Form 26AS

Legacy statement, still maintained.
Available on incometax.gov.in → e-File → Income Tax Returns → View Form 26AS.
Shows TDS credited to your PAN across all deductors in the FY, grouped by section and deductor.
Download as PDF, Excel, or view online.

Annual Information Statement (AIS)

Newer, broader statement (since 2021).
Available on incometax.gov.in → Services → Annual Information Statement.
Shows TDS plus all financial transactions ** reported against the PAN** — bank interest, dividend credits, mutual fund transactions, large property transactions, high-value credit card spends, foreign-remittance LRS activity (for residents).
"Taxpayer Information Summary (TIS)" — compressed summary of AIS.
Allows feedback filing — if AIS shows something incorrect, you can submit feedback online. AIS is the first report to review each year during return preparation. Reconcile it against bank statements, broker statements, rental records.

Reconciliation workflow

Download Form 16A from the bank.
Download Form 26AS / AIS from incometax.gov.in.
Match the entries — TAN, deducted amount, challan number.
If they agree, file the Indian return using the matched figures.
If they disagree (the bank says it deducted ₹10,000 but Form 26AS shows ₹8,000), raise a correction (see below).

TDS disputes — what to do

Bank says X, Form 26AS says Y

Most likely the bank's Form 27Q TDS return has a typo in your PAN, or the challan has been mis- assigned. Resolution:

Contact the bank's TDS desk (each large bank has one; branch staff will redirect).
Ask the bank to file a TDS correction ** statement (revised Form 27Q)** with the correct PAN / amount.
Wait one quarter for Form 26AS / AIS to refresh with the corrected entry.
AIS feedback mechanism — you can flag the discrepancy directly on the portal; the department may contact the deductor.

Bank didn't deduct TDS when it should have

For NRO interest, banks should deduct 30%+ from crediting. If the bank has been under-deducting (e.g., applying Section 194A resident rates of 10% by mistake), they eventually correct and the reconciliation shows a shortfall. The pensioner / depositor must either:

Self-deposit the under-deducted tax via self-assessment while filing the Indian return.
Let the bank correct by filing a revised 27Q and recovering the difference from the holder (common if the error is still in the same FY).

Bank over-deducted TDS

Common when DTAA paperwork was filed late. Resolve by:

File the Indian tax return (ITR-2) and claim refund of excess TDS.
Pre-validate the NRO account on the e-Filing portal for direct refund credit.
Refund typically issues 2–6 months after return processing, with interest under Section 244A.

DTAA rate claims — the short version

NRIs eligible for a lower rate under an Indian tax treaty (US, UK, Canada, Australia, and others) need to give the bank three documents to invoke treaty rates on TDS:

PAN (operative, NRI status).
Tax Residency Certificate (TRC) from the country of residence for the relevant year.
Form 10F filed electronically on incometax.gov.in (mandatory electronic since July 2022).

With the three-document stack on file, the bank can deduct at the treaty rate. Without, it deducts at domestic Section 195 rates, and the NRI recovers the excess via Indian tax return.

For the complete DTAA mechanics see TDS on NRI income.

Keeping a clean annual audit trail

A practical year-round rhythm:

Quarter-end (every April, July, October, ** January)** — check Form 26AS on the portal; confirm bank's TDS has posted.
April–May (post FY-end) — download AIS; run it against all income streams for the year; file return of AIS feedback if discrepancies exist.
Before 31 July — file the Indian tax return (ITR-2 for most NRIs) to reconcile and claim any refund.
November — submit annual life certificate (for pensioners, separately).

Common banking-side TDS pitfalls

NRO account flagged as resident in the ** bank's system.** Bank applies 10% Section 194A instead of 30% Section 195. Corrects later but creates reconciliation headaches.
PAN mismatch between bank KYC and PAN database. Form 26AS shows TDS credited to nobody's PAN; bank refunds only via revised 27Q filing.
Missing Form 16A for a quarter — usually means the bank hasn't filed Form 27Q for that quarter yet. Wait 4–6 weeks beyond the deadline.
DTAA paperwork filed late in the FY — bank applies domestic rate for the first half of the year; reclaim via return.
Forgetting to verify AIS. Mismatches can affect return processing and refund timing.
Confusing gross vs net figures on Form 16A. Form 16A shows both the gross amount paid and the TDS; ensure the return entry matches the gross, not the net-of-TDS.
Not keeping Form 16A copies for 8 years. TDS certificates support the refund claim and the assessment.

Checklist — handling bank TDS

Confirm PAN is on file at each NRO bank, operative, NRI status.
For DTAA claims, submit TRC + Form 10F + declaration at each bank.
Check Form 26AS / AIS quarterly during the FY.
Download Form 16A from each bank quarterly.
Reconcile at FY-end — bank Form 16A against Form 26AS.
Raise corrections for mismatches — bank's TDS desk or AIS feedback.
File Indian return by 31 July with matched TDS to claim refund / reconcile.
Pre-validate NRO account on the e-Filing portal for refund credit.
Retain all Form 16A and Form 26AS for at least 8 years.

Summary

NRE and FCNR interest is tax-exempt and not TDS'd.
NRO interest is 30% + surcharge + cess under Section 195 — the standard NRI rate.
Other NRI income streams have section-specific rates post-July-2024 Budget (12.5% LTCG equity, 20% STCG equity, 30% rent).
Section 206AA 20% floor applies without PAN — eliminating DTAA benefit and elevating low-rate items.
Form 16A from the bank, Form 26AS / AIS from the e-Filing portal — reconcile both.
DTAA relief: PAN + TRC + electronic ** Form 10F** unlocks treaty rates at the bank.
Discrepancies: fix via bank TDS desk revising 27Q or via AIS feedback.
Indian tax return (ITR-2) reconciles and claims any refund.

For the complete TDS guide across all NRI income types with DTAA relief, Section 197 certificates, and Form 15CA/CB repatriation, see TDS on NRI income in India. For the overall NRI tax framework, see NRI taxation in India. For residence status that drives TDS rate eligibility, see tax residence in India. For NRI bank accounts, see NRI bank accounts. For the **property-sale TDS workflow with Section 197 certificate**, see selling property through PoA. For repatriation of post-TDS funds, see transferring funds from India.