NRI couple with joint bank account: How will TDS refund affect us?

Ans: Your situation is common among NRIs returning to India. A proper tax strategy ensures smooth financial management.

Understanding TDS on NRI Accounts
Banks deduct TDS on interest earned in NRI accounts.
The rate depends on the type of account and applicable tax laws.
NRIs can claim a refund if the tax deducted is higher than their actual tax liability.
Knowing how tax works helps in efficient tax planning.

Who Should Claim the TDS Refund?
Refund claims depend on whose income is being taxed.
In joint accounts, only the primary holder is taxed.
The TDS refund must be claimed by the person whose PAN is linked to the account.
Only one person can claim the refund in most cases.

How to File the TDS Refund Claim?
The person claiming must file an income tax return.
The refund request should include details of TDS deducted.
Form 26AS helps track the deducted tax.
If both spouses have separate incomes, each must file returns individually.
A structured approach ensures smooth refund processing.

Repatriation and Account Conversion After Retirement
NRI accounts must be converted to resident accounts upon return.
Failing to convert can lead to tax complications.
Inform banks about residential status change to avoid excess TDS.
Timely conversion helps in better tax compliance.

Finally
When returning to India, ensure proper tax planning for TDS refunds. Only the primary account holder can claim the refund. Converting accounts to resident status is necessary to avoid tax issues.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment