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Mihir Tanna |1054 Answers |Ask -Follow

Tax Expert - Answered on Oct 18, 2022

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Nagarajan on Oct 18, 2022Hindi

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I saw your answers for some queries raised by readers of Rediff.com and find the answers very useful. I am an NRI living in a country where there is no tax on income earned within that country. I have shares in NSE/BSE as a bona fide NRI customer of one of the leading Indian private banks.

The dividend payments auto credited to my Indian NRI Bank account show deduction of income tax (TDS) of 20 %. I don’t have any source of income in India and I am above 61 years of age.

Is the TDS claimable back from IT department post submission of IT returns/post clearance from IT for the ITR filed?

Some of the Share Companies ask for form 15H which is form made available by the IT authorities of the NRI’s country of living or an exemption from the NRI country declaring that there is no income tax.

It is not possible to such an official declaration from the host NRI Country. How to handle such a situation?

I am not a PIO (People of Indian origin).

Ans: Where TDS is deducted and taxable income is below the minimum exemption limit, TDS can be claimed back post filing Income Tax return within specified due date.

Further, with reference to Form 15H, same is applicable only for resident shareholders. Non-resident should check Double Taxation Avoidance Agreement (‘DTAA’) between India and the country of tax residence of the shareholder, if such DTAA provisions are more beneficial to such shareholder.

Further, to avail DTAA provisions, non-residents are required to submit self-attested copy of(1) Tax Residency Certificate (‘TRC’) issued by the tax authorities of the country of which shareholder is tax resident, evidencing and certifying shareholder’s tax residency status; (2) PAN (in case PAN is not available; Declaration providing specified details) (3) Form 10F; (4) Self declarations for residency, beneficial owner, DTAA eligibility, No Permanent Establishment, business connection / place of effective management in India, etc.

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