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.
