NRO Tax Saver Fixed Deposit

NRO–5 year tax saver Fixed Deposit will be eligible under Section 80C of Income Tax Act, 1961. This also provides NRIs an opportunity to diversify their investments in addition to other investments permitted in Section 80C.

As per section 115D of the Income Tax Act, the benefit under Section 80C is available to an NRI only if he has earned income other than investment income (interest) and long term capital gains.

Features & Benefits
- Minimum Amount: Rs.100/-
- Multiples of Rs.100/-
- Maximum Amount: Rs. 1 lakh(in a FY)
- Tenure-5 years (lock in period)
- Monthly or quarterly interest pay-out option is available
- No partial/premature withdrawal allowed
- Sweep-in not allowed
- No OD or pledge allowed
- Fixed Deposit can be opened in single or joint name but the tax benefit can be claimed only by the first account holder
Eligibility
- You are eligible if you are a non-resident individual of Indian nationality or of Indian origin
- Upon change of your status from NRI to RI, you need to inform the Bank immediately
Interest Rates

As per prevailing 5 year deposit rates, click here for NRO Fixed Deposit interest rates
Tax Deductions
- Interest earned on NRO Savings Account / NRO Fixed Deposit is subject to tax deduction at source*.With effect from August, 2009, applicable TDS rates are:
- As per section 206AA introduced by Finance (No. 2) Act, 2009 with effect from 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN Number to the deductor, failing which TDS shall be deducted at the maximum marginal rate or 30.90% whichever is higher.
  
  Interest on Deposit Tax Rate Surcharge Education Cess Total
  
  NRO 30% - 3% 30.90%
  
  The interest on NRO Accounts / Deposits and PIS transactions would be covered by the said rule
- * TDS, when due and applicable will be deducted in accordance with the provisions of the Income Tax Act, 1961 and the Rules there as in force. Such TDS shall be recovered from saving/current/demand deposit a/c(s)
Double Taxation Avoidance Agreement (DTAA)
Double Taxation Avoidance Agreement (DTAA) is an agreement entered into by India with various countries (Click here for list of DTAA Countries). Under the current DTAA provisions, you can enjoy the benefit of concessional rates for Tax Deducted at Source (TDS), providing you a higher yield as compared to the regular NRO FD offered today.

If you are desirous of availing the rate of deduction of tax as per the DTAA, the same will be applicable only on your submitting the relevant documents along with your PAN Number with us by March 15, every year for the next Financial Year.

PAN updation is mandatory to avail of DTAA. One set of the below documents is required per Customer ID.
- DTAA Annexure - Declaration that the client was an NRI during the year in which tax is sorted to be deducted & that he does not have any permanent establishment in India.
- Original or certified true copies of the tax residency certificate from income tax authorities to be obtained from the client.
- Self attested copy of passport & visa. (not required in case the client is submitting Tax Residency Certificate).
- For UAE and KUWAIT ONLY- photocopy of the passport pages which give the details of entry and exit.(to ascertain 183 days stay in a calendar year for UAE and 183 days in a financial year for Kuwait)
If your PAN is not updated with the Bank, then the DTAA rate or 30.9% whichever is higher will be applicable.

Click here for DTAA Annexure & Annexure - C

Kindly refer to the below link for any further details on DTAA agreements between India and other countries:
http://law.incometaxindia.gov.in/DIT/intDtaa.aspx