Notice for NR Customer's availing Double Taxation Avoidance Agreement (DTAA) benefit
As per recent amendment to the Indian Income Tax Act as announced in Union Budget 2012, NRIs who wish to avail DTAA benefit have to mandatorily provide 'Tax Residency Certificate (TRC)' to the deductor (Bank). This is applicable for all NR customers who wish to avail DTAA benefit with effect from 1st April 2012..

TRC is issued by the tax/government authority of the country where the NRI resides. So please check with the Tax Department or Finance Ministry in your country or with your Chartered Accountant abroad as to procedure to obtain TRC. No other document in lieu of TRC shall be considered for availing the DTAA rate for the said financial year.

Kindly refer to the below links showing the changes in Section 90 of Income Tax Act.

Click here view Section 90 prior to amendment.

Click here to view Section 90 after the amendment.

Further please note that the TRC has to contain certain mandatory details as prescribed in the Indian Income Tax Rules.

Click here to view Rule 21AB prescribing the details required in the TRC.

In case you have registered for DTAA benefit earlier or wish to register for the same, kindly provide latest copy of TRC to avail the DTAA rate for current financial year, failing which the bank will deduct TDS on interest earned on your NRO deposits at 30.90%. Also note that TDS once deducted cannot be refunded. Hence please expedite your document submission to avail the same and to avoid any inconvenience in future.

Click here to download the format of a request letter that can be used by you to submit to your tax/government authority to obtain a TRC.
Disclaimer
: This letter format is being provided to you by the Bank for your convenience so that you do not miss out any of the mandatory details required to be mentioned in the TRC. You should check in your country if there is any format prescribed for applying for a TRC and use the same instead of the above letter format.