ARUMOY (WELL ENGINEER) 28 December 2010

DTAA

Dear Sir/Madam,

I wish to clarify on DTAA agreement between India & Oman, is it correct to get relief on I Tax for the salaried NRI , who is normally not taxed at source or otherwise in Oman , having NRO FD in India.

In the form given to me by the banker it says " Accordingly tax payable on my NRO deposits may be deducted at 10% mentioned in article 1,2,4 and ______( article of Interest).

My query is thus:

1. Correctness of filling up the DTAA form.

2. If 1, is allowed, what needs to be filled in " ________".

Thanks for the same

Arumoy Das

Navi Mumbai

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1 Replies

Rajesh Thakker (Advocate) 13 January 2011

Dear Arumoy,

DTAA is for tax is chargeble on income on both country, than it is applicable. It is found from your post that you want to invest in India and earn interest income. There is not tax on NRE account. However, if you will convert your NRI amount into Indian Rupee, than income on said converted fund will be taxable in India. In such case DTTA not applicable. Once you converted any sum in NRO account, after it will not converted into his original form.

TDS will deducted on interest income as per the provision of 194A of the Income-tax Act.