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Home / NRI & Global Services / DTAA Relief for NRIs
Last updated: 2 October 2026
If your Indian income — interest, dividends, capital gains or rent — is also taxed in the country where you live, a tax treaty (DTAA) can lower the Indian tax or give you a credit abroad. Our team helps you claim it correctly, with your Tax Residency Certificate and Form 41 in order.
India has Double Taxation Avoidance Agreements (DTAAs) with most countries where NRIs live, including the USA, UK, UAE, Canada, Singapore and Australia. A treaty decides which country may tax an income, and at what maximum rate.
As a non-resident, you can apply either the Income-tax Act or the tax treaty — whichever is more beneficial to you. In practice, relief works in two ways:
To claim treaty benefits in India you need a Tax Residency Certificate (TRC) from your country of residence and, from 1 April 2026, Form 41 (earlier Form 10F) with the details the TRC does not cover.
Based on the Income-tax Act, 2025 (section 159) and India’s tax treaties. Treaty rates differ by country and by income type. Last updated: 27 September 2026.
Tax Residency Certificate from your country of residence — required to claim any treaty benefit
Filed online with details not in the TRC; replaces Form 10F from 1 April 2026
You can use Indian law or the treaty, whichever gives the lower tax
Give TRC and Form 41 to the payer before tax is deducted, so treaty rates apply at source
A TRC covers a set period — keep a current one for every year you claim relief
Provision of the Income-tax Act, 2025 on treaty relief (earlier section 90)
Treaty relief is often available but not claimed, or claimed without the documents to support it. These are the usual gaps.
Without a Tax Residency Certificate, the payer deducts tax at the full Indian rate and treaty rates cannot be claimed.
If the form is not in place before tax is deducted, the higher rate applies and the excess can only be recovered through the return.
Indian tax paid is not claimed as a credit in the home-country return, so the same income ends up taxed twice.
Each treaty sets its own rules and rates. These are the income types NRIs ask about most.
Taxable in India; treaty rates are often lower than the Indian rate when TRC and Form 41 are given to the bank.
Gains on Indian property are generally taxable in India under most treaties; relief is usually a credit abroad.
Dividends are taxable in India; many treaties cap the rate India can charge.
Taxable in India, where the property is; claim credit for the Indian tax in your home country.
We check the treaty between India and your country for each income type and confirm the rate that applies.
We guide you on obtaining the Tax Residency Certificate from your home tax authority.
We prepare and file Form 41 online with the details your TRC does not cover.
Your TRC and Form 41 go to the bank, tenant or buyer before tax is deducted.
Treaty relief is claimed in your Indian return, and any excess TDS is claimed as a refund.
You receive a record of the Indian tax paid, to support a credit claim in your home country.
Relief can be claimed at three points. Timing decides how much tax is held back in the meantime.
Give TRC and Form 41 to the payer before tax is deducted, so treaty rates apply.
If more tax was deducted, the treaty rate is applied in the return and the excess refunded.
Claim credit for Indian tax paid in your overseas tax return, as that country’s rules allow.
Keep a current TRC and file Form 41 for each year you claim treaty relief.
Share your query and our team will reply during business hours.
A Double Taxation Avoidance Agreement is a tax treaty between India and another country. It decides which country can tax each type of income and caps the rate, so the same income is not fully taxed twice. An NRI can use the treaty where it gives lower tax than Indian law.
A TRC is issued by the tax authority of the country where you are resident, confirming your tax residency for a period. It is required to claim any treaty benefit in India.
From 1 April 2026, under the Income-tax Act, 2025, Form 10F is replaced by Form 41. It is filed online and carries the details your TRC does not include.
Yes. If you give your bank a valid TRC and Form 41 before tax is deducted, the treaty rate can be applied at source. Otherwise TDS is deducted at the Indian rate and the difference can be claimed in your return.
No. Income that arises in India — such as rent, NRO interest or gains on Indian property — can still be taxed in India. The India–UAE treaty may reduce the Indian rate on some income, subject to a valid TRC.
ACS – Director, Expertvuw Management Pvt Ltd
Treaty relief claims are prepared by Expertvuw’s tax team. Where the law requires a certificate — for example, a Chartered Accountant’s Form 146 for a foreign remittance — it is issued by an independent qualified professional engaged for your case.