r2i forum

I am an NRI. My bank has deducted TDS on my NRO (non-resident ordinary) fixed deposits at a concessional rate of 12.5% against 30% in view of the selfdeclaration submitted by me under the terms of the provisions of double taxation avoidance agreement between India and other countries. The bank has given me Form 16A. Since the total interest income earned by me is far below the exemption limit, can I claim refund from the I-T department by filing I-T returns for FY09-10? In future in order to avoid TDS can I furnish Form 15G to the bank? ? MEENA RAJEEV

Yes, you can claim a refund of income tax deducted at source. However, being a non-resident, you cannot furnish declaration in Form 15G to the bank. In order to avoid TDS, you will have to obtain a certificate for non-deduction of tax at source by making an application in Form 13 with the jurisdictional tax officer. Such a certificate has to be then submitted with the bank.

source: Page-8 Economic Times 25-Jan-2011