Can I get refund of tax paid for Fixed Deposit invested in Indian banks?

[John Winters]

Newbie here and wondering if the experienced NRI investors in Indian FD help me here.

I was told by an accountant in Chennai that any tax paid as TDS for Fixed Deposit investment in Indian banks can be claimed by way of refund by filing an Indian tax return. Example: Suppose I invest 1 lakh in FD for a 13-month term with 9.5% interest, tax paid as TDS at maturity would be 30% with a net return of 6.5% and according to the accountant I should be able to get a refund of 30% tax paid. When I checked the same information with the bank I was told this is incorrect. They said any tax paid as TDS is non-claimable.

Who is correct here?

If my only investments in India are in FD and some mutual funds, can I claim taxes paid by filing a return?

Thanks

[gwldaddu]

Newbie here and wondering if the experienced NRI investors in Indian FD help me here.

I was told by an accountant in Chennai that any tax paid as TDS for Fixed Deposit investment in Indian banks can be claimed by way of refund by filing an Indian tax return. Example: Suppose I invest 1 lakh in FD for a 13-month term with 9.5% interest, tax paid as TDS at maturity would be 30% with a net return of 6.5% and according to the accountant I should be able to get a refund of 30% tax paid. When I checked the same information with the bank I was told this is incorrect. They said any tax paid as TDS is non-claimable.

Who is correct here?

If my only investments in India are in FD and some mutual funds, can I claim taxes paid by filing a return?

Thanks

Bank is wrong. Your accountant is right.

File a tax return and you will get all of it back.. (if you are in 0% tax bracket).

Welcome on this forum. But please do a search before you post a question. This topic has been discussed multiple times here on this forum.

[John Winters]

Hi gwldaddu:

Wonderful. Thanks so much for the clarification.

Sorry I should have looked up previous topics!!