What is The Rate on NRO Fixed Deposits with or Without PAN Card ?

A Non-Resident Ordinary (NRO) account is as like normal saving bank account which is opened by any Indian staying or going to   outside India permanently or for an indefinite period  with reason of staying or vocation or getting employment other than Nepal and Bhutan.

Any person/entity resident outside India may open NRO account with an authorised dealer or an authorised bank for the purpose of putting through bonafide transactions denominated in Rupees. 

Interest earned on NRO Savings Account / NRO Fixed Deposit is subject to Tax deduction at source*

.W.e.f Aug 09, applicable TDS rates are:  30.90% including Cess.

“As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN Number to the deductor, failing which TDS shall be deducted at the maximum marginal rate or 20% whichever is higher.

The interest on NRO Accounts / Deposits and PIS transactions would be covered by the said rule

 If PANo is not updated with your bank in NRO account then the DTAA rate or 20% whichever is higher will apply.

 

5 Comments
  1. i have nro account updated with pan card.
    how much tax deduction will be on 1 million fixed deposit.

    because bank has deducted 30.9% from my maturity amont and made new fixed deposit for one year.
    now i want to know how can i get back my more deducted amount.

  2. Interest earned on NRO Savings Account / NRO Fixed Deposit is subject to Tax deduction at source*.W.e.f Aug 09 applicable TDS rates are: 30.90% including Cess. – IF PAN – 30.9% TDS

    If PANo is not updated with your bank in NRO account then the DTAA rate or 20% whichever is higher will apply -* IF NO PAN ONLY 20%

    WHY IT IS LIKE THIS?????????????

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