Can an NRI Apply for Form 13 to Reduce or Get NIL TDS

TDS & TCS
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1

Hello,
I am an NRI, and I have an NRO account in which my bank is charging 30% TDS on the interest earned. Since my income is low and I have minimal liability, I wanted to know if I can apply for Form 13 to reduce or get NIL TDS on the interest income from my NRO account.

Can anyone please help me understand the process of applying for Form 13?
Here are my questions:

  1. Eligibility: As an NRI with minimal tax liability, am I eligible to apply for Form 13 to get a reduced or NIL TDS rate on my NRO account?

  2. Process: Can I apply for Form 13 directly through the online portal, or do I need to submit the form manually?

  3. Documents: What documents do I need to upload or provide for the application process?

  4. Timeframe: How long does it typically take to get a response or approval for the reduced/NIL TDS application?

  5. Terms and Conditions: Are there any specific terms or conditions for NRIs applying for Form 13 to reduce TDS?

I would appreciate a detailed explanation of the process and the steps involved. Thank you in advance for your help!

Thank you

Vikas

2

Hello Vikas,

To answer your questions -

Yes, an NRI with minimal or no tax liability is eligible to file Form 13 and get lower or no TDS. Also, Form 13 can be applied directly through TRACES portal.

Documents you’ll require is PAN card copy, your estimated computation of income for the current financial year, proofs supporting your income estimates, copies of income tax returns and assessment orders (last 3–4 years), TAN of the deductor, and any other evidence the AO may request, etc.

The processing depends on AO to AO but you can expect within the 30 days of your application.

Also, to keep in mind, you should have valid proof that your income is lower or there is minimal tax liability for successful processing!

3

Yes. An NRI can apply for Form 13 to request lower or NIL TDS on income taxable in India. The application is filed online with the Income Tax Department of India, providing estimated income, tax liability, and supporting documents. If approved, a certificate is issued to the payer, allowing deduction at a reduced rate or no TDS for the specified period.

4

If that does not work out keep in mind that it’s pretty easy for an NRI to get their TDS back by filing a tax return online by yourself. That’s the approach I’ve taken for the past ten years for my wife and myself.