I found that for NRO savings accounts 30% tds is levied on interest income …but normal resident account this interest is taxed as per applicable tax rate. For savings account there is no TDS at all. Why NRO pay such tax i.e. 30% on interest income? Just because their currency is stronger than Indian Rupee ? what I am missing here ?
TDS is deducted as per the provision of Income Tax Act.
Interest earned on the Non Resident Ordinary Account (NRO) is taxable and will be subject to a TDS of 30 per cent, but actual tax payment would be as per their applicable tax slab.
Further, you can claim the refund of excess tax deducted at time of filing ITR.
Hope this helps!