Usually Indian bank deduct c31% as tax on the interest they pay on NRO deposits – savings bank or fixed deposits.
A UK resident can use double taxation avoidance agreement between India and UK to restrict Indian banks to deduct TDS at 15% (treaty rate).
Usually, Bank ask for Form 10F and a self-declaration (sample forms).
Please be aware, India UK DTAA restricts FTCR at 15% for interest income even if tax suffered is higher i.e. c31% in this case.
Incase UK resident has deposits in other countries, similar forms will be required. Please check with you bank. Treaty rates for different countries can be access via DTAA digest.
This exercise is only worth if taxpayer has material deposits.
Bonus material
You may find another blog post on similar topic useful – UK resident earning overseas interest income from India
For further reading, visit our Worldwide Disclosure blog.
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