Is TDS applicable on dividend income received by NRIs?

TDS for NRIs is charged at 20%, subject to the Double Taxation Avoidance Agreement (DTAA), if applicable.

To avail the benefit of lower deductions as a result of a beneficial treaty rate with the country of residence, NRIs must submit documentary proof such as Form 10F/Declaration of Beneficial Ownership/Certificate of Tax Residency, etc. Failure to submit these documents will result in higher TDS, which can be claimed at the time of filing your Income Tax Return (ITR).

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