India–Australia DTAA rates for NRIs
The India–Australia tax treaty (1991 (amended 2013)) caps the tax India can deduct on several kinds of income paid to residents of Australia. Here are the rates and how to claim them.
Rates checked on against the treaty text.
| Income from India | Treaty rate | India's normal rate for non-residents |
|---|---|---|
| Interest (for example NRO deposits) | 15% | 30% plus surcharge and cess |
| Dividends from Indian companies | 15% | 20% plus surcharge and cess |
| Royalties and fees for technical services | 15% (10% for equipment-rental royalties and ancillary services); technical services are covered within the royalty definition | As per the Act |
| Gains on property in India | Taxable in India (Art 13: country where property is situated) | Taxed in India |
Technical services are taxed as royalties, and the royalty definition includes a make-available test. Interest has no reduced bank rate.
How to claim the treaty rate
Give the payer, usually your bank or the company paying dividends, these documents before the payment:
- Tax Residency Certificate issued by the tax authority of the country of residence, valid for the relevant Indian tax year. It is uploaded with Form 41, along with the foreign Tax Identification Number (TIN).
- The self-declaration on Form 41 (formerly Form 10F), filed online with your PAN.
If tax was already deducted at the higher domestic rate, you can claim the difference back by filing an Indian income tax return. The tax paid in India can usually be set off against tax on the same income in Australia, under that country's foreign tax credit rules.
Use the DTAA rate finder to compare countries, or read how NRIs claim treaty benefits.
Sources
Treaty articles have conditions and exceptions, such as beneficial ownership and limitation-of-benefit rules. This page is general information, not tax advice.