Quick answer
How much Indian tax does an NRI in Singapore pay on NRO interest?
Banks usually deduct about 30%, but the India-Singapore treaty caps it at 15% if you give the bank a Singapore Certificate of Residence and Form 41. Extra tax already deducted can be claimed back by filing an Indian ITR.
What the India-Singapore treaty changes for you
India deducts tax on most income an NRI earns in India, often at high rates. The India-Singapore Double Taxation Avoidance Agreement (DTAA) caps the Indian tax on some of this income, if you are a tax resident of Singapore and have the right papers.
| Income in India | Usual Indian TDS for NRIs | With the treaty |
|---|---|---|
| Interest on NRO deposits | About 30% plus surcharge and cess | 15% (10% if received by a bank) |
| Dividends from Indian companies | 20% plus surcharge and cess | 15% for individuals |
| Interest on NRE and FCNR deposits | Tax-free in India while you are a non-resident | |
| Rent from property in India | Taxable in India. Tenants should deduct TDS. You file a return to pay the right amount or claim a refund | |
| Capital gains on Indian shares | Taxable in India for shares bought on or after 1 April 2017 | |
| Sale of property in India | Taxable in India. See our NRI property sale page | |
| Salary for work done in Singapore | Not taxable in India if you are a non-resident | |
Treaty benefits on mutual fund gains depend on the type of fund and recent tribunal decisions. We check this case by case.
How to claim the treaty rate
- Get a Certificate of Residence from IRAS, Singapore's tax authority, for the year.
- File Form 41 (earlier called Form 10F) online on the Indian Income Tax portal. We do this with you.
- Give both to your Indian bank, so it deducts TDS at the treaty rate on NRO interest from then on.
- File your Indian ITR to claim back any extra TDS already deducted.
What we do for Singapore-based clients
- Work out your residential status from your travel dates, including the year you moved.
- File your Indian return (ITR-2 or ITR-3) and claim refunds of excess TDS.
- Apply treaty rates on NRO interest and dividends.
- Report capital gains on Indian shares and mutual funds correctly.
- Handle property sales, lower TDS certificates and sending money to Singapore.
- Plan your residential status if you are moving back to India.
How it works from Singapore
Singapore is two and a half hours ahead of India. Our office hours run until 10 pm India time, which is 12:30 am in Singapore, so evening calls after your work day are easy. Everything is done online: documents on WhatsApp or email, e-verification through net banking, no need to visit India.
What clients say
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Common questions
Do I need an Indian ITR if my bank already deducted TDS?
Filing is required if your Indian income is above the basic exemption limit. Even when it is not, filing is the only way to get back TDS deducted at a higher rate than your actual tax.
Will Singapore tax my Indian income?
Singapore generally does not tax individuals on income from abroad. That is why paying only the correct Indian tax matters: any extra tax in India is usually money you never get back unless you claim a refund.
How often do I need the Certificate of Residence and Form 41?
Every financial year in which you want the treaty rate. We remind you each year.
I am moving back to India. What changes?
For the first year or two after returning, you may qualify as 'resident but not ordinarily resident', which keeps most foreign income outside Indian tax. We plan this from your travel dates.
Get a clear quote today
Send us a WhatsApp with a line about your situation. The first consultation is free, and we reply within one working day, usually the same day.