TDS Guidelines for NRO/NRE Accounts
Important Update for Non-Resident Customers
The withholding tax (TDS) rates on interest earned from NRO deposits and cash withdrawals from NRO/NRE accounts are as below
1. TDS on interest earned from NRO Deposits & Savings Accounts held by non-resident customers
Total Interest Earned |
Withholding Tax Rate |
₹50 lakhs or less |
31.2% (30% tax + 0% surcharge + 4% cess) |
More than ₹50 lakhs and up to ₹1 crore |
34.32% (30% tax + 10% surcharge + 4% cess) |
More than ₹1 crore and up to ₹2 crores |
35.88% (30% tax + 15% surcharge + 4% cess) |
Above ₹2 crores |
39% (30% tax + 25% surcharge + 4% cess) |
Note:
Starting FY 2023-24, the new tax regime is the default.
If a non-resident customer opts for the old tax regime and informs the Bank, the TDS rate for interest above ₹5 crores will be 42.74% (30% tax + 37% surcharge + 4% cess).
If no declaration is provided, the new regime will be applied by default.
All interest paid or accrued will be subject to these rates.
2. TDS on Cash Withdrawals from NRO and NRE Accounts under Section 194N
TDS Criteria |
Annual Withdrawal Limit |
TDS Rate |
PAN updated & ITR filed |
Above ₹1 crore |
2.60% (2% tax + 25% surcharge + 4% cess) |
PAN updated but ITR not filed |
Above ₹20 lakhs | 2.60% (2% tax + 25% surcharge + 4% cess) |
| Above ₹1 crore | 6.50% (5% tax + 25% surcharge + 4% cess) | |
PAN not updated |
Above ₹20 lakhs |
20% |
PAN-Aadhaar not linked but ITR complied |
Above ₹ 1 Crore |
20% |
PAN-Aadhaar not linked and ITR non-complied |
Above ₹20 lakhs |
20% |
If PAN-Aadhaar is not linked, PAN will be considered inoperative, and higher tax rates under Section 206AA will apply from July 1, 2023.
3. PAN/Aadhaar Requirement for Cash Transactions
As per CBDT Notification 53/2022, the following transactions require PAN or Aadhaar. Without PAN/Aadhaar, these transactions will not be allowed.
Cash deposits or withdrawals of ₹20 lakhs or more in a financial year (across one or multiple accounts).
Opening of a Current Account or Cash Credit Account.
Click Here - FAQ on NRI PAN-Aadhaar Linkage
Disclaimer - This information is for general reference only. Tax implications may vary based on individual cases, tax authority interpretations, and law amendments. Customers are advised to consult a tax professional before making financial decisions. ICICI Bank Ltd is not liable for any actions taken based on this information.