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 393(3)[5] of Income tax Act, 2025
TDS Criteria |
Threshold |
TDS Rate |
|---|---|---|
PAN updated |
₹1 crore |
2.60% (2% tax + 25% surcharge + 4% cess) |
PAN not updated |
₹1crore |
20% |
PAN-Aadhaar not linked |
₹ 1 Crore |
20% |
Once the threshold as mentioned above is breached, TDS on cash withdrawal will be applicable from Rs. 1
If PAN-Aadhaar is not linked, PAN will be considered inoperative, and TDS will be deducted at higher rate of 20%.
3. PAN Requirement for Cash Transactions
The following transactions require PAN. Without PAN, these transactions will not be allowed.
- Cash deposits of ₹10 lakhs or more in a financial year (across one or multiple accounts)
- Cash withdrawals of ₹10 lakhs or more in a financial year (across one or multiple accounts)
- Opening of a Current Account or Cash Credit Account
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.