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/NRE Accounts (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.