How NRIs Can Reclaim Excess TDS Deducted in India 💰
Don’t let banks or buyers keep more than they should — here’s how to file for refunds and reclaim your money.
For most NRIs, one of the most common frustrations when dealing with India income is Tax Deducted at Source (TDS). Whether it’s on rent, interest, dividends, or property sales, the deduction is often at a flat rate — usually much higher than your actual tax liability.
The good news? You can reclaim the excess TDS by filing your Indian Income Tax Return (ITR).
Why Does This Happen?
Flat Rates for NRIs: For example, property sales can attract TDS at 20–30% on the sale value, even if your actual capital gains tax is lower.
Banks Deducting at Higher Rates: NRO account interest is taxed at 30%, regardless of your overall tax liability.
Mismatch in TDS Reporting: Sometimes, deductors don’t update Form 26AS correctly, leading to excess tax being withheld.
How to Reclaim TDS as an NRI
File Your ITR in India
Even if your income is fully taxed at source, you must file an ITR to claim refunds. This applies to property sales, rental income, dividends, and more.Match Your Form 26AS / AIS
Before filing, cross-check all TDS entries in Form 26AS and Annual Information Statement (AIS) to ensure they match your reported income.Claim Double Taxation Relief (DTAA)
If you’ve paid tax in both India and your country of residence, use the DTAA treaty to claim credit and avoid paying tax twice.File Within the Deadline
Refunds are processed only if you file within the due date. Late filings may mean losing your chance to reclaim TDS.Track Your Refund
After filing, refunds are usually credited to your NRO bank account within 6–12 weeks. Delays can happen if documents or bank details don’t match.
Common Delays to Avoid
Incorrect bank details (refunds bounce back)
Not verifying your return via Aadhaar OTP / Netbanking / DSC
Mismatches between TDS certificates (Form 16A) and 26AS
Filing the wrong ITR form (e.g., ITR-1 instead of ITR-2/3 for NRIs)
How iNRI Helps
At iNRI, we’ve built a completely digital filing process designed for NRIs:
Dedicated NRI tax expert reviews your TDS and filings
End-to-end handling of DTAA, multiple income sources, and refunds
100% online — no paperwork or courier hassles
Free consultation before you proceed
👉 Start Your Tax Filing Today
Final Word
If you’re an NRI, chances are you’re paying more TDS than required. The only way to get it back is to file your ITR.
Don’t let your hard-earned money sit with the tax department. File early, file right, and reclaim what’s yours.