Do we need to give PAN to NRO savings Account

[vasu123]

Hi,

i have NRO Account and PAN was not registered in this account. i have PAN card ( i applied for PAN when i visited india 2 years back and applied as resident), Do i need to update it in my NRO savings account? i don't have any income in india and do not do Tax filings in india and never did before also. but my mother gave some amount and deposited that into my NRO account so i have some amount in this NRO savings account. my status is H1b visa in usa. i know for NRE account no need of PAN update but not sure about NRO savings account, they are already deducting 30% TDS on interest amount of NRO account.

Thanks.

[okonomi]

Hi,
i have NRO Account and PAN was not registered in this account. i have PAN card ( i applied for PAN when i visited india 2 years back and applied as resident), Do i need to update it in my NRO savings account? i don't have any income in india and do not do Tax filings in india and never did before also. but my mother gave some amount and deposited that into my NRO account so i have some amount in this NRO savings account. my status is H1b visa in usa. i know for NRE account no need of PAN update but not sure about NRO savings account, they are already deducting 30% TDS on interest amount of NRO account.
Thanks.

If you need to get the DTAA benefit, and have the back withhold only 15% Tax on your interest earnings, you need to give your PAN card (most banks would take an attested copy) to the bank that has your NRO account. If your interest is a very small amount, and you don't care about DTAA, well.. you do not need to give your PAN card to the bank.

[vasu123]

If you need to get the DTAA benefit, and have the back withhold only 15% Tax on your interest earnings, you need to give your PAN card (most banks would take an attested copy) to the bank that has your NRO account. If your interest is a very small amount, and you don't care about DTAA, well.. you do not need to give your PAN card to the bank.

Thank you very much for reply.

if we provide the PAN to NRO account then do i need to do year end tax filing in india? i am assuming no need to file tax returns in india if we don't have any income in india and they are charging 15% TDS on interest anyways to NRO account if we provide PAN. i have 5 lakhs in NRO account and no plans to keep anymore money in NRO account.

[okonomi]

Thank you very much for reply.
if we provide the PAN to NRO account then do i need to do year end tax filing in india? i am assuming no need to file tax returns in india if we don't have any income in india and they are charging 15% TDS on interest anyways to NRO account if we provide PAN. i have 5 lakhs in NRO account and no plans to keep anymore money in NRO account.

India Tax return filing requirement apply to people who make a certain minimum amount of income. It used to be 2.5 lakhs; you need to find out what it is for the current tax year .....google taxation slabs. When you make more than that amount, you will be required to file tax returns.

Say, if you make 50,000 rupees as interest from 500.000 rupees in NRO, and that is all the income you will have in a year, there is no need to file india tax returns. However, the 7500 rupees you lost in TDS 15% would be about US$100. You can put this number in line 48 of your US tax form 1040, and this amount will be a tax-credit (reduce your US taxes by $100) for the same period. Remember to report the Rs. 50000 interest income on schedule B. You don't need a 1099-INT for that. Tax filing software would do that for you. Find a form 1040 and look at line 48.

[Chakraan]

Hi,

they are already deducting 30% TDS on interest amount of NRO account.

Thanks.

You need to update your PAN with your bank.

The bank will deposit that 30% money to the income tax department on behalf of you and they will give you form 16A as a proof and how much they have deducted.

You can file income tax in India if you want to take that refund or in US you can put that in foreign tax paid column.

Your bank is strange, how come they did not ask for PAN card and deducting TDS?

[vasu123]

You need to update your PAN with your bank.

The bank will deposit that 30% money to the income tax department on behalf of you and they will give you form 16A as a proof and how much they have deducted.

You can file income tax in India if you want to take that refund or in US you can put that in foreign tax paid column.

Your bank is strange, how come they did not ask for PAN card and deducting TDS?

i think bank can deduct 30% TDS even though PAN is not submitted in NRO savings account. if we submit PAN then they deduct only 15% TDS as "okonomi" said in above replies.

[Chakraan]

i think bank can deduct 30% TDS even though PAN is not submitted in NRO savings account. if we submit PAN then they deduct only 15% TDS as "okonomi" said in above replies.

Only PAN card is not enough to get DTAA benefit.


Hence, the below mentioned documentation is required per Customer ID to avail DTAA benefit:-

DTAA Annexure in original

Tax Residency Certificate (TRC) latest copy duly self-attested by the client

PAN Card copy duly self-attested by the client

http://www.hdfcbank.com/nri_banking/accounts/fixed_deposits/nro_fixed_deposits/nro_fixed_deposits.htm