The UAE levies no personal income tax, making it attractive for Indian professionals and business owners. However, this does not eliminate Indian tax obligations. India taxes NRIs on all India-sourced income — NRO interest, rental income, capital gains from Indian assets — regardless of where the NRI resides. The India-UAE DTAA provides important reliefs, particularly on NRO interest and dividends.
The standard TDS rates are applied by default. To claim the lower DTAA rates, you must proactively submit the required documents (TRC + Form 10F) to your Indian bank or financial institution before each financial year begins.
| Income Type | Standard TDS Rate | DTAA Rate (with TRC) |
|---|---|---|
| Interest (NRO FD/Savings) | 30% standard | 12.5% with DTAA + UAE TRC + Form 10F |
| Dividends from Indian cos. | 20% standard | 10% under DTAA Art. 10 (lowest among major DTAAs) |
| Royalties / Fees for Tech Services | 20% standard | 10% under DTAA Art. 12 |
| Capital gains — property LTCG | 12.5% (no indexation) | India has primary taxing rights; no UAE tax |
| Capital gains — listed shares (LTCG) | 10% above ₹1.25L | 10% in India only; UAE has no CGT |
| Rental income | Slab rates (TDS 30%) | India only; UAE has no tax on Indian rental income |
DTAA benefits are not automatic. Obtain your country's Tax Residency Certificate (TRC), file Form 10F on the Indian income tax portal, and submit both to your Indian bank before the first interest payment of each financial year. Failure to do so results in TDS at the standard 30% rate.
| Obligation | Deadline | Notes |
|---|---|---|
| Indian ITR filing deadline | July 31 (AY) | October 31 if liable for tax audit |
| UAE TRC application | Annually — UAE MOF portal | AED 2,000; 3-5 days processing |
| Form 10F for DTAA benefit | Before first transaction | Filed on Indian e-filing portal |
| TDS on Indian property sale | Within 30 days of deduction | Form 27Q for NRI sellers |
| FEMA repatriation from NRO | Annual limit: USD 1 million | After all taxes paid; Form 15CA/15CB required |
| RNOR window on return | 2 years post-return (if eligible) | 9 of 10 preceding years as NRI required |
Our team handles Indian income tax filing, DTAA claims, NRO TDS reduction, Form 15CA/15CB, property sale compliance, and FEMA repatriation for NRIs across the globe. All advisory is provided remotely — no need to be in India.