You can save tax on interest earned in NRO accounts by means of DTAA. DTAA stands for Double Taxation Avoidance Agreement.

In case of cross border transactions, the income may be taxed in the home country (basis tax residency) as well as source country (where income is earned) leading to double taxation of the same income. In order to avoid this double taxation of income, the home and the source country mutually enter into tax treaty generally known as DTAA. As per DTAA, generally the income may be taxed at a lower rate or nil rate in the source country. To avail the benefit of DTAA in India, Tax Residency Certificate (TRC) along with Form 10 F and Permanent Account Number (PAN) is to be furnished. Wherever tax is applicable as per the DTAA, if the PAN is not furnished ,benefit of concessional rate as per the DTAA shall not be available. Income tax rates will be as per DTAA agreed between India and various countries.

Ways of withdrawing funds from NRE / NRO accounts in India:

• INR cheque at a branch in India
• Over the counter (OTC) withdrawal at a branch through a withdrawal slip
• At an ATM in India using your Debit cum ATM card

You can make payments to Individuals through the following Channels:

1. Internet Banking

• Login into your internet banking account
• Select ‘Funds Transfer’ under ‘Service Requests’
• Do a one time payee registration by filling in relevant details of the payee. Whenever a payment is to be made, select the payee and enter amount to be transferred.
• Enter the relevant details, grid card values given at the back of your debit card to authenticate the transaction.

Note: For high value transaction use the RTGS facility.

2. Cheque

You can issue a cheque from your NRI account.

3. Branch in India

Visit you nearest branch and place a request for your funds transfer.