The document NRI-21 is a self-declaration form for “Returning NRIs” to claim an exemption from Tax Deducted at Source (TDS) on interest earned from FCNR (B) (Foreign Currency Non-Resident Bank) or RFC (Resident Foreign Currency) deposits.

 

1. Purpose of the Declaration

• The form is used by individuals who have returned to India but have decided to maintain their FCNR (B) or RFC deposits until maturity.

• It allows the account holder to notify the bank of their current residential status to determine if tax should be withheld from their interest income.

2. Tax Status and TDS Applicability

The exemption from TDS is strictly based on the account holder’s status under the Indian Income Tax Act (ITA) for the specific financial year:

 

• Non-Resident (NR): No TDS is applied.

• Resident but Not Ordinarily Resident (RNOR): No TDS is applied.

   

• Ordinarily Resident (OR): TDS will be applied according to standard Indian income tax rules.

3. Account Holder Obligations

• The applicant must provide their account number(s), name, and Passport number.

• The account holder confirms that the provided information is correct and agrees that the bank is not responsible for any discrepancies.

   

• The individual undertakes to immediately intimate the bank if their tax status undergoes any further changes.