Treaties

Does the India-US treaty (DTAA) actually help me?

Yes — it caps how much the US can hold back, and it's the reason you can claim that tax back in India.

30% → 25%

the treaty caps US dividend withholding — and lets you reclaim it

For you — resident Indian

If you're a resident, the treaty is what makes the Foreign Tax Credit possible and keeps your US profits out of US tax.

With the treaty vs without

Direct

Via GIFT City

Dividend withholding

30% default

25% with W-8BEN + treaty

Capital gains

Could be claimed by two countries

Taxable only in India

Double tax

Paid twice

Reclaimed via Form 67 (FTC)

What to do

1
File a W-8BEN with your broker to switch from 30% to the 25% treaty rate.
2
Treat US capital gains as taxable in India only.
3
Use Form 67 to claim the treaty's double-tax relief.
4
If you're an NRI on the GIFT City route, you usually don't need the treaty at all.

Ask the AI advisor about your exact situation

It knows your profile and runs the real tax calculations — not a generic chatbot.

Illustrative only · Rules per Finance Act 2025 (FY 2025-26) · Figures are examples, not advice — confirm with a qualified CA / tax advisor before acting.