Indian NRO Account Interest in Germany

How Germany taxes it

NRO account interest is foreign-source investment income, taxed at your personal marginal rate in Germany. The 30% Indian TDS is high relative to most other foreign-tax scenarios, which means German tax often credits the full Indian withholding (since DTAA Article 11 caps treaty-rate withholding at 10% — but the bank withholds 30% by default unless you actively claim treaty rates with Form 10F + TRC).

DTAA treatment

Under DTAA Article 11, India can withhold a maximum of 10% on interest if you furnish Form 10F + a Tax Residency Certificate to the bank. Without that paperwork, the bank applies the domestic 30% rate. Excess Indian tax (above the German tax that would have been due) is not refundable — but you can claim the refund of the excess directly from the Indian tax department in your Indian return.

Where it goes on your return

NRO interest goes on Anlage AUS line 11, gross interest in EUR + foreign tax paid in EUR. If your Indian TDS is 30% (no treaty paperwork filed), include the full 30% as foreign tax paid and let the German tax engine apply the credit cap.

Common gotchas

• Without Form 10F + TRC filed at the bank, NRO interest is withheld at 30% — that's often more than your German tax on the same income
• Excess Indian tax is recoverable from the Indian tax department directly (file an Indian tax return claiming refund), NOT from Germany
• NRO bank interest certificate typically covers the Indian financial year — request a calendar-year version for German filing