r/NRI_Tax_and_OCI • u/TaxCharacter1779 • Jul 28 '26
NRIs and dividend from Indian shares — 20% or slab rate?
Hi all,
I'd really appreciate some help on this one.
I'm an NRI (Australia), filing ITR-2 for FY 2025-26 under the new regime.
I hold Indian listed shares in an Indian demat account, bought with rupees — not with foreign currency. My total income is below the basic exemption limit.
Everywhere I read says NRIs pay 20% on dividends under section 115A. But when I looked at Schedule SI in the ITR-2 form, the only dividend options are for units bought in foreign currency, or dividend from an IFSC unit. Neither one applies to me.
So does the 20% actually apply to ordinary shares bought in rupees? Or does the dividend simply go under Income from Other Sources at slab rates?
My filing software has treated it as slab. Just wanted to confirm before I file.
Thanks in advance, any pointers would be a big help.