Tax Rates for NRI

For the Assessment Year 2007-08

Name of Income	Rate*
Dividend**	20%
Interest received on loans made in foreign currency to an Indian concern or Government of India.	20%
Income received in respect of units purchased in foreign currency	20%
Royalty fees or technical fees	For Agreements entered into: After 31.05.97 but before 01.06.05 - @ 20% After 01.06.05 - @ 10%
Interest on FCCB	10%

*The rates further increases by surcharge and education cess.
**Other than dividends on which Dividend Distribution Tax (DDT) has been paid.

Note:- If the NRI has a Permanent Establishment (PE) in India & the royalty or the fees for technical services paid is effectively connected with such, the same could be taxed at 40% (+ surcharge & education cess) on net basis.