W-8BEN FAQ: Top 30 questions from Indian investors
Every Indian investor in U.S. stocks encounters Form W-8BEN during account setup. The form looks simple—just one page—but it raises dozens of questions about eligibility, filing, treaty benefits, and renewal. A single mistake in Part II can cost you 5% extra on every dividend payment for three full years. This W-8BEN FAQ India guide answers the 30 most frequently asked questions in plain language. Bookmark it as your quick W-8BEN reference guide and revisit it each time a question pops up during filing or renewal.
Eligibility and basics
1. What is Form W-8BEN?
Form W-8BEN is an IRS document that certifies your status as a non-US person. It designates the beneficial owner of US-source income and allows claimants to reduce tax withholding under the India-US tax treaty. Your broker keeps it on file and does not send it directly to the IRS.
2. Do all Indian investors need to file W-8BEN?
Yes. Every Indian resident who holds U.S. stocks, ETFs, or other U.S.-Source income-generating assets must submit a valid Form W-8BEN. Without it, your broker withholds tax at the full 30% statutory rate on dividends and interest. This applies regardless of the investment amount — even if you hold a single fractional share worth $10.
3. Do NRIs returning to India also need W-8BEN?
Absolutely. If you return to India and become a resident, you should update your W-8BEN to reflect India as your country of residence. This activates treaty benefits and prevents unnecessary over-withholding on your existing U.S. holdings.
4. Is W-8BEN required for U.S. mutual funds bought through Indian platforms?
W-8BEN applies when you directly hold U.S. securities through a U.S. brokerage account. Indian mutual funds that invest in the U.S. handle withholding at the fund level. However, platforms such as Winvesta, Vested, and INDmoney require a W-8BEN at account opening to access direct U.S. stock.
5. Can minors file W-8BEN?
Yes. A parent or legal guardian signs the form on behalf of the minor. The minor's PAN and personal details go on the form, while the guardian signs Part III.
6. What happens if I skip filing W-8BEN entirely?
Your broker applies the default 30% withholding rate on all US-source income. Some brokers also withhold 24% on sales proceeds and may restrict trading until a valid form is submitted. Over time, this adds up significantly. On $5,000 in annual dividends, skipping the form costs you $250 more than necessary every year.
How to fill in the form correctly
7. Which version of W-8BEN should I use?
Use the October 2021 revision. The IRS has confirmed no updates as of February 2026. Your broker will reject older versions.
8. What do I enter in Line 6a (Foreign Tax Identifying Number)?
Enter your Indian PAN number. For example, ABCDE1234F. This is mandatory when claiming treaty benefits under Part II. Leaving it blank may void your treaty claim.
9. Should I fill in Line 5 (U.S. Taxpayer ID)?
Most Indian investors leave this blank. You only need a US SSN or ITIN if you have one. The absence of a U.S. tax ID does not prevent you from filing the form.
10. What goes in Part II for treaty benefits?
Line 9 should say "India." Line 10 should reference Article 10 of the India-US treaty for dividends at 25%, or Article 11 for interest at 15%. Write a brief statement such as: "Resident of India claiming benefits under Article 10; rate of withholding: 25% on dividends."
11. What date format does the form use?
The W-8BEN uses the American format: MM-DD-YYYY. Indian investors often write dates in DD-MM-YYYY format by habit, which causes rejection. Double-check before signing.
12. Can I sign W-8BEN electronically?
Yes, if the electronic signature includes a timestamp and verification of the authorised signer. Platforms like Vested and Winvesta handle this digitally during onboarding. Simply typing your name does not qualify as a valid e-signature.
13. Do I submit W-8BEN directly to the IRS?
No. You submit it to your broker or withholding agent. The broker retains the form and applies the correct withholding rate. The IRS never receives this form from you.
If you need a detailed walkthrough, the W-8BEN and W-8BEN-E form guide for Indians covers every line with screenshots and examples.
Tax benefit queries
14. How much tax does W-8BEN save on dividends?
Without W-8BEN, the U.S. withholds 30% on dividends. With a valid form claiming India treaty benefits, the rate drops to 25%. On a $1,000 dividend, you save $50 outright. Over a decade of regular investing, this difference compounds into meaningful wealth. This W-8BEN requires clarification; India investors often overlook the direct impact on long-term portfolio returns.
15. Does W-8BEN reduce tax on capital gains?
Non-resident aliens are generally exempt from the U.S. capital gains tax on stock sales under U.S. law. W-8BEN does not create this exemption — it already exists. However, without a valid form, some brokers withhold 24% on proceeds as a precaution.
16. What is the treaty rate on interest income for Indians?
The India-US DTAA sets the interest withholding rate at 15% under Article 11. Banks and financial institutions may qualify for a further 10% reduction.
17. Can I claim a Foreign Tax Credit in India for the U.S. tax withheld?
Yes. File Form 67 on the Indian income tax portal before submitting your ITR. Report U.S. income in Schedule FSI, claim credits in Schedule TR, and disclose foreign assets in Schedule FA. This prevents double taxation and ensures you pay only the net difference between the U.S. and Indian tax rates. Schedule FA disclosure is mandatory even if there are no gains, and non-compliance attracts penalties under the Black Money Act.
18. Does W-8BEN affect TCS on LRS remittances?
No. The 20% TCS on LRS transfers above ₹7 lakh per financial year is collected by your Indian bank at the time of remittance. W-8BEN only affects US-side withholding on investment income. TCS is refundable when you file your Indian ITR.
19. What if I receive dividends during a gap when my W-8BEN has expired?
Dividends received without a valid W-8BEN are taxed at 30%. Some brokers refund the excess retroactively once you submit a new form. Others require you to file IRS Form 1040-NR to claim a refund directly from the IRS.
20. Are U.S. capital gains taxed in India?
Yes. India taxes capital gains from U.S. stocks under its domestic rules. Long-term gains on holdings over 24 months attract 12.5% tax. Short-term gains are taxed at your applicable income tax slab rate.
For a full breakdown of how dividends and capital gains are taxed, see the tax implications guide for Indian investors in U.S. stocks.
Process questions
21. How do Indian platforms handle W-8BEN?
Most major platforms auto-fill the W-8BEN using your KYC data during account opening. Vested, Winvesta, and INDmoney all complete this digitally. You review the pre-filled form and accept it electronically. The entire process takes minutes and eliminates the risk of manual errors. Groww has discontinued U.S. stock services, so existing Groww users must transfer holdings elsewhere via ACAT.
22. Does my broker notify me before expiry?
Most platforms send email reminders 30 to 60 days before your W-8BEN expires. However, setting your own calendar reminder is a smart backup. Relying solely on broker notifications is risky.
23. Can I submit W-8BEN through a paper form?
Yes. You can download the form from the IRS website, fill it out by hand, and mail it to your broker. However, digital submission through your brokerage platform is faster and more accurate, and it is the standard practice today.
24. What is the difference between W-8BEN and W-8BEN-E?
W-8BEN is for individuals. W-8BEN-E is for entities like companies, LLPs, or partnerships. If you invest personally, you must always file a Form W-8BEN. Sole proprietors also use W-8BEN since they are treated as individuals for this purpose. W-8BEN-E is an eight-page form with additional FATCA classification requirements.
Renewal questions
25. How long is W-8BEN valid?
The form stays valid for three calendar years from the date of signing. A form signed at any time in 2024 expires on December 31, 2027. A form signed in 2025 expires on December 31, 2028. Note that the validity runs until December 31 of the third year — not three years from the exact signing date. This means signing on January 1 or December 31 of the same year yields the same expiry date.
26. What triggers early renewal?
A change in your circumstances requires a new W-8BEN within 30 days. This includes changing your country of residence, getting a U.S. tax ID, or a name change due to marriage. A simple address change within India does not require early renewal.
27. Is the renewal process different from the first submission?
No. Renewal involves filling out the same form with your current details. Most platforms auto-populate the renewal form and send a link for quick review and e-signature.
28. What happens if I miss the renewal deadline?
Your broker reverts to the default 30% withholding on all US-source income. Some brokers, such as Firstrade, may also withhold 24% of stock sale proceeds and restrict trading. Submit a new form immediately to restore treaty rates. The good news is that renewal takes the same few minutes as the original filing. Most platforms send you a pre-filled form — review, sign, and submit.
Troubleshooting common issues
29. My W-8BEN was rejected. What went wrong?
The most common reasons for rejection include a name mismatch between the form and your passport or PAN, a missing PAN on Line 6a, a U.S. address listed as permanent residence, an incorrect date format, blank Part II treaty claims, or an outdated form version. Review each field carefully against your passport, correct the errors, and resubmit. Most platforms allow unlimited resubmissions at no cost.
30. I filed W-8BEN, but still see 30% withholding. Why?
This usually indicates that Part II was left incomplete or incorrect. Without a proper treaty claim citing India and Article 10, your broker cannot apply the reduced rate. Contact your broker's support team, confirm your form details, and request a corrected filing. Some brokers refund excess withholding once the corrected form is processed.
This W-8BEN Q&A for Indian investors covers the most common scenarios retail investors face. However, tax situations can be unique — especially for investors who also hold U.S. real estate, earn freelance income from U.S. clients, or have complex multi-country residency histories. If your specific question is not listed here, reach out to your brokerage platform or consult a chartered accountant who specialises in cross-border taxation. These frequently asked W-8BEN questions address about 95% of what retail investors encounter, but personalised guidance is still needed for complex cases. Keep this page bookmarked, check back during each renewal window, and stay ahead of your tax compliance.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
Every Indian investor in U.S. stocks encounters Form W-8BEN during account setup. The form looks simple—just one page—but it raises dozens of questions about eligibility, filing, treaty benefits, and renewal. A single mistake in Part II can cost you 5% extra on every dividend payment for three full years. This W-8BEN FAQ India guide answers the 30 most frequently asked questions in plain language. Bookmark it as your quick W-8BEN reference guide and revisit it each time a question pops up during filing or renewal.
Eligibility and basics
1. What is Form W-8BEN?
Form W-8BEN is an IRS document that certifies your status as a non-US person. It designates the beneficial owner of US-source income and allows claimants to reduce tax withholding under the India-US tax treaty. Your broker keeps it on file and does not send it directly to the IRS.
2. Do all Indian investors need to file W-8BEN?
Yes. Every Indian resident who holds U.S. stocks, ETFs, or other U.S.-Source income-generating assets must submit a valid Form W-8BEN. Without it, your broker withholds tax at the full 30% statutory rate on dividends and interest. This applies regardless of the investment amount — even if you hold a single fractional share worth $10.
3. Do NRIs returning to India also need W-8BEN?
Absolutely. If you return to India and become a resident, you should update your W-8BEN to reflect India as your country of residence. This activates treaty benefits and prevents unnecessary over-withholding on your existing U.S. holdings.
4. Is W-8BEN required for U.S. mutual funds bought through Indian platforms?
W-8BEN applies when you directly hold U.S. securities through a U.S. brokerage account. Indian mutual funds that invest in the U.S. handle withholding at the fund level. However, platforms such as Winvesta, Vested, and INDmoney require a W-8BEN at account opening to access direct U.S. stock.
5. Can minors file W-8BEN?
Yes. A parent or legal guardian signs the form on behalf of the minor. The minor's PAN and personal details go on the form, while the guardian signs Part III.
6. What happens if I skip filing W-8BEN entirely?
Your broker applies the default 30% withholding rate on all US-source income. Some brokers also withhold 24% on sales proceeds and may restrict trading until a valid form is submitted. Over time, this adds up significantly. On $5,000 in annual dividends, skipping the form costs you $250 more than necessary every year.
How to fill in the form correctly
7. Which version of W-8BEN should I use?
Use the October 2021 revision. The IRS has confirmed no updates as of February 2026. Your broker will reject older versions.
8. What do I enter in Line 6a (Foreign Tax Identifying Number)?
Enter your Indian PAN number. For example, ABCDE1234F. This is mandatory when claiming treaty benefits under Part II. Leaving it blank may void your treaty claim.
9. Should I fill in Line 5 (U.S. Taxpayer ID)?
Most Indian investors leave this blank. You only need a US SSN or ITIN if you have one. The absence of a U.S. tax ID does not prevent you from filing the form.
10. What goes in Part II for treaty benefits?
Line 9 should say "India." Line 10 should reference Article 10 of the India-US treaty for dividends at 25%, or Article 11 for interest at 15%. Write a brief statement such as: "Resident of India claiming benefits under Article 10; rate of withholding: 25% on dividends."
11. What date format does the form use?
The W-8BEN uses the American format: MM-DD-YYYY. Indian investors often write dates in DD-MM-YYYY format by habit, which causes rejection. Double-check before signing.
12. Can I sign W-8BEN electronically?
Yes, if the electronic signature includes a timestamp and verification of the authorised signer. Platforms like Vested and Winvesta handle this digitally during onboarding. Simply typing your name does not qualify as a valid e-signature.
13. Do I submit W-8BEN directly to the IRS?
No. You submit it to your broker or withholding agent. The broker retains the form and applies the correct withholding rate. The IRS never receives this form from you.
If you need a detailed walkthrough, the W-8BEN and W-8BEN-E form guide for Indians covers every line with screenshots and examples.
Tax benefit queries
14. How much tax does W-8BEN save on dividends?
Without W-8BEN, the U.S. withholds 30% on dividends. With a valid form claiming India treaty benefits, the rate drops to 25%. On a $1,000 dividend, you save $50 outright. Over a decade of regular investing, this difference compounds into meaningful wealth. This W-8BEN requires clarification; India investors often overlook the direct impact on long-term portfolio returns.
15. Does W-8BEN reduce tax on capital gains?
Non-resident aliens are generally exempt from the U.S. capital gains tax on stock sales under U.S. law. W-8BEN does not create this exemption — it already exists. However, without a valid form, some brokers withhold 24% on proceeds as a precaution.
16. What is the treaty rate on interest income for Indians?
The India-US DTAA sets the interest withholding rate at 15% under Article 11. Banks and financial institutions may qualify for a further 10% reduction.
17. Can I claim a Foreign Tax Credit in India for the U.S. tax withheld?
Yes. File Form 67 on the Indian income tax portal before submitting your ITR. Report U.S. income in Schedule FSI, claim credits in Schedule TR, and disclose foreign assets in Schedule FA. This prevents double taxation and ensures you pay only the net difference between the U.S. and Indian tax rates. Schedule FA disclosure is mandatory even if there are no gains, and non-compliance attracts penalties under the Black Money Act.
18. Does W-8BEN affect TCS on LRS remittances?
No. The 20% TCS on LRS transfers above ₹7 lakh per financial year is collected by your Indian bank at the time of remittance. W-8BEN only affects US-side withholding on investment income. TCS is refundable when you file your Indian ITR.
19. What if I receive dividends during a gap when my W-8BEN has expired?
Dividends received without a valid W-8BEN are taxed at 30%. Some brokers refund the excess retroactively once you submit a new form. Others require you to file IRS Form 1040-NR to claim a refund directly from the IRS.
20. Are U.S. capital gains taxed in India?
Yes. India taxes capital gains from U.S. stocks under its domestic rules. Long-term gains on holdings over 24 months attract 12.5% tax. Short-term gains are taxed at your applicable income tax slab rate.
For a full breakdown of how dividends and capital gains are taxed, see the tax implications guide for Indian investors in U.S. stocks.
Process questions
21. How do Indian platforms handle W-8BEN?
Most major platforms auto-fill the W-8BEN using your KYC data during account opening. Vested, Winvesta, and INDmoney all complete this digitally. You review the pre-filled form and accept it electronically. The entire process takes minutes and eliminates the risk of manual errors. Groww has discontinued U.S. stock services, so existing Groww users must transfer holdings elsewhere via ACAT.
22. Does my broker notify me before expiry?
Most platforms send email reminders 30 to 60 days before your W-8BEN expires. However, setting your own calendar reminder is a smart backup. Relying solely on broker notifications is risky.
23. Can I submit W-8BEN through a paper form?
Yes. You can download the form from the IRS website, fill it out by hand, and mail it to your broker. However, digital submission through your brokerage platform is faster and more accurate, and it is the standard practice today.
24. What is the difference between W-8BEN and W-8BEN-E?
W-8BEN is for individuals. W-8BEN-E is for entities like companies, LLPs, or partnerships. If you invest personally, you must always file a Form W-8BEN. Sole proprietors also use W-8BEN since they are treated as individuals for this purpose. W-8BEN-E is an eight-page form with additional FATCA classification requirements.
Renewal questions
25. How long is W-8BEN valid?
The form stays valid for three calendar years from the date of signing. A form signed at any time in 2024 expires on December 31, 2027. A form signed in 2025 expires on December 31, 2028. Note that the validity runs until December 31 of the third year — not three years from the exact signing date. This means signing on January 1 or December 31 of the same year yields the same expiry date.
26. What triggers early renewal?
A change in your circumstances requires a new W-8BEN within 30 days. This includes changing your country of residence, getting a U.S. tax ID, or a name change due to marriage. A simple address change within India does not require early renewal.
27. Is the renewal process different from the first submission?
No. Renewal involves filling out the same form with your current details. Most platforms auto-populate the renewal form and send a link for quick review and e-signature.
28. What happens if I miss the renewal deadline?
Your broker reverts to the default 30% withholding on all US-source income. Some brokers, such as Firstrade, may also withhold 24% of stock sale proceeds and restrict trading. Submit a new form immediately to restore treaty rates. The good news is that renewal takes the same few minutes as the original filing. Most platforms send you a pre-filled form — review, sign, and submit.
Troubleshooting common issues
29. My W-8BEN was rejected. What went wrong?
The most common reasons for rejection include a name mismatch between the form and your passport or PAN, a missing PAN on Line 6a, a U.S. address listed as permanent residence, an incorrect date format, blank Part II treaty claims, or an outdated form version. Review each field carefully against your passport, correct the errors, and resubmit. Most platforms allow unlimited resubmissions at no cost.
30. I filed W-8BEN, but still see 30% withholding. Why?
This usually indicates that Part II was left incomplete or incorrect. Without a proper treaty claim citing India and Article 10, your broker cannot apply the reduced rate. Contact your broker's support team, confirm your form details, and request a corrected filing. Some brokers refund excess withholding once the corrected form is processed.
This W-8BEN Q&A for Indian investors covers the most common scenarios retail investors face. However, tax situations can be unique — especially for investors who also hold U.S. real estate, earn freelance income from U.S. clients, or have complex multi-country residency histories. If your specific question is not listed here, reach out to your brokerage platform or consult a chartered accountant who specialises in cross-border taxation. These frequently asked W-8BEN questions address about 95% of what retail investors encounter, but personalised guidance is still needed for complex cases. Keep this page bookmarked, check back during each renewal window, and stay ahead of your tax compliance.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
