What is TDS on NRO interest and how do I get it reduced using the tax treaty?

Banks in India deduct Tax Deducted at Source on NRO interest at a steep rate, roughly 30% plus surcharge and cess for non-residents, remitting it to the Indian tax authorities before you ever see the interest. The US-India tax treaty caps interest withholding at a lower rate (commonly 15%), but you must claim it by giving your bank a Tax Residency Certificate from the US (Form 6166 from the IRS) plus Form 10F. Without those, the bank applies the higher domestic rate. You can also file an Indian tax return to recover excess TDS as a refund if your total Indian income is low. On your US return, claim a foreign tax credit for the Indian tax paid to avoid double taxation.