How Does DriveWealth Handle Qualified Interest Income (QII) for Treasury ETFs like SGOV & USFR?

General
1

Hi everyone,

I have a question regarding how DriveWealth (used by platforms like Vested Finance) handles Qualified Interest Income (QII) from U.S. Treasury ETFs such as SGOV (iShares 0-3 Month Treasury Bond ETF) and USFR (WisdomTree Floating Rate Treasury Fund).

Since QII from U.S. Treasuries is exempt from the 30% U.S. withholding tax for non-resident investors, I wanted to clarify:

  1. Does DriveWealth automatically recognize and exempt QII from withholding tax, or is the 30% tax deducted upfront?
  2. If tax is withheld, does DriveWealth facilitate any refund process, or do investors need to claim it as a Foreign Tax Credit (FTC) while filing their ITR in India?
  3. Has anyone using Vested Finance noticed withholding on their Treasury ETF dividends, and how have you handled it in tax filings?

Would love to hear insights from anyone familiar with this. Thanks!