Non-resident & Form 27Q
10 common TDS questions on non-resident & form 27q, answered by a CA firm and kept current for FY 2026-27.
What TDS applies on payments to a non-resident under Section 195?
Any sum chargeable to tax in India paid to a non-resident attracts TDS under Section 195 at the rates in force, read with the relevant DTAA …
How does a DTAA reduce TDS on a payment to a non-resident?
A DTAA often caps the rate on interest, royalty or technical fees below the Act's rate; to apply it, the non-resident must give a Tax Reside…
What are Form 15CA and Form 15CB, and when are they required?
Form 15CA is the remitter's online declaration for a foreign remittance, and Form 15CB is a CA's certificate on its taxability — 15CB is nee…
What TDS applies when I buy property from an NRI?
TDS is under Section 195 (not 194-IA) — deduct at the capital-gains rate plus surcharge and cess (about 12.5%–15% on long-term gains), and y…
Is TDS deducted on a payment to a foreign company for software or services?
It depends on whether the payment is taxable in India as royalty or fees for technical services under the Act and the DTAA — if it is, deduc…
What is Form 27Q (now Form 144) and what details does it need?
It is the quarterly TDS return for payments to non-residents, and it needs the payee's country, PAN (or its absence), the nature of remittan…
Does a non-resident need a PAN to avoid 20% TDS?
Not necessarily — a non-resident can avoid the 20% no-PAN rate by furnishing the prescribed details (name, address, TRC, Form 10F and a no-P…
What TDS applies on interest or rent paid to an NRI?
Deduct under Section 195 at the applicable rate (often around 30% for rent and varying rates for interest, subject to DTAA), file Form 15CA/…
How is TDS on fees for technical services paid to a non-resident taxed?
Fees for technical services to a non-resident are taxed under Section 195 at the Act rate (commonly 20% plus surcharge and cess) or the lowe…
What is a Tax Residency Certificate (TRC) and why is it needed?
A TRC is a certificate issued by the payee's home country confirming tax residence; it is mandatory to claim DTAA benefits on Indian TDS.…
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