What is Form 144 / 27Q used for?

It is the quarterly TDS return for tax deducted on payments made to non-residents — for example interest, rent, royalty, technical fees, or purchase of property from an NRI, mostly deducted under Section 195. Under the Income-tax Act 2025 the form is renumbered 144 (from 27Q) for Tax Year 2026-27.

What if the non-resident has no PAN?

Without a valid PAN, TDS is generally 20% under Section 397(2) (old 206AA). To claim a lower DTAA rate, the deductee must furnish a PAN, a Tax Residency Certificate and Form 10F; the return then captures the DTAA details.

Are Form 15CA and 15CB needed?

For most foreign remittances, the remitter files Form 15CA and, where required, a Chartered Accountant issues Form 15CB before the remittance. These are separate from the 27Q/144 return but are usually prerequisites for the payment.

What are the due dates for Form 144 / 27Q?

Quarterly: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, and Q4 by 31 May of the next financial year. The TDS itself is deposited by the 7th of the following month.

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How to File Form 144 / 27Q: TDS Return for Payments to Non-Residents

2026-06-30 · 8 min read · by a CA firm

Form 144 (earlier Form 27Q) is the quarterly TDS return for tax deducted on payments to non-residents — interest, rent, royalty, technical fees, or buying property from an NRI. It is more demanding than a domestic return because of PAN, DTAA and foreign-remittance rules. This guide walks through it end to end.

27Q or 144 — which name?

Under the Income-tax Act 2025, the non-resident TDS return (Form 27Q) is renumbered Form 144 from Tax Year 2026-27. For statements up to FY 2025-26 you still use 27Q. The process and utilities are the same.

When this return applies

You file Form 144 / 27Q if you have deducted TDS on a payment to a non-resident — most commonly under Section 195, but also for specific cases like buying immovable property from an NRI. Resident-only payments go in Form 140 (ex-26Q); this form is exclusively for non-resident deductees. See the Section 195 guide for the deduction rules.

Before you file — prerequisites

A valid TAN (the return cannot be filed without one).
TDS already deducted and deposited by challan (by the 7th of the next month), so you have the challan details.
Deductee details: name, address and PAN. If there is no PAN, capture the TIN, country of residence, full address, email and phone.
For a DTAA (treaty) rate: the deductee’s Tax Residency Certificate (TRC) and Form 10F, plus a PAN — the return records the DTAA details.
For a foreign remittance: usually Form 15CA (remitter declaration) and, where required, Form 15CB (a CA’s certificate) before the remittance. These are separate from the return but are normally prerequisites for the payment.

Step by step

Deduct & deposit. Deduct TDS at the time of credit or payment (whichever is earlier) and deposit it by the 7th of the next month using the correct challan.
Gather the data listed above — challan, deductee and DTAA details.
Download the RPU. Get the free Return Preparation Utility (RPU) from the Protean (NSDL) TIN website.
Prepare the statement. In the RPU, create a Form 27Q / 144 statement and enter the deductor (your TAN), the challan rows, and a deductee row for each non-resident with the rate applied (normal, DTAA or no-PAN).
Validate with FVU. Run the File Validation Utility (FVU); fix any flagged errors and generate the validated .fvu file.
File the return. Either upload the .fvu file on the income-tax e-filing portal (log in with your TAN and sign with DSC/EVC) or submit it at a TIN facilitation centre (TIN-FC).
Issue the certificate. After the statement is processed, download and give the deductee a Form 130 (earlier Form 16A) TDS certificate.

The PAN and DTAA nuances

Without a valid PAN, TDS on a non-resident payment is generally 20% under Section 397(2) (the old 206AA). To apply a lower DTAA rate, the deductee must furnish a PAN, a TRC and Form 10F; the return then carries the DTAA country and rate. Getting this wrong is the most common cause of short-deduction notices on non-resident payments — decide the correct rate before you remit, not after.

Due dates

Quarterly: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May of the next financial year. (The TDS itself is deposited monthly, by the 7th.) Late filing attracts the ₹200/day fee under Section 234E, and late deduction or deposit attracts interest under 201(1A).

Common mistakes

Filing non-resident deductions in the resident return (Form 140) by mistake; applying a DTAA rate without the TRC and Form 10F on file; missing Form 15CA/15CB before remitting; and not capturing the country and address when the deductee has no PAN. Each can trigger a default or hold up the remittance.

Frequently asked questions

What is Form 144 / 27Q for? The quarterly TDS return for payments to non-residents (mostly under Section 195).

No PAN? TDS at 20%; a DTAA rate needs PAN + TRC + Form 10F.

Form 15CA/15CB? Usually required before a foreign remittance; separate from the return.

Due dates? Q1 31 Jul, Q2 31 Oct, Q3 31 Jan, Q4 31 May; TDS deposited by the 7th monthly.

Related: the Section 195 guide, the TDS due-date calendar, and the TDS glossary (Form 144, TRC, DTAA).

General information for FY 2026-27 under the Income-tax Act 2025, not advice on your specific case. Non-resident taxation is fact-specific — verify the rate and treaty position or talk to a CA before you remit.