Does a non-resident need a PAN to avoid 20% TDS?
Category
Non-resident & Form 27Q
Answered by
A CA firm
Bottom line
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-PE declaration) under Rule 37BC for specified payments.Ordinarily, no PAN means TDS at the higher of 20% or the applicable rate under Section 397(2). However, Rule 37BC relaxes this for non-residents receiving specified incomes (interest, royalty, fees for technical services and certain others).
If the non-resident provides their name, address, country, Tax Residency Certificate, Form 10F and (where relevant) a no-permanent-establishment declaration, the treaty/Act rate applies instead of 20% even without a PAN.
General information for FY 2026-27 under the Income-tax Act 2025, not advice on your specific case. Verify against the latest law or ask a CA before acting.