What TDS applies on payments to a non-resident under Section 195?

Question

tdsguru.in (CA firm) · Accepted Answer

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 — there is no basic threshold. Section 195 requires TDS on any sum chargeable to tax in India paid to a non-resident — interest, royalty, fees for technical services, capital gains, etc. The rate is as per the Income-tax Act read with the applicable Double Taxation Avoidance Agreement (DTAA), whichever is more beneficial. Unlike resident sections, there is no minimum threshold. The payer typically files Form 15CA (and Form 15CB from a CA where required) before remittance, and reports the deduction in Form 144 (earlier 27Q).