TDS Rates for payment to Non Resident FY 2018-19, AY 2019-20

Tax Deducted at source rate for payment to NRI for Financial Year 2018-2019, Assessment Year 2019-2020 is as under:

 

 

 

 

 

1. Payment to NRI - TDS Rates FY 2018-19

Nature of Payment Section Threashold TDS Rate
Salaries 192 As per Slab -
Premature withdrawal of EPF 192A 50,000 10%
Winning from Lotteries 194B 10,000 30%
Winning from Horse Race 194BB 10,000 30%
Non-Resident Sports Men or Sports Association 194E   20%
National Saving Scheme 194EE 2,500 10%
Repurchase Units by MFs 194F   20%
Commission - Lottery 194G 15,000 5%
Income from Infrastructure Debt Fund to Non resident 194LB   5%
Income distribution by a Investment Fund received or receivable by it from a SPV 194LBA(2)   5%
Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset. 194LBA(3)   30%
Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. 194LBB   30%
Income distribution by a Securitisation Trust u/s 115TCA 194LBC   30%
Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) 194LC   5%
Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor 194LD   5%
Other Payment to Non Resident / Foreign Company 195    
(a) Income from investment made by a Non-Resident Indian Citizen     20%
(b) Long Term Capital Gain referred to in Section 115E     10%
(c) Long Term Capital Gain referred to in Section 112(1)(c)(iii)     10%
(d) LTCG referred to in Section 112A     10%
(e) Short Term Capital Gain under Section 111A 15%
 
    15%
(f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]     20%
(g) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)     20%
(h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).     10%
(i) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.     10%
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy     10%
(k) Any other income     30%
Income from units (including long-term capital gain on transfer of such units) to an offshore fund 196B   10%
Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 196C   10%
Income of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 194D   20%

Note : TDS Rates without PAN : 20% flat (if TDS rate is lower than 20%)

 

 

 

Surcharge and Health & Education cess on payments to Non-Resident and Foreign Companies

Non Resident - if income/payment exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore 10%
Non Resident - if income/payment exceeds Rs. 1 Crore 15%
Foreign companies - if income/payment is between Rs.1 Crore and 10 Crore 2%
Foreign companies - if income/payment is above Rs. 10 Crore 5%
Non-Resident Co-operative Society and Firms - if income/payment exceeds Rs. 1 crore 12%
Health & Education Cess 4% of (TDS/Tax + Surcharge)

 

Note:

1. TDS at higher rate of 20% or TDS rate, whichever is higher, has to be deducted if the deductee does not provide PAN to the deductor (section 206AA).

2. All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).

 

 

 

 

2. NRI TDS Deposit Due Dates

Month of Deduction Due date for Payment
April 7th May
May 7th June
June 7th July
July 7th August
August 7th September
September 7th October
October 7th November
November 7th December
December 7th January
January 7th February
February 7th March
March 30th April

 

 

 

3. NRI TDS Return forms

TDS forms to be submitted Type of Deductee
Form 24Q Deductions made from salaried
Form 26Q Deductions made from Non salaried people
Form 27Q Deduction made from payment to NRI

 

 

4. NRI TDS return filing dates

Quarter Ending Due date to file return by all deductors
30th June 31st July
30th September 31st October
31st December 31st January
31st March 31st May

 

 

 

5. Penalty for late filing TDS Return

As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.


TDS/TCS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.

 

6. Refund of TDS

If the tax liability of the assessee is less than the TDS amount, the difference amount can be claimed at the time of filing income tax return. The extra amount will be refunded to the bank account of the assessee.

 

 

Home     About Us     Privacy Policy     Disclaimer     Sitemap