Blog > Tax Deducted at Source(TDS) on NRIs Under Section 195

Tax Deducted at Source(TDS) on NRIs Under Section 195

by Varun Advani | 27 June 2015

WHEN AND TAX IS TO BE DEDUCTED AT SOURCE WHILE MAKING ANY PAYMENT TO A NON-RESIDENT INDIAN [SEC.195]

 

The provisions of section 195 are given below-

Who is the payer

Any person (resident or non –resident) responsible for making payment to a non –resident

Who is the recipient

A non – resident

Payment covered

A non-resident (other than salary) which is taxable in the hands of recipient in India

At what time tax has to be deducted at source

At time of payment or at the time of credit, whichever is earlier

Maximum amount which can be paid without can be paid tax deduction

 

Rate of tax deduction at source

 

When the provision are not applicable

If in the hands of the recipient, the amount is not chargeable to tax in India

Is it possible to get the payment without tax deduction or with lower tax deduction

The recipient can make an application to the Assessing officer to get a certificate of lower tax deduction.

 

 

 

 

 

 

NRI Taxation