Section 195: TDS on Other Payments Made to NR (Individual) or Foreign Company
Who is required to deduct TDS u/s 195?
Any person (resident or non-resident) who pays any sum other than salary to a non-resident is required to deduct TDS tax under this section.
What is the rate & time of tax deduction u/s 195?
The rate of tax deduction u/s 195 shall be either of the below rates whichever is beneficial to you :
- Specified in the Double Taxation Avoidance Agreements between India and the country of the payee.
- Specified in the Income Tax Act.
Further, if the payee doesn’t have a PAN then rate could be rate as per the law in force or 20% whichever is higher.
No Requirement of TDS
No such exemption is provided in this section.
Frequently Asked Questions
Q- What is the conditions & procedure to avail DTAA benefit by NR?
Ans. DTAA is an agreement between the 2 countries. This agreement provides benefit that the income is taxed once. The assessee has to file form 10F and self declaration to person responsible for deducting tax.
Q- Section 195 an IT company has to pay professional fees to a company based in the USA which doesn't have any permanent establishments in India nor a PAN card, at what rate TDS should be deducted?
Q- Can I pay 1% TDS under section 194IA for purchasing a property from an NRI?
Ans. Tds on purchase of property from non resident is deducted in section 195. When purchase on property from non resident tds is deducted on capital gains not on the sale prices .
Q- Under which section is tax withheld on sitting fees to a non-resident director of an Indian company?
Ans. Section 194J for resident payee and Section 195 for non resident payee
Q- What will be the head under which the income from dance performance will be shown as per the Income Tax Act, 1961?
Ans. If the main income is income from dance performance than income is shown in profession and if main income is other than income from dance performance then income shown in other sources.
Q- What is Tax residency certificate and how & where to get that?
Ans. Tax residency certificate is required from the resident country tax authorities to claim relief under DTAA
Q- Do I need a TAN to pay TDS under Section 195 while buying a property from an NRI?
Ans. TAN is necessary to deduct TDS. you must apply for the TAN.
Q- What are the details should contains in TRC?
Ans. The following details shall contains in TRC
- Name of assessee
- Status of assessee
- Nationality of assessee
- Residential status
- Period for which the certificate is applicable
- Address of applicant for the period for which the certificate is applicable
Last Date : New
People also ask
- The Most Comprehensive Guide on TDS in India
- TDS Return Filing Online
- Form 16B
- Form 16C
- Form 15G & 15H: Save TDS on Interest Income
- TRACES Login: Login into TDS TRACES Website
- TRACES Registration: Register on TDS TRACES Website
- Section 192 : TDS on Salary Computation under Income Tax Act
- Section 194L Series : Payment of Compensation on Acquisition of Capital Asset
- Section 194A: TDS on Interest other than Interest on Securities
- Section 194B & 194BB : TDS On Winning From Lottery Or Race Horse
- Section 194D & Section 194DA : TDS on Insurance Commission
- Section 194H: TDS on Commission & Brokerage
- Section 194I, 194IB & 194IC: TDS On Rent
- Section 194-IB: TDS On Rent Of Property
- Section 194G & Section 194H under Income Tax Act
- Section 194M: TDS on Payment to Resident Contractors and Professionals
- Section 195: TDS on NRI Selling Property In India
- TDS Challan ITNS 281: Pay TDS Online with e-Payment Tax
- TDS Payment Online: Procedure & Types Of Challans
- OLTAS Application: View challan status on TRACES
- Section 44AD: Presumptive Taxation Scheme
- TDS on Withdrawal from the EPF Account
- TDS Return on Salary Payment
- TDS Return on Payments to NRIs
- TDS on Purchase of Immovable Property
- TDS Return filing for Non Salary Deductions
- Post Office Monthly Income Scheme: Interest Rate & Features
- Difference between TDS in Income Tax and TDS in GST
- TDS Return Filing Online: Eligibility, Due Dates & Revised TDS
- Form 16B: Download TDS Certificate for Sale of Property
- Form 16C: TDS Certificate for Rent of Property
- Form 24Q: TDS Return on Salary Payment
- Form 26Q: TDS Return filing for Non Salary Deductions
- Form 26QB: TDS on Purchase of Immovable Property
- Form 27Q: TDS Return on Payments to NRIs