In a simple taxpayer language .. Filing Form 27Q is needed by the Buyer or tenant for payments to NRIs in the area of House Rents, Purchase of a Property, any other payments (other than the Salary)
* Above are needed from the Buyer, except where mentioned otherwise.
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A comprehensive list of frequently asked questions on TDS Returns On NRI Payments.
Any person (resident or Non Resident) who is liable to pay any sum to NRI’s are required to deduct TDS u/s 195 and file Form 27Q.
Following are the TDS rates applicable for different types of payments to NRI
The above TDS rates are only Tax rates. Corresponding Education cess @ 4% and Surcharge @ 10%/15%/25% depending on the income should be deducted along with above tax rates
If the Form 27Q is not filed within due date, there is a late fee of Rs 200 per day u/s 234E. The maximum late fee is restricted to total TDS amount.
There is no threshold limit for deduction of TDS on payments to NRI. If the Income of NRI is liable to tax in India, then the deductor (payer) needs to deduct TDS u/s 195 and file Form 27Q
Section 195 is not applicable in case of following payments