Yes. A non-resident (including foreign companies, NRIs, or foreign entities) is subject to Tax Deducted at Source (TDS) in India if the income is chargeable to tax in India, under the Income Tax Act or DTAA provisions.
Non-residents are generally subject to TDS on: Interest income (e.g., NRO account interest) Rent from immovable property in India Capital gains (from sale of property/shares) Fees for technical or professional services Royalty or software payments Dividends (subject to DTAA conditions) Commission or brokerage
TDS rates vary based on the nature of income and whether DTAA benefits are claimed. Examples: Interest (NRO): 30% + surcharge & cess LTCG on listed securities (Section 112A): 10% Royalty/FTS: 10% to 15% (under DTAA) Property sale: 20% for LTCG or 30% for STCGSurcharge and cess apply, and TRC is needed for DTAA rates.
Yes. The buyer is required to deduct TDS at 20% (LTCG) or 30% (STCG) on the capital gain portion, not the sale price. A CA certificate (Form 15CB) is often obtained to determine the actual tax liability.
Yes. Remittances from NRO accounts(after payment of applicable tax) are subject to TDS, unless the income is not chargeable to tax (e.g., principal amount). Form 15CA/15CBcompliance is required.
TCS applies to specified transactions like: Purchase of goods above ₹50 lakh from a seller by a buyer (TCS u/s 206C(1H)) Overseas tour packages (TCS u/s 206C(1G)) Remittances under LRS above ₹7 lakh (TCS at 5% or 20%)Non-residents without a permanent establishment in India may be exempt from certain TCS provisions(subject to conditions).
Yes. Dividends paid to non-residents are subject to TDS at 20% under domestic law, or a lower rate under DTAA, subject to furnishing TRC and Form 10F.
No. Interest earned on NRE and FCNR accounts is exempt from income tax if the individual qualifies as a non-resident under FEMA and complies with RBI regulations. Hence, no TDS is applicable.
Yes. To claim reduced TDS rates under a Double Taxation Avoidance Agreement (DTAA), the non-resident must furnish: A valid Tax Residency Certificate (TRC) Form 10F A self-declaration of beneficial ownership and no Permanent Establishment (if applicable)
Yes. Non-residents can file an income tax return in India to: Claim refund of excess TDS Report actual income and applicable deductions This is especially useful in property sale or capital gain cases.
Yes, if the payment is chargeable to tax in India, such as: Royalty or technical service fees Software payments Business income attributable to a Permanent Establishment (PE) in IndiaTDS can be avoided or reduced via DTAA, subject to documentation.
