Form 27Q: TDS Return in Case of Payments to NRI

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  • Last Updated on 28 February, 2022

1. What is Form no. 27Q?

Form No. 27Q is the statement of TDS return that is required to be filed when tax is deducted and deposited while making payments (other than salary) to non-residents. The table is given below for reference. It is required to be furnished every quarter just like Form 24Q (for salary payments) and form 26Q (for non- salary payments).

2. Rate Chart for TDS deductions in case of Payment to Non-resident for which TDS return is filed in FORM NO. 27Q for the AY 2020-21:

SECTIONS

NATURE OF PAYMENTS

RATES

194E

Payments to non-resident Sportsmen/ Sports Associations

20%

194LB

Payment of interest on infrastructure debt fund

5%

194LC

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)

 

5%

 195-Other sums payable to non-residents:

Payment in respect of investment made by a Non-resident Indian Citizen

 20%

 

Payment to Non-resident Indian Citizen in respect of Investments from assets other than specified assets in form of long-term capital gains

10%

 

Payment to non-resident Indian Citizens in respect of unlisted securities or shares of the company other than a public company. Capital gains in respect of such asset as computed without giving effect to the first and second proviso to section 48;

10%

 

Payment made to non-residents that forms part of their income by way of long-term capital gains as referred to in Section 112A

10%

 

Payment made to non-residents that forms part of their income by way of short-term capital gains referred to in Section 111A

15%

 

Any other payment made to non-residents that forms part of their income by way of long-term capital gains [not being long-term capital gains referred to in section 10(33), 10(36) and 112A

20%

 

Payment of interest by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)

20%

 

Payment of royalty by Government or an Indian concern in relation with the transfer to rights of copyrights, computer software, and other agreements.

10%

 

Payment of fees for technical services by the Government or an Indian concern

10%

 

Any other income

30%

196B

Payments in respect of units to an offshore fund

10%

196C

Payment to non-residents in respect of Foreign currency bonds or shares of Indian Company

10%

196D

Payment to foreign institutional investors in respect of securities (not being dividend or capital gain arising from such securities)

20%

3. Content of Form 27Q

The content of TDS Return in form 27Q in respect of the payments made to the non- residents. 

1. Tan Deduction & Collection Account Number (TAN).

2. Permanent Account Number (PAN).

3. Financial Year for which the return has been filed.

4. Details of Deductor : Name, TAN & Address.

5. Details of Deductee : Name, PAN & Address.

6. Details of Tax deducted and paid to the government along with the details of challan by way of which the payment was made.

7. Deductee wise breakup of TDS in separate annexure for each deductee.

8. Verification statement signed by the Deductor of Tax.   

4. Due dates for deposit of TDS on Payment to Non-residents for AY 2020-21:

4.1 The due dates for deposit of TDS by non-government deductors: 

S.NO

PARTICULARS

DUE DATE

1

For the month of April- Feb

7th of next month

2

For the month of March

April 30, 2020

4.2 The due dates for deposit of TDS by government deductors: 

S.NO

PARTICULARS

DUE DATE

1

Without challan

Same day

2

With challan

7th of next month

 

5. Filing of return of TDS on non-salary payments to Non-residents:

A statement of return in Form No. 27Q reflecting the details of payments made for all the sections covered in the above table and the TDS deducted on such payments has to be filed for every quarter as per the TDS return filing procedure, the due dates for which are tabulated below:

6. TDS Return Due Date for AY 2020-21:

QUARTER

QUARTER PERIOD

DUE DATE

1st Quarter

1st April to 30th June

31st July 2019

2nd Quarter

1st July to 30th September

31st October 2019

3rd Quarter

1st October to 31st December

31st January 2020

4th Quarter

1st January to 31st March

31st May 2020

7. Preparation of return FORM no. 27Q

Return can be prepared online by using NSDL e-Gov e-TDS/TCS Return Preparation Utility (RPU) that can be downloaded free of cost from the website of TIN. Prepared return has to be submitted to any of the TIN-FCs established by NSDL e-Gov.

8. Status of TDS return field:

Status of statement of TDS return filed by the taxpayer can be checked online using the PAN and the Provisional receipt number/ Token number on the website of NSDL.

8.1 Interest attached with Form 27Q:

Particulars

Interest Rate

If not DEDUCTED

1% per month or part of the month from due date of deduction to actual date of deduction

If not DEPOSITED

1.5% per month or part of the month from the

actual date of deduction to the actual date of payment

8.2 Penalty attached with Form 27Q:

Section

Minimum penalty

Maximum Penalty

Late filing of 27Q

(Penalty u/s 234E)

@200 per day until filing of return

Maximum penalty can be equal to the amount of TDS deducted

Non- filing of 27Q

Penalty u/s 271H*

10,000/-

1,00,000/-

* No penalty will be charged under 271H if following conditions are satisfied–

    • TDS is deposited to the government
    • Late filing fees and interest (if any) is also deposited
    • Return is filed before expiry of 1 year from due date

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

6 thoughts on “Form 27Q: TDS Return in Case of Payments to NRI”

  1. NRI property sale: Can NRI himself file the 27Q for TDS either online or manually without the use of buyer PAN login

    1. “As per section 194 IA of Income-tax Act, buyer has to deduct TDS @ 1% when seller is resident and value of property is exceeding 50 lacs. Form 26QB to be submitted by buyer in this case.
      In case of non resident seller TDS to be deducted under section 195. Form 27Q need to be filed by buyer in this case.”

  2. Hi there, just became alert to your blog through Google, and found that it is truly informative. I am gonna watch out for brussels. I’ll appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!

  3. how i can fill up 27q form and make payment of tds to avoid penalty it is very complicated for common people .

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