Form 27Q: TDS Return in Case of Payments to NRI
- Blog|Income Tax|
- 4 Min Read
- By Taxmann
- |
- Last Updated on 29 July, 2022
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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
Dive Deeper:
Form 26Q- TDS Return Filing for Non Salary Deductions
TDS Under Section 194C
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How to file 27Q RPU VERSION 3.6 how to apply 37BC NEW RULES TO RPU
please advise me how to file form 27Q ?
NRI property sale: Can NRI himself file the 27Q for TDS either online or manually without the use of buyer PAN login
“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.”
how i can fill up 27q form and make payment of tds to avoid penalty it is very complicated for common people .
in case of foreign Tourist , what will be PAN CARD Number.
WE HAVE NOT FILED 27Q RETURS FOR THE FIRST 3 QUARTERS OF THE FINANCIAL YEAR 2022-23 SINCE THERE IS NO PAYMENT TO NRI BUT IN Q4 OF 2022-23 WE HAVE A BIG PAYMENT TO NRI RELATING TO A PROPERTY PURCHASE FROM HIM . WHILE FILING 27Q RETURN THE SYSTEM IS ASKING PREVIOUS QUARTER 15 DIGIT TOKEN NUMBER . WITHOUT TOKEN NO WE ARE NOT IN A POSTION TO FILE Q4 RETURN . KINDLY ADVICE WHICH NO TO BE GIVEN
I am NRI seller.
Is Form 16A or 27Q is required for property registration, or a challan receipt that tax had been deposited will be sufficient?
Also, if we go ahead with property registration / transfer and the buyer later refuses to submit Form 27Q and doesn’t share Form 16A, how do i get TDS refund?
Form 16A or 27Q isn’t necessary for property registration. You can avail TDS credit only when the buyer deposits the TDS amount and files Form 27Q. Further, you can claim TDS credit even without providing Form 16A, as TDS information can be obtained from Form 26AS/AIS.