TDS Rates for payment to Non Resident FY 2018-19, AY 2019-20

Tax Deducted at source rate for payment to NRI for Financial Year 2018-2019, Assessment Year 2019-2020 is as under:

1. Payment to NRI - TDS Rates FY 2018-19

Nature of Payment	Section	Threashold	TDS Rate
Salaries	192	As per Slab	-
Premature withdrawal of EPF	192A	50,000	10%
Winning from Lotteries	194B	10,000	30%
Winning from Horse Race	194BB	10,000	30%
Non-Resident Sports Men or Sports Association	194E		20%
National Saving Scheme	194EE	2,500	10%
Repurchase Units by MFs	194F		20%
Commission - Lottery	194G	15,000	5%
Income from Infrastructure Debt Fund to Non resident	194LB		5%
Income distribution by a Investment Fund received or receivable by it from a SPV	194LBA(2)		5%
Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset.	194LBA(3)		30%
Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].	194LBB		30%
Income distribution by a Securitisation Trust u/s 115TCA	194LBC		30%
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)	194LC		5%
Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor	194LD		5%
Other Payment to Non Resident / Foreign Company	195
(a) Income from investment made by a Non-Resident Indian Citizen			20%
(b) Long Term Capital Gain referred to in Section 115E			10%
(c) Long Term Capital Gain referred to in Section 112(1)(c)(iii)			10%
(d) LTCG referred to in Section 112A			10%
(e) Short Term Capital Gain under Section 111A 15%			15%
(f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]			20%
(g) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)			20%
(h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).			10%
(i) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.			10%
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy			10%
(k) Any other income			30%
Income from units (including long-term capital gain on transfer of such units) to an offshore fund	196B		10%
Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)	196C		10%
Income of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)	194D		20%

Note : TDS Rates without PAN : 20% flat (if TDS rate is lower than 20%)

Surcharge and Health & Education cess on payments to Non-Resident and Foreign Companies

Non Resident - if income/payment exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore	10%
Non Resident - if income/payment exceeds Rs. 1 Crore	15%
Foreign companies - if income/payment is between Rs.1 Crore and 10 Crore	2%
Foreign companies - if income/payment is above Rs. 10 Crore	5%
Non-Resident Co-operative Society and Firms - if income/payment exceeds Rs. 1 crore	12%
Health & Education Cess	4% of (TDS/Tax + Surcharge)

Note:

1. TDS at higher rate of 20% or TDS rate, whichever is higher, has to be deducted if the deductee does not provide PAN to the deductor (section 206AA).

2. All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).

2. NRI TDS Deposit Due Dates

Month of Deduction	Due date for Payment
April	7th May
May	7th June
June	7th July
July	7th August
August	7th September
September	7th October
October	7th November
November	7th December
December	7th January
January	7th February
February	7th March
March	30th April

3. NRI TDS Return forms

TDS forms to be submitted	Type of Deductee
Form 24Q	Deductions made from salaried
Form 26Q	Deductions made from Non salaried people
Form 27Q	Deduction made from payment to NRI

4. NRI TDS return filing dates

Quarter Ending	Due date to file return by all deductors
30th June	31st July
30th September	31st October
31st December	31st January
31st March	31st May

5. Penalty for late filing TDS Return

As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.

TDS/TCS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.

6. Refund of TDS

If the tax liability of the assessee is less than the TDS amount, the difference amount can be claimed at the time of filing income tax return. The extra amount will be refunded to the bank account of the assessee.