Form 27Q: TDS on payments to NRI

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Hiral Vakil

TDS
TDS Returns & Forms

What is Form 27Q?

Form 27Q is a TDS Return/ Statement containing details of TDS deducted on payments other than salary made to NRI. Form 27Q is required to submitted on quarterly basis on or before the due date. As per Budget 2016, Non-resident Indians without PAN is not subject to higher rate of TDS. Hence, higher rate of TDS will not apply to NRIs without PAN subject to prescribed conditions. Form 27Q contains details of payments made and TDS deducted on payments made to NRI by the deductor.

What are the payments covered under Form 27Q?

Every deductor who makes payment of certain nature to NRI is required to deduct TDS from such payment at prescribed rate. Following are the nature of payments covered in Form 27Q:

What are the details required to file this Form?

Following details are required to file Form 27EQ:

Entity Details
Deductor TAN, PAN, Name, Address and Contact Details.
Responsible Person Name, PAN, Address and contact Details
Challan Challan serial number, BSR Code, TDS, Surcharge and Education Cess paid
Deduction Deductee Name, PAN, Amount paid/ credited, TDS deducted and deposited.

In case of non-availability of PAN with NRIs, additional details of NRI such as Tax Identification Number, Permanent Address, Country of residence, Email and Contact details are required to be furnished in Form 27Q.

What is the due date to file Form 27Q?

Due date for Payment of TDS deducted on salary for every month is 7th of the next month. For the month of March, it is 30th April of the next year.

Due date for filing of Form 27Q for every quarter is as follows:

Quarter Period The due date for filing Form 26Q
Q1 1st April – 30th June On or before 31st July
Q2 1st July – 30th September On or before 31st October
Q3 1st October – 31st December On or before 31st January
Q4 1st January – 31st March On or before 31st May

FAQs

What is Form 27Q?

Form 27Q is the statement of the return for the non-salary payments done to an NRI. The Indian buyer is required to submit the form 27Q at every quarter before the due date. As per the Financial Budget of 2016, on-Resident Indians who do not have a PAN number are not supposed to pay a higher rate of TDS.

What is form 27EQ?

Form 27EQ is a quarterly statement that mentions details and information regarding tax collected at source at the end of every quarter as per Section 206C of the Income Tax Act 1961.

Who is eligible for TDS?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such a specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

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