Form 27Q: TDS Return on Payments to NRI

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Hiral Vakil

TDS
TDS Returns & Forms
Last updated on February 2nd, 2023

As per the Income Tax Act, every person is responsible to deduct tax under section 195 if they are making any payments to the NRI. Thus, the person who is making such payments is required to report those transactions and the deductor is required to file Form 27Q.

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 to be filed on a quarterly basis on or before the due date. As per the Budget 2016, Non-resident Indians without PAN are not subject to a higher rate of TDS subject to prescribed conditions. Form 27Q contains details of payments made and TDS deducted on such an amount.

Payments covered under Form 27Q

The nature of payments covered in Form 27Q:

Deductor is also required to file Form 15CA before making any remittance to NRI.
Tip
Deductor is also required to file Form 15CA before making any remittance to NRI.

What are the details required to file this Form?

The following details will be needed 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.

Note: In the PAN of NRI is not available, additional details of NRI such as Tax Identification Number, Permanent Address, Country of residence, Email, and Contact details need to be added in 27Q.

Due date to file Form 27Q

The due date for filing 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

Note: Late filling of 27Q attracts a penalty of INR 200/day until the date of filing and a maximum penalty can’t exceed the amount of TDS deducted.

TDS Certificate

After filing the TDS return, the deductor can provide a certificate in Form 16A to the non-resident within 15 days from the date of filing the return. The deductor can download the certificate from the TRACES website.

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FAQs

Whether it is compulsory to file the 15CA form?

Yes, If you are making any payment including the exempt amount to the NRI you are required to file 15CA. Also if the payment exceeds INR 5,00,000 during the financial year, then it is required to be certified by a Chartered Accountant in form 15CB.

Is it mandatory to file form 27Q on the sale of property by NRI?

Yes, If any property is sold by NRI then the buyer is required to deduct TDS at 20% of the total amount. After deducting the TDS the buyer is required to file deduction and payment details in form 27Q.

Is TAN mandatory for 27Q?

Yes, the person who deducts the tax needs to have a TAN for filing form 27Q.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Yes, in case you have not deposited TDS by the due date, the following penalties might be applicable:

    • Interest (if you do not deposit the TDS amount in time)

    • Late filing fee (if you do not file by the deadline)

    • Penalty (if TDS is not filed within one year of the due date)

    Hope this helps!

  2. Hey @HarishMehta

    Form 24, 27 and 27E are forms to file TDS/TCS returns:

    • Form 24 is to file TDS return detailing Salary Payments

    • Form 27 is to file TDS return detailing Foreign or NRI payment other than salary

    • Form 27E is to file TCS returns

    Hope this helps!

  3. Hi @KrishnaAgarwal

  4. Hey @taxpayer, you can file your Income-tax return can claim the tax refund for any excess tax credits available to you.
    If your total taxable income is below the basic exemption limit then you won’t have any tax payable.
    You can check the total tax credits available to you in your Form 26AS

  5. Hello @abhaykk90,

    As per section 194IB of the income tax act, if you’re liable to deduct TDS on rent paid, the rate applicable will be 5%.

    Hope this helps!

  6. Hi @t_bovee,

    Here are answers to your various questions

    1. TDS has to be deducted every month at 5%.
    2. Deducted TDS has to be deposited within 30 days from the end of the month in which TDS is deducted.
    3. Penalty of 1.5% per month or part thereof will be levied in case of a late deposit of TDS.

    However, you can file TDS return 26QC within 30 days from the end of the financial year.

    Here’s a read on What is Form 26QC? Who needs to file form 26QC? - Learn by Quicko for your reference. Hope this helps.

  7. Hi @t_bovee

    It would not be possible for us to tell you the mismatch of amounts, without seeing the documents.
    However, for expert assistance with your taxes, here’s how you can Book a MEET.

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