Form 27Q: TDS on payments to NRI

Author
By Hiral Vakil on March 9, 2019

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:

  • Payments to non-resident Sportsmen/Sport Associations.
  • Other sums payable to Non-Residents.
  • Income in respect of Units of Non-Residents.
  • Payments in respect of Units to an Offshore Fund.
  • Income from Foreign Currency Bonds or Shares of Indian Company Payable to Non-Resident.
  • Income of Foreign institutional investors from securities.
  • Income by way of interest from Infrastructure Debt fund.
  • Income by way of interest from Indian company engaged in certain Business.
  • Income by way of interest on certain bonds and Government Securities.
  • Payment of accumulated balance of provident fund, taxable in the hands of the employee.
  • Investment fund paying an income to a unit holder.
  • Income in respect of investment in securitization trust.

What are the details required to file Form 27Q?

Following details are required to file Form 27EQ:

EntityDetails
DeductorTAN, PAN, Name, Address and Contact Details.
Responsible PersonName, PAN, Address and contact Details
ChallanChallan serial number, BSR Code, TDS, Surcharge and Education Cess paid
DeductionDeductee 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:

QuarterPeriodDue date for filing Form 26Q
Q11st April – 30th JuneOn or before 31st July
Q21st July – 30th SeptemberOn or before 31st October
Q31st October – 31st DecemberOn or before 31st January
Q41st January – 31st MarchOn or before 31st May