How NRI Can Avoid Paying Extra TDS In Case Of No PAN Details

TDS rules apply equally to the NRI taxpayers as well in case of filing income tax return online. In India, TDS or Tax Deducted at Source rate is 10%, if the person or entity is able to produce their PAN card details. Unable to produce PAN details can cause a higher TDS paying rates of 20%. But there is a way for NRIs to avoid paying that extra TDS rate in case of no PAN details. Few times ago, an amendment has been introduced to the Income Tax Law, which prescribes NRIs to produce alternate documents while filing income tax return online.
The alternate documents are Name, Contact number, Email ID, Address of residence country, Tax Residency Certificate (TRC), Tax Identification Number (TIN) or Unique Identification Number (UIN) of residence country. This rule is applicable for NRIs and any foreign investors who does not have an Indian PAN card to produce during income tax return online.  However, it does have some limitations on the type of payment for which TDS has been received. This will not be applicable for the payments received from bank interest, royalty, capital assets and fees paid for technical services. In these cases, the taxpayer must produce PAN details or have to pay higher TDS rate.

IF you are an NRI or a foreign entity, then this information is even more important for you so that no one can charge you more TDS rate then standard rate. If you are about to make a payment to any foreign entity or to an NRI then you must need to know these details, so that you can cut off accurate amount of TDS from it. You can also make PAN verification by using the government website to make sure that details are correct. You must ask for PAN details of the person or entity before making any payment that is liable to pay income tax return online.

Also Read : Some TDS Misconception That Can Lead To Wrong Selection During ITR Filing

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