TDS Return Forms for NRI: 24Q, 26Q, 27Q, 27EQ

TDS Return Forms for NRI: Tax Deducted at Source or TDS is an advance tax collected mostly at the source of income according to the Indian Taxation Code with its rules and regulations controlled and governed under the Income Tax Act, 1961 by the Central Board of Direct Taxes (CBDT). The provisions of TDS are implemented on the earnings of individuals and businesses by the government to generate revenues.

TDS Return Forms for NRI: 24Q, 26Q, 27Q, 27EQ
TDS Return Forms for NRI

TDS is an instrument that is applicable on multiple sources of incomes like salary, commission, capital gains, rent, etc. In this article, we will discuss the process of deducting this TDS by individuals or companies followed by filing of the returns in stipulated time using the TDS Return Forms (Overview), benefits, rates, due dates and more. So, let’s explore.

Advantages of payment of TDS

TDS is liable on earnings. This tax is deducted at source and is later submitted to government agencies. Let’s us glance through the various advantages of TDS:

  • It prevents tax evasion
  • Timely collection of tax
  • Brings maximum number of people under the tax net
  • A steady source of revenue for government

TDS Deductors as per Taxation Rules

Here’s a list of deductors liable to deduct TDS:

  • Individuals
  • Hindu Undivided Family
  • Limited Companies
  • Partnership Firms
  • Body of Individuals
  • Association of Individuals
  • Local Authorities

Rate of TDS Deduction

There is a range for the rate of TDS Deduction: 1% to 30%

The above mentioned rate covers all the forms of income subject to TDS deduction such as salary, professional fees, rent, capital gains etc. It should be understood that different kinds of income have different rates of TDS deduction.

The TDS Rate Chart for FY 2020-21 will give you a detailed breakdown into each of these income types, their threshold limit and the applicable TDS Rates.

Method of TDS Deduction

TDS is deducted on the payments made to the receiver. The TDS that the receiver is liable to pay is deducted from the payment he/she is liable to receive and the remainder is paid out. An important point to note here is that the liability to deduct TDS is of the deductor. For instance, in case of a tenant paying rent to an NRI house owner, the tenant is the deductor and the NRI owner is the TDS deductee.

What are TDS Returns?

A TDS Return is a summary of all the transactions related to TDS made during a quarter. TDS Return is a quarterly statement submitted by the deductor to the Income Tax Department. The statement has the summary of all the entries for TDS collected by the deductor and the TDS paid by the deductor to the Income Tax Authority. The TDS Return statement includes details like the PAN number of the deductor & the deductees, all the detailed particulars of the TDS paid to the government and the TDS Challan information.

Due Dates for filing TDS returns

The following are the original due dates for filing TDS Returns for financial year 2020-2021:

QuarterPeriodLast Date of Filing Return
1st Quarter1st April to 30th June31st March 2021
2nd Quarter1st July to 30th September31st March 2021
3rd Quarter1st October to 31st December31st January 2021
4th Quarter1st January to 31st March31st May 2021
Due Dates for filing TDS returns

Note: According to Section 234E, a late fine of INR. 200 per day has to be paid to the Income Tax Department in case of late filing of TDS return and the fine will be levied for every single day of delay until the late payment charges become equal to the amount of TDS and not more than that.

TDS Return Forms: An Overview

There are different TDS forms for different situations. Let’s understand this using the table below.

Type of TDS Return FormsParticulars
Form 24QStatement of TDS from salaries
Form 26QStatement of TDS on all payments other than salaries
Form 27QStatement of TDS on income received from interest, dividends or any sum payable to NRIs
Form 27EQStatement of collection of TDS
TDS Return Forms: An Overview

TDS Return Forms: Form 24Q

  • It is used for preparing eTDS returns for the TDS deducted on salary under Section 192 of the Income Tax Act, 1961.
  • It has to be submitted on a quarterly basis by the deductor.
  • It contains details like salaries paid and the TDS deducted of the employees by the employer.
  • It contains 2 annexures namely Annexure-I and Annexure II. Annexure-I contains details of the deductor, deductees and challans, while Annexure II contains the salary details of the deductees.
  • Annexure-I is to be submitted by the deductor for all the four quarters of the financial year.
  • Annexure II need not be submitted in the first three quarters of the financial year, but has to be furnished and submitted in the fourth quarter of the financial year with details of the employees’ salaries of the entire financial year.

TDS Return Forms: Form 26Q

  • It is to be submitted for tax deduction at source for all the payments received other than the salary.
  • It is submitted on a quarterly basis by the deductor and is applicable for tax deducted at source under section 200(3), 193 and 194 of the Income Tax Act of 1961.
  • The income on which the tax is deducted at source includes interest on securities, dividend securities, professional fees, directors’ remuneration, etc.
  • It is compulsory to furnish PAN by the deductors who are non-government deductors. For government deductors “PANNOTREQD” has to be mentioned on the form.

TDS Return Forms: Form 27Q

  • It is applicable for payments made to non-resident Indians and foreigners other than salary.
  • It has to be filled in for the declaration of Tax Deducted at source for the NRIs and Foreigners.
  • It is submitted on a quarterly basis by the deductor and is applicable for tax deducted at source under section 200(3) of  the Income Tax Act of 1961.
  • The income on which the tax is deducted at source includes interest, bonus, any additional income or any other sum owed to non-resident Indian or foreigner.
  • It is compulsory for non-government deductors to furnish PAN. For government deductors the code “PANNOTREQD” has to be mentioned on the form.

TDS Return Forms: Form 27EQ

  • It is a quarterly statement that furnishes the details and information of the tax collected at source as per section 206C of the Income Tax Act of 1961.
  • The form 27EQ is submitted on a quarterly basis. In this form it is mandatory to furnish TAN.
  • It is the statement to show the Tax Collected at Source (TCS), which is the tax collected by the seller. When a buyer purchases certain goods or commodities, the seller collects the tax from the buyer through the TCS route. This tax is collected on the payment received from the buyer either in cash, credit, cheque, demand draft or from any other mode of payment.
  • It is to be furnished by corporate deductors and collectors but not by government deductors and collectors. It is compulsory to furnish PAN by the deductors who are non-government deductors. For government deductors, the code “PANNOTREQD” has to be mentioned on the form.

How to download TDS Return Forms

TDS Return Forms have been sub-divided into four categories. A taxpayer needs to choose the particular category for which they have to file TDS Returns accordingly. Here are steps through which a taxpayer can download the TDS return forms:

  • Visit the official website of NSDL at https://www.tin-nsdl.com/
  • Click the “Downloads” tab and choose E-TDS/E-TCS from the drop down list menu
  • Click “Quarterly Returns” and then choose “Regular”
  • You will be redirected to the new page
  • Choose the TDS Return Form as per the requirement mentioned under section “Form”
TCS on Outward RTemittance

To get a specialized advisory on how to file your TDS Return Forms from experts at SBNRI, contact us using the button below. For more queries such as TDS Return Forms for NRI, visit our blog and youtube channel.

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TDS Return Forms: FAQ

What is 24q and 26q in TDS?

Form 24Q should be filed and submitted for Return of Tax Deducted at Source on salary payments. Form 26Q, on the other hand, should be filed and furnished for Return of Tax Deducted at Source details on domestic payments other than salary.

What is the TDS rate for NRI?

There is a range for the rate of TDS Deduction: 1% to 30%
The above mentioned rate covers all the forms of income subject to TDS deduction such as salary, professional fees, rent, capital gains etc. It should be understood that different kinds of income have different rates of TDS deduction.
The TDS Rate Chart for FY 2020-21 will give you a detailed breakdown into each of these income types, their threshold limit and the applicable TDS Rates.

Is Section 194ia applicable to NRI?

TDS u/s 194IA is only applicable for resident Indian sellers. It is not applicable if the seller is an NRI.

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