• Post category:India Taxes

TDS is detailed in Section 195 of the Indian Income Tax Act. TDS on Interest to Non-Resident: Ordinary Account (NRO) is 30%. No TDS is applicable on Interest earned on Non-Resident External (NRE) accounts and Foreign Currency Non-Resident (FCNR) accounts.

TDS on Rent from House Property or other Rent & Commission / Brokerage or any other Income is 30%. TDS on Dividend is exempted if Dividend Distribution Tax (DDT) is paid by the Company.

Tax Deducted at Source (TDS) Rates for NRI Mutual Fund Investors for 2019-20 Equity Oriented (MF) is LTCG 10% STCG 15% Non-Equity Oriented LTCG Listed is 20% (with Indexation) and Unlisted is 10% (without Indexation STCG 30% (Assuming Investor in highest tax bracket).

When an NRI sells a property, the buyer is liable to deduct TDS @ 20% on Long Term Capital Gains. In case the property has been sold before 2 years (reduced from the date of purchase), TDS of 30% applies

If net taxable income (being income from employment) is less than the maximum amount which is not chargeable to tax (Rs. 2,50,000) no tax shall be deducted at source.
Income Tax Form 16 and Form 16A are given for TDS. Form 16 is TDS on Salary and Form 16A is a non-salary income TDS certificate. You will get Form16 (Salary) from your employer and Form 16A (Non-salary) from the bank. The tax deducted has to be submitted to the Income-tax Department by the person deducting. If TDS is shows in Form 26AS used for tax filing by the taxpayer.

Refer Indian Income Tax website for details on TDS.