document created on 01.11.2017

TDS Rates AY 2018-19 for Non-residents

TDS (Tax Deduction at Source) Rates for AY 2018-19 (FY 2017-18) for :

  1. For payment of 'Salary and Wages' to Non-resident Individuals; and
  2. For payments 'Other than Salary and Wage' to Non-resident Individual, Non-resident Firm / Co-operative and Non-resident Corporate (Foreign Company) payees under various sections of Income Tax Act.

TDS Rates for Payments of Salary and Wages to Non-Resident Individudal

SectionFor Payment of Salary and Wages
192Criterion of Deduction :

TDS to be deducted if the estimated income of the employee is taxable. No tax is required to be deducted at source if the estimated total income of the employee is less than the minimum taxable income.

TDS Rate:

Please visit Income Tax, Surcharge and Education Cess for Applicable Income Tax, Surcharge and Health and Education Cess rates for payment of Salary and Wages to Non-Resident Indivduals.

TDS Rates for Payments other than Salary and Wages to Non-Residents

Use TDS Calculator
Select Status of the payee
TDS Rates AY 2019-20 : If Payee is Non-Resident Individual
SectionFor Payment ofTDS Rate
192APayment of accumulated balance of provident fund exceeding ₹ 50,000/- which is taxable in the hands of an employee.10%
194BWinnings from Lotteries / Puzzle / Game ( On payments exceeding ₹ 10,000/- )30%
194BBWinnings from Horse Race ( On payments exceeding ₹ 10,000/- )30%
194EPayment to Non-Resident Sportsmen or Sports Association20%
194EEPayment of NSS Deposits ( On payments exceeding ₹ 2500/- p.a. )10%
194FRepurchase of units by Mutual Funds / UTI ( No minimum payment )20%
194GCommission on Sale of Lottery tickets ( On payments exceeding ₹ 15,000/- )5%
194LBPayment of interest on infrastructure debt fund to Non-Resident or foreign company5%
194LBA(2)Income distribution by a Investment Fund received or receivable by it from a SPV5%
194LBA(3)Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset.30%
194LBBInvestment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].30%
194LBCIncome distribution by a Securitisation Trust u/s 115TCA30%
194LCPayment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)5%
194LDPayment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor5%
195Other Payments to Non-Resident / Foreign Company
(a) Income from investment made by a Non-Resident Indian Citizen20%
(b) LTCG referred to in Section 115E10%
(c) LTCG referred to in Section 112(1)(c)(iii)10%
(d) LTCG referred to in Section 112A10%
(e) STCG under Section 111A15%
(f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]20%
(g) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)20%
(h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).10%
(i) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.10%
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.10%
(k) Any other income30%
196BIncome from units (including long-term capital gain on transfer of such units) to an offshore fund10%
196CIncome from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)10%
196DIncome of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)20%
TDS Rates AY 2019-20 : If Payee is Non-Resident Firm / Co-operative
SectionFor Payment ofTDS Rate
194BWinnings from Lotteries / Puzzle / Game ( On payments exceeding ₹ 10,000/- p.a. )30%
194BBWinnings from Horse Race ( On payments exceeding ₹ 10,000/- p.a. )30%
194EPayment to Non-Resident Sportsmen or Sports Association20%
194EEPayment of NSS Deposits ( On payments exceeding ₹ 2500/- p.a. )10%
194FRepurchase of units by Mutual Funds / UTI ( No minimum payment )20%
194GCommission on Sale of Lottery tickets ( On payments exceeding ₹ 15,000/- )5%
194LBPayment of interest on infrastructure debt fund to Non-Resident or foreign company5%
194LBA(2)Income distribution by a Investment Fund received or receivable by it from a SPV5%
194LBA(3)Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset.30%
194LBBInvestment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].30%
194LBCIncome distribution by a Securitisation Trust u/s 115TCA30%
194LCPayment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)5%
194LDPayment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor5%
195Other Payments to Non-Resident / Foreign Company
(a) Income from investment made by a Non-Resident Indian Citizen20%
(b) LTCG referred to in Section 115E10%
(c) LTCG referred to in Section 112(1)(c)(iii)10%
(d) LTCG referred to in Section 112A10%
(e) STCG under Section 111A15%
(f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]20%
(g) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)20%
(h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).10%
(i) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.10%
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.10%
(k) Any other income30%
196BIncome from units (including long-term capital gain on transfer of such units) to an offshore fund10%
196CIncome from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)10%
196DIncome of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)20%
TDS Rates AY 2019-20 : If Payee is Non-resident Corporate (Foreign Company)
SectionFor Payment ofTDS Rate
194BWinnings from Lotteries / Puzzle / Game ( On payments exceeding ₹ 10,000/- )30%
194BBWinnings from Horse Race ( On payments exceeding ₹ 10,000/- )30%
194EPayment to Non-Resident Sportsmen or Sports Association20%
194FRepurchase of units by Mutual Funds / UTI ( No minimum payment )20%
194GCommission on Sale of Lottery tickets ( On payments exceeding ₹ 15,000/- )5%
194LBPayment of interest on infrastructure debt fund to Non-Resident or foreign company5%
194LBA(2)Income distribution by a Investment Fund received or receivable by it from a SPV5%
194LBA(3)Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset.40%
194LBBInvestment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].40%
194LBCIncome distribution by a Securitisation Trust u/s 115TCA40%
194LCPayment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)5%
194LDPayment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor5%
195Other Payments to Non-Resident / Foreign Company
(a) LTCG referred to in Section 112(1)(c)(iii)10%
(b) LTCG referred to in Section 112A10%
(c) STCG under Section 111A15%
(d) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]20%
(e) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)20%
(f) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).10%
(g) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. Agreement date after March 31, 1961 but before April 1, 197650%
(h) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. Agreement date after March 31, 197610%
(i) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. Agreement date after Feb. 29, 1964 but before April 1, 197650%
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.Agreement date after March 31, 197610%
(k) Any other income40%
196BIncome from units (including long-term capital gain on transfer of such units) to an offshore fund10%
196CIncome from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)10%
196DIncome of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)20%

Notes:

  1. Surcharge and Health & Education cess at Applicable Rates* is deductible on payments to Non-Resident and Foreign Companies.

    * Applicable Rates

    Non Resident - if income/payment exceeds ₹50 Lakh but not exceeds ₹1 Crore10%
    Non Resident - if income/payment exceeds ₹1 Crore15%
    Foreign companies - if income/payment is between ₹1 Crore and 10 Crore2%
    Foreign companies - if income/payment is above ₹10 Crore5%
    Non-Resident Co-operative Society and Firms - if income/payment exceeds ₹1 crore12%
    Health & Education Cess 4% of (TDS/Tax + Surcharge)
  2. TDS at higher rate of 20% or TDS rate, whichever is higher, has to be deducted if the deductee does not provide PAN to the deductor (section 206AA).

All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).

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