Form 27Q: TDS Returns for NRI Transactions

Khush Trivedi | Last updated: 18 May 2026

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Quick Summary

Form 27Q is a crucial quarterly statement for reporting Tax Deducted at Source (TDS) on payments made to Non-Resident Indians (NRIs) and foreign companies. This includes income like interest and dividends. The form requires details of both the payer and payee, along with challan information and the nature and rates of payments. It's essential to file Form 27Q by the specified quarterly due dates to avoid penalties and interest charges.

Introduction Have you heard about TDS returns? Let me introduce you with TDS returns as we all are aware under Income tax act 1961, there are certain transactions nature of expense on which there is a requirement of deduction of TDS (Tax Deducted at source) while making payment or crediting the p

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FAQ :

Form 27Q is a quarterly statement used to report tax deducted at source (TDS) on payments made to non-residents and foreign companies, excluding salaries.

Form 27Q covers payments to non-residents such as interest income, dividends, royalty, fees for technical services, and capital gains.

The parties involved are the Payer, who is responsible for deducting TDS before making the payment to the non-resident, and the Payee, who is the non-resident individual receiving the income.

The due dates are 31st July for the 1st quarter (Apr-Jun), 31st October for the 2nd quarter (Jul-Sep), 31st January for the 3rd quarter (Oct-Dec), and 31st May for the 4th quarter (Jan-Mar).

Late filing can incur a penalty of Rs. 200 per day up to the amount of TDS deducted (Section 234E), and failure to file can result in a penalty ranging from Rs. 10,000 to Rs. 1,00,000 (Section 271H).