Grossing up Indicator in Form 27Q

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A new column, 'Grossing up indicator', has been added to Form 27Q for FY 2023-24. This indicator should be marked 'Yes' when the Tax Deducted at Source (TDS) is borne by the remitter (deductor) and needs to be grossed up. Conversely, it should be marked 'No' if the TDS is recovered directly from the deductee. This functionality is relevant for Form 27Q and has a connection to the 'In case the remittance is net of taxes, whether tax payable has been grossed up (Yes/No)' option in Form 15CB.

Vikas Gupta

Vikas Gupta (Querist)
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15 September 2023 There is new column inserted "Grossing up indicator" in new TDS return template of Form 27Q for FY 2023-24. Please explain when to mark it "Yes" and when "No"?

Also, please explain whether we need to fill any such information while filing Form 15CB? Currently there is an option namely "In case the remittance is net of taxes, whether tax payable has been grossed up (Yes/No)". Is there any relation of this point to "Grossing up indicator" in Form 27Q.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 September 2023 Mark yes in case TDS is grossed up in case TDS is to the account of remitter.
Yes it's relevant in Form 27Q.

Vikas Gupta

Vikas Gupta (Querist)
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18 September 2023 Thanks sir! This means that if TDS of non-resident deductee is being borne by deductor, amount will be grossed up and if TDS is being recovered from deductee, it will not be grossed up.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 September 2023 Yes, you are right...
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