T.D.S.

This query is : Resolved

Rohit Choudhary (Querist)
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07 December 2010 IF A PERSON IS NON- RESIDENT INDIAN WITHIN THE MEANING OF INCOME TAX ACT,1961.
HE HAS INVESTED HIS FUNDS INTO F.D.R.WITH BANK OF BARODA. SHOULD BANK DEDUCT T.D.S. ON INTEREST PAID/CREDITED TO HIM?
IF NOT WHY?. IF HIS INCOME IS NOT TAXABLE IN INDIA WHAT WOULD BE YOUR THE APPLICABILITY?
CAN HE REFRAIN HIMSELF FROM NON- DEDUCTION OF T.D.S.?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 December 2010 If his Income is below the prescribed tax limit (1.60/1.90lac) he may furnish Form NO 15G to the bankers.

Nirpendra Singh

Nirpendra Singh (Expert)
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08 December 2010 Yes Dear sir,
Mr Paras is right,
you can furnish Form No 15g
otherwise they will deduct tax u/s 195.
Or see DTA.

CA. R. B. SAH

CA. R. B. SAH (Expert)
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08 December 2010 BANK IS LIABLE FOR DEDUCTION OF TDS. IF RORM 15G IS FURNISHED TO BANK, THEN BANK WIL NOT DEDUCT TDS.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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08 December 2010 Form 15G cannot be furnished by NRI. The TDS to NRI shall be deducted u/s 195 and the provisions of Sec 197A (Form 15G is provided by this section) do not apply to sec 195.
Also you are wrong when you say that income of a NRI is not taxable in India.Only incomes which accrue/arise or are received outside India are not taxable for NRI's. Conversely incomes accruing/arising or received or deemed to be received in India shall be taxable in India.

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