TDS for NRIs Without PAN: Deposit & Claim Guide

This query is : Resolved

Quick Summary

Depositing Tax Deducted at Source (TDS) for Non-Resident Indians (NRIs) without a PAN requires the deductor to file Form 27Q stating 'Pan Not Available'. The deductor can then issue a Tax Deduction Certificate (TBR) as proof of tax deduction in India. This TBR helps NRIs claim credit in their home country, but to claim credit within India, the NRI must obtain a PAN and file their income tax return.

CMA Omkar.TIlve

CMA Omkar.TIlve (Querist)

09 January 2023 How to deposit TDS of a NRI without PAN number. And how can he claim TDS credit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 January 2023 Refer:: Circulars bearing numbers 4/ 2013 dated 17 April 2013,
1/ 2012 dated 09 April 2012 and
3/ 2011 dated 13 May 2011.
TRACES is equipped to generate TDS certificates only in case of deductees/payees holding a PAN. In case of payees without PAN, a statement of TDS in Form 27Q shall be filed by the deductor stating “Pan Not Available”.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 January 2023 In view of the above provisions and in respect of the payments made to Non residents who do not hold a PAN, the deductor can issue the TRACES generated TBR as a proof of deduction of taxes in India to the Non residents. TBR is a proof of deduction of taxes in India which facilitates the non-resident to claim credit of taxes in his home country.
TBR shall not automatically entitle the deductee to claim the credit of TDS in India.
In order to claim the credit in India, the deductee shall obtain a PAN and file his return of income in India.

PAN shall be reported to the deductor, upon which the deductor shall issue a certificate under section 203 of the Act.

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