Tds on salary to non resident
This query is : Resolved
02 September 2011
Tax deducted from the salary of a non resident is paid under section 195. Is it correct ? Also the return of TDS is filed in 27Q, is it correct ?
OR
it should be filed under 24Q ?
OR
it should be filed under 24Q ?
02 September 2011
TDS for salary income shall be covered u/s 192 for both residents/non-residents.
02 September 2011
NOw what can be done ? I have filed TDS return under 27Q.
03 September 2011
you can cancel the return 27Q by correction of TDS return and file correct return as form 24Q
04 September 2011
If I don't change and keep the same, does it make any difference ?
27 July 2025
Great question—and it's an important compliance point.
You're asking about **TDS on salary paid to a non-resident** and whether it should be filed under **Section 195 with Form 27Q**, or **Section 192 with Form 24Q**.
Let’s clarify this **clearly and definitively**:
---
## ✅ Correct Legal Position:
### 🔹 **TDS on Salary** (Resident or Non-Resident)
➡️ Always deducted **under Section 192** of the Income Tax Act.
### 🔹 **Relevant TDS Return Form:**
➡️ **Form 24Q** must be used — even if the employee is a **non-resident**.
> **Section 195** applies to payments **other than salary** made to non-residents (e.g., fees, royalties, interest, technical services, etc.).
---
## ❌ Filing under 27Q is Incorrect for Salary
**Form 27Q** is used for:
* **Non-salary payments** to **non-residents** under **Section 195**
(e.g., contractor payments, professional fees, etc.)
Since salary to a non-resident is **still governed by Section 192**, filing under 27Q is **procedurally incorrect**.
---
## 🔄 What Should You Do?
### ✔️ If You’ve Already Filed Under 27Q:
1. **Revise the TDS return**:
* File a **correction statement** to **nullify the 27Q entry**.
* File the **correct TDS return using Form 24Q**, showing TDS under **Section 192**.
2. This is important for:
* Correct reflection in the **employee's Form 26AS**.
* Ensuring you meet statutory compliance.
* Avoiding **penalties** for incorrect return filing.
---
## ⚠️ If You Don’t Correct It:
* It may **not match with the PAN/TAN validation** during assessment.
* The **employee may not get proper TDS credit**.
* You may receive a **notice or intimation for mismatch or incorrect filing**.
* It could lead to **penalties or interest** for non-compliance.
---
## ✅ Final Summary
| Topic | Correct Treatment |
| --------------------------------- | -------------------------------------------- |
| TDS on salary to **non-resident** | **Section 192** |
| TDS return form | **Form 24Q** |
| Section 195 + Form 27Q? | ❌ Incorrect for salary payments |
| What to do if filed under 27Q | File correction → remove from 27Q → file 24Q |
---
Let me know if you'd like help drafting a correction request or guidance on using the RPU (Return Preparation Utility) for revising the return.
You're asking about **TDS on salary paid to a non-resident** and whether it should be filed under **Section 195 with Form 27Q**, or **Section 192 with Form 24Q**.
Let’s clarify this **clearly and definitively**:
---
## ✅ Correct Legal Position:
### 🔹 **TDS on Salary** (Resident or Non-Resident)
➡️ Always deducted **under Section 192** of the Income Tax Act.
### 🔹 **Relevant TDS Return Form:**
➡️ **Form 24Q** must be used — even if the employee is a **non-resident**.
> **Section 195** applies to payments **other than salary** made to non-residents (e.g., fees, royalties, interest, technical services, etc.).
---
## ❌ Filing under 27Q is Incorrect for Salary
**Form 27Q** is used for:
* **Non-salary payments** to **non-residents** under **Section 195**
(e.g., contractor payments, professional fees, etc.)
Since salary to a non-resident is **still governed by Section 192**, filing under 27Q is **procedurally incorrect**.
---
## 🔄 What Should You Do?
### ✔️ If You’ve Already Filed Under 27Q:
1. **Revise the TDS return**:
* File a **correction statement** to **nullify the 27Q entry**.
* File the **correct TDS return using Form 24Q**, showing TDS under **Section 192**.
2. This is important for:
* Correct reflection in the **employee's Form 26AS**.
* Ensuring you meet statutory compliance.
* Avoiding **penalties** for incorrect return filing.
---
## ⚠️ If You Don’t Correct It:
* It may **not match with the PAN/TAN validation** during assessment.
* The **employee may not get proper TDS credit**.
* You may receive a **notice or intimation for mismatch or incorrect filing**.
* It could lead to **penalties or interest** for non-compliance.
---
## ✅ Final Summary
| Topic | Correct Treatment |
| --------------------------------- | -------------------------------------------- |
| TDS on salary to **non-resident** | **Section 192** |
| TDS return form | **Form 24Q** |
| Section 195 + Form 27Q? | ❌ Incorrect for salary payments |
| What to do if filed under 27Q | File correction → remove from 27Q → file 24Q |
---
Let me know if you'd like help drafting a correction request or guidance on using the RPU (Return Preparation Utility) for revising the return.
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