Tds on inte. paid to nri deductd @ 20.6% file retrn u/s...

A Finance company accepted deposit from a NRI . deducted TDS @ 20.6% while paying interest. Now the return is to be filed U/s 194A (under which TDS is to be deducted @ 10% only- if I apply 195 TDS is to be deducted @ 30.9%)

That's why confusion. Pl. clarify.

Replies (4)

hi...

As per my opinion....

When payment is made to Non resident not being comapny, Sec 195 is applicable. here sec 194A is not tobe seen.

As mentioned in Section 195 when payment is made by government or Indian Concern to non resident for Amount borrowed/Accepted TDS is to be Deducted @ 20.6%.

The case you mentioned, tds is deducted @ 20.6%. this Treatment is correct.

Section 195 involves 10.3%,20.6% and 30.9% rates. you have to apply rates on the basis of given case.

For eg:- In case winning from horse race apply 30.9% and if  Income by way of LTCG refer to in sec 115E Apply 10.3%

and on above case Apply 20.6%

Dear Jia,

But I think even if Recepient is Non Resident Company then also, TDS to be deducted @ 20%.. And logically why should there be diff between Recepient being Company or anyone. Don't know why section says "Non Resident not being Company".....

This is what practically seen in common practices...

 

 

I agree with you Yogesh, but i have written in context of the given case, in the given case Receipient is Not Company.

Even i verified the same, the recepient can be Non resident or Company for Applying Sec-195.

 

Thank you all.

(.....Jiya's answer solved my problem. Others comments have enlightedned me on the subject.)

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