Please help me with, how to register a Non resident at Traces ,since he has no aadhar card and no TDS is deducted by the deductor. NRI wants to apply for a nil rate of deduction under section 197 of the Income Tax Act.
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Traces registration for NRI
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Quick Summary
To register Non-Resident on TRACES without Aadhaar and TDS deduction: 1. **Obtain PAN**: Ensure NRI has PAN card.
2. **Form 61B**: File Form 61B for Aadhaar exemption on Income Tax portal.
3. **TRACES Registration**: - Select "Non-Deductor" - Choose "PAN" as ID proof - Upload Form 61B acknowledgement.
4. **Apply Nil Rate Certificate (Section 197)**: - File Form 13 on Income Tax portal - Attach required documents (PAN, Form 61B acknowledgement, others). Shall I guide you through each form?
TRACES registration for NRIs works slightly differently depending on whether you are the deductee (the NRI whose TDS was deducted) or the deductor (the person who deducted TDS from payments to you).
If you are the NRI deductee (want TDS certificates or to claim a refund):
- You do not need a TAN for TRACES. You can register on TRACES using your PAN.
- Login: go to traces.gov.in, select Taxpayer, register with PAN and date of birth.
- Once registered, download Form 26AS or AIS to see all TDS deducted against your PAN.
- File ITR in India (NRIs file ITR-2) and claim the TDS credit against your Indian income. If TDS exceeds your tax liability, the excess becomes a refund.
If you are the deductor (Indian resident deducting TDS from payments to an NRI under Section 195):
- You need a TAN. Apply via Form 49B.
- TDS rates for NRIs are typically higher (20% LTCG, 30% on other income) unless a DTAA applies.
- File quarterly TDS returns in Form 27Q (not 26Q, which is for resident payments).
For NRI-specific income tax requirements and ITR filing, this [Section 9 income source rules guide](taxgarden.in/blog/section-9-income-tax-act-income-deemed-accrue-arise-india-source-rules) explains which NRI incomes are taxable in India.
Form 61B is an SFT statement, not an Aadhaar exemption; a non-resident is exempt from PAN-Aadhaar linking, and the nil/lower deduction application in Form 13 under Sec 197 (continued in the Income-tax Act, 2025 from 1 April 2026) is filed on TRACES by logging in through the e-filing portal with his PAN, even if no TDS has yet been deducted.
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