Applicability of TDS provision on Non-Corporate Non-Resident or Foreign Company - International Taxation - Income Tax

Applicability of TDS provision on Non-Corporate Non-Resident or Foreign Company Section Particulars Provisions or Conditions 192 Salary Payable in Foreign Currency By virtue of section 9(1)(ii), salary is deemed to accrue or arise in India if services are rendered in India. Therefore, employer required to deduct withholding tax u/s 192, at the rate in force for the financial year. 192A Withdrawal from employee s provident fund On premature taxable withdrawal from employee s provident fund scheme Rate 10% Time At the time of payment of accumulated balance due to the employee. Non-Applicability If aggregate payment made upto Rs. 50,000. TDS at MMR in case of non-submission of PAN 194B 194BB Winning from lotteries, crossword puzzles and horse races Rate 30% on the winnings amount form crossword puzzles, lotteries and horse races, If the amount exceeds Rs. 10,000. 194E Payments to Non-Resident sportsmen or Sports association or Entertainer Rate 20% on payment made to Income received by NR Sportsmen (who is not citizen of India) by way of: Participation in any game or sport in India. Advertisement Contribution of article in newspapers, magazines, journals relating to game or sports in India Non-resident Sports Association or Institution in relation to any game or sport played in India. Income received for performing in India by NR Entertainer (who is not a citizen of India) 194G Commission, remuneration or prize on sale of lottery ticket Rate 5% on amount exceeding Rs.15,000 Person responsible for paying to any person, who is or has been stocking, distributing, purchasing or selling tickets, any income by way of commission, remuneration prize on lottery tickets. 194LB Interest payable to non-resident by an infrastructure debt fund . Rate 5% on Interest Income received by non-resident non-corporate or foreign company from notified infrastructure debt fund set up in accordance with prescribed guidelines 20% on other interest. 194LBA Income from units of business trust to non- resident Rate 5% on Interest income referred to in section 10(23FC) received by business trust from a SPV 10% on Dividend income referred to in section 10(23FC) received by a business trust from a SPV. However, If SPV is not exercising the option to pay tax at concessional rate u/s 115BBA, dividend income would be exempt and tax would not be deductible at source. At the rate in Force Rental Income arising to business trust, being real estate investment fund from real estate referred to in section 10(23FCA). 194LBB Income in respect of units of investment fund to non-resident unit holders Rate 30% other than Company 40% Foreign Company 194LBC Income in respect of investment in securitization fund Rate 30% other than Company 40% Foreign Company 194LC Income by way of interest by an Indian specified company to a NR/FC on foreign currency approved loan / long-term infrastructure bonds from outside India Rate 5%/ 9%* *[TDS rate shall be 9% in case of monies borrowed by it from a source outside India by way of issue of any long-term bond or rupee denominated bond on or after 1-7-2023, Amended by FA, 2023, w.e.f., 01-07-2023]. 194LD Interest on Bonds / Government Securities payable to a foreign institution investor (FII) or a qualified foreign investor (QFI) Rate 5% on any income by way of interest payable during the period between 1.6.2013 an d 30.6.2023 in respect of investment made by an FII or QFI 194N Withdrawal of Cash (Applicable from 01.07.2020) Rate 2 % if withdrawal Amount exceeds Rs.1 crore / Rs.3 crore (Amended by FA, 2023, In case of Co-operative society) In case no return of income furnished for last 3 years Rate - 2% on withdrawal Amount is more than Rs.20 lakh but up to Rs.1 crore or 5 % on withdrawal amount exceeds Rs.1 crore. 195 Payment of any other sum to non-resident Any person responsible for paying interest (other than interest referred to in Section 194LB or Section 194LC or Section 194LD ) or any other sum chargeable to tax (other than salaries) to a non-resident or foreign company Time of deduction At the time of credit of such income to the account of the payee. 196A Income from units of mutual fund or specified company to NR/FC Rate 20% at the time of credit of such income to the account of the payee or at the time of payment whichever is earlier 196B Income from Units Rate - 10% on payment to an Offshore fund 196C Income for Foreign Currency bonds or shares of an Indian Company Rate 10% on income by way of interest or dividend in respect of bonds or GDR referred in section 115AC or Income by way of LTCG arising from transfer of such bonds or GDRs 196D Income of FII or specified fund from securities Rate 20% on payment to FII or 10% on payment to specified fund Important Notes:- If case of any payment is to a Non-Corporate Non-Resident and Foreign Company, surcharge, wherever applicable, and health and education cess @4% have to be added to the above rate for deduction of tax at source. Income payable to Non-Corporate Non-Resident and Foreign Company should be net if tax as per section 195A.