EXACT TDS RATE FOR NRI FOR WHOM DTAA BENEFIT IS AVAILAED & PAN IS NOT AVAILABLE , Income Tax

[mohan c r]

Dear Sir,

can somebody can guide the following:

An NRI is covered by DTAA agreement. He is not having a PAN.

Interest earned u/s 195 of IT Act.

What is the TDS to be effected. whether 20% or as per DTAA rates or 30.90%(normal rate as per Section 195 as there is no clarifty, can some body guide on the issue.

Thanks

Mohan

Posts / Replies

[CA Rachit Agarwal]

20% or DTAA whichever is higher.

For availing benefit of lower TDS i.e less than 20%, he must have PAN.

[Seetharaman K C]

The DTA rate would supersede the higher rate that is if the DTA rate is lower the same would be applicable. In any case PAN no would be mandatory