Prerequisites to file 27q

Prerequisites to file 27Q (A non-resident, who does not have PAN, can avoid higher TDS deduction)

Relaxation from deduction of tax at higher rate under section 206AA.

In the case of a non-resident, not being a company, or a foreign company (hereafter referred to as ‘deductee’) and not having Permanent Account Number, the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset, if the deductee furnishes the details and the documents specified in sub-rule (2) to the deductor.

Submit below details, to avoid higher TDS deduction

1. Name, E-mail id, Contact number
   
2. Address of NRI’s country of residence
   
3. Tax Residency Certificate (TRC), if the law of country of residence provides for such certificate
   
4. Tax Identification Number (TIN) in the country of residence
   

Step 1

Open the e-TDS software Go to Master → Deductee Master (Non Salary)  option given in menu bar

• Mention 10 digit Deductee reference number 
  
• Mention Name, E-mail id, Contact number
  
• Mention Address of NRI’s country of residence
  
• Mention Tax Identification Number (TIN) in the country of residence.

Step 2

To select the Rate for reason as H( Higher Deduction ), Go to Deductee entry → Form Wise Deductee entry → 27Q Non residency

• Select Reason of deduction “H” (Higher deduction) in Deductee entry
  
• Mention Residence Country 
  
• Mention Nature of Remittance
  
• Mention Tax Rate 

Note – Reason for Deductions should “h” in case of non-availability of PAN