Form 27Q – NRI TDS Returns
Form 27Q – NRI TDS Returns
Form 27Q is a TDS Return or Statement containing details of Tax Deducted at Source (TDS) deducted on payments other than salary made to Non-Resident Indian (NRI) and foreigners. Form 27Q is required to furnish on a quarterly basis on or before the due date. Form 27Q contains details of payments made and TDS deducted on payments made to NRI by the deductor. In this article, we will look at Form 27Q – NRI TDS Returns in detail.
Payer and Payee
The payer (irrespective of their status like HUF, individual, Firm etc.) are responsible for deducting the TDS if payment is made to a non-resident. The payee is a non-resident whose residential status is according to the Income Tax Act.
Payments Covered under Form 27Q
Every deductor who makes payment of a specific nature to Non-Resident Indian is required to deduct TDS from such payment at the prescribed rate. Following are the nature of payments covered in the Form 27Q:
- Payments to non-resident Sportsmen, Sport Associations
- Other sums payable to Non-Residents
- Income of Foreign institutional investors from securities
- Income in respect of Units of Non-Residents
- Income by way of interest on individual bonds and Government Securities
- Payments in respect of Units to an Offshore Fund
- Income by way of interest from the infrastructure Debt fund
- Income from Foreign Currency Bonds or Shares of Indian Company Payable to Non-Resident
- Income by way of interest from Indian company engaged in specific Business
- Payment of the accumulated balance of the provident fund, taxable in the hands of the employee
- Investment fund paying an income to a unitholder
- Income in respect of investment in the securitization trust
Details Required for Filing Form 27Q
Following features are required to file Form 27Q:
|
Sl.No |
Entity |
Details |
| 1 | Deductor | PAN, TAN, Name, Address and Contact Details |
| 2 | Responsible Person | Name, PAN, Address and contact details |
| 3 | Challan | Challan serial number, BSR Code, TDS, Surcharge and Education Cess paid |
| 4 | Deduction | Deductee name, PAN, Amount paid or credited, TDS deducted and deposited |
In case of non-availability of PAN with NRIs, additional details of NRI such as Tax Identification Number (TIN), Permanent Address, Country of residence, Email and Contact details are needed to be furnished in Form 27Q.
Due Date for Filing Form 27Q
The due date for Payment of TDS deducted on salary for every month is seventh of the next month. For March, it is thirtieth April of the next year. The due date for filing the Form 27Q for every quarter is as follows:
|
Quarter |
Period |
The due date for Filing Form 27Q |
|
Q1 |
1st April – 30th June | On or before 31st July |
|
Q2 |
1st July – 30th September | On or before 31st October |
|
Q3 |
1st October – 31st December | On or before 31st January |
|
Q4 |
1st January – 31st March | On or before 31st May |
Sections of Form 27Q
The Form 27Q has three sections such as Statistics of Voucher, Deduction Details, and Payment Details.
Statistics of Vouchers
All transactions, whether recorded correctly, inadequately or incorrectly will be captured and categorised in the Form 27Q as follows:
Included Transactions
Transactions considered as included for generating form 27Q are given here:
- Booking entries with or without TDS deduction
- TDS deduction entries
- Advance payments made to parties
- TDS adjustment entries in the case of government entities
- Entries accounting for TDS reversals and TDS deduction concerning escalations and de-escalations
Excluded Transactions
Transactions considered as Excluded for generating Form 26Q is explained in detail below:
- All entries where TDS is not applied
- Entries recorded using any of the following Voucher Types:
- Payment
- Contra
- Inventory Vouchers
- Sales Order
- Purchase Order
- Debit Note (recorded for purchases with no TDS implications)
- Credit Note (entries with no TDS implications)
- Vouchers marked as Optional
- Payroll Vouchers
Uncertain Transactions
These transactions do not fulfil the criteria of the Included and Excluded categories. The transaction will be listed as Uncertain when there is insufficient information entered in:
- Masters
- Transactions
Deduction Details
This section denotes the type of deduction under which each of the included transaction is grouped. Deduction details are classified into the following types:
- Deduction at Normal Rate
- Deduction at Higher Rate
- Lower Rated Taxable Expense
- Zero Rated Taxable Expense
- Under Exemption Limit
- Except instead of PAN Available
The tax-deductible, assessable value and the tax deducted for transactions grouped in the above categories are displayed here.
Payment Details
This will contain the statistics of all TDS payments (deemed or actual) that exist in the data till date. This will not contain any of the payment entries that are not related to the current period. Any payment entries are other that TDS payment entry will not appear here.
This section will display the payments against two fields:
- Included Transactions
- Excluded Transactions
Procedure to Deduct TDS
TDS must be deducted at the time of making the payment to the Non-resident Indian (NRI). The details about the TDS deducted and rate should be mentioned in the sale deed between the NRI seller and the buyer. As mentioned above, TDS deducted by the buyer should be deposited by challan for the TDS payment on or before the 7th of next month in which the TDS is deducted. The deposit needs to be made by the buyer.
Once the TDS is deposited, the buyer needs to file TDS return by submitting the Form 27Q. TDS returns are filed quarterly within 15 days (next month of quarter end).
27Q_22062015Once the TDS returns are filed in the Form 27Q, the buyer can issue TDS certificate (Form 16A) to NRI seller. This TDS certificate should be issued within 15 days to the seller from the due date of TDS returns for the quarter.
