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

[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

AI Summary

NRI without PAN inquires about TDS rate on interest under Section 195; PAN needed for lower DTAA rate. An NRI covered by a Double Taxation Avoidance Agreement (DTAA) without a PAN is inquiring about the applicable Tax Deducted at Source (TDS) rate on interest earned under Section 195 of the Income Tax Act. Two responses were provided. The first suggests that the TDS rate should be 20% or as per DTAA rates, whichever is higher, and notes that a PAN is necessary for a lower TDS rate. The second response indicates that the DTAA rate would apply if it is lower, but a PAN is still mandatory.