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

TDS rate for NRI: treaty rate applies if lower, but PAN required to claim reduced withholding.
Practitioner responses address withholding on interest to an NRI covered by a DTAA but lacking a PAN: one view advises withholding at the higher of statutory and treaty rates and requires a PAN to obtain reduced withholding; another advises that a lower DTAA rate would apply but likewise treats presentation of a PAN as mandatory to claim treaty relief.