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TDS Section 195 — Payment to non-resident (any taxable sum)

FY 2025-26 · Rate Rate in force (varies — typically 20%/30% before surcharge & cess; reduced by DTAA)

Section

195

Rate (with PAN)

Rate in force (varies — typically 20%/30% before surcharge & cess; reduced by DTAA)

Rate (no PAN)

20% (minimum, subject to higher of rate-in-force)

What does this section cover?

TDS on any sum (other than salary) paid to a non-resident or foreign company that is chargeable to tax in India.

Why this section: Catch-all for outbound payments — interest, royalty, FTS, capital gains paid to non-residents trigger TDS at the rate in force or under treaty (whichever is lower).

Note: Form 15CA/15CB compliance often required. DTAA can reduce rate — claim with TRC + Form 10F. CA certificate needed for higher-value remittances.

Key facts

Threshold: No threshold
Applicable for: FY 2025-26
Who deducts: Any person making payment to a non-resident
Paid to: Non-resident / foreign company
Statutory source: Section 195, Income Tax Act

Compute and file this TDS with CAhelper→Free TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 195 is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

non resident paymentforeign paymentremittancedtaaform 15caform 15cbforeign vendornri paymentfts non residentroyalty non resident

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

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Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.