Income Tax
TDS Return Form 27Q
Quick answer: Form 27Q TDS return for payments to non-residents / foreign companies — Section 195 quarterly TRACES filing.
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Why choose FinTax24
- 900+ Form 27Q filings for FY 2025-26
Audience
Who needs TDS Return Form 27Q?
- Indian companies, LLPs, and firms making payments to foreign vendors for technical / professional services.
- Banks and financial institutions remitting interest, dividend, or principal to non-resident lenders / shareholders.
- Royalty payers to non-resident licensors — patent, trademark, copyright, software, know-how payments.
- Sports associations and entertainment industry paying non-resident sportspersons, performers, or technicians.
- Real estate buyers paying non-resident sellers for property purchase — Section 195 TDS applicable.
- Indian subsidiaries paying management fees, technical fees, or consultancy to foreign holding company.
- E-commerce platforms paying foreign sellers under Section 194O / 195 on cross-border transactions.
How it works
- 1
Form 15CB & 15CA
Form 15CB obtained from CA confirming TDS rate, DTAA, and remittance eligibility. Form 15CA self-declared.
- 2
TDS & Challan Compilation
TDS deducted on each foreign remittance compiled with PAN / TIN, country, currency, amount.
- 3
Form 27Q JSON Drafting
Annexure I (payee details) and Annexure II (remittance + TDS) prepared with country codes.
- 4
TRACES Portal Upload
Form 27Q uploaded on TRACES portal with TAN-based login and DSC verification.
- 5
Form 16C Issuance
Form 16C generated and issued to non-resident payees within 15 days of filing.
Timeline
Why file this
Benefits of tds return form 27q
- Form 27Q TDS return filing for payments to non-residents / foreign companies under Section 195.
- Covers interest, dividend, royalty, fees for technical services, management fees, and any sum chargeable to tax.
- DTAA treaty rate support — India DTAA with USA, UK, Singapore, UAE, Mauritius, Netherlands, etc.
- PAN / Tax Identification Number (TIN) of payee — mandatory for Form 27Q filing on TRACES.
- Country code of payee, remittance details, and currency for each transaction recorded in Annexure I & II.
- Challan 281 reconciliation — TDS deducted in INR on remittance and deposited by 7th of next month.
- Form 16C issuance to non-resident payees within 15 days of Form 27Q filing.
- Avoid Section 234E penalty of ₹1,000 per day by timely filing before quarterly due date.
Documents required
8 documents needed for tds return form 27q.
- TAN of the deductor — mandatory for Form 27Q filing on TRACES.
- PAN or TIN of the non-resident / foreign company payee — mandatory in Annexure I.
- Form 15CB — certificate from chartered accountant confirming remittance is eligible and TDS is correct.
- Form 15CA — self-declaration of remittance details for foreign remittance via bank / authorised dealer.
- TDS challan 281 payment details — BSR code, challan serial number, date, and amount in INR.
- DTAA residency certificate (TRC) of the payee — for claiming lower DTAA treaty rate.
- Invoice / agreement with non-resident — payment, currency, service description, TDS rate.
- Authorised dealer (bank) FIRC / foreign inward remittance certificate for the remittance.
DIY vs FinTax24
Why file tds return form 27q with FinTax24 instead of doing it yourself.
| Aspect | DIY / Portal | Local Tax Consultant | FinTax24 |
|---|---|---|---|
| Filing time | 7–14 days (typical) | Varies by availability and workload | 3-5 business days |
| Expert review | None | Depends on the consultant | Expert verified on every filing |
| Document check | You self-verify; rejected on portal | Manual review may vary | Pre-verified by our team before submission |
| Support | Email / chatbot | Appointment-based or office hours | WhatsApp + phone, Mon–Sat 10 AM–7 PM IST |
| Pricing | Government fees only | Consultant fee + government fees | Transparent: From ₹1,499 + govt fees |
Frequently asked questions
What is Form 27Q and when is it due?
Form 27Q is the quarterly TDS return for payments to non-residents (NR) and foreign companies (FC) under Section 195. Due dates for FY 2025-26: Q1 — 31 Jul 2025, Q2 — 31 Oct 2025, Q3 — 31 Jan 2026, Q4 — 31 May 2026. Filed on TRACES portal. Form 16C is issued to non-resident payees after filing.
What is the difference between Form 27Q and Form 26Q?
Form 27Q is for TDS on payments to non-residents and foreign companies under Section 195. Form 26Q is for TDS on payments to residents under Sections 193-196. Form 27Q requires PAN or TIN of the payee and country code for each transaction. Form 26Q requires only PAN. Both filed on TRACES portal with quarterly due dates.
What is Form 15CB and Form 15CA?
Form 15CB is a chartered accountant certificate confirming that the remittance is eligible, the TDS rate is correct (statutory / DTAA), and DTAA benefits are claimed properly. Form 15CA is a self-declaration by the remitter filed with the bank (authorised dealer) before remittance. Both required before foreign remittance under Section 195.
What is the DTAA treaty rate for foreign remittance?
DTAA (Double Taxation Avoidance Application) rates vary by country and income type. Common rates: 10% on royalties, 15% on technical services, 10% on interest, 5% / 15% on dividends. India has DTAA with 90+ countries including USA, UK, Singapore, UAE, Mauritius, Netherlands, Germany, France. TRC required to claim DTAA rate.
When must Form 16C be issued to non-residents?
Form 16C (TDS certificate for foreign remittance) must be issued within 15 days of Form 27Q filing for each quarter. Form 16C shows the payment, TDS deducted, and TDS deposited. Issued by the deductor to the non-resident / foreign company payee. Non-resident can download from TRACES using PAN / TIN.
Can Form 27Q be revised?
Yes. Form 27Q can be revised any number of times on the TRACES portal using the correction statement. Late correction attracts Section 234E penalty. Original Form 27Q must be filed before correction. Revised Form 16C can be re-issued. DTAA corrections may require revised Form 15CB.
What is the fee for Form 27Q filing at FinTax24?
Form 27Q TDS return filing starts from ₹1,499 per quarter at FinTax24 — covers Form 15CB preparation, payee PAN / TIN compilation, country code mapping, Annexure I & II drafting, TRACES upload, and DSC verification. Form 16C issuance included. DTAA treaty rate application included. Multi-quarter packages start from ₹5,499.
What is the consequence of non-filing of Form 27Q?
Section 234E penalty ₹1,000 / day until filed. Section 271H penalty of ₹10,000 to ₹1 lakh for incorrect / incomplete return. Section 276B prosecution (1-3 years imprisonment + fine) for willful non-filing. Non-resident cannot claim DTAA credit in home country without Form 16C. Remittance bank may refuse future transactions.
Sources & authority: For regulations on tds return form 27q, refer to incometax.gov.in , eportal.incometax.gov.in .
Last reviewed by: FinTax24 Compliance Desk · Reviewed on:
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