Form 27Q is a quarterly Tax Deducted at Source (TDS) return that captures details of tax deducted on payments made to Non-Resident Indians (NRIs) and foreign entities (excluding salary). Any person responsible for making specified payments to non-residents must deduct TDS at applicable rates and file Form 27Q within prescribed timelines.
This form ensures compliance with provisions relating to non-resident taxation under the Income-tax Act, 1961.
Who is Required to File Form 27Q?
Deductor (Payer)
Any person making payments to a non-resident, including:
- Individual
- HUF
- Partnership firm
- Company
- Trust
- Other entities
Deductee (Payee)
- Non-resident individual
- Foreign company/entity
Residential status is determined as per the Income-tax Act.
Payments Covered Under Form 27Q
Form 27Q applies to TDS on payments such as:
- Payments to non-resident sportsmen or associations
- Interest on bonds and government securities
- Income from mutual fund units
- Payments to offshore funds
- Interest from infrastructure debt funds
- Income from foreign currency bonds/shares
- Investment fund distributions
- Income from securitisation trusts
- Taxable PF withdrawals
- Any other income payable to non-residents
Details Required for Filing Form 27Q
Deductor Details
- PAN
- TAN
- Name and address
- Contact details
Responsible Person Details
- Name
- PAN
- Address
- Contact details
Challan Details
- BSR code
- Challan serial number
- TDS amount
- Surcharge and cess
Deductee Details
- Name
- PAN (if available)
- Amount paid
- TDS deducted
- Date of deduction
If PAN is not available:
- Tax Identification Number (TIN)
- Country of residence
- Address
- Email and contact details
Due Dates for Filing Form 27Q
| Quarter | Period | Due Date |
| Q1 | April – June | 31 July |
| Q2 | July – September | 31 October |
| Q3 | October – December | 31 January |
| Q4 | January – March | 31 May |
Important Points
- TDS must be deposited by 7th of next month
- For March → 30 April
Structure of Form 27Q
Statistics of Vouchers
Includes:
- Included transactions (with/without TDS)
- Advance payments
- TDS adjustments/reversals
Also categorizes:
- Excluded transactions
- Uncertain transactions (incomplete data)
Deduction Details
Classified based on:
- Normal rate deduction
- Higher rate deduction
- Lower/zero rate
- PAN not available
Displays:
- Taxable value
- TDS amount
- Applicable rate
Payment Details
Shows:
- Challan payments
- TDS deposited
- Adjustments
Procedure for TDS on NRI Payments
- Deduct TDS at time of payment/credit
- Mention TDS details in agreement
- Deposit TDS using challan
- File Form 27Q quarterly
- Issue Form 16A
TDS Certificate (Form 16A)
- Must be issued after filing Form 27Q
- Timeline: Within 15 days from due date of return
Latest Update – Section 194T
Form 27Q now includes reporting for:
- Payments to non-resident partners under Section 194T
This enhances compliance for partnership-related foreign payments.
Key Compliance Points
- Mandatory for all non-salary payments to NRIs
- Quarterly filing required
- PAN/TIN details must be accurate
- TDS must be deposited before filing
- Form 16A must be issued
- Late filing attracts penalties
Conclusion
Form 27Q plays a crucial role in ensuring proper reporting of TDS on payments made to non-residents. With increasing cross-border transactions, accurate filing, timely compliance, and correct documentation have become essential.
Understanding updates such as Section 194T inclusion, strict due dates, and documentation requirements can help avoid penalties and ensure smooth tax compliance for businesses dealing with NRIs and foreign entities.
Disclaimer: The content on this website is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult qualified experts before acting on any information. Jatin Sethi & Co accepts no liability for errors, omissions, or outcomes from the use of this content. This site is not an advertisement or solicitation.
(FAQs)
1. What is Form 27Q?
Form 27Q is a quarterly TDS return filed for payments made to Non-Resident Indians (NRIs) and foreign entities. It includes details of tax deducted at source (TDS) on income such as interest, dividends, royalties, and other payments (excluding salary).
2. Who is required to file Form 27Q?
Any person or entity (deductor) making payments to NRIs or foreign companies that are subject to TDS must file Form 27Q.
3. What types of payments are covered under Form 27Q?
Form 27Q covers TDS on payments such as:
- Interest income
- Dividend income
- Royalty and technical fees
- Rent or lease payments
- Capital gains payments
- Other taxable income (excluding salary)
4. Is Form 27Q applicable for salary payments to NRIs?
No. TDS on salary paid to NRIs is reported in Form 24Q, not Form 27Q.
5. What are the due dates for filing Form 27Q?
Form 27Q must be filed quarterly as follows:
| Quarter | Period | Due Date |
| Q1 | April – June | 31st July |
| Q2 | July – September | 31st October |
| Q3 | October – December | 31st January |
| Q4 | January – March | 31st May |
6. What details are required in Form 27Q?
The form includes:
- Deductor details (TAN, name, address)
- Deductee (NRI) details
- Nature of payment
- Amount paid and TDS deducted
- Date of deduction and payment
7. Is PAN mandatory for NRIs in Form 27Q?
PAN is preferred, but if not available, details such as:
- Name
- Address
- Country of residence
- Tax Identification Number (TIN) of foreign country
must be provided.
8. What is the TDS rate applicable for NRIs?
TDS rates vary depending on the type of income and applicable provisions under the Income Tax Act or Double Taxation Avoidance Agreement (DTAA).
9. What is DTAA and how does it affect TDS?
A Double Taxation Avoidance Agreement (DTAA) allows reduced tax rates or exemptions on certain incomes to avoid double taxation. NRIs can claim DTAA benefits by submitting required documents like TRC (Tax Residency Certificate).
10. What happens if Form 27Q is not filed on time?
Late filing can result in:
- Late fee under Section 234E – ₹200 per day
- Penalty under Section 271H – ₹10,000 to ₹1,00,000
- Disallowance of expenses in certain cases
11. What is Form 15CA and Form 15CB in relation to Form 27Q?
- Form 15CA: Declaration for remittance to non-residents
- Form 15CB: CA certificate confirming tax compliance
These are required before making certain foreign payments.
12. Is it mandatory to issue TDS certificates to NRIs?
Yes. After filing Form 27Q, the deductor must issue Form 16A to the NRI as proof of TDS deduction.
13. Can Form 27Q be revised after filing?
Yes, a revised return can be filed to correct errors such as incorrect PAN, amount, or challan details.
14. What is the process to file Form 27Q?
- Prepare the return using TDS software
- Validate using File Validation Utility (FVU)
- Upload on the income tax portal
- Generate acknowledgment
15. Is TAN mandatory for filing Form 27Q?
Yes. A valid Tax Deduction and Collection Account Number (TAN) is mandatory for filing any TDS return.
16. What is the difference between Form 26Q and Form 27Q?
- Form 26Q → TDS on payments to residents
- Form 27Q → TDS on payments to non-residents (NRIs/foreign entities)
17. What if excess TDS is deducted from an NRI?
The NRI can claim a refund while filing their Income Tax Return (ITR) in India.
18. Is lower or nil TDS possible for NRIs?
Yes. NRIs can apply for a lower/nil TDS certificate under Section 197 to reduce tax deduction.
19. What are common errors in Form 27Q filing?
- Incorrect PAN or foreign details
- Wrong TDS rate
- Incorrect challan details
- Missing DTAA documentation
20. Why is Form 27Q important?
Filing Form 27Q ensures:
- Compliance with TDS provisions for foreign payments
- Avoidance of penalties
- Proper reporting of cross-border transactions
- Transparency in tax filings
Written by
Asha Ahuja Sethi (Head Admin at Jatin Sethi & Co., Chartered Accountants)
Shilpa Khata ( Works at Jatin Sethi & Co., Chartered Accountants)
Tagged with:
About the Author
cajatinsethi
Professional Chartered Accountant with expertise in taxation, financial planning, and business advisory services. Committed to helping businesses and individuals achieve their financial goals through personalized solutions and expert guidance.
