TDS Rate for NRIs for FY 2019-20 (AY 2020-21)
TDS rate for NRIs for FY 2019-20 (AY 2020-21) on interest on bank deposits, rent, commission, brokerage, Mutual Fund redemption are covered in the article. Various sections under which TDS are collected and the applicable rates are covered in the article TDS rate applicable for FY 2019-20 (AY 2020-21).
TDS rate for NRIs on interest on Bank deposits
Interest earned by NRIs on Non-Resident Ordinary Account attracts TDS without any minimum exemption. Interest earned on Non-Resident External (NRE) accounts and Foreign Currency Non-Resident (FCNR) accounts is exempted from the purview of TDS. However, NRI depositors residing in countries with whom India has entered into Double Taxation Avoidance Agreements can take benefit of DTAA rates.
TDS rate for NRIs on rent, dividend, commission and brokerage
TDS rate for NRIs is 30% on rent, commission, brokerage or any other income. TDS is exempted on dividend if Division Distribution Tax (DDT) is paid by the company.
TDS rate for NRIs on Mutual Fund redemptions
NRI investment in mutual funds attracts TDS and the TDS rate for NRIs on redemption of mutual fund units for FY 2019-20 (AY 2020-21) is as shown below.
|
|
STCG |
LTCG |
|
Equity Oriented MF |
15% |
10% |
|
Other than Equity Oriented MFs |
30% ( for investor in the top tax bracket) |
Listed -20% with indexation Unlisted-10% without indexation |
STCG and LTCG along with applicable surcharge and Health and Education Cess must be deducted at the time of redemption of units in the case of NRIs.
TDS rate for NRIs selling property
Under Sec.195, when an NRI sells a property, the buyer is liable to deduct TDS @ 20% on Long Term Capital Gains. If the property is sold before completion of 2 years (reduced from the date of purchase), TDS at the rate of 30% is applicable (on Short Term Capital Gains).
