Sportsmen, and Interest on Foreign Borrowings and Bonds (Sl. No. 1 to 5)
Tax is deducted on the amount of the income or sum at the rate in column E, at the time of credit or payment, whichever is earlier (section 393(2)). Column D of this Table has no threshold limit.
| Sl. No. | Nature of income | Payee | Payer | Rate |
|---|---|---|---|---|
| 1 | Any income referred to in section 211 | A non-resident sportsman (including an athlete) or an entertainer, who is not a citizen of India; or a non-resident sports association or institution | Any person | 20% |
| 2 | Interest on moneys borrowed in foreign currency from a source outside India, (a) under a loan agreement or issue of long-term infrastructure bond on or after 1 July 2012 but before 1 July 2023, or (b) by issue of any long-term bond on or after 1 October 2014 but before 1 July 2023, approved by the Central Government | Any non-resident (not being a company) or a foreign company | Any Indian company or a business trust | 5% |
| 3 | Interest on moneys borrowed from a source outside India by issue of rupee denominated bond before 1 July 2023 | Any non-resident (not being a company) or a foreign company | Any Indian company or a business trust | 5% |
| 4(a) | Interest on moneys borrowed from a source outside India by issue of any long-term bond or rupee denominated bond listed only on a recognised stock exchange located in any International Financial Services Centre, where such bonds are issued on or after 1 April 2020 but before 1 July 2023 | Any non-resident (not being a company) or a foreign company | Any Indian company or a business trust | 4% |
| 4(b) | The same, where such bonds are issued on or after 1 July 2023 | Any non-resident (not being a company) or a foreign company | Any Indian company or a business trust | 9% |
| 5 | Any income by way of interest | Any non-resident (not being a company) or a foreign company | Any infrastructure debt fund referred to in Schedule VII (Table: Sl. No. 46) | 5% |
Note 1: for Sl. No. 2, 3 and 4 the interest is income only to the extent it does not exceed interest calculated at the rate approved by the Central Government, having regard to the terms of the loan or the bond and its repayment.
Work Out the TDS on a Payment to a Non-Resident
Pick the payee and the kind of payment, and enter the amount. The calculator uses the Finance Act, 2026 rate; a lower tax agreement rate may apply instead.
Finance Act, 2026 rates only. Tax agreement rates, lower deduction certificates and the non-company surcharge are not applied. Surcharge for a foreign company is taken on the amount entered, as the income subject to the deduction.
Business Trusts, Investment Funds and Units (Sl. No. 6 to 10)
| Sl. No. | Nature of income | Payee | Payer | Rate |
|---|---|---|---|---|
| 6(a) | Distributed income referred to in section 223, of the nature referred to in Schedule V [Table: Sl. No. 3.B(a)] | Any unit holder, being a non-resident (not being a company) or a foreign company | Any business trust | 5% |
| 6(b) | Distributed income referred to in section 223, of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)] | Any unit holder, being a non-resident (not being a company) or a foreign company | Any business trust | 10% |
| 7 | Distributed income referred to in section 223, of the nature referred to in Schedule V (Table: Sl. No. 4) | Any unit holder, being a non-resident (not being a company) or a foreign company | Any business trust | Rates in force |
| 8 | Income, other than the proportion exempt under Schedule V (Table: Sl. No. 2), in respect of units of an investment fund specified in section 224 | Any unit holder, being a non-resident (not being a company) or a foreign company | Any investment fund specified in section 224 | Rates in force |
| 9 | Income in respect of an investment in a securitisation trust specified in section 221 | Any investor, being a non-resident (not being a company) or a foreign company | Any securitisation trust specified in section 221 | Rates in force |
| 10 | Income in respect of units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21), or units from the specified company | Any non-resident (not being a company) or a foreign company | Any person | As per Note 2: 20%, or the tax agreement rate if lower |
Note 2 (Sl. No. 10 and 15): tax is deducted at 20%, or, where an agreement referred to in section 159(1) or 159(2) applies to the payee and the payee has furnished the certificate referred to in section 159(8), at the rate in that agreement for such income if it is lower than 20%.
Offshore Funds, Global Depository Receipts, FIIs and Specified Funds (Sl. No. 11 to 16)
| Sl. No. | Nature of income | Payee | Payer | Rate |
|---|---|---|---|---|
| 11 | Income in respect of units referred to in section 208 | Any offshore fund | Any person | 10% |
| 12 | Long-term capital gains arising from the transfer of units referred to in section 208 | Any offshore fund | Any person | 12.5% |
| 13 | Interest or dividends in respect of bonds or Global Depository Receipts referred to in section 209 | Any non-resident | Any person | 10% |
| 14 | Long-term capital gains arising from the transfer of bonds or Global Depository Receipts referred to in section 209 | Any non-resident | Any person | 12.5% |
| 15 | Income in respect of securities referred to in section 210(1) (Table: Sl. No. 1) | Any Foreign Institutional Investor | Any person | As per Note 2: 20%, or the tax agreement rate if lower |
| 16 | Income in respect of securities referred to in section 210(1) (Table: Sl. No. 1) | A specified fund referred to in Schedule VI [Note 1(g)] | Any person | 10% |
Any Other Interest or Sum Chargeable to Tax (Sl. No. 17)
| Sl. No. | Nature of income | Payee | Payer | Rate |
|---|---|---|---|---|
| 17 | Any interest (not being interest referred to against Sl. No. 2, 3, 4 and 5) or any other sum chargeable under the provisions of the Act, not being income chargeable under the head Salaries | Any non-resident (not being a company) or a foreign company | Any person | Rates in force |
Note 3: where the interest is payable by the Government, a public sector bank or a public financial institution, tax is deducted only at the time of payment. The obligation to deduct extends to all persons, resident or non-resident, whether or not the non-resident has a residence, place of business, business connection or any other presence in India. Under section 395(2) the payer may apply to the Assessing Officer to determine the proportion of the sum chargeable to tax, and tax is then deducted only on that proportion.
Rates in Force for Sl. No. 7, 8, 9 and 17, Tax Year 2026-27
Under section 2(90)(c) of the Act, for these serial numbers the rate in force is the rate specified in the Finance Act of the relevant tax year or the rate in a tax agreement under section 159(1) or 159(2), whichever is applicable. The Finance Act, 2026 rates are below. Surcharge and cess are added to them.
| Income | Non-resident Indian | Other non-resident, not a company | Company other than a domestic company |
|---|---|---|---|
| Investment income (as defined in section 212) | 20% | No entry | No entry |
| Long-term capital gains referred to in section 197(4) (for a non-resident Indian the entry reads section 214 or 197(4)) | 12.5% | 12.5% | 12.5% |
| Long-term capital gains referred to in section 198 exceeding ₹1,25,000 | 12.5% | 12.5% | 12.5% |
| Other long-term capital gains, with the exclusion stated in Part II | 12.5% | 12.5% | 12.5% |
| Short-term capital gains referred to in section 196 | 20% | 20% | 20% |
| Interest payable by Government or an Indian concern on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sl. No. 2 to 5) | 20% | 20% | 20% |
| Royalty payable by Government or an Indian concern for copyright in a book referred to in section 207(3)(a) or computer software referred to in section 207(3)(b) | 20% | 20% | 20%, where the agreement is made after 31 March 1976 |
| Other royalty payable by Government or an Indian concern under an approved agreement or one in accordance with the industrial policy | 20% | 20% | 50% where the agreement is made after 31 March 1961 but before 1 April 1976; 20% where made after 31 March 1976 |
| Fees for technical services payable by Government or an Indian concern under an approved agreement or one in accordance with the industrial policy | 20% | 20% | 50% where the agreement is made after 29 February 1964 but before 1 April 1976; 20% where made after 31 March 1976 |
| Dividend referred to in section 207(1) [Table: Sl. No. 2] | 10% | 10% | 10% |
| Dividend other than the above | 20% | 20% | 20% |
| The whole of the other income | 30% | 30% | 35% |
Part II items 1(b)(i), 1(b)(ii) and 2(b). Winnings from lotteries, games, horse races and online games (30% in each column) fall under section 393(3) and are in the chart for payments to any person.
Surcharge and Cess on the Tax Deducted
For Sl. No. 1 to 6 and 10 to 16 the tax deducted is increased by the surcharge in the Table in section 3(7) of the Finance Act, 2026, set out below. The limits refer to the income, or the aggregate of such incomes, paid or likely to be paid and subject to the deduction.
| FA 2026 s. 3(7) Sl. No. | Non-resident payee | Surcharge |
|---|---|---|
| 2 | Individual, Hindu undivided family, association of persons (other than one consisting only of companies), body of individuals or artificial juridical person, except for dividend income under Sl. No. 15 and 16 and except where the income is chargeable under section 202 | 10% above ₹50,00,000 up to ₹1,00,00,000; 15% above ₹1,00,00,000 up to ₹2,00,00,000; 25% above ₹2,00,00,000 up to ₹5,00,00,000; 37% above ₹5,00,00,000 |
| 3 | The same persons where the income is chargeable under section 202, except for dividend income under Sl. No. 15 and 16 | 10% above ₹50,00,000 up to ₹1,00,00,000; 15% above ₹1,00,00,000 up to ₹2,00,00,000; 25% above ₹2,00,00,000 |
| 4 | The same persons, on dividend income under Sl. No. 15 and 16 | 10% above ₹50,00,000 up to ₹1,00,00,000; 15% above ₹1,00,00,000 |
| 5 | Association of persons consisting of only companies as its members | 10% above ₹50,00,000 up to ₹1,00,00,000; 15% above ₹1,00,00,000 |
| 6 | Co-operative society | 7% above ₹1,00,00,000 up to ₹10,00,00,000; 12% above ₹10,00,00,000 |
| 7 | Firm | 12% above ₹1,00,00,000 |
| 8 | Company other than a domestic company | 2% above ₹1,00,00,000 up to ₹10,00,00,000; 5% above ₹10,00,00,000 |
Health and Education Cess of 4% is then added on the income-tax and surcharge (section 3(16)). For Sl. No. 7, 8, 9 and 17 the surcharge is taken from the Table in Part II of the First Schedule, which uses the same income bands and rates and limits the surcharge to 15% on the part of the tax that relates to dividend income or capital gains under sections 196, 197 and 198.
Where No Tax Is Deducted, and Missing PAN
| Provision | Entry | Rule |
|---|---|---|
| s. 393(4), Sl. No. 13 | Sl. No. 6 | No deduction on income of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)] if the special purpose vehicle has not exercised the option under section 200. |
| s. 393(4), Sl. No. 14 | Sl. No. 8 | No deduction on income that is not chargeable to tax under the Act. |
| s. 393(4), Sl. No. 15 | Sl. No. 10 | No deduction on income in respect of units of the Unit Trust of India payable to a non-resident Indian or a non-resident Hindu undivided family, subject to prescribed conditions. |
| s. 393(4), Sl. No. 16 | Sl. No. 15 | No deduction on capital gains arising from the transfer of securities referred to in section 210, payable to a Foreign Institutional Investor. |
| s. 393(4), Sl. No. 17 | Sl. No. 16 | No deduction where the income is exempt as per Schedule VI (Table: Sl. Nos. 1 to 4). |
| s. 393(8) | Interest | No deduction from interest paid by an Offshore Banking Unit on a borrowing from, or deposit made on or after 1 April 2005 by, a non-resident or a person not ordinarily resident in India. |
| s. 397(2)(b)(i) | No valid PAN | Tax is deducted at the higher of the rate in the provision, the rates in force, or 20%. |
| s. 397(2)(c) | No valid PAN | The higher rate does not apply to a non-resident (not being a company) or a foreign company for interest on long-term bonds under Sl. No. 2, 3 and 4, and for any other payment subject to prescribed conditions. |
| s. 397(1)(c), from 1 October 2026 | Sl. No. 17 | A resident individual or Hindu undivided family deducting tax on consideration for the transfer of immovable property under Sl. No. 17 need not obtain a tax deduction and collection account number (substituted by section 87 of the Finance Act, 2026). |
Late Fee and Penalty
Simple interest at 1% for every month or part of a month from the date tax was deductible to the date it is deducted, and 1.5% for every month or part of a month from the date of deduction to the date it is paid. ITA 2025 · s. 398(3)
₹200 for every day the statement under section 397(3)(b) is late, not exceeding the tax deductible. ITA 2025 · s. 427(1) and (2)
₹10,000 to ₹1,00,000. Not levied for delay if the tax, fee and interest were paid and the statement is filed within one month of the due date. ITA 2025 · s. 461
A person paying a non-resident who does not furnish the information under section 397(3)(d), or furnishes inaccurate information, may be charged a penalty of ₹1,00,000. ITA 2025 · s. 462
Penalty equal to the tax not deducted (s. 448). Tax deducted and not paid: simple imprisonment up to two years or fine or both above fifty lakh rupees, up to six months above ten lakh rupees, fine otherwise, unless paid by the due date of the statement (s. 476). ITA 2025 · s. 448 and 476
What You Pay in Common Cases
Royalty of ₹10,00,000 to a foreign company
Fees for technical services of ₹2,00,00,000 to a foreign company
Interest of ₹5,00,000 on an approved foreign currency loan, payee a non-resident individual
Other sum of ₹1,00,000 chargeable to tax, payee a non-resident individual
How to Apply and Pay
- 1Check PAN or the rule 217 documentsWithout a PAN the higher rate of section 397(2)(b) does not apply to interest, royalty, technical fees, dividend and capital asset transfers if the payee gives the documents in rule 217(2).
- 2Deduct at credit or paymentWhichever is earlier (s. 393(2)(b)); for interest payable by Government, a public sector bank or a public financial institution, only at payment (Note 3).
- 3Furnish Form 145Part A if payments in the year are up to ₹5,00,000; above that, Part C with the accountant certificate in Form 146, or Part B with an order under section 395 (rule 220).
- 4Deposit by the 7thWithin seven days from the end of the month of deduction, by 30 April for March (rule 218(2)).
- 5File Form 144 and issue Form 131Form 144 quarterly by 31 July, 31 October, 31 January and 31 May (rule 219); Form 131 within fifteen days after (rule 215(1)).
Documents to file with it
- Valid PAN of the payee, or under rule 217(2): name, email and contact number, address abroad, tax residency certificate where the other country issues one, and the tax identification number there
- Certificate referred to in section 159(8), where a tax agreement rate is claimed
- Form 146 certificate from an accountant, where payments exceed ₹5,00,000 in the year and no order under section 395 is held (rule 220(1)(c))
- Certificate or order under section 395(1) or 395(2), if obtained
How to Use This Chart
- Identify the payee first: a non-resident who is not a company, a foreign company, an offshore fund, a Foreign Institutional Investor or a specified fund each has its own rows.
- If no specific row applies and the sum is chargeable to tax in India, Sl. No. 17 applies at the rates in force.
- Compare the Finance Act rate with the tax agreement rate where an agreement under section 159 applies.
- Add surcharge where the income crosses the limit, then 4% cess on tax plus surcharge.
- Rates under individual tax agreements (double taxation avoidance agreements) are not shown.
- Lower or nil deduction certificates and the determination of the chargeable proportion under section 395 are not shown.
- The surcharge Table in Part II of the First Schedule (for Sl. No. 7, 8, 9 and 17) is summarised in a note, not reproduced row by row.
- Whether a sum is chargeable to tax in India at all (sections 5 and 9 of the Act and the tax agreement) is outside this chart.
- The purpose codes in rule 220(3) for which Form 145 is not needed are not listed, and the contents of Forms 145 and 146 are not explained.
- Salary paid to a non-resident is under section 392, not this Table.
Official documents behind this page
- Income-tax Act, 2025 (30 of 2025), as enacted, Gazette of India ExtraordinarySection 393(2), Table "For payments to non-resident", Sl. No. 1 to 17 and Notes 1 to 3; section 393(4), Table, Sl. No. 13 to 17; section 393(8); section 395(2); section 397(2); section 2(90)(c).
- Finance Act, 2026 (4 of 2026), Gazette of India Extraordinary, 30 March 2026Section 3(7) (Table of surcharge on tax deducted, Sl. No. 1 to 8), section 3(16) and 3(17) (cess); First Schedule, Part II, items 1(b)(i), 1(b)(ii) and 2(b) and the surcharge Table in that Part; section 84 (amendment of section 393, which does not touch the sub-section (2) Table); section 87 (section 397(1)(c)).
- Income-tax Act, 2025 as amended by the Finance Act, 2026 (consolidated copy)Used as a second reading of the section 393(2) Table. It carries no amendment footnote against that Table. Also read: section 393(2)(b); section 397(1)(c) as substituted from 1 October 2026, 397(2)(b) and (c), 397(3)(d); section 398(3); section 427; sections 448, 461 and 462; section 476(1) as substituted by the Finance Act, 2026.
- Income-tax Rules, 2026 (notified 20 March 2026), with the Income-tax (Fifth Amendment) Rules, 2026 (G.S.R. 830(E), 22 September 2026, in force 1 October 2026)Rule 215(1) (Forms 131 and 132), rule 217 (documents in place of PAN), rule 218(2) and (3)(e) (time of deposit; Form 141 where a resident individual or HUF buys property from a non-resident), rule 219(1) Table Sl. No. 2, 219(4) and 219(5)(e) (Form 144, quarterly due dates, Form 141), rule 220 (Form 145 Parts A to D and Form 146).
Disclaimer: This chart reproduces fees and rates from the official documents listed above, as read on 2 October 2026. It is general information, not professional advice for your case. Fees, rates and slabs are changed by notification, and the amount the authority’s portal or challan asks for on the day you pay is the one that applies. The calculator only adds up the figures on this page; it does not know your facts or any later change. TaxClue is not responsible for a decision taken on this page alone. Check the current notification on the official website before you pay or file.