Prerequisites to file 27q (A non-resident, who do not have PAN, can avoid higher TDS deduction tax rates)

Prerequisites to file 27q

Prerequisites to file 27Q (A non-resident, who does not have PAN, can avoid higher TDS deduction)

Relaxation from deduction of tax at higher rate under section 206AA.

In the case of a non-resident, not being a company, or a foreign company (hereafter referred to as 'deductee') and not having Permanent Account Number, the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset, if the deductee furnishes the details and the documents specified in sub-rule (2) to the deductor.

Submit below details, to avoid higher TDS deduction

  1. Name, E-mail id, Contact number
  2. Address of NRI’s country of residence
  3. Tax Residency Certificate (TRC), if the law of country of residence provides for such certificate
  4. Tax Identification Number (TIN) in the country of residence

Step 1

Open the e-TDS software Go to Master → Deductee Master (Non Salary)  option given in menu bar


  • Mention 10 digit Deductee reference number 
  • Mention Name, E-mail id, Contact number
  • Mention Address of NRI’s country of residence
  • Mention Tax Identification Number (TIN) in the country of residence.







Step 2

To select the Rate for reason as H( Higher Deduction ), Go to Deductee entry → Form Wise Deductee entry → 27Q Non residency
  • Select Reason of deduction “H” (Higher deduction) in Deductee entry
  • Mention Residence Country 
  • Mention Nature of Remittance
  • Mention Tax Rate 

Note – Reason for Deductions should “h” in case of non-availability of PAN.



    • Related Articles

    • 24 Q Correction validation error -RELATED SALARY DETAILS

      24 Q Correction validation error  -T-FV-4308 Invalid value provided under field "Total TDS by the current employer'"[aggregate of the amount in column 323 of annexure -I] Possible Resolution To solve this tds 24q correction validation error , here ...

    • TDS || CSI File Download process

      What is CSI File? CSI file is Challan status inquiry file which is required to validate data while preparing TDS return. A CSI file can be download from - https://eportal.incometax.gov.in/iec/foservices/#/login or ...

    • TDS || E-Filing → Invalid CIN File Name

      Root Cause of the Error → This issue arises when there are multiple CSI files in the root directory, and the client selects a CSI file that contains spaces or special characters in its name. Solution → To resolve the error, please follow these steps: ...

    • TDS || Import Text or Consolidate(TDS) file

      The purpose of importing a text/Conso file is that all your old filed data gets into the software. You do not have to enter the master and transactions information of the Deductor and the Deductee again. To import the Text/TDS file into TDS software, ...

    • TDS || Process for Consolidate file download

      The Conso file serves as a comprehensive compilation of data derived from processed statements, encompassing both regular and correction statements, pertaining to the relevant financial year, quarter, and form type. In the event of any modifications ...