TDS Certificate : In a recent development, Non-Resident Indians (NRIs) seeking to minimize tax deductions on their Indian income now have an updated procedure to obtain Tax Deduction at Source (TDS) certificates. This adjustment is a response to a circular issued by the Central Board of Direct Taxes (CBDT) on September 27, 2023.
In contrast to residents, NRIs cannot utilize Form 15G/H to evade TDS on their earnings. Instead, they are required to request a reduced or zero TDS certificate from the assessing officer, leading income payers to deduct taxes at a reduced rate or not at all.
TDS Certificate for NRI’s Process
A notable alteration in the process for NRIs applying for lower or nil TDS incorporates the removal of many verification methods. Previously, choices like Aadhar OTP and mobile OTP were accessible for Form 13 applications. However, the sole verification method now accepted on the TRACES NRI website is the Digital Signature Certificate (DSC).
To obtain a TDS certificate with reduced or zero deductions, NRIs should file an online application via Form 13 and complete the verification using a Digital Signature Certificate (DSC).
Once verified, the assessing officer will proceed with the application. Apart from this verification modification, there are no significant adjustments affecting NRIs in this regard.
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