NRI whose income is not fully taxable can file Low TDS Certificate

NRI whose income isn’t fully taxable can file Form 13 for nil or low TDS certificate

If the payee qualifies as an NRI during the relevant financial year, the payer is required to deduct TDS at a specified rate on the taxable income of the payee

It is advisable to document the gift through a gift deed. The taxability of receipt of gift in the US may need to be analyzed separately

What is the procedure for applying for a nil or low TDS (tax deducted at source) certificate on a non-resident Indian’s (NRI) income? Will I need the help of a tax expert?

Under the India income tax law, if the payee qualifies as an NRI during the relevant financial year, the payer is required to deduct TDS at a specified rate (plus applicable surcharge and health and education cess) on the taxable income of the payee. The payer or payee may approach the income tax officer to apply for lower or nil TDS certificate under the following provisions:

(a) If the payer believes that his income is not fully taxable in India, he may file an application with the income tax officer. There has been an amendment to prescribe the form for such application (with effect from 1 November 2019). However, the form has not been prescribed yet.

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