07 December 2010
IF A PERSON IS NON- RESIDENT INDIAN WITHIN THE MEANING OF INCOME TAX ACT,1961. HE HAS INVESTED HIS FUNDS INTO F.D.R.WITH BANK OF BARODA. SHOULD BANK DEDUCT T.D.S. ON INTEREST PAID/CREDITED TO HIM? IF NOT WHY?. IF HIS INCOME IS NOT TAXABLE IN INDIA WHAT WOULD BE YOUR THE APPLICABILITY? CAN HE REFRAIN HIMSELF FROM NON- DEDUCTION OF T.D.S.?
08 December 2010
Form 15G cannot be furnished by NRI. The TDS to NRI shall be deducted u/s 195 and the provisions of Sec 197A (Form 15G is provided by this section) do not apply to sec 195. Also you are wrong when you say that income of a NRI is not taxable in India.Only incomes which accrue/arise or are received outside India are not taxable for NRI's. Conversely incomes accruing/arising or received or deemed to be received in India shall be taxable in India.