How NRIs Can Apply for a Lower TDS Certificate: A Complete Guide in 2024

Tax Deducted at Source, or TDS is a way India makes sure taxes are paid before you get your income. For Non-Resident Indians, this tax affects how much money you end up with. Having a lower TDS certificate for NRI means less tax is taken out of your income, so you keep more of your money. This certificate is key to ensuring you don’t overpay on taxes. This guide explains why it’s useful and how to get one, helping you manage your taxes better from afar.

What is TDS for NRIs?

Tax Deducted at Source, or TDS is how India collects taxes from earnings before they reach the person. For Non-Resodenrs Indians (NRIs), this means when they earn money from Indian sources, the government takes part of it as tax right away. This helps make sure taxes are paid on time.

For NRIs, knowing about TDS is important because it affects their income from India. Learning about TDS can help them plan better and avoid any surprises with their money.

Documents Required for Lower Deduction Certificate for NRIs

If you are an NRI and want to apply for a Lower TDS Certificate, you need to gather several important documents. This certificate reduces the tax taken from your income in India. Here is a simple list of what you need:

1. PAN Card: You must have a Permanent Account Number card.
2. Tax Residency Certificate: This proves where you live for tax purposes.
3. Income Proof: You need to show where your income comes from in India.
4. Bank Statements: These show your financial transactions for the last six months.
5. Property Documents: If your income comes from property, include these papers. 
6. Investment Details: If you have investments, you need to provide details about them.

Application for Lower Deduction of TDS for NRI

Applying for a lower TDS deduction Certificate for NRI is easy if you follow these steps. This certificate helps reduce the tax deducted from your income in India. Here’s what you need to do:

1. Get Ready with Your Documents: First, make sure you have all the necessary documents. You need your PAN card, Tax Residency Certificate, proof of income, recent bank statements, property documents, if applicable, and details of your investments.
2. Visit the Income Tax e-Filing Portal: Go to the official e-Filing website of the Indian Income Tax Department.
3. Log In: Use your credentials to log into your account. If you don’t have an account, you will need to create one. 
4. Fill Out Form 13: This form is for applying for a Lower TDS Certificate. Fill it carefully with all the required details.
5. Attach Your Documents: Upload the documents you gathered in the first step.
6. Submit Your Application: Check all the information again to make sure it’s correct. Then, submit your application. 
7. Track Your Application: Keep an eye on your application status through the e-filing portal. You can see if you need to provide any more information.
8. Get Your Certificate: After your application is accepted, your Lower TDS Certificate will be issued to you. This certificate will state the new, reduced rate of TDS for your income.

Lower TDS Certificate Process: Steps After Obtaining It

Once you receive your Lower TDS Certificate as an NRI, it’s important to use it correctly to benefit from it. Here are simple steps to follow:

1. Inform Your Payers: First, tell everyone who pays you from India, like tenants or clients, that you have this certificate. They need to know so they can deduct less tax from your payments.
2. Provide Copies: Give them a copy of your Lower TDS Certificate. This serves as proof so they can adjust the tax they deduct.
3. Check Your Statements: Regularly check your bank statements to see if the correct, lower amount of tax is being deducted.
4. Store Your Certificates Safely: Keep your certificate in a safe place. You might need it for your tax records or to show to the tax authorities. 
5. Renew If Necessary: Remember, this certificate is valid only for the specified period. If you still qualify, you need to apply for a new one before the current one expires.

How Does NoBroker Help NRIs with Lower TDS Certificates?

NoBroker simplifies getting and using a lower TDS certificate for NRI. If you are an NRI and want to pay less tax on your income from India, NoBroker can guide you through each step. They help you collect the right documents, fill out the needed forms, and submit everything correctly. Once you have your certificate, NoBroker shows you how to use it properly so you can really benefit from it.

If you need legal help or have questions about this process, NoBroker’s legal team is ready to assist you. They make sure you understand each step and help you handle your tax duties in India easily. Reach out to NoBroker for support with your lower TDS certificate and any other legal needs. 

FAQs About Lower Tds Certificate for NRI

Q1: What is a nil TDS certificate for NRI, and who needs it?

Ans: A nil TDS certificate for NRI means no tax is taken from your income in India. NRIs who think they shouldn’t pay tax use this to save money.

Q2: How can I get an NRI lower tax deduction certificate?

Ans: You can apply for an NRI lower tax deduction certificate online through the Indian Income Tax Department’s portal.

Q3: What benefits does a TDS exemption certificate for NRI offer?

Ans: A TDS exemption certificate for NRI lets you avoid TDS on your Indian income if you meet certain conditions.

Q4: When should I apply for a lower tax deduction certificate for NRI?

Ans: Apply for a lower tax deduction certificate for NRI before the start of the fiscal year or before receiving your income in India.

Q5: How long is a lower TDS certificate for NRI valid?

Ans: A lower TDS certificate for NRI is usually valid for one fiscal year.