TDS Compliance Under Section 195


Navigating TDS Compliance Under Section 195: Key Steps for Businesses When making payments to non-residents, compliance with Section 195 of the Income Tax Act is crucial to avoid penalties and ensure smooth transactions. Here’s a quick guide on the post-deduction compliance process: ✅ Deposit TDS: Pay via Challan ITNS 281 within the due date (7th of the next month or 30th April for March deductions). ✅ File Form 15CA & 15CB: Mandatory for foreign remittances; Form 15CB is needed for payments above ₹5 lakh. ✅ Quarterly TDS Return (Form 27Q): File on time to avoid late fees and ensure compliance. ✅ Issue Form 16A: Provide the TDS certificate to the payee within 15 days of filing the return. ✅ Verify DTAA Benefits: Obtain a Tax Residency Certificate (TRC) to apply the correct withholding rate. Ensuring timely compliance not only helps avoid penalties but also builds trust with international partners. Need expert guidance on TDS and cross-border tax matters? Let’s connect!

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