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Quarterly TDS return for payments to non-residents, Form 144 (earlier 27Q)

  • If you pay a foreign vendor, an NRI landlord or buy property from an NRI, you must deduct TDS and report it every quarter in Form 144.
  • Deadline: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May of the next year
  • Done in 3 to 4 working days after payment and treaty documents
  • Prepared by your Savvy, checked by a CA
  1. TAN and TRACES login
  2. Is the payee a non-resident
  3. Decide rate per payment
  4. ARN acknowledgement
The law and the stepsPay and start · ₹2,999Quarterly, + 18% GST

Answer in brief

If you pay a foreign vendor, an NRI landlord or buy property from an NRI, you must deduct TDS and report it every quarter in Form 144. We check the right rate under the Act or the tax treaty, collect the papers that support it, and file the return.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Income-tax Act 2025, Sec 397(3)(b) (old Sec 200(3))

    Periodic statement after paying the tax deductedSource

  • Income-tax Rules 2026, Rule 219(1) (old Rule 31A)

    Form 144 covers Sec 392(7), 393(2) and 393(3) where the deductee is a non-resident (not a company), a foreign company, or a resident but not ordinarily residentSource

  • Income-tax Act 2025, Sec 397(2) with Rule 217 (old Sec 206AA with Rule 37BC)

    No PAN means higher rate (at least 20%), except where a non-resident without PAN gives name, email, phone, foreign address, TRC and tax ID, for interest, royalty, FTS, dividend and capital asset transferSource

  • Income-tax Act 2025, Sec 427 (old Sec 234E)

    ₹200 a day while late, capped at tax deductibleSource

  • Income-tax Act 2025, Sec 461 (old Sec 271H)

    Penalty ₹10,000 to ₹1,00,000 for late, non-filing or incorrect statementSource

  • Income-tax Act 2025, Sec 398 (old Sec 201)

    Short or non-deduction makes the payer an assessee in default with interestSource

  • Government fee

    No filing fee. Filed electronically (https://www.incometaxindia.gov.in/documents/d/guest/form-144-faqs).

  • Late fee or penalty

    ₹200 a day under Sec 427, capped at tax deductible (https://www.incometaxindia.gov.in/w/section-427-5). Penalty ₹10,000 to ₹1,00,000 under Sec 461 (https://www.incometaxindia.gov.in/w/section-461-5).

On the portal

  1. Login to TRACES as deductor
  2. Choose Form 144, tax year and quarter (or the utility for large files)
  3. Import or enter challans
  4. Enter each deductee: PAN or other ID, country, amount, date, rate, Act or DTAA basis, reason code and certificate number
  5. Map to challans, validate, e-verify and file; save ARN

What trips people up

  • Treaty rate applied without valid TRC or with an expired TRC

    Collect a TRC covering the period and Form 41 before payment; otherwise apply Act rateSource

  • Form 10F used for payments after 1 April 2026

    Use Form 41 for amounts paid or credited from 1 April 2026; Form 10F for earlierSource

  • No PAN and Rule 217 relief claimed on a payment type it does not cover

    Rule 217 covers only interest, royalty, FTS, dividend and capital asset transfer; else 20% or higherSource

  • Non-resident payment reported in Form 140

    Report non-resident and RNOR payees in Form 144Source

  • Remittance made without Form 145 or 146

    File remittance forms before paying; keep them with the return workingSource

People ask

What does Form 144 replace?

Form 27Q under the 1961 Act.Source

Do non-residents get a TDS certificate?

Yes, Form 131, where the row is reported in Form 144 with a valid PAN.Source

Is the treaty rate increased by surcharge and cess?

The source says the treaty rate is an all-in ceiling, unlike the domestic rate.Source

How long can Form 144 be corrected?

Two years from the end of the tax year in which it was due; Q1 2026-27 until 31 March 2029.Source

Does a resident buyer of an NRI's flat need TAN and Form 144?

From 1 October 2026 a resident individual or HUF buyer can use Form 141 Schedule E instead.Source

IDFD

How we solve it: 4 steps

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Step 1 of 4 · What we need from you

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Ready0 / 9
  • TAN and TRACES login
  • Invoices or agreements with payee
  • Payee PAN, or Rule 217 details
  • Tax Residency CertificateOptional
  • Form 41 (earlier Form 10F)Optional
  • No PE declarationOptional
  • Country of remittance
  • Challans and Form 145 acknowledgements
  • Lower deduction certificate, if anyOptional

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Quarterly. Delivered in 3 to 4 working days after payment and treaty documents. Due: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May of the next year

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