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Section 195 TDS Rate Finder

Find the correct TDS rate for payments to NRIs and non-residents — property sales, NRO interest, dividends, royalties, and professional fees. Covers domestic rates and DTAA treaty rates for 20+ countries. Tells you exactly which Form 15CA part applies and when a CA-issued Form 15CB is required.

Section 195 ITASection 115AForm 15CA / 15CB20+ DTAA treatiesSection 197 lower TDS
Common mistake: When an Indian resident buys property from an NRI seller, many buyers incorrectly deduct TDS at 1% under Section 194-IA. The correct section is Section 195 — and the rate is 20% (LTCG) or 30% (STCG) on the entire sale consideration. Getting this wrong exposes the buyer to interest + penalty under Sections 201 and 220.

Threshold: ₹5,00,000 — determines Form 15CA Part A (≤₹5L, self-declaration) vs Part C (>₹5L, needs CA-certified Form 15CB).

Select a country and income type above to see the TDS rate and Form 15CA/15CB requirements.

Section 195 — Key Questions

Why Section 195 and not Section 194-IA for NRI property?

Section 194-IA applies only when the seller is a Resident Indian (TDS at 1% on consideration >₹50L). When the seller is an NRI, Section 195 applies — buyer deducts at 20% (LTCG, held >24 months) or 30% (STCG) on the entire consideration. Finance Act 2024 changed LTCG rate to 12.5% without indexation effective 23 July 2024. Buyer needs TAN and deposits via Challan 281.

When is Form 15CB from a CA required?

Form 15CB is a CA certificate confirming the TDS rate applied. It is required when the payment exceeds ₹5,00,000 in aggregate during the FY (Rule 37BB). The CA issues Form 15CB with a UDIN before the remitter uploads Form 15CA Part C on the IT portal. Without Form 15CB, the bank will not remit funds to the NRI.

How does a DTAA reduce TDS rate on interest?

Domestic Section 195 rate on NRO interest is 30.90%. Under a DTAA (e.g. India-Singapore: 10%), the lower rate applies if the NRI furnishes: (a) Tax Residency Certificate (TRC) from their country, and (b) Form 10F on the IT portal. Without both, the deductor must apply the domestic rate. DTAA rates typically range 10-15% for interest, 10-15% for dividends, and 10% for FTS.

What is Form 13 (Section 197) and when should an NRI apply for it?

If the NRI seller's actual capital gain is much lower than 20% of the sale price (e.g. property purchased for a high cost), they can apply under Section 197 using Form 13 to their Assessing Officer for a lower TDS certificate. The AO issues a certificate with a reduced rate. This should be filed 4-8 weeks before the sale. Without this, the buyer deducts at 20%/12.5% on the full consideration, and the NRI must claim a refund in their ITR.

Need Form 15CB or NRI TDS compliance help?

Our CAs issue Form 15CB with UDIN, handle Section 197 lower TDS applications, file Form 15CA, and advise on DTAA treaty positions — for property sales, NRO remittances, and business payments to non-residents.