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Section 195 - TDS on income of non-resident or a foreign company - Income Tax - Ready Reckoner - Income TaxExtract SEC 195 : TDS ON ANY INTEREST OR OTHER SUM CHARGEABLE UNDER THE INCOME TAX ACT PAYABLE TO NON-RESIDENT OR A FOREIGN COMPANY Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest (not being interest referred to in section 194LB or section 194LC or section 194LD ) or any other sum chargeable under this Act (other than salary) shall, at the time of credit of such income to the account of payee or by payment in cash or cheque or any other mode, whichever is earlier, deduct income-tax thereon at the rates in force. Note: In the case of interest payable by the Government or a public sector bank u/s 10(23D) or a public financial institution, deduction of tax shall be made only at the time of payment thereof in cash or cheque or by any other mode For the removal of doubts, it is hereby clarified that the obligation to comply with section 195(1) and to make deduction thereunder applies and shall be deemed to have always applied and extends and shall be deemed to have always extended to all persons, resident or non-resident, whether or not the non-resident person has- ( i ) a residence or place of business or business connection in India; or ( ii ) any other presence in any manner whatsoever in India. The assessee can make an application to Assessing Officer for non-deduction of TDS where the sum payable to non-resident or foreign company is not taxable in India. The person responsible to deduct tax (whether or not chargeable under the provisions of this Act in the hands of recipient) should furnish the particulars of payments in prescribed form.
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