The 60-second version
Section 195 requires deductor to withhold tax on any sum chargeable to non-resident — rate per DTAA or 20% plus surcharge, with CA certificate for remittance.
195 is the main NR withholding section — 15CB before every outward remittance
Section 195 applies when Indian resident pays any sum chargeable to non-resident — royalty, fees, interest, or capital gains component.
Returning NRIs running India business must obtain CA certificate and file Form 15CA/15CB before AD-1 bank releases foreign remittance.
Catch-all lane: Section 195A guide for other sums not covered elsewhere.
195 remittance matrix
| Payment | 195 rate | Form |
|---|---|---|
| Royalty | DTAA/20% | 15CB |
| Fees | DTAA/20% | 15CB |
| Interest | DTAA/20% | 15CB |
| Capital gains | DTAA/20% | 15CB |
195 sequence
Classify payment
Nature of sum.
DTAA rate
Treaty vs 20%.
Deduct 195
Before remittance.
15CB
CA certificate.
26Q
Quarterly TDS return.
Flow
195 kit
- Contract.
- DTAA rate memo.
- 15CB.
- 15CA.
- 26Q ack.
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No deduction = personal liability
If you remit without 195 TDS, deductor becomes assessee in default — AD-1 bank will block without 15CB.
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vs 195A?
195A covers other sums; 195 is main NR withholding on chargeable sums.
15CB mandatory?
Yes for most outward remittances to NR — CA certifies no tax or tax deducted.
DTAA rate?
Apply treaty rate if beneficial — retain TRC from payee.
Form 67?
Payee claims foreign tax credit abroad — not deductor's Form 67.
26Q?
File quarterly with NR PAN or 999999999999999.
RNOR business?
195 applies when payer is Indian resident — including RNOR on India payments.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.