File Form 144 TDS Return for Non-Residents — Handled by Expert CAs
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Discuss with ExpertForm No. 144 (Earlier Form 27Q)
Non Resident TDS Return — Official PDF
- Form:Form No. 144 [Rule 219(1)]
- Replaces:Form 27Q (IT Rules 1962)
- Section:397(3)(b) — IT Act 2025
- Structure:Part A, Part B & Annexure
- Filing:Quarterly (Q1–Q4)
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What is Form No. 144 Non Resident TDS Return?
Form No. 144 (Earlier Form No. 27Q) is the official quarterly TDS return that must be filed when an Indian payer makes non-salary payments to non-residents or foreign entities. It replaced Form 27Q under the newly enacted Income-Tax Act 2025, governed now by Rule 219 of the Income-Tax Rules, 2026.
In Simple Words: If your business pays royalties, professional fees, interest, commissions, or any other non-salary payment to someone outside India, you must deduct tax (TDS) and report it every quarter using Form No. 144.
The form covers payments such as interest, royalty, technical service fees, professional service fees, commission, dividends, contract payments, and any other sum that is taxable but not salary, when paid to a non-resident individual, foreign company, or NRI.
Real-World Examples
- NRI Fixed Deposit Interest — A bank crediting interest to an NRI's savings account deducts TDS and reports it in Form 144.
- Royalties to Foreign Developer — An Indian software company paying a US-based developer for code usage must deduct TDS and file Form 144.
- Freelance Designer in London — Hiring a foreign freelancer for professional services? Withhold tax on the invoice amount and report in Form 144.
- Property Purchase from NRI — Buying property from an NRI seller? You are the deductor and must file Form 144.
- Dividends to Foreign Shareholders — An Indian company distributing dividends to its non-resident shareholders must file Form 144 quarterly.
Who Must File the Form 144 Non Resident TDS Return?
Every person or entity responsible for making non-salary payments to a non-resident — on which TDS is deductible — must file Form No. 144 for the relevant quarter. This includes:
| Type of Deductor | Typical Payment Type | Must File Form 144? |
|---|---|---|
| Indian Companies | Dividends to foreign shareholders, technical fees | ✓ Yes |
| Firms & LLPs | Royalties, professional fees to foreign entities | ✓ Yes |
| Individuals | Buying property from NRI, paying foreign consultant | ✓ Yes |
| HUFs | Rent or service fees to non-residents | ✓ Yes |
| Banks (Public/Private) | Interest on NRI deposits (FCNR, NRO, NRE) | ✓ Yes |
| Government Departments | Foreign contract payments, technical assistance | ✓ Yes |
| Business Trusts / AIF | Distributed income to non-resident unit holders | ✓ Yes |
| Domestic payers of salary to NRIs | Salary payments | ✗ No (use Form 141) |
Form 144 vs Form 140 — Key Differences
Tax beginners often mix up the TDS forms. Here is the clear difference between Form 144 (for non-residents) and Form 140 (the domestic equivalent):
| Feature | Form No. 144 (NRI / Non-Resident) | Form No. 140 (Resident / Domestic) |
|---|---|---|
| Applicable to | Non-resident individuals, foreign companies, NRIs | Resident Indians |
| Old Form Name | Form 27Q (Rule 31A, IT Rules 1962) | Form 26Q (Rule 31A, IT Rules 1962) |
| New Form Name | Form No. 144 (Rule 219, IT Rules 2026) | Form No. 140 (Rule 219, IT Rules 2026) |
| Governing Section | Section 397(3)(b) / Section 195 | Section 397(3)(a) |
| DTAA Applicable? | ✓ Yes — DTAA rates may apply | ✗ Not applicable |
| Foreign Tax ID Required? | ✓ Yes (if PAN not available) | ✗ Not required |
| Tax Residency Certificate? | ✓ Required for DTAA benefit | ✗ Not required |
| Country of Residence? | ✓ Must be reported | ✗ Not required |
| PAN Not Available TDS Rate | 20% or DTAA rate (whichever is higher) | 20% flat |
| Typical Payments Covered | Royalty, professional fees, interest, dividends | Rent, commission, professional fees, contractors |
Sample Form No. 144 — Preview with Dummy Data
Below is a representative preview of Form No. 144 as it appears in the official Gazette of India. The highlighted green values are sample/dummy entries to show how the form is filled.
FORM NO. 144 [See Rule 219(1)] — Sample / Illustrative Preview
For educational purposes only
[See rule 219(1) [Table: Sl. No. 2]]
Quarterly statement of deduction of tax under section 397(3)(b) in respect of payments other than salary made to non-residents
Quarter ended: 30/06/2026 (Q1 — April to June) | Tax Year: 2026–27
PART A — Particulars of the Deductor
- 1. Type of Deductor: Non-Government
- 2. Name of Deductor: TechSoft Solutions Private Limited
- 3. Address: 401, Cyber Heights, Sector 62, Noida, Uttar Pradesh — 201 309, India
- 4. Permanent Account Number (PAN): AABCT1234M
- 5. Tax Deduction Account Number (TAN): DELH12345A
- 6. E-mail ID: accounts@techsoft.in
- 7. Contact Number: +91-9876543210
- 8. Tax Year: 2026–27
- 9. Earlier Statement Filed?: No
PART B — Details of Tax Deducted and Paid
| Sl. | Total Tax (A) | Total Interest (B) | Total Fee (C) | Mode of Payment | BSR Code (H) | Challan Date (I) | Challan Serial No. (J) | Amount Deposited (F) |
|---|---|---|---|---|---|---|---|---|
| 1 | ₹1,20,000 | ₹0 | ₹0 | Challan (C) | 0510001 | 07/05/2026 | 00023456 | ₹1,20,000 |
ANNEXURE — Deductee-Wise Break-Up of TDS
| Sl. | PAN (B) | Name (C) | Foreign TIN (D) | Country (K) | Status | Section Code | Nature of Remittance | Date of Payment | Amt Paid (O) | Tax Deducted (S) | Rate (W) | Act/DTAA (Z) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | PANNOTAVBL | CodeCraft Inc. | US-EIN-45-678901 | USA | 01 (Company) | 1057 | Royalty – Software | 15/05/2026 | ₹6,00,000 | ₹1,20,000 | 20% | a (Act) |
DECLARATION: I, Ramesh Kumar Sharma, having PAN ABCPK1234L, am the person responsible for deducting tax at source in the case of TechSoft Solutions Private Limited. I certify that all the particulars furnished above are correct and complete.
Place: Noida Date: 31/07/2026 Designation: Chief Financial Officer
Green values above are sample/dummy entries only. They illustrate how a real Form No. 144 would be filled. Always use your actual company and deductee details when filing. Download the official blank form here →
Key Details Required to Fill Form 144
Gathering all required information before you start saves time and avoids rejection. Here is what you need for each section of the form:
| Form Section | Required Detail | Where to Find It |
|---|---|---|
| Part A — Deductor | Name, PAN, TAN, address, e-mail, contact | Your company records / TRACES profile |
| Part B — Challan | BSR code, date of deposit, challan serial number, TDS amount | Challan 281 receipt from bank / TIN 2.0 portal |
| Annexure — Deductee | Name, PAN / PANNOTAVBL, foreign TIN, country, section code, nature of remittance, date of payment, amount, rate, Act or DTAA | Invoice, contract, deductee's Tax Residency Certificate |
| DTAA Cases | Form 10F, Tax Residency Certificate (TRC), reason for lower / nil deduction | Obtained from non-resident payee |
| No PAN Cases | Foreign Tax Identification Number, full overseas address, contact number | Deductee's invoice or registration documents |
Section Code Reference (Most Common):
- 1057 — Interest / other sums chargeable (Section 393(2) Table Sl. 17) — most common for royalties & professional fees
- 1039 — Income of non-resident sportsman / entertainer (Section 393(2) Table Sl. 1)
- 1055 — Securities income for Foreign Institutional Investors (Section 393(2) Table Sl. 15)
How to Download Form 144 Non Resident TDS Return
Getting the correct form is the first step. You can download it in three ways:
Direct Download (Fastest)
Click the download button on this page to get the official Form No. 144 PDF instantly — no login required, completely free.
Income Tax Portal (Official)
Visit incometax.gov.in → Forms → TDS Forms → Form No. 144 (Earlier Form 27Q). Download the blank PDF from the official government portal.
TRACES Portal
Log in to traces.gov.in with your TAN credentials → Downloads → Offline Utilities → Return Preparation Utility (RPU) for Form 144.
Step-by-Step Guide to Filing Form 144 TDS Return
Filing the Form 144 Non Resident TDS Return involves a clear sequence of steps. Follow this process to stay compliant:
Deduct TDS at the Right Time
Deduct tax on the date of actual payment OR the date of credit (whichever is earlier). Use the correct rate as per the Income-Tax Act or applicable DTAA.
Deposit TDS Using Challan 281
Pay the deducted amount to the Central Government via Challan 281. Deadline: 7th of the following month (30th April for March deductions). Collect BSR code, date, and challan serial number — you will need these for the return.
Prepare the Return Using RPU
Download the Return Preparation Utility (RPU) from TRACES. Open it and enter all deductor and deductee details. Map each payment to the correct section code.
Validate with FVU
Run the prepared file through the File Validation Utility (FVU). This checks for errors and generates a .fvu file on success. Fix any validation errors before proceeding.
Upload & Submit
Upload the .fvu file on the TRACES or e-filing portal. Alternatively, submit physically at a TIN-FC. All returns must be filed electronically — physical filing is the exception, not the rule.
Collect Acknowledgement (ARN)
After successful submission, the portal generates an Acknowledgment Receipt Number (ARN). Save this for your records.
Issue Form No. 131 (TDS Certificate)
Within 15 days of the Form 144 filing due date, issue Form No. 131 (Earlier Form 16A) to each non-resident deductee. This is their TDS certificate for claiming credit in their home country.
Due Dates, Penalties & Interest for Form 144
Quarterly Filing Due Dates
| Quarter | Period Covered | Form 144 Due Date | TDS Deposit Deadline |
|---|---|---|---|
| Q1 | April – June | 31st July | 7th of following month |
| Q2 | July – September | 31st October | 7th of following month |
| Q3 | October – December | 31st January | 7th of following month |
| Q4 | January – March | 31st May (next FY) | 30th April (for March) |
Penalties & Interest — At a Glance
| Default Type | Rate / Amount | Governing Section | Notes |
|---|---|---|---|
| Late Filing Fee | ₹200 per day | Section 234E | Capped at total TDS in the return |
| Penalty for Late / Incorrect Filing | ₹10,000 – ₹1,00,000 | Section 271H | Applies even if TDS is paid on time |
| Interest — Late Deduction | 1% per month (or part) | Section 201(1A) | From date TDS was deductible to date actually deducted |
| Interest — Late Deposit | 1.5% per month (or part) | Section 201(1A) | From date deducted to date deposited |
| Prosecution | 3 months to 7 years + Fine | Section 276B | For failure to deposit TDS after deduction |
DTAA Benefits & Section 195 — Complete Explanation
Section 195 of the Income-Tax Act (now Section 393 under IT Act 2025) is the backbone provision for TDS on cross-border payments. It covers almost every non-salary payment made to a non-resident, including interest, royalties, technical fees, dividends, and other income arising in India.
Using DTAA Rates — Step by Step
India has signed Double Taxation Avoidance Agreements (DTAAs) with around 90 countries. These treaties may provide lower TDS rates on royalties, interest, dividends, and technical service fees than the domestic law rates. To claim the DTAA benefit:
| Step | Action Required | Who Does This |
|---|---|---|
| 1 | Non-resident provides a valid Tax Residency Certificate (TRC) and Form 10F | Non-resident deductee |
| 2 | Deductor verifies TRC and stores it in records | You (the deductor) |
| 3 | Apply the lower of DTAA rate or domestic rate while deducting TDS | You (the deductor) |
| 4 | In Form 144 Annexure, mark column (Z) as "b" — DTAA rate applied | You (the deductor) |
| 5 | Retain TRC, Form 10F, and supporting documents for minimum 8 years | You (the deductor) |
Latest Updates for 2026 — What Has Changed?
New for 2026
Form 27Q → Form No. 144 (Rule 219, IT Rules 2026)
The Income-Tax Rules, 2026 have replaced the 1962 rules. Form 27Q under Rule 31A is now Form No. 144 under Rule 219. The legal basis has also shifted from the Income-Tax Act 1961 to the Income-Tax Act 2025 (Section 397(3)(b)).
| Feature | Old (Before 2026) | New (2026 Onwards) |
|---|---|---|
| Form Name | Form 27Q | Form No. 144 |
| Governing Rule | Rule 31A, IT Rules 1962 | Rule 219, IT Rules 2026 |
| Governing Act Section | Section 195, IT Act 1961 | Section 397(3)(b), IT Act 2025 |
| TDS Certificate Issued | Form 16A | Form No. 131 |
| Foreign TIN Validation | Manual / optional | System-validated (portal enforced) |
| DTAA Documentation | Manually checked | Stricter portal validation |
| Auto-populated Fields | None | Yes — challan data, PAN status |
The new form features real-time validations, auto-populated challan fields pulled from TIN 2.0, drop-down menus for section codes, and standardised fields for remittance codes. These changes make filing more accurate but also mean that errors are caught immediately — reducing post-submission corrections.
Ready to File Your Form 144 Non Resident TDS Return?
Download the official form for free and get started with your quarterly compliance today.
Frequently Asked Questions — Form 144 Non Resident TDS Return
What is Form No. 144 (Earlier Form 27Q) used for?
Form No. 144 is the quarterly TDS return filed by any Indian payer who makes non-salary payments to non-residents or foreign entities. It reports the tax deducted on payments like royalties, interest, professional fees, commissions, and dividends. It replaced the earlier Form 27Q under the Income-Tax Rules, 2026.
Is it mandatory to file Form 144 electronically?
Yes. All TDS / TCS returns, including Form No. 144, must be filed electronically. Physical filing at a TIN-FC is only available in exceptional circumstances. You must use the RPU and FVU utilities to prepare and validate the file before uploading it on the TRACES or e-filing portal.
What if the NRI does not have a PAN?
If the deductee does not have a valid Indian PAN, you must deduct TDS at 20% or the applicable DTAA rate — whichever is higher. Instead of PAN, enter "PANNOTAVBL" in the return. You must also provide the deductee's foreign Tax Identification Number (TIN), full overseas address, and contact number in the annexure.
Can Form No. 144 be edited after submission?
No. Once submitted, Form 144 cannot be edited directly. If you discover errors after submission, you must file a correction statement. Corrections can be filed within 2 years from the end of the relevant tax year, after the original statement is processed by CPC-TDS.
Can a non-resident claim a refund on TDS deducted via Form 144?
Yes. If the non-resident's total tax liability is lower than the TDS deducted, they can file an income tax return in India and claim a refund for the excess amount. The correct filing of Form 144 is what enables the non-resident to get proper credit for the tax deducted in their name.
Do I need a TAN to deduct TDS on NRI payments?
Yes. A Tax Deduction and Collection Account Number (TAN) is mandatory for all deductors. Without TAN, you cannot deposit TDS using Challan 281 or file Form 144. Apply for TAN on the Income Tax portal or through a TIN-FC before making any TDS-deductible payments.
When must TDS be deducted — on payment or on credit?
TDS must be deducted on whichever is earlier — the date of actual payment to the non-resident, or the date of credit of the amount in the accounts. For example, if you book the liability (credit) in March but pay in April, TDS must be deducted in March itself.
What is the penalty for late filing of Form 144?
Late filing attracts a mandatory fee of ₹200 per day under Section 234E, capped at the total TDS amount in the return. Additionally, an optional penalty of ₹10,000 to ₹1,00,000 may be levied under Section 271H. If full TDS + interest + late fee is paid and the return is filed within 1 year of the due date, the Section 271H penalty can be avoided.
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