NRIs — stop over-deduction of TDS with a lower/nil certificate (old 195/197)

The problem

TDS on payments to NRIs (old Section 195) is deducted at slab/maximum rates on the gross amount — e.g. rent, and especially property sales where TDS applies to the whole sale price, not the gain. You get it back only as a refund after filing — months later.

The fix — Section 197 certificate

• Apply to the Assessing Officer (Form 13) for a certificate authorising lower or nil TDS, computed on your actual taxable income/gain.
• Give the certificate to the payer/buyer; they then deduct only that reduced amount.
• Especially valuable on a property sale — turns TDS on the full price into TDS on the real gain (or nil, if you're claiming 54-series exemptions).

Also use the DTAA

A Tax Residency Certificate from your country of residence lets you claim treaty (DTAA) rates — often lower than domestic TDS on interest, dividends and royalties. See DTAA & foreign tax credit.

Who it helps

Any NRI receiving rent, selling property, or earning interest/dividends/capital gains in India.