Foreign Payments TDS Calculator
Foreign Payments
TDS & Form 145/146
Every payment to a foreign vendor, contractor, or investor has a TDS obligation under Section 393. Know the rate, which forms your bank will demand, and whether your DTAA applies.
Step 1 — What are you paying for?
What is Form 145?
An online declaration filed by the Indian payer on the income tax portal before making any foreign remittance (formerly Form 15CA under the Income Tax Act, 1961). Part A (≤ ₹5L/year), Part B (AO order), Part C (>₹5L taxable), Part D (not chargeable to tax). Your bank won't process the wire without the Form 145 acknowledgement number.
What is Form 146?
A certificate from a registered auditor confirming the nature of the payment, applicable TDS rate, and that all taxes have been correctly calculated (formerly Form 15CB). Required only when remittance exceeds ₹5 lakh in a tax year AND the payment is chargeable to tax in India. Must be obtained before filing Form 145 Part C.
What is TRC + Form 10F?
Tax Residency Certificate: a government-issued document from the foreign entity's home country confirming they are a tax resident there. Form 10F: a self-declaration filed by the foreign entity on the Indian income tax portal. Both are mandatory to claim DTAA benefits. Without them, you must deduct at the domestic rate.
Under the Income Tax Act, 2025 (effective April 1, 2026): TDS on foreign payments is governed by Section 393 (formerly Section 195); the quarterly TDS return is Form 144 (formerly Form 27Q); and Form 145/146 replace the erstwhile Form 15CA/CB. Rule 220(3) of the Income Tax Rules, 2026 covers exempt payments (including imports). Surcharge and cess apply on top of the base rates shown. DTAA rates require verification against the current treaty text — some articles have been modified by the MLI (Multilateral Instrument). Get a professional opinion for payments above ₹25 lakh or complex transaction structures.
Common questions
Foreign remittances, statute-cited.
Which payments to a non-resident attract TDS?+
Section 195 of the Income-tax Act 1961 requires TDS on any payment to a non-resident that is chargeable to tax in India — royalties under s.9(1)(vi), fees for technical services under s.9(1)(vii), interest under s.9(1)(v), dividends, and 'other income' alike. The default domestic rates are 10% for royalty/FTS, 20% for interest and dividend, and ~30% for other income, before surcharge and cess. Import of goods is exempt under Rule 37BB(3) of the Income-tax Rules 1962.
What is the ₹5 lakh Form 15CA/15CB threshold?+
Under Rule 37BB of the Income-tax Rules 1962, remittances chargeable to tax above ₹5 lakh require Form 15CB (a CA certificate of the applicable rate and tax position) plus Part C of Form 15CA, filed before remittance. Below ₹5 lakh, a self-declaration in Part A suffices; payments not chargeable to tax use Part D and need no CA certificate. The AD bank will not process the wire without the Form 15CA acknowledgement.
Can a DTAA reduce the TDS rate?+
Yes — a lower treaty rate applies if the recipient provides a valid Tax Residency Certificate (TRC) and files Form 10F, per s.90(4) and (5) of the Income-tax Act 1961. Without the TRC, you must deduct at the domestic rate even where a treaty exists. Rates vary by country and article — the tool shows common US, Singapore, UK, Netherlands, and other treaty positions, but always verify against the current treaty text.
Is SaaS or cloud subscription a royalty?+
It depends on the nature of the licence. CBDT Circular 11/2020 clarified that off-the-shelf SaaS is not royalty, but cloud infrastructure (compute, storage) can be, and the position varies by tool. A conservative reading applies 10% TDS; for large annual subscriptions a professional opinion is recommended before deciding not to deduct.
What are the penalties for missing foreign-payment TDS?+
Beyond the TDS itself and interest under s.201(1A) of the Income-tax Act 1961, an incorrect or late TDS return attracts a fee of ₹200 per day under s.234E and a penalty of ₹10,000–₹1,00,000 under s.271H. The practical cost is the bank refusing the remittance, which can stall a vendor payment or acquisition at the wrong moment.