Section 195 → Section 228
TDS on payments to Non-Residents
Quick Answer
Section 195 of the Income Tax Act, 1961 (TDS on payments to Non-Residents) corresponds to Section 228 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 195
Provision Summary
Any person paying any sum (taxable in India) to a non-resident must deduct tax at the 'rates in force'.
Sec 228
Provision Summary
Retained. Requires filing of Form 15CA and 15CB before making the remittance through a bank.
Key Changes & Highlights
- DTAA (Tax Treaty) benefits can be claimed at the time of deduction if TRC (Tax Residency Certificate) is provided.
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Frequently Asked Questions
What does Section 195 of the Income Tax Act 1961 deal with?
Section 195 (TDS on payments to Non-Residents) Any person paying any sum (taxable in India) to a non-resident must deduct tax at the 'rates in force'.
What is the new section number for Section 195 under the Direct Tax Code 2025?
Section 195 of the ITA 1961 maps to Section 228 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 195 under the new tax code?
Section 195 is marked as "Retained" with status "Active". Impact: Critical - The gateway for all foreign remittances leaving India.
What are the key changes to Section 195 under DTC 2025?
DTAA (Tax Treaty) benefits can be claimed at the time of deduction if TRC (Tax Residency Certificate) is provided.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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