When making payments within India, TDS compliance is usually predictable. But things change the moment when a payment goes to a non-resident.
Whether you’re paying rent to an NRI landlord, or purchasing property from a non-resident, hiring an overseas consultant, or making a payment to a foreign company for services, tax (TDS) may need to be deducted before the money is sent.
And unlike domestic transactions, many cross-border payments do not have basic threshold limits, which means TDS can apply from the very first rupee.
However, deducting the tax is only a part of the process. Once the tax is deducted and deposited, those details must also be reported to the ITD.
That reporting is done through Form 144.
What is Form 144?
Form 144 is a quarterly TDS return used to report tax deducted on payments made to non-residents (NRIs) and foreign companies, other than salary.
It applies to companies, partnership firms, LLPs, government bodies, and even individuals or HUFs making specified payments to non-residents.
So the process works in two parts: first, you deduct and deposit the TDS. Then, you report those deductions through Form 144.
To give the ITD a complete picture of cross-border transactions, Form 144 is divided into three sections:
Part A – Deductor details
This section covers the details of the person making the payment. It includes name, address, TAN, and PAN.
Part B – TDS deducted and deposited
This section contains the total tax deducted and the challan details confirming that the amount has been deposited with the government.
Annexure – Payment & deductee details
This is the transaction-level breakdown. It lists each non-resident payee, their PAN (if available), the nature of payment, amount paid or credited, and the rate at which tax was deducted –including cases where DTAA benefits are applied.
What payments does it cover?
Form 144 applies to a broad range of non-salary payments to non-residents which are reported under Section 393 of the Income Tax Act, 2025. Some of the most commonly covered payments include:
- Rent paid for land, building, or machinery.
- Payments made on the purchase of property.
- Fees for professional or technical services (legal, consulting, freelance services).
- Interest payment other than ‘Interest on Securities’ (e.g., bank interest).
We’ve only listed the popular ones here. You can refer to Draft Form 140 attached at the bottom for the complete list of transactions covered.
What are the due dates for filing Form 144?
As mentioned earlier, depositing TDS and filing the return are two separate compliance steps, and each have a separate timeline.
1. Quarterly return filing
Since Form 144 is a quarterly return, it must be filed by the end of every quarter. Here’s the table with it’s due date:
| Quarter | Month covered | Due date |
|---|---|---|
| Q1 | April-June | 31st July |
| Q2 | July-September | 31st October |
| Q3 | October-December | 31st January |
| Q4 | January-March | 31st May |
2. Monthly TDS deposit
The TDS you deduct in a particular month must be deposited with the government by the 7th of the following month.
For example, if TDS is deducted in August, it must be deposited by September 7.
There is a special relaxation for the month of March – the deposit can be made up to April 30th.
Meeting these timelines ensures the TDS process is completed correctly.
What happens if you miss the deadline?
There are clear consequences if TDS isn’t deducted or reported through Form 144 on time:
1. Late filing fee
If the return isn’t filed by the due date, a fee of ₹200 per day applies until the date Form 144 is filed. However, the total fee cannot exceed the TDS amount for that quarter.
2. Interest on delay
If you fail to deduct TDS on time, interest of 1% per month or part of the month applies. And if you deducted TDS but did not deposit on time, interest of 1.5% per month applies from the date of deduction to the date of payment.
3. Additional penalty
If the delay extends beyond one year, or incorrect details are reported, the Assessing Officer may levy a penalty from ₹10,000 to ₹1,00,000.
To help you get familiar with the new layout and the payments it covers, we’ve linked the official draft below.
Draft Form 144.pdf (2.9 MB)
Questions? Let’s sort them out.