Deduct tax on select foreign remittances

Payment for children's education or hospitalisation won't attract TDS but payment for services will

The income-tax department is closely examining remittances made by freelancers, professionals and businesses for commercial purpose. The department is sending notices asking such taxpayers to provide details of transactions where money was transferred abroad and they did not deduct tax at source (TDS).

“Notices are being issued to taxpayers to justify payments made by them to non-residents, based on the details filled in the forms that need to be compulsorily filled when transferring money abroad. These are being issued to payees who did not deduct TDS. If the assessing officer feels that the transaction needed TDS, the payee needs to bear