The India Tax Laws are very harsh when it comes to NRI’s. Any payment made to NRI is required to be made after deduction of TDS even if his income is less than 2.5 Lakhs (i.e. in the 0% income tax slab).
However, the NRI can later claim a refund of the excess TDS deducted at the time of filing of his Income Tax Return.
This article explains in detail and in simple words the procedure for claiming TDS refund.
(CA Karan Batra, the founder of the Chartered Club website is a leading tax expert featured in both TV & Print Media. He also has vast experience of representing cases before the Tax Dept.)