Union Budget 2012: What NRIs Want
TDS is also deducted when a certain payment is made to an NRI, for example through a regular salary payment. In which case, the TDS will be deducted by the employer (who will be called the deductor) and the NRI whose TDS is getting deducted (will be called the deductee). Here again the deduction cannot made by the employer until the NRI provides the Tax Deduction Account Number (TAN). All NRIs do not have TAN numbers and this becomes a obstruction for any deduction.
Claiming of TDS exemption is also a beat around the bush as an NRI has to submit his tax residency certificate obtained from tax authorities of the country they are resident of to claim any TDS exemption. All NRIs want this protocol either removed or made a little flexible as this becomes a tedious process.
