An NRI receives different types of income from India. However, if an NRI receives a certain type of income from India, then TDS will be applicable to such income. The TDS will be applicable even Re 1 earned from such income, irrespective of whether an NRI’s total taxable income exceeds Rs 2.5 lakh or not in a financial year.

There is a general belief among people leaving India and settling abroad that they are no more liable to tax or subject to tax deductions at source (TDS) in India. This may not be true at all times, as individuals qualifying as Non-residents in India (NRI) as per the Indian income tax laws may continue to earn income from India while being outside India.

You may normally see your friend, your colleague, or even your family members who are staying outside India for longer durations qualifying as a NRI as per Indian tax laws during a particular financial year. However, they may still own assets like house property, fixed deposits, and shares and may even have active bank accounts in India. Given that these assets will be income-generating assets in India, Section 195 of the Income Tax Act, 1961 makes it mandatory for anyone making payments to NRIs ..

Read more at:
https://economictimes.indiatimes.com/wealth/tax/tds-is-compulsorily-deductible-from-these-types-of-nri-income/articleshow/94318908.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst