Are Individuals Foreign Citizen Exempt From TDS?

Should a private ltd company in India has to deduct TDS on payments made to an individual, who is a foreign citizen of Holland? Prabha G, Chennai

Your question is very general in nature.

Section 195 of the I T Act  provides for deduction of tax at source in case of payments to non resident. It starts as under:

Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or any other sum chargeable under the provisions of this Act (not being income chargeable under the head Salaries ⁾ shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force :

As is clear Section 195 is applicable on all kinds of non resident except a company . Thus every kind of person including individual are covered.

The law regarding deduction u/s 195 can be summed up in following lines
1.  the payment is to a non resident by whatever mode

2. the payment should be taxable in India