CreditMantri Finserve Private Limited
Door No.3, Block B, No. 147, Workeasy Space Solutions, RK Swamy Centre, Hansa Building, Pathari Road,Thousand Lights, Chennai, Tamil Nadu600006
Have any queries? Click here for more details
All written queries will be responded within 1 working day.
We'd love to help you through every step along the way.
Is your Credit Score >750?
In India, the Central Government has the right to levy and collect taxes based on the income of individuals and entities. Income is generally categorized into various slabs. Whenever it exceeds the minimum threshold limit then it attracts taxes as per the rates decided for various slabs prescribed in the Income Tax Act. Tax liability is decided by calculating the total income earned for the previous year in the current assessment year. Income tax payable by any person is dependent on the residential status of that person.
Withholding taxes are found in practically all tax systems and are widely used in respect of dividends, interest, royalties and similar tax payments. It refers to the tax on income that is imposed at source, i.e. a third party is charged with the task of deducting the tax from certain kinds of payments and remitting that amount to the government.
Withholding tax is also known as retention tax and is the taxpayer’s obligation to withhold tax when paying rent, commission, or payment for professional services at rates specified according to the current tax laws.
About Withholding Tax In India
Withholding Tax is the obligation of the taxpayer to withhold tax while making payments under specific heads (such as rent, commission, payment for professional services, salaries, contracts, etc.) at the rates that have been specified in the existing tax regime.
Direct Tax Provision - In cases where payments are to be made to Non-Resident Indians, the payer is obligated to deduct at the source. Section 195 of the Income Tax Act, 1961, states that the obligation lies on the person responsible for the payment to deduct taxes at source at the time of payment (or at the time of the credit of the income to Non-Resident Indian’s account).
The Central Government of India is authorized to collect income taxes from everyone whose income exceeds the maximum exemption limit. The rates of taxation are prescribed in the Income Tax Act, and the total tax payable will be calculated on the income of the previous year, to be paid in the year of assessment. The total income of the individual, however, is determined based on his or her residential status in India.
Status of Resident Indian or Non-Resident Indian - The status of Resident Indian or Non-Resident Indian is determined after computing the total duration of the assessee’s stay in India during the preceding financial year. To qualify as a Resident Indian, the assessee must have stayed in India for:
An individual who does not satisfy either of the above requirements is categorised as a Non-Resident Indian.
Mentioned below are the tax rates as applicable to Non-Resident Indians.
Dividends paid by Domestic Companies
Any other services: Individuals
30% of income
Any other services: Companies
40% of the net income
Here are the tax rates for payments by resident companies:
Specified types of interest
Non-specified types of interest
Professional or technical services
Commissions and brokerage
Rent of plant, machinery, or equipment
Rent of land, building, or furniture
Contractual payments (except for Individuals / HUF)
Rs.30,000 (single payment) Rs.75,000 (aggregate payment)
Contractual payments to Individuals / HUF
Royalty / Fees for technical services
Here are the tax rates for payments to non-resident companies:
Interest on foreign currencies (subject to certain conditions)
Interest on money borrowed in foreign currency under a loan, or through long-term infrastructure bonds (or rupee-denominated bonds) – the period for borrowing is July 2012 to July 2015
Interest on investment in long-term infrastructure bonds issued by an Indian company (rupee-denominated bonds or government securities)
Long-term capital gains (other than exempt income)
Income by way of winnings from horse races
1. What is the difference between withholding tax and TDS?
Withholding tax and TDS are essentially the same. Under the Indian tax regulations, the tax must be deducted at source while making certain payments such as salary, rent, commission, professional fees, etc. While TDS is synonymous with payments in India, withholding tax is a term that is more common when it comes to cross-country payments.
2. What are the due dates for withholding tax payment?
The due date for withholding tax payment is the 7th day of the month in which withholding tax is deducted. However, for March, the due date for withholding tax payment is 30 April.
3. What is a withholding tax certificate?
Withholding tax deduction certificate has to be provided by the payer to the payee for every quarter. This withholding tax deduction certificate can also be obtained online.
Withholding tax is an amount of which deduction takes place directly from the earning of an employee by the employer. It is paid to the government as a part of the tax liability of an individual. The central Government of India is liable for this tax collection. It is important to learn and understand withholding tax as it could impact any salaried individual whose income is beyond the threshold set by the government.
Good website - easy to use,
7th Pay Commission
A Khata Property Tax
Advance Tax Payment
Advantages Of Paying Taxes
An Analysis Of Increase In Service Tax Rates
B Khata Property Tax
Bbmp Property Tax
Benefits Of Taxes
Capital Gains Tax
Chennai Property Tax
Coimbatore Property Tax
Corporate Taxation In India
Delhi Property Tax
Exemptions Under GST
Ghaziabad Property Tax
Ghmc Property Tax
Goods And Services Taxes
Gross Salary In India
GST Advance Ruling
GST Input Credit
GST Payment Due Date
GST Penal Provisions
GST Refund Status
GST Returns Filing Due Dates
House Rent Allowance
How To Calculate Hra Exemption On Income Tax
How To Calculate Income Tax On Salary
How To Claim Income Tax Refund
How To E File Income Tax Returns
How To Track Your Income Tax Refund Status
Income From House Property And Taxes
Income Tax Credit
Income Tax Exemption
Income Tax Returns
Income Tax Slabs
Kanpur Property Tax
Kredit Bee Personal Loan
New Service Tax
Penalties Under GST
Professional Taxes In India
Property Tax In Ahemdabad
Property Tax In Indore
Property Tax In Mumbai
Pune Property Tax
Road Tax Toll Tax
Road Taxes In States And Uts Of India
Section 80ccc Of The Income Tax Act
Securities Transaction Tax
Service Accounting Codes
Steps To Paying Property Tax
Tax Benefit On Stamp Duty And Registration Charges
Tax Deducted At Source
Taxes In India
The Income Tax Act
What Is A Cancelled Cheque
What Is Form 15h In Income Tax
What Is Gratuity
CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf. We do not sell any loans on our own and do not charge any fee from our customers/viewers for the purpose of loan application