Withholding Tax and Tax Deducted at Source
The concept of income tax being deducted at source was introduced on the Indian tax canvas in the beginning years of the twenty first century. It was and continues to remain a dependable means of not only ensuring much less tax evasion but, perhaps even more importantly, it creates a money trail which is recorded by the Income Tax Department. This provides not just a key hole view but in fact corner seats to the entire receipts and payments matrix of the Indian economy.
While Tax Deducted at Source [TDS] provisions relate to payment made within India,Withholding Tax was introduced towards the same end – only it’s for international payments.
Every year the Income Tax Act is modified through the Finance Bills presented with the budget. TDS provisions are also similarly modified. Below are the links to the latest rates as on date.
Withholding Tax Rates : https://www.incometaxindia.gov.in/charts%20%20tables/withholding%20tax%20rates.htm
Consultancy for applicability of relevant provisions for tax deduction / withholding
- Salary TDS returns
- Non-salary TDS returns
- Book Entry challan deposition [for government TAN holders]
- TCS Returns
- Purchase of Property TDS returns
- Withholding Tax Returns
- Equalisation Levy
Preparation of TDS Policies for Organisations’ internal use