Rates of Withholding Tax

[abhishreshthaa]

Rates of Withholding Tax


Current rates for withholding tax for payment to non-residents are:

(i) Interest 20%

(ii) Dividends Dividends paid by domestic companies: Nil

(iii) Royalties 10%

(iv) Technical Services 10%

(v) Any other services Individuals: 30% of the income

Companies: 40% of the net income

The above rates are general and are applicable in respect of countries with which India does not have a Double Taxation Avoidance Agreement (DTAA).

 

[jitendra05]

Rates of Withholding Tax


Current rates for withholding tax for payment to non-residents are:

(i) Interest 20%

(ii) Dividends Dividends paid by domestic companies: Nil

(iii) Royalties 10%

(iv) Technical Services 10%

(v) Any other services Individuals: 30% of the income

Companies: 40% of the net income

The above rates are general and are applicable in respect of countries with which India does not have a Double Taxation Avoidance Agreement (DTAA).

Hey abhi, many thanks for explaining this concept of withholding tax. From my point of view, withholding tax is Income tax withheld from worker's salaries and paid out straight to the govt by the employer. I am uploading a presentation where you can find more detailed information.