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What is withholding tax

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Quick Summary

Withholding tax, also known as TDS, is income tax paid directly to the government by the payer of the income, rather than by the person receiving it. This means the tax is deducted from the payment before it reaches the recipient. It's particularly relevant for payments made to non-residents.

Daya

Daya (Querist)

11 February 2022 in brief reply ,
what is withholding Tax.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 February 2022 Tax withholding, also known as tax retention, Pay-as-You-Go, Pay-as-You-Earn, or a Prélèvement à la source, is income tax paid to the government by the payer of the income rather than by the recipient of the income. The tax is thus withheld or deducted from the income due to the recipient.

Witholding tax is deducted for the payment made to non resident.

rd sharma

rd sharma (Expert)

12 February 2022 withholding tax is acronym of tds. Tax is withheld from the payment made and deposited with the revenue authorities. That's why it is called withholding tax.

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