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Withholding tax

Tax queries 205 views 4 replies

What is a Withholding tax? In a interview in a MNC, they ask me what is Withholding Tax. Plz clarify the details about this. 

Replies (4)
It's nothing but TDS

As per Income Tax act  Employer   deduct  TDS  of  employee   while  making  payment  through out the  financial  year that  is called  Withholding  Tax 

We in India use word  TDS(Tax deduct at source )  , however in some countries they use word  " Withholding  Tax  " 

TDS & TCS both are called withholding tax
Withholding tax is a tax deducted at source, especially one levied by some countries on interest or dividends paid to a person resident outside that country.


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