{"id":16106,"date":"2026-05-15T11:04:52","date_gmt":"2026-05-15T05:34:52","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=16106"},"modified":"2026-05-15T15:36:49","modified_gmt":"2026-05-15T10:06:49","slug":"withholding-tax","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/withholding-tax\/","title":{"rendered":"Withholding Tax"},"content":{"rendered":"<h2><b>Withholding Tax Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The government and the Reserve Bank of India are learnt to be considering to cut in the withholding tax rate on government bonds to attract foreign investment inflows.<\/span><\/p>\n<h2><b>About Withholding Tax<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Withholding tax is withheld or deducted from certain types of income, such as <\/span><b>wages, dividends, interest, and royalties,<\/b><span style=\"font-weight: 400;\"> when they are paid to the recipient (non-resident individual).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is ak<\/span><b>in to a tax deducted at source <\/b><span style=\"font-weight: 400;\">and is paid by foreign investors on interest income they receive on their holding of Indian bonds.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is also <\/span><b>known as Retention tax.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Withholding tax is applicable in the case <\/span><b>payments made to non-resident individuals.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to <\/span><b>Section 195 of the Income Tax Act, <\/b><span style=\"font-weight: 400;\">if the income is paid in India, the person responsible for payments to NRI must deduct the withholding tax at the time of payment or when the amount is credited to the NRI\u2019s account,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The amount of withholding tax in India depends on the type of income, the amount of income earned, and the tax laws of the country where the income is earned.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The tax rate<\/b><span style=\"font-weight: 400;\"> is decided as prescribed in the <\/span><b>Income Tax Act, 1961<\/b><span style=\"font-weight: 400;\">, or<\/span><b> Double Taxation Avoidance Agreement (DTAA),<\/b><span style=\"font-weight: 400;\"> whichever is lower.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is collected by the government of India.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/business\/to-attract-foreign-investors-govt-considers-cut-in-withholding-tax-10690140\/#:~:text\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Withholding Tax deducted from certain types of income, such as wages, dividends, interest, and royalties, when they are paid to the recipient (non-resident individual). Read more about Withholding Tax, Purpose, Applicable, Latest News.<\/p>\n","protected":false},"author":5,"featured_media":103523,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[7554],"class_list":{"0":"post-16106","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-withholding-tax","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=16106"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16106\/revisions"}],"predecessor-version":[{"id":103589,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16106\/revisions\/103589"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/103523"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=16106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=16106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=16106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}