Withholding tax

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Yajuvendra Rawat (Querist)
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07 November 2015 Dear Sirs and Friends,

One of my friend is planning to send Rs. 3 lacs to a person residing outside India for sharing technical know how related to the field of Animation. My question is my friend as an individual should not be liable to deduct Withholding Tax U/S 195 since he does not fall under limits of Section 44AB pls clarify if i am wrong,my next question is will the non resident Indian receiving income is liable to file return in India for the income deemed to accrue or arise in India as per Section 9 of Income Tax Act 1961. Please clarify

Best Regards,
Yajuvendra Rawat

Amol S Joglekar

Amol S Joglekar (Expert)
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07 November 2015 http://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

refer the link please.

The section is applicable to ANY PERSON.... there is no any threshhold limit as to whether or not the tax auditable.

02. If the non resident wants to claim refund, then s/he may file the return in India. If s/he is comfortable with WHT, then no need to file the return.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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07 November 2015 Hi, it does not make any difference if your friend is liable to tax audit or not as section 195 is not talking about it. Further if your friend wants to claim refund or want to assess his income in India then he may file his ITR else the tds so deducted shall be deemed to be the compliance done by your friend....

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