Withholding Tax

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Hemanshu

Hemanshu (Querist)
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16 August 2007 What is Withholding Tax?

Please explain in detail.

CA Mani

CA Mani (Expert)
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17 August 2007 Refer Sec.192 to 195 of the IT Act.

With holding of tax is called as TDS in general language.

Under the aforesaid sections, Some payments are mentioned for which you have to with hold a % of tax and remit to government.

In simple words, Deduct tax when you are making the payment and pay it to govt.

This concept is called withholding of tax.