international-tax

Withholding Tax on Foreign Payments

Understanding TDS on payments to non-residents including rates, threshold, and compliance.

Alok K Acharya & Associates
1 March 2025·Updated 31 August 20261 min read

Withholding Tax on Foreign Payments#

Section 195#

TDS on payments to non-residents.

Rates#

  • Royalties: 10%
  • Technical services: 10%
  • Interest: 5-10%
  • Dividends: 10%

Threshold#

  • No threshold for non-residents
  • Treaty rates if lower

Compliance#

  • Obtain TAN
  • Deduct and deposit
  • File quarterly returns
  • Issue certificates

Conclusion#

Foreign payments require TDS compliance.

Need Help With Your Tax Filing?

The firm can help you file your ITR accurately, review applicable deductions, and ensure compliance. Get started in minutes.

Was this article helpful?

AK

Alok K Acharya & Associates

Chartered Accountants

Chartered Accountants

Related Articles

Need CA help?

Talk to the firm

Get Started