Complete Guide to Understanding What is Withholding Tax on Foreign Payments in India

The withholding tax in India was introduced on July 1st, 2022 which included a certain amount of tax deducted at source from various types of wages. It included base income, interest rates, dividends, and royalties, for an amount when paid to a non-resident of India. However, the main aim of tax on foreign remittance in India and taxability of non-resident in India is to make sure that the government receives a portion of the pay tax from the non-resident recipients. So, let's discuss more about withholding tax on foreign payments in India in this blog.