what is withholding tax




Answers were Sorted based on User's Feedback



what is withholding tax..

Answer / arunsidharthan

Withholding tax is the amount withheld by the party making
a payment to another (payee) and paid to the taxation
authorities. The amount the payer deducts may vary,
depending on the nature of the product or service being
paid for. The payee is assessed on the gross amount, and
the tax to be withheld (the withholding tax) is computed in
that assessment. The purpose of withholding tax is to
facilitate or accelerate collection, by collecting tax from
payers rather than a much greater number of payees, and by
collecting tax from payers within the jurisdiction rather
than payees who may be outside the jurisdiction. It may
also be used to counteract tax evasion and tax avoidance.

Is This Answer Correct ?    4 Yes 0 No

what is withholding tax..

Answer / s.sridhar

Deduction Under Section 194 of Income Tax Act.
In simple terms, TDS is the tax getting deducted from the
person receiving the amount (Employee/Deductee) by the
person paying such amount (Employer/Deductor).
Take example as for Salaried employees Form 16 and for
Consultants Form 16A.

Is This Answer Correct ?    2 Yes 0 No

what is withholding tax..

Answer / sukavani

withholding tax its [SAP TERMINOLOGY]---meaning tax
deducted at source

Is This Answer Correct ?    0 Yes 0 No



Post New Answer



More Accounting General Interview Questions

what is sensex

9 Answers   Capital IQ,


what is bond wash transaction ,when we have to use it, and what is the procedure please help me with examle

0 Answers   Wipro,


what is Vat c-4 form why using

9 Answers   ABC,


opening stock rs.6000 purchases rs.22000 cash sales rs.18000 credit sales rs.12000 calculate closing stock if rate of gross profit on cost of goods sold 25%.

3 Answers   State Bank of Mysore SBM,


HOW TO CALCULATE INPUT TAX CREDIT (ITC) ?

3 Answers  






if profit increase by 25percente, how much consumtion level ll be decrease to kept cost of goods sold same?

1 Answers  


Journalise- opened a saving a/c with S.B.I. ?

0 Answers  


how to maintain the books of accounts in the organization

1 Answers   Madhucon, ITI,


What are current assets?

6 Answers   State Bank Of India SBI,


What is CST ?

10 Answers  


What is Current Assets minus current Liabilities?

22 Answers   FIC, Capital IQ, Core Logic,


whaT IS THE notional cash pooling

3 Answers   Genesis,






Categories