Why Withholding Tax in India Is Important for Businesses
Withholding tax in India refers to the tax deducted at source when payments such as salaries, interest, rent, professional fees, or contract payments are made. The payer is responsible for deducting the applicable tax rate and depositing it with the government on behalf of the recipient. This system ensures steady tax collection and reduces tax evasion by collecting tax at the point of income generation.
Compliance with Withholding tax in India involves correct rate application, timely deposit, and proper filing of returns. HCO & CO. assists businesses in managing withholding tax obligations accurately while ensuring adherence to Indian tax regulations.
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