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Withholding Tax also called as Retention Tax is the obligation of the taxpayer to withhold tax when making payments under specific heads (such as rent, commission, payment for professional services, salaries, contracts, etc.) at the rates that have been specified in the current tax regime.
TDS is entitled to the people of India while withholding tax is applicable for payments to non-residents i.e. foreign transactions. E.g.: Apply TDS while making payments to the vendors and while making payments to foreign vendors apply withholding tax.
How to Fill a Tax Declaration Form? The first step is to open the Income Tax e-Filing portal. After opening this e-Filing portal, click on the 'Forms' and download Form 12BB. After downloading Form 12BB, start filling in your personal details such as name, employee's code, date of birth, gender, etc.
Withholding tax is an amount that is directly deducted from the employee's earnings by the employer and paid to the government as a part of individual's tax liability. These taxes are paid to the central government of India. In India, the Central Government is liable and empowered to levy and collect taxes.
Withholding Tax Certificate It is to be given by the payer to the payee for every quarter. This withholding tax deduction certificate can be obtained online by downloading it from the TRACES website.