Income Tax

FEMA/RBI Regulations

Tax Deduction at Source or Withholding Tax (TDS)

TDS is a tax collection provision, inserted by legislature in the law to collect the tax at the time of generation of income. This way, neither the receiver of income feels the heat and Govt also collect its money in advance. There is a specific provision in relation to income of NRIs i.e. Non-resident TDS provision under section 195. Generally, NRIs face following kind of TDS provisions in relation to financial transaction incurred by them: