4 July 2016
INDIA: Withholding Tax Exemption Simplified for Non-residents
Non-residents are no longer automatically liable for a 20% withholding tax on any Indian-sourced income derived from interest, royalties, fees for technical services or the transfer of capital assets, based on a recent notification from India’s Central Board of Direct Taxes.
Previously, individuals had to be in possession of a Permanent Account Number (PAN) – a unique 10-character code issued by the Indian Income Tax Department – to be exempt from such payments.
Under the new requirements, non-residents will simply have to produce appropriate proof of their country of residence, such as a tax identification number, in order to be free of liability from the tax.