Applicable for payment and rates of WHT by any individual, partnership, Company or body of a person.

Nature of Payment Rate  
 

Sale of Gem through Gem auction

 

2.5 %

 

Service fee and contract payment to residence individual who is NOT an employee of the payer,

Ø For teaching/ lecturing and examine

Ø As commission or brokerage

Ø In relation to supply of any article on a contract basis through tender procedure.

 

5% on amount exceeding Rs 50,000/- per month

 

Service fee and contract payment to Non residence individual

 

14%

 

Interest on Bank deposit

(Senior Citizens @ Concessionary rate (Gazette to be published)

 

5%

 

Rent payment – Residence

–   Non residence

 

10%

14%

Royalty 14%
Partnership 8% of share of partnership income allocated to each partner.

Direction

If the recipient of investment return or service payment has reason to believe that income tax payable/computed for any such year of assessment is NOT liable for income tax he/she may request a direction from the Commissioner General and the withholding agent be directed to adjust as so directed.

Withholding Agent and Their Obligations

Withholding Agent (WA) mean “a person required to withhold tax from a payment under the Inland Revenue Act”

Every Withholding Agents is required to,

  • Register as WA with the Department of Income Tax and obtain a registration number not later than 30 days prior to the commencement of deduction of tax.
  • Every WA must pay WHT so deducted within 15 days after the end of each calendar month.
  • Issue certificate of Deduction to the withholder in the prescribed format.
  • A WA who fail to withhold in accordance with the Act must pay the tax that should have withheld.
  • Keep proper record of payment including withholding tax deducted and not deducted in a prescribed format.
  • Every WA should file with Commissioner General of Inland Revenue, Annual Return for the period commencing from 1st April 2018, within 30 days after the end if each year ending on 31st March along with schedule of WHT deducted. (Soft form)

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