Non-resident withholding tax applies to taxable interest and other non-salary payments, with no threshold and broad payer coverage.

Section 393(2), Serial No. 17 requires any person paying specified interest or another sum chargeable to tax, other than salary income, to a non-resident or foreign company to deduct tax at rates in force. The provision is residuary in nature, carries no threshold, and generally requires deduction at credit or payment, whichever occurs earlier. For interest payable by the Government, a Public Sector Bank, or a Public Financial Institution, deduction is deferred until actual payment. The obligation applies to resident and non-resident payers irrespective of the latter's presence in India.

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