Residuary withholding tax applies to taxable non-resident payments, with no threshold and broad obligations for resident and non-resident payers.

Section 393(2), Serial No. 17 imposes a residuary withholding-tax obligation on any person paying specified interest or other taxable non-salary sums to a non-resident other than a company or to a foreign company. Tax is deductible at the rates in force, with no monetary threshold. Deduction generally arises at the earlier of credit or payment. For interest payable by the Government, a Public Sector Bank, or a specified Public Financial Institution, deduction occurs only on actual payment. The obligation applies to resident and non-resident payers regardless of a non-resident payer's presence in India.

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