Non-resident payment withholding requires deduction on taxable interest and other non-salary sums at rates in force.

Section 393(2), Serial No. 17 requires any person paying taxable interest not covered by specified categories, or any other taxable non-salary sum, to a non-resident other than a company or a foreign company to deduct tax at rates in force. No monetary threshold applies. Deduction is generally required at the earlier of credit or payment, but specified interest payable by the Government, Public Sector Banks, and qualifying Public Financial Institutions is subject to deduction only upon actual payment. The obligation applies to resident and non-resident payers irrespective of a non-resident payer's presence in India.

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