Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
What is withholding tax and is it different from TDS?
2 mins
15.1KWithholding tax is collected when income is paid outside India. Withholding tax is also known as Retention tax. This also applies if the payment is made to an NRI (non-resident Indian). If the income is paid in India, the person responsible for payments to NRI must deduct the withholding tax at the time of payment or when the amount is credited to the NRI's account, according to Section 195 of the Income Tax Act.
The rate of tax applicable to such payments is determined by the status of a Double Taxation Avoidance Agreement . India has signed DTAAs with many countries to avoid taxing individuals twice for the same income (in India and the partner country). Currently, India has DTAA treaties with more than 80 countries around the world and the benefit of such treaties is that individuals residing in any of these countries have to pay withholding tax at lower rates than their counterparts.
The government has specified that all foreign entities (individuals or firms) must obtain a PAN in India for providing services to Indian entities. They must provide the PAN number to the entity in India, which is making the payment, or else the tax will be charged at a higher rate of 20% or more. As a result, if additional withholding taxes are collected then no credit for those can be claimed abroad. The deducted tax must be paid no later than the 7th day of the month in which the withholding tax was deducted, except for March, for which the date of payment of the withholding tax is 30 April.
Difference between withhold tax and TDS :
Withhold tax :
Withholding tax is the amount that is deducted in advance, and the same is deposited to the government before the amount is paid to the payer. it is generally applicable on payment to non – residents, that are foreign transactions.
TDS :
A person (deductor) who is required to make a payment of a specific nature to another person (deductee) must deduct tax at source and send it to the Central Government's account. It is applicable on specified transactions under the income tax act, 1961 to both resident and non-resident.
Suggested Plans
Related Posts
We foster an inclusive workplace where diverse perspectives thrive, and every individual feels valued, respected, and empowered.
Tax Hacks
What are the special income tax benefits for women?
4 mins
18.8K
Posted on: Jul 30, 2025
Tax Hacks
What is the section 10(10D) tax benefit of Generali Central Big Dreams Plan?
2 mins
3.9K
Posted on: Jul 22, 2025
Tax Hacks
Which Generali Central Life Insurance plan can give me section 80C tax benefits?
2 mins
2.9K
Posted on: Jul 22, 2025
Get Expert Advice from Your Trusted Life Insurance Partner!
Have questions? Get help and reliable support from experts at Generali Central India Life Insurance.
Explore Knowledge Centre
From insurance basics to wealth-building strategies — everything you need, in one place.
Got Questions? We’ve Got Answers!
Here are answers to some of the questions you might have.
Life insurance is a financial safety net that supports your loved ones in your absence. If something happens to you, it provides them with funds to help cover everyday expenses, repay debts, and achieve future goals. It gives you peace of mind, knowing your family’s financial future is secure— no matter what.
The right plan depends on your needs.
Start by assessing your life stage, financial goals, and the needs of your family. Consider factors like your income, outstanding loans, future expenses and goals (like children’s education, foreign travel, study abroad), and desired coverage amount. We offer a wide range of plans that cover multiple goals and budgets. To get a better idea and make a confident choice consult with a financial advisor or call us on 1800 102 2355.
A good rule of thumb is to aim for coverage that's 10–15 times your annual income. Consider your family’s living expenses, outstanding loans, children’s education, and long-term goals. The right amount ensures your loved ones can maintain their lifestyle and meet future needs— even in your absence.
We would love to help you choose and buy the right policy for your needs. Call our toll-free number 1800 102 2355 or drop us an email at care@generalicentral.com.
Reach out to us in any way that you prefer, and our team of experts will soon get back to you!
Disclaimers
Understand your policy better with key details and insights into our Generali Central Life Insurance.
This Product is not available for online sale. Life Coverage is included in this Product. For detailed information on this plan including risk factors, exclusions, terms and conditions etc., please refer to the product brochure and consult your advisor, or, visit our website before concluding a sale. Tax benefits are as per the Income Tax Act 1961 and are subject to any amendment made thereto from time to time. If you have any request, grievance, complaint or feedback, you may reach out to us at care@generalicentral.com For further details please access the link: www.generalicentrallife.com/customer-service/grievance-redressal-procedure.
Subscribe to get our best content in your inbox
Subscribe to our newsletter and stay updated.