2.24.1 Computation of Withholding Tax

This topic provides the systematic instructions to Computation of Withholding Tax record.

1. Withholding tax is computed for funds for cash dividend corporate action types only. This is applicable for normal UT investments.
2. Dividend tax can be computed based on the source product and With-Holding Tax maintained for the product.
3. For stock dividends, the TDS Basis maintained in Corporate Actions profile is Tax-exempt, and the tax is not computed.
4. For each tax component, the computation currency and payment currency may be specified as two different currencies, so as to enable payment to be made in the desired currency. By default, when you set up a withholding tax record for a fund, investor category and country combination, the computation currency is deemed to be the currency of the country and the payment currency is deemed to be the fund base currency.