Yes that's what I was thinking , but I am doubting my understanding after seeing reply i got from udemy support . They said udemy does not deduct from our payment , Udemy credits this amount from its pocket. check the reply below which I got from support. "Thanks for your patience as we checked in with our tax team here. We are required to deduct only the TDS under Section 194O of the Income Tax Act, 1961 at 1 percent. However, please be advised that Udemy Inc. (the US entity responsible for making the payment to Indian instructors) had not actually deducted any TDS from your payments and has deposited the withholding amount with the Government out of Udemy's own pocket, on your behalf, due to the last-minute implementation of Indian withholding tax law."
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