TDS - Tax Deducted at Source. It means collection of tax on income whether it may be salary, rent, dividends etc. In laymen terms Buyer before making payment to the seller need to deduct TDS & deposit it to the government on seller behalf.
Behind the Scene- Once the buyer deduct TDS & deposit it to the Government. The seller incomes get reported to the Government. The Government now is aware of the income of the seller, hence seller cannot show his income less than what it is recorded with the government.
The below list is the details of various TDS rates applicable to resident & non-resident payments as well as TDS rates on domestic and foreign companies.
{R- Resident, NR- Non-Resident, FC- Foreign Company}
Section- 192
Deductee- R, NR
Nature of Transaction- Payment of Salary
Threshold Limit- Basic exemption limit of everyone
TDS Rate- Normal as per slab rates
Deductee- R, NR
Nature of Transaction- Payment of Salary
Threshold Limit- Basic exemption limit of everyone
TDS Rate- Normal as per slab rates
Section- 192A
Deductee- R, NR
Nature of Transaction- Premature withdrawal from EPF
Threshold Limit- 50,000/-
TDS Rate- 10%
Deductee- R, NR
Nature of Transaction- Premature withdrawal from EPF
Threshold Limit- 50,000/-
TDS Rate- 10%
Section- 193
Deductee- R
Nature of Transaction- Interest on Securities
Threshold Limit- Debentures- 5000/- : 8% Saving (Taxable) Bonds 2003 or 7.75% Saving (Taxable) Bonds 2018- 10,000 : Other Securities - No Limit.
TDS Rate- 10%
Deductee- R
Nature of Transaction- Interest on Securities
Threshold Limit- Debentures- 5000/- : 8% Saving (Taxable) Bonds 2003 or 7.75% Saving (Taxable) Bonds 2018- 10,000 : Other Securities - No Limit.
TDS Rate- 10%
Section- 194
Deductee- R
Nature of Transaction- Payment of any dividend.
Threshold Limit- 5,000/-
TDS Rate- 10%
Deductee- R
Nature of Transaction- Payment of any dividend.
Threshold Limit- 5,000/-
TDS Rate- 10%
Section- 194A
Deductee- R
Nature of Transaction- Interest other than interest from securities (from deposits with banks/post office/co-operative society)
Threshold Limit- Senior Citizens- 50,000/- Others- 40,000/-
TDS Rate- 10%
Deductee- R
Nature of Transaction- Interest other than interest from securities (from deposits with banks/post office/co-operative society)
Threshold Limit- Senior Citizens- 50,000/- Others- 40,000/-
TDS Rate- 10%
Section- 194A
Deductee- R
Nature of Transaction- Interest other than interest from securities u/s 193 & Interest from deposits with banks/post office/co-operative society
Deductee- R
Nature of Transaction- Interest other than interest from securities u/s 193 & Interest from deposits with banks/post office/co-operative society
For e.g. Interest from friends & relatives.
Threshold Limit- 5,000/-
TDS Rate- 10%
Threshold Limit- 5,000/-
TDS Rate- 10%
Section- 194B
Deductee- R, NR, FC
Nature of Transaction- Income from lottery winnings, card games, crossword puzzles, and other games of any type
Deductee- R, NR, FC
Nature of Transaction- Income from lottery winnings, card games, crossword puzzles, and other games of any type
Threshold Limit- 10,000/-
TDS Rate- 30%
TDS Rate- 30%
Section- 194BB
Deductee- R, NR, FC
Nature of Transaction- Income from horse race winnings
Deductee- R, NR, FC
Nature of Transaction- Income from horse race winnings
Threshold Limit- 10,000/-
TDS Rate- 30%
TDS Rate- 30%
Section- 194C
Deductee- R
Nature of Transaction- Payment to contractor/ sub contractor:- Individuals or HUF
Deductee- R
Nature of Transaction- Payment to contractor/ sub contractor:- Individuals or HUF
Threshold Limit- Single Transaction - 30,000 & Aggregate Transactions- 100,000/-
TDS Rate- 1%
TDS Rate- 1%
Section- 194C
Deductee- R
Nature of Transaction- Payment to contractor/ sub contractor:- Other than Individuals or HUF
Deductee- R
Nature of Transaction- Payment to contractor/ sub contractor:- Other than Individuals or HUF
Threshold Limit- Single Transaction - 30,000 & Aggregate Transactions- 100,000/-
TDS Rate- 2%
TDS Rate- 2%
Section- 194D
Deductee- R
Nature of Transaction- Insurance commission to domestic companies
Deductee- R
Nature of Transaction- Insurance commission to domestic companies
Threshold Limit- 15,000/-
TDS Rate- 10%
TDS Rate- 10%
Section- 194D
Deductee- R
Nature of Transaction- Insurance commission to other than companies
Deductee- R
Nature of Transaction- Insurance commission to other than companies
Threshold Limit- 15,000/-
TDS Rate- 5%
TDS Rate- 5%
Section- 194DA
Deductee- R
Nature of Transaction- Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy.
Deductee- R
Nature of Transaction- Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy.
Threshold Limit- 100,000/-
TDS Rate- 5%
TDS Rate- 5%
Section- 194E
Deductee- NR, FC
Nature of Transaction- Payment to non-resident sportsmen/sports association
Deductee- NR, FC
Nature of Transaction- Payment to non-resident sportsmen/sports association
Threshold Limit- No Limit
TDS Rate- 20%
TDS Rate- 20%
Section- 194EE
Deductee- NR, R
Nature of Transaction- Payment of amount standing to the credit of a person under National Savings Scheme (NSS)
Deductee- NR, R
Nature of Transaction- Payment of amount standing to the credit of a person under National Savings Scheme (NSS)
Threshold Limit- 2,500
TDS Rate- 10%
TDS Rate- 10%
Section- 194F
Deductee- NR, R
Nature of Transaction- Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund
Deductee- NR, R
Nature of Transaction- Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund
Threshold Limit- No Limit
TDS Rate- 20%
TDS Rate- 20%
Section- 194G
Deductee- R, NR, FC
Nature of Transaction- Payments, Commission, etc for the sale of lottery tickets.
Deductee- R, NR, FC
Nature of Transaction- Payments, Commission, etc for the sale of lottery tickets.
Threshold Limit- 15,000/-
TDS Rate- 5%
TDS Rate- 5%
Section- 194H
Deductee- R
Nature of Transaction- Commission or Brokerage.
Deductee- R
Nature of Transaction- Commission or Brokerage.
Threshold Limit- 15,000/-
TDS Rate- 5%
TDS Rate- 5%
Section- 194I
Deductee- R
Nature of Transaction- Rent on Plant & Machinery
Deductee- R
Nature of Transaction- Rent on Plant & Machinery
Threshold Limit- 2,40,000/-
TDS Rate- 2%
TDS Rate- 2%
Section- 194I
Deductee- R
Nature of Transaction- Rent on Land/Building/Furniture/Fitting
Deductee- R
Nature of Transaction- Rent on Land/Building/Furniture/Fitting
Threshold Limit- 2,40,000/-
TDS Rate- 10%
TDS Rate- 10%
Section- 194IA
Deductee- R
Nature of Transaction- Payment in consideration of transfer of certain immovable property other than agricultural land.
Deductee- R
Nature of Transaction- Payment in consideration of transfer of certain immovable property other than agricultural land.
Threshold Limit- 50,00,000/-
TDS Rate- 1%
TDS Rate- 1%
Section- 194IB
Deductee- R
Nature of Transaction- Rent payment by an Individual or HUF not covered u/s 194-I
Deductee- R
Nature of Transaction- Rent payment by an Individual or HUF not covered u/s 194-I
Threshold Limit- 50,000/- per month
TDS Rate- 5%
TDS Rate- 5%
Section- 194IC
Deductee- R
Nature of Transaction- Payment under Joint Development Agreements (JDA) to individual/HUF
Deductee- R
Nature of Transaction- Payment under Joint Development Agreements (JDA) to individual/HUF
Threshold Limit- No Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194J
Deductee- R
Nature of Transaction-
Deductee- R
Nature of Transaction-
1. Any sum paid by way of fee for professional services
2. Any sum paid for not carrying out any activity concerning any business.
3. Any sum paid for not sharing any know-how, patent, copyright, etc.
Threshold Limit- 30,000/-
TDS Rate- 10%
TDS Rate- 10%
Section- 194J
Deductee- R
Nature of Transaction- Any sum paid by way of remuneration/fee/commission to a director
Deductee- R
Nature of Transaction- Any sum paid by way of remuneration/fee/commission to a director
Threshold Limit- No Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194J
Deductee- R
Nature of Transaction-
Deductee- R
Nature of Transaction-
1. Any sum paid as a fee for technical services.
2. Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films
3. Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center
Threshold Limit- 30,000/-
TDS Rate- 2%
TDS Rate- 2%
Section- 194K
Deductee- R
Nature of Transaction- Payment of any income for units of a mutual fund, for example, dividend.
Deductee- R
Nature of Transaction- Payment of any income for units of a mutual fund, for example, dividend.
Threshold Limit- No Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194LA
Deductee- R
Nature of Transaction- Payment in respect of compensation on acquiring certain immovable property
Deductee- R
Nature of Transaction- Payment in respect of compensation on acquiring certain immovable property
Threshold Limit- 2,50,000/-
TDS Rate- 10%
TDS Rate- 10%
Section- 194LB
Deductee- NR, FC
Nature of Transaction- Payment of interest on infrastructure debt fund to Non-Resident
Deductee- NR, FC
Nature of Transaction- Payment of interest on infrastructure debt fund to Non-Resident
Threshold Limit- No-Limit
TDS Rate- 5%
TDS Rate- 5%
Section- 194LC
Deductee- NR, FC
Nature of Transaction- Payment of interest for the loan borrowed in foreign currency by an Indian Company or Business trust against loan agreement or the issue of long-term bonds
Deductee- NR, FC
Nature of Transaction- Payment of interest for the loan borrowed in foreign currency by an Indian Company or Business trust against loan agreement or the issue of long-term bonds
Threshold Limit- No-Limit
TDS Rate- 5%
TDS Rate- 5%
Section- 194LC
Deductee- NR, FC
Nature of Transaction- Payment of interest for the loan borrowed in foreign currency by an Indian Company or Business trust against the issue of long term bonds listed in IFSC
Deductee- NR, FC
Nature of Transaction- Payment of interest for the loan borrowed in foreign currency by an Indian Company or Business trust against the issue of long term bonds listed in IFSC
Threshold Limit- No-Limit
TDS Rate- 4%
TDS Rate- 4%
Section- 194LD
Deductee- NR, FC
Nature of Transaction- Payment of interest on bond (rupee-denominated) to FII or a QFI
Deductee- NR, FC
Nature of Transaction- Payment of interest on bond (rupee-denominated) to FII or a QFI
Threshold Limit- No-Limit
TDS Rate- 5%
TDS Rate- 5%
Section- 194LBA(1)
Deductee- R
Nature of Transaction- Certain income distributed by a business trust to its unit holder
Deductee- R
Nature of Transaction- Certain income distributed by a business trust to its unit holder
Threshold Limit- No-Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194LBA(2)
Deductee- NR, FC
Nature of Transaction- Interest income of a business trust from SPV distribution to its unit holder.
Deductee- NR, FC
Nature of Transaction- Interest income of a business trust from SPV distribution to its unit holder.
Threshold Limit- No-Limit
TDS Rate- 5%
TDS Rate- 5%
Section- 194LBA(2)
Deductee- NR, FC
Nature of Transaction- Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unit holders.
Deductee- NR, FC
Nature of Transaction- Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unit holders.
Threshold Limit- No-Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194LBA(3)
Deductee- NR
Nature of Transaction- Rental income payment of assets owned by the business trust to the units holders of such business trust.
Deductee- NR
Nature of Transaction- Rental income payment of assets owned by the business trust to the units holders of such business trust.
Threshold Limit- No-Limit
TDS Rate- 30%
TDS Rate- 30%
Section- 194LBA(3)
Deductee- FC
Nature of Transaction- Rental income payment of assets owned by the business trust to the unit holders of such business trust
Deductee- FC
Nature of Transaction- Rental income payment of assets owned by the business trust to the unit holders of such business trust
Threshold Limit- No-Limit
TDS Rate- 40%
TDS Rate- 40%
Section- 194LBB
Deductee- R, NR
Nature of Transaction- Certain income paid to a unit holder in respect of units of an investment fund
Deductee- R, NR
Nature of Transaction- Certain income paid to a unit holder in respect of units of an investment fund
Threshold Limit- No-Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194LBB
Deductee- FC
Nature of Transaction- Certain income paid to a unit holder in respect of units of an investment fund
Deductee- FC
Nature of Transaction- Certain income paid to a unit holder in respect of units of an investment fund
Threshold Limit- No-Limit
TDS Rate- 40%
TDS Rate- 40%
Section- 194LBC
Deductee- R
Nature of Transaction- Income from investment in securitization fund received to an individual and HUF
Deductee- R
Nature of Transaction- Income from investment in securitization fund received to an individual and HUF
Threshold Limit- No-Limit
TDS Rate- 25%
TDS Rate- 25%
Section- 194LBC
Deductee- R
Nature of Transaction- Income from investment in securitization fund received to a domestic company
Deductee- R
Nature of Transaction- Income from investment in securitization fund received to a domestic company
Threshold Limit- No-Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194LBC
Deductee- FC
Nature of Transaction- Income from investment in securitization fund received to a Foriegn company
Deductee- FC
Nature of Transaction- Income from investment in securitization fund received to a Foriegn company
Threshold Limit- No-Limit
TDS Rate- 40%
TDS Rate- 40%
Section- 194LBC
Deductee- NR
Nature of Transaction- Income from investment in securitization fund received to NRI
Deductee- NR
Nature of Transaction- Income from investment in securitization fund received to NRI
Threshold Limit- No-Limit
TDS Rate- 10%
TDS Rate- 10%
Section- 194M
Deductee- R
Nature of Transaction- Certain payment by Individual/HUF not liable to deduct TDS under Section 194C, 194H and 194J
Deductee- R
Nature of Transaction- Certain payment by Individual/HUF not liable to deduct TDS under Section 194C, 194H and 194J
Threshold Limit- 50,00,000/-
TDS Rate- 5%
TDS Rate- 5%
Section- 194N
Deductee- R, NR
Nature of Transaction- Cash withdrawal exceeding a certain amount
Deductee- R, NR
Nature of Transaction- Cash withdrawal exceeding a certain amount
Threshold Limit- 1 Crore
TDS Rate- 2%
TDS Rate- 2%
Section- 194N
Deductee- R, NR
Nature of Transaction- Cash withdrawal in case person not filing ITR for last three years & the original ITR filing due date expired.
Deductee- R, NR
Nature of Transaction- Cash withdrawal in case person not filing ITR for last three years & the original ITR filing due date expired.
Threshold Limit-
-20 lakh to 1 Crore = 2%
- 1 Crore = 5%
Section- 194O
Deductee- R
Nature of Transaction- Payment for the Sale of Goods or provision of services by the e-commerce operator through its digital or electronic facility or platform
Deductee- R
Nature of Transaction- Payment for the Sale of Goods or provision of services by the e-commerce operator through its digital or electronic facility or platform
Threshold Limit- 5,00,000/-
TDS Rate- 1%
TDS Rate- 1%
Section- 194P
Deductee- R
Nature of Transaction- Payment of pension or interest to specified senior citizens of age 75 years or more
Deductee- R
Nature of Transaction- Payment of pension or interest to specified senior citizens of age 75 years or more
Threshold Limit- Basic exemption limit of senior citizens or super senior citizens
TDS Rate- Normal tax slab rate.
TDS Rate- Normal tax slab rate.
Section- 194Q
Deductee- R
Nature of Transaction- Payment for the purchase of goods
Deductee- R
Nature of Transaction- Payment for the purchase of goods
Threshold Limit- 50,00,000/-
TDS Rate- 0.1%
TDS Rate- 0.1%
Section- 194R
Deductee- R
Nature of Transaction- Perquisites or benefits to a business or profession.
Deductee- R
Nature of Transaction- Perquisites or benefits to a business or profession.
Threshold Limit- 20,0000/-
TDS Rate- 10%
TDS Rate- 10%
Section- 194S
Deductee- R
Nature of Transaction- TDS on the transfer of virtual digital assets.
Deductee- R
Nature of Transaction- TDS on the transfer of virtual digital assets.
Threshold Limit- Specified Person- 50,000/- & Others- 10,000/-
TDS Rate- 1%
TDS Rate- 1%
Section- 195
Deductee- NR
Nature of Transaction- Income on Investments made by NRI Citizen.
Deductee- NR
Nature of Transaction- Income on Investments made by NRI Citizen.
Threshold Limit- No Limits
TDS Rate- 20%
TDS Rate- 20%
Section- 195
Deductee- NR
Nature of Transaction- Income by way of LTCG referred to in section 115E in the case of NRI
Deductee- NR
Nature of Transaction- Income by way of LTCG referred to in section 115E in the case of NRI
Threshold Limit- No Limits
TDS Rate- 10%
TDS Rate- 10%
Section- 195
Deductee- NR
Nature of Transaction- Income by way of LTCG referred to in section 112(1)(c)(iii)
Deductee- NR
Nature of Transaction- Income by way of LTCG referred to in section 112(1)(c)(iii)
Threshold Limit- No Limits
TDS Rate- 10%
TDS Rate- 10%
Section- 195
Deductee- NR, FC
Nature of Transaction- Income by way of LTCG u/s 112A
Deductee- NR, FC
Nature of Transaction- Income by way of LTCG u/s 112A
Threshold Limit- No Limits
TDS Rate- 10%
Section- 195
Deductee- NR, FC
Nature of Transaction- Income by way of STCG u/s 111A
Deductee- NR, FC
Nature of Transaction- Income by way of STCG u/s 111A
Threshold Limit- No Limits
TDS Rate- 15%
Section- 195
Deductee- NR, FC
Nature of Transaction- Any other income by way of LTCG
Deductee- NR, FC
Nature of Transaction- Any other income by way of LTCG
Threshold Limit- No Limits
TDS Rate- 20%
Section- 195
Deductee- NR, FC
Nature of Transaction- Interest payable on money borrowed by the government or Indian Concern in Foreign Currency
Deductee- NR, FC
Nature of Transaction- Interest payable on money borrowed by the government or Indian Concern in Foreign Currency
Threshold Limit- No Limits
TDS Rate- 20%
Section- 195
Deductee- NR, FC
Nature of Transaction- Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first provision of section 115A or computer software referred to in the second provision of Section 115A
Deductee- NR, FC
Nature of Transaction- Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first provision of section 115A or computer software referred to in the second provision of Section 115A
Threshold Limit- No Limits
TDS Rate- 10%
Section- 195
Deductee- NR
Nature of Transaction- Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy.
Deductee- NR
Nature of Transaction- Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy.
Threshold Limit- No Limits
TDS Rate- 10%
Section- 195
Deductee- FC
Nature of Transaction- Income from royalty payable by government or Indian concern in pursuance or Indian concern in pursuance of an agreement on matters included in the industrial policy.
Deductee- FC
Nature of Transaction- Income from royalty payable by government or Indian concern in pursuance or Indian concern in pursuance of an agreement on matters included in the industrial policy.
If agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976
Threshold Limit- No Limits
TDS Rate- 50%
Section- 195
Deductee- FC
Nature of Transaction- Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy
Deductee- FC
Nature of Transaction- Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy
If the agreement for such royalty payment is entered after 31st March 1976
Threshold Limit- No Limits
TDS Rate- 10%
Section- 195
Deductee- NR
Nature of Transaction- Income from technical fees payable by government or Indian Concern in pursuance of an agreement on matters related to industrial policy.
Deductee- NR
Nature of Transaction- Income from technical fees payable by government or Indian Concern in pursuance of an agreement on matters related to industrial policy.
Threshold Limit- No Limits
TDS Rate- 10%
Section- 195
Deductee- FC
Nature of Transaction- Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy.
Deductee- FC
Nature of Transaction- Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy.
If the agreement for such payment is entered in between 29th Feb 1964 and 1st April 1976
Threshold Limit- No Limits
TDS Rate- 50%
Section- 195
Deductee- FC
Nature of Transaction- Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy.
Deductee- FC
Nature of Transaction- Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy.
If the agreement for such payment is entered after 31st March 1976
Threshold Limit- No Limits
TDS Rate- 10%
Section- 195
Deductee- NR
Nature of Transaction- Any other income
Deductee- NR
Nature of Transaction- Any other income
Threshold Limit- No Limits
TDS Rate- 30%
Section- 195
Deductee- FC
Nature of Transaction- Any other income
Deductee- FC
Nature of Transaction- Any other income
Threshold Limit- No Limits
TDS Rate- 40%
Section- 196B
Deductee- NR, FC
Nature of Transaction- Income (including LTCG) from units of an offshore fund
Deductee- NR, FC
Nature of Transaction- Income (including LTCG) from units of an offshore fund
Threshold Limit- No Limits
TDS Rate- 10%
Section- 196C
Deductee- NR, FC
Nature of Transaction- Income (including LTCG) from foreign currency bond on GDR of an Indian company
Deductee- NR, FC
Nature of Transaction- Income (including LTCG) from foreign currency bond on GDR of an Indian company
Threshold Limit- No Limits
TDS Rate- 10%
Section- 196D
Deductee- NR, FC
Nature of Transaction- Income (excluding dividend & capital gain) from foreign Institutional Investors.
Deductee- NR, FC
Nature of Transaction- Income (excluding dividend & capital gain) from foreign Institutional Investors.
Threshold Limit- No Limits
TDS Rate- 20%
Comments
Post a Comment