TDS Rates for Resident Indians
TDS Rates for Resident Indians
As per the Income Tax Act – persons responsible for making payments are required to deduct tax at source at prescribed rates. Instead of receiving tax on your income from you at a later date, the govt wants the payers to deduct tax before hand and deposit it with the govt.
Section 192 (of Income Tax Act, 1961): Payment of salary
Calculated on the basis of Total Income.
Section 193 (of Income Tax Act, 1961): Interest on securities. : @10%
- any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;
- any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made there under;
- any security of the Central or State Government;
- interest on any other security
Section 194 (of Income Tax Act, 1961): Dividend other than the dividend as referred to in Section 115-O (of Income Tax Act, 1961) : 10%
Section 194A (of Income Tax Act, 1961): Income by way of interest other than “Interest on securities” w.e.f 1st April 2018, interest up to Rs. 50,000 earned by senior citizens on the follwing : 10%
– deposit with banks
– deposit with post offices
– fixed deposits schemes
– recurring deposit schemes
will be exempt from TDS
w.e.f 1st April 2019, TDS on interest income from post offices and bank deposits have increased up to Rs. 40,000 from the present limit of Rs. 10,000.
Section 194B (of Income Tax Act, 1961): Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort : 30%
Section 194BB (of Income Tax Act, 1961): Income by way of winnings from horse races : 30%
Section 194C (of Income Tax Act, 1961): Payment to contractor/sub-contractors.
a) HUF/Individuals : 1%
b) Others : 2%
Section 194D (of Income Tax Act, 1961): Insurance commission : 5%
( w.e.f 01.06.2016) (10% from 01.04.2015 to 31.05.2016)
Section 194DA (of Income Tax Act, 1961): Payment in respect of a life insurance policy :1 %
Section 194EE (of Income Tax Act, 1961): Payment in respect of deposit under National Savings scheme: 10%
Section 194F (of Income Tax Act, 1961): Payment on account of repurchase of a unit by Mutual Fund or Unit Trust of India: 20%
Section 194G (of Income Tax Act, 1961): Commission, etc., on the sale of lottery tickets: 5% (w.e.f 01.06.2016)
(10 % from 01.04.2015 to 31.05.2016)
Section 194H (of Income Tax Act, 1961): Commission or brokerage : 5%
(w.e.f 01.06.2016)
(10 % from 01.04.2015 to 31.05.2016)
Section 194-I (of Income Tax Act, 1961): Rent on
a) Plant & Machinery: 2%
b) Land or building or furniture or fitting: 10%
W.e.f 1st April 2019, TDS limit for deduction of tax on rent is increased to Rs. 2,40,000 p.a from Rs.1,80,000 p.a.
Section 194-IA (of Income Tax Act, 1961): Payment on transfer of certain immovable property other than agricultural land : 1%
Section 194 (of Income Tax Act, 1961) – IB: Rent payable by an individual or HUF not covered u/s. 194I (of Income Tax Act, 1961) (w.e.f from 01.06.2017): 5%
Section 194J (of Income Tax Act, 1961): Any sum paid by way of the following : 10%
a) Fee for professional services
b) Fee for technical services.
c) Royalty
d) Remuneration/fee/commission to a director or
e) For not carrying out any activity in relation to any business.
f) For not sharing any know-how, patent, copyright etc.
Section 194LA (of Income Tax Act, 1961): Payment of compensation on acquisition of certain immovable property : 10%
Section 194LBA (of Income Tax Act, 1961): Certain income distributed by a business trust to its unit holder : 10%
Any Other Income: 10%
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