Business Formation

TDS Rate Chart for the FY 2018-19 & FY 2019-2020

What is TDS?

TDS stands for Tax Deduct at source. Any person or a company who make payment to any person or company is required to deduct TDS. TDS is deducted at a prescribed rate on specified payments within the threshold limit under income tax act, 1961.

TDS involves two parties:

  • Deductor / Payer (person making the payment after deducting TDS) and 
  • Deductee / Payee (person receiving the payment).

Who is Responsible to deduct the TDS?

It is the deductor’s responsibility to deduct the TDS after the payment of such amount in which he/she involve.

TDS is applicable on:

  • Resident
  • Non-resident
  • Domestic company
  • Other than above

TDS Rate Chart

Here is the table showing TDS rates applicable on resident, domestic company, other than domestic company.

TDS Rate Applicable for Resident Individual/HUF

Sections

Particulars TDS Rate
192 Payment of salary Normal Slab Rate
193

Interest on securities

a.    Debentures/securities for money issued by a govt. authority

b.   Listed debentures/securities issued by a company in accordance with Securities Contracts Act, 1956

c.    Any security of the Central/State Government.

d.   Interest on any other security.

10%
194 Dividend Income (except dividend income u/s 115-O) 10%
194A Interest income other than Interest on securities 10%
194B Income from winnings (lotteries, puzzles, card games etc.) 30%
194BB Income from winnings(Race of horses) 30%
194C Payment to Contractors/Sub-contractors HUF/Individuals 1%
Others 2%
194D Insurance commission (w.e.f. 01-6-2016) 5%
194D Insurance commission (w.e.f. 01-4-2015 to 31-5-2016) 10%
194DA Payment in respect of LIC (life insurance policy)(w.e.f. 01-6-2016) 1%
194DA Payment in respect of LIC (life insurance policy)(01-4-2015 to 31-5-2016) 2%
194EE Payment of Deposit under National saving scheme 10%

(from 01-6-2016)

(20% from 01-4-2015 to 31-05-2016)

194F Payment on account of repurchase of a unit by UTI/ Mutual fund 20%
194G Percentage commission on the sale of lottery tickets 5%
194H Brokerage/Commission 5%
194I

Rent on

a)   Plant and machinery

b)   Land or building or furniture or fitting

w.e.f 1st April 2019, TDS is deducted on Rs 240000 p.a. instead of 180000 p.a.

a)   2%

b)   10%

194-IA Payment on transfer of  immovable property (except for agriculture land) 1%
194-IB Other Rental Payments paid by HUF/individual not covered u/s 194I(w.e.f. 01-6-2016)

If Rent exceeds rs. 50000/- per month

5%
194J

Any amount paid through:

a. Professional services fees

b.Technical services fees

c. Royalty

d.Directors’ remuneration/fee/commission

e.For carrying any activity other than business activity

f.  For not sharing of any copyright, know-how, patent etc.

10%
194LA Payment of compensation on acquisition of certain immovable property 10%
194LBA Certain income distributed by a Business Trust to its Unit holder 10%
  Any other not specified above 10%

TDS Rate Applicable for Domestic Company

Sections Particulars TDS Rate
192

Payment of salary

Not Applicable
193

Interest on securities

a.    Debentures/securities for money issued by a govt. authority

b.   Listed debentures/securities issued by a company in accordance with Securities Contracts Act, 1956

c.    Any security of the Central/State Government.

d.   Interest on any other security.

10%

194

Dividend Income

10%
194A

Interest income other than Interest on securities

10%
194B

Income from winnings (lotteries, puzzles, card games etc.)

30%
194BB

Income from winnings(Race of horses)

30%
194C

Payment to Contractors/Sub-contractors

HUF/Individuals

1%

Others

2%
194D

Insurance commission

10%
194DA

Payment in respect of LIC (w.e.f. 01-6-2016)

1%
194DA

Payment in respect of LIC (life insurance policy)

(01-4-2015 to 31-5-2016)

2%
194EE

Payment of Deposit under National saving scheme

10%

(from 01-6-2016)

(20% from 01-4-2015 to 31-05-2016)

194F

Payment on account of repurchase of a unit by UTI/ Mutual fund

20%
194G

Percentage commission on the sale of lottery tickets

10%
194H

Brokerage/Commission (w.e.f. 01-6-2016)

5%
194H

Brokerage/Commission (01-4-2015 to 31-5-2016)

10%
194I

Rent on

a)      Plant and machinery

b)      Land or building or furniture or fitting

w.e.f 1st April 2019, TDS is deducted on Rs 240000 p.a. instead of 180000 p.a.

2%

10%

194-IA

Payment on transfer of  immovable property (except for agriculture land)

1%
194J

Any amount paid through:

a. Professional services fees

b.Technical services fees

c. Royalty

d.Directors’ remuneration/fee/commission

e.For carrying any activity other than business activity

f.  For not sharing of any copyright, know-how, patent etc.

10%
194LA

Payment of compensation on acquisition of certain immovable property

10%
194LBA

Certain income distributed by a Business Trust to its Unit holder

10%
 

Any other not specified above

10%

TDS Rate Applicable for Company other than Domestic Company

Sections

Particulars

TDS Rate

194B

Income from winnings (lotteries, puzzles, card games etc.)

30%

194BB

Income from winnings(Race of horses)

30%

194E

Payment on account of repurchase of a unit by UTI/ Mutual fund

20%

194G

Percentage commission on the sale of lottery tickets

5%

194LB

Payment of compensation on acquisition of certain immovable property

5%

194LBA

Certain income distributed by a Business Trust to its Unit holder

5%

194LC

Payment of interest by an Indian Company or business trust in respect of money borrowed (foreign currency)

5%

1994LD

Payment of interest on rupee denominated bond (of an Indian company or Govt. securities) to a foreign institutional investor

5%

195

Payment of any other sum

a)      Income derived by long-term capital gains [referred to in 112(1)(iii)]

b)      Income derived by short-term capital gains referred to in Section 111A

c)       Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10]

d)      Income derived by interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)

e)      Income by royalty payable by Government or an Indian concern (for any right)

f)       Income by royalty payable by Government or an Indian concern other than referred to above

g)      Income by fees for technical services payable by government or an Indian concern or in behalf of any agreement

Any other income

a.      10%

b.     15%

c.      20%

d.     20%

e.     10%

f.       10%

g.      10%

 40%

(for any other income)

196B

Income from units (including long-term capital gain on transfer of such units) to an offshore fund

10%

196C

Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)

10%

196D

Income of foreign Institutional Investors from securities (except dividend or capital gain arising from such securities)

20%

Consult a Tax Expert

BIZINDIGO provides the expert guidance related to Tax, TDS. We can help you in guiding applicability of TDS, Payment of TDS and filing of TDS Return or TDS Statement as per lncome Tax Laws. We can also help you with TAN Registration.

Call/WhatsApp: 8851222731