TDS (Tax Deduction at Source) & TCS (Tax Collection at Source)

by Adv.(Dr.) Ravi Gupta & CA(Dr.) Arun Ahuja

Contents at a glance

Bharat?	5
Preface Twenty-third Edition	7
Detailed Contents	13
Table of Cases	61

Referencer-I TDS Rate Chart Tax Year 2026-27	1
Referencer-II The First Schedule	20
Referencer-III Tabular Mapping of TDS Rules and Forms	36
Referencer-IV Tax Rates - DTAA v Income-tax Act	38
Chapter 1 System of Collection of Tax	57
Chapter 2 Salary and Accumulated Balance Due to an Employee	77
Chapter 3 How to Estimate Income under the Head"Salaries" for Purposes of TDS Salary and accumulated balance	122
Chapter 4 TDS on Insurance Commission [Section 393(1) Table Sl. No. 1(i)]	208
Chapter 5 TDS on Commission (Non-Insurance) or Brokerage [Section 393(1) - Table Sl. No. 1(ii)]	224
Chapter 6 TDS from Payment of Rent by Person Other than Specified Person [Section 393(1) - Table Sl. No.2(i) Income Tax Act, 2025]	246
Chapter 7 TDS from Payment of Rent by a Specified Person[Section 393(1) - Table Sl. No. 2(ii)]	261
Chapter 8 TDS on Consideration for Transfer of anyImmovable Property (Other than Agricultural Land) [Section 393(1) - Table Sl. No. 3(i)]	293
Chapter 9 TDS on Consideration (Not in Kind) under a Specified Development Agreement Read with Section 67(14) Income Tax Act, 2025 [Section 393(1) -Table Sl. No. 3(ii)]	309
Chapter 10 TDS on Compensation/Consideration on Compulsory Acquisition of Immovable Property(Other than Agricultural Land) [Section 393(1)Table Sl. No. 3(iii) of Income Tax Act, 2025]	324
Chapter 11 TDS on Income in Respect of Units[Section 393(1) - Table Sl. No. 4(i)]	345
Chapter 12 TDS on Certain Distributed Income from Units of a Business Trust [Section 393(1) - Table Sl. No.4(ii)]	356
Chapter 13 TDS on Income in Respect of Units of an Investment Fund [Section 393(1) Table Sl. No.4(iii)]	364
Chapter 14 TDS on Income in Respect of Investment in a Securitisation Trust [Section 393(1) - Table Sl.No. 4(iv)]	371
Chapter 15 TDS on Interest on Securities [Section 393(1) - Table Sl. No. 5(i)]	378
Chapter 16 TDS on Interest Other than Interest on Securities[Section 393(1) - Table Sl. No. 5(ii) and 5(iii)]	406
Chapter 17 Payments to Contractors - TDS on Work Contracts [Section 393(1) - Table Sl. No. 6(i)]	433
Chapter 18 TDS on Payment of Certain Sums by CertainIndividuals or HUF[Section 393(1) - Table Sl. No. 6(ii)]	494
Chapter 19 TDS on Fees for Professional or Technical Services[Section 393(1) - Table Sl. No. 6(iii)]	510
Chapter 20 TDS on Dividends [Section 393(1), Table Sl. No.7]	540
Chapter 21 TDS on Payment in Respect of Life Insurance Policy [Section 393(1) - Table Sl. No. 8(i)]	560
Chapter 22 TDS on Purchase of Goods [Section 393(1) - Table Sl. No. 8(ii)]	571
Chapter 23 TDS in Case of Specified Senior Citizen [Section 393(1) - Table Sl. No. 8(iii)]	588
Chapter 24 TDS on Benefit or Perquisite in Respect of Business or Profession [Section 393(1) - Table Sl. No. 8(iv)]	595
Chapter 25 TDS from Payment by E-Commerce Operator to E-Commerce Participant [Section 393(1) - Table Sl. No. 8(v) Income Tax Act, 2025]	612
Chapter 26 TDS on Payment on Transfer of Virtual Digital Asset [Section 393(1) - Table Sl. No. 8(vi)]	631
Chapter 27 TDS on Payments to Non-Residents &TDS on Income of Non-Resident Sportsmen or Sports Associations [Section 393(2) - Table Sl. No. 1] [Any Income Referred to in Section 211]	646
Chapter 28 TDS on Interest on Foreign Currency Loans and Rupee-Denominated Borrowings [Section 393(2) - Table Sl. Nos. 2, 3 and 4]	665
Chapter 29 TDS on Income by way of Interest Paid by Infrastructure Debt Fund to Non-Resident/Foreign Company [Section 393(2) - Table Sl. No. 5]	681
Chapter 30 TDS on Distributed Income from Business Trusts to Non-Resident Unitholders [Section 393(2) - Table Sl. Nos. 6 and 7]	691
Chapter 31 TDS on Income in Respect of Units of an Investment Fund [Section 393(2) - Table Sl. No. 8]	704
Chapter 32 TDS on Income in Respect of an Investment in a Securitisation Trust [Section 393(2) - Table Sl.No. 9]	716
Chapter 33 TDS on Income in Respect of Units of Mutual Fund or Units of Specified Company [Section 393(2) - Table Sl. No. 10]	726
Chapter 34 TDS on Income from Units and LTCG Arising on Transfer of Units [Section 393(2)-Table Sl. Nos. 11 and 12]	739
Chapter 35 TDS on Interest, Dividends and Long-Term Capital Gains [Section 393(2) - Table Sl. Nos.13 and 14]	751
Chapter 36 TDS on Income in Respect of Securities under Table: Sl. No. 1 of Section 210(1) [Section 393(2) - Table Sl. Nos. 15 and 16] 765
Chapter 37 TDS on Any interest or any other sum chargeable under the provisions of this Act, not being incomefrom "Salaries" [Section 393(2) - Table Sl. No. 17]	781
Chapter 38 Special Provisions Relating to Non-Residents and Foreign Companies [Including DTAA]	844
Chapter 39 TDS from income by way of winning from lottery, crossword puzzles, card game, etc.[Section 393(3) - Table Sl. No. 1]	882
Chapter 40 TDS on Winnings from Online Games [Section 393(3) - Table Sl. No. 2]	897
Chapter 41 TDS on Winnings from any Horse Race [Section 393(3) - Table Sl. No. 3]	917
Chapter 42 TDS on Commission, Remuneration or Prize on Lottery Tickets [Section 393(3) - Table Sl. No. 4]	929
Chapter 43 TDS on Cash withdrawals from Banking Accounts[Section 393(3) - Table Sl. No. 5]	940
Chapter 44 TDS on Repayment under National Savings Scheme and Deferred Annuity Plans [Section 393(3) - Table Sl. No. 6]	956
Chapter 45 TDS on Salary, Remuneration, Commission,Bonus or Interest Paid to a Partner of a Firm [Section 393(3) - Table Sl. No. 7]	967
Chapter 46 No Deduction at Source/Blanket Exemptions[Section 393 - Sub-sections (4), (5)]	981
Chapter 47 Tax Collection at Source (TCS) [Section 394 of the Income Tax Act, 2025]	990
Chapter 48 Applications, Declarations and Certificates	1061
Chapter 49 Compliance and Reporting, Processing of Statements	1119
Chapter 50 Consequences of Defaults	1167