Tds

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Aastha (Querist)
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02 January 2012 On 31st March, 2009 ,we made a payment tell me at what rate TDS should have been deducted at 10% or 20%..?? tell me TDS rate in case of payment made to Resident and also in case of Non-Resident..??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 January 2012 Rate of TDS depends on the type of payment made. Different rates apply for different types of payments (rent, professional fees, contractor).

Kindly clarify the nature of the payment.

Aastha

Aastha (Querist)
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03 January 2012 actually i dont know nature of payment...but i want to know mainly in case of patment to non--resident ....plz u tell me according to sec. 194c, 194i, 194 j.......

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Got it! Here’s a quick summary of TDS rates **as of 31st March 2009** for payments to **Non-Residents** under relevant sections, and also the rates for Residents for comparison:

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### TDS Rates for **Non-Residents** (as per Income Tax Act around 2009):

| Section | Nature of Payment | Rate of TDS (Non-Resident) |
| -------- | ------------------------------------------- | ------------------------------------ |
| **194C** | Payment to Contractors | 20% (if PAN not furnished, else 20%) |
| **194I** | Rent payment | 30% (for non-resident payees) |
| **194J** | Fees for Professional or Technical Services | 20% |

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### TDS Rates for **Residents** (for your understanding):

| Section | Nature of Payment | Rate of TDS (Resident) |
| -------- | ------------------------------------------- | -------------------------------- |
| **194C** | Payment to Contractors | 1% (individual/HUF), 2% (others) |
| **194I** | Rent payment | 10% |
| **194J** | Fees for Professional or Technical Services | 10% |

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### Important notes:

* For **Non-Residents**, generally a **20% or 30% rate applies**, depending on the payment type.
* If the **nature of payment is unknown**, you may need to clarify before deducting TDS.
* The **DTAA** (Double Taxation Avoidance Agreement) with the country of the non-resident payee may provide a lower TDS rate.
* If PAN is **not provided** by the payee, the rate is generally the maximum rate (20% or 30%).

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If you want, I can help you with specific cases or more detailed guidance on how to proceed with unknown payment types! Want me to do that?

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