Tax Deducted as Source (TDS)
|
Nature of Payment
|
Person from whose income tax is being deducted. (assessee)
|
Person liable for deducting tax
|
Exemption Limit
|
Time of deduction
|
Rate
(plus surcharge plus education cess plus SAH)
|
Deduction at lower rate
|
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
|
Salary
(section 192)
|
Employee
|
Employer
|
Taxable minimum
i.e. Rs.1,10,000 or 1,45,000 or 1,95,000
|
At the time of payment
|
Average of income tax computed on the basis of the rates in force.
|
Allowed
|
|
Interest on securities (section 193)
|
A resident person holding securities
|
Payer of interest
|
Exempt categories listed, monetary limit of Rs. 2,500 for the entire P/Y in case of listed debentures if paid by account payee cheque; otherwise no minimum.
|
At the time of payment or credit whichever is earlier.
|
Non corporate assessee
o 10% - listed debentures
o 20% - non listed debentures
Corporate assessee – 20%
|
Allowed
|
|
Interest other than interest on securities (section 194A)
|
Resident person
|
a) other than Individual/ HUF – always
b) for Individual/ HUF – only if a/c were audited in the preceding financial year.
|
Rs. 10,000 by banks and co-operative societies and Rs. 5,000 by others
|
-do-
|
Non corporate assessee – 10%
Corporate – 20%
|
Allowed
|
|
Winnings from lotteries or crossword puzzles and horse races
(section 194B and 194BB)
|
Any person
|
Person paying winnings from crosswords, lotteries or race horses
|
In case of lotteries, crosswords - Rs. 5,000
In case of race horses – Rs. 2,500
|
At the time of payment
|
30%
|
Not Allowed
|
|
Payment to Contractor/
Sub contractors
(section 194C)
|
Resident contractor/ sub contractor
|
a) other than Individual/ HUF – always
b) for Individual/ HUF – only if a/c were audited in the preceding P/Y
|
Rs. 20,000 per payment or Rs. 50,000 for the financial year.
|
At the time of payment or credit whichever is earlier
|
Payment made to contractor
o 1% - advertising works
o 2% - others
Payment to sub contractor – 1%
|
Allowed
|
|
Insurance commission (section 194D)
|
Resident person
|
Any person paying insurance commission
|
Rs. 5,000
|
-do-
|
Non corporate assessee – 10%
Corporate – 20%
|
Allowed
|
|
Commission on sale of lottery tickets (section 194G)
|
Any person
|
Any person paying commission on sale of lottery tickets
|
Rs. 1,000
|
At the time of payment or credit whichever is earlier.
|
10%
|
Allowed
|
|
Commission or brokerage
(section 194H)
|
Any resident person
|
a) other than Individual/ HUF – always
b) for Individual/ HUF – only if a/c were audited in the preceding financial year
|
Rs. 2,500
|
-do-
|
10%
|
Allowed
|
|
Rent
(section 194I)
|
Any resident person
|
-do-
|
Rs. 1,20,000 for the previous year
|
-do-
|
Rent of P/M – 10%
Rent of L/B or F/F
o Recipient is HUF/ Ind – 15%
o Others – 20%
|
Allowed
|
|
Fees for professional or technical services (section 194J)
|
Any resident person
|
-do-
|
Rs. 20,000
|
-do-
|
10%
|
Allowed
|
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