Rates of TDS given under the Income-tax Act .

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Rates of TDS given under the Income-tax Act

(1) 192A — Payment of accumulated balance due to an employee participating in a recognised provident fund 10%

(See note 2 below)

(2) 194C — Payment to Contractor/Sub-contractor 1% where payment made to individual/HUF. 2% in other cases (See Note 1 below)
(3) 194DA Payment made to a resident of any sum under a life insurance policy which is not exempt u/s 10(10D) 1%
(4) 194E — Payment to non-resident sportsmen or sports associations or an entertainer 20%
(5) 194EE — Payment in respect of deposits under National Savings Scheme covered u/s 80CCA 10%
(6) 194G — Commission, etc. on sale of Lottery Tickets 5%
(7) 194H — Commission and Brokerage 5%
(8) 194-I — Rent
— For the use of any machinery or plant or equipment 2%
— For the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings—
In case the payee is individual or HUF 10%
In any other case 10%
(9) 194-IA — – Transfer of immovable properties (other than agricultural land) 1%
(10) 194-IB Payment of rent by certain individuals or Hindu undivided family (other than those referred to in the second proviso to section 194-I) (W.e.f. 1.6.2017) 5%
(11) 194-IC Payment of consideration, not being a consideration in kind under specified agreement (i.e. development agreement referred to in section 45(5A) ) (W.e.f. 1.6.2017) 10%
(12) 194J — Fee for professional or technical services or royalty or noncompete fee or w.e.f. 1.7.2012 any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company. 10%
However, in case of a payee engaged only in the business of operation of call centre 2%
(13) 194LA — Payment of compensation on acquisition of certain immovable property other than payment of any award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabiliation and Resettlement Act, 2013 (RFCTLAAR Act) 10%
(14) 194LB — Income by way of interest payable to non-resident (other than a company) or a foreign company by Infrastructure Debt Fund
(i) where the payee is a resident 5%
(ii) where the payee is a non-resident at the rate in force
(15) 194LBC —Income in respect of investment in securitisation trust—
(i) where the payee is an individual or HUF 25%
(ii) where the payee is any other person 30%
(16) 194LBA— -Any distributed income referred to in section 115UA payable by a business trust to its unit holder:
— where the payment is made to a resident 10%
— where the payment is made to a non-resident or a foreign company 5%
(17) 194LBB — – Income in respect of units of investment fund 10%
(18) 194LC — (1) Income by way of interest payable to non-resident (other than a company) or to a foreign company by an Indian company or a business trust on account of money borrowed in foreign currency by an Indian company;

(i) in respect of money borrowed in foreign currency from a source outside India—

(a) under a loan agreement at any time on or after 1-72012 but before 1-7-2020; or 5%
(b) by way of issue of long-term infrastructure bonds at any time on or after 1-7-2012 but before 1-102014; or 5%
(c) by way of issue of any long-term bond including long-term infrastructure bond at any time on or after 1-10-2014 but before 1-7-2020, 5%
(ia) in respect of monies borrowed by it from a source outside India by way of issue of rupee denominated bond before 1.7.2020 (W.r.e.f. 1.4.2016) 5%
(ii) to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan or the bond and its repayment.
(19) 194LD — Income by way of interest on rupee dominated bonds and Government securities payable on or after 1-6-2013 but before 1-7-2020 to a foreign institutional investor or a qualified foreign investor 5%
(20) 196B — Income and long-term capital gains from units to an offshore fund 10%
(21) 196C — Income and long-term capital gains from Foreign Currency Bonds or Shares of Indian Companies 10%
(22) 196D — Income of Foreign Institutional Investors for Securities 20%
(23) 206C — Tax collected at source in certain cases 1% to 5%

 

Notes 1.—W.e.f. 1.6.2015 Nil rate will be applicable only where the transporter owns 10 or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with his PAN.

  1. As per section 206AA, the rate of TDS will be 20% or the rate of TDS whichever is higher in all cases except under section 192A and 194LC, if PAN is not furnished by the deductee (including transporter) to the deductor. The rate of TDS under section 192A shall be maximum marginal rate if PAN is not furnished by the deductee to the deductor.

The provisions of section 206AA shall not apply to a non-resident, not being a company, or to a foreign company, in respect of—

(i) payment of interest on long-term bonds as referred to in section 194LC; and

(ii) any other payment subject to such conditions as may be prescribed.

  1. As per section 206CC, the collectee shall furnish his PAN to the collector failing which tax shall be collected at the higher of the following rates, namely:—

(i) at twice the rate specified in the relevant provision of this Act; or

(ii) at the rate of five per cent.

However, the provisions of this section shall not apply to a non-resident who does not have permanent establishment in India.

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