THE THIRD SCHEDULE
RATES FOR DEDUCTION OF TAX AT SOURCE
(Rates for deduction of tax at source in the case of resident deductee)
S. No. |
Nature of Payment |
Rate |
1. |
Salary paid to employees |
The average rate of income tax on salary paid during the financial year, computed on the basis of the rates specified in rule 1 of the First Schedule |
2. |
Payment in respect of |
One per cent. |
|
(a) works contract; |
|
|
(b) service contract; |
|
|
(c) broadcasting and telecasting; or |
|
|
(d) supply of labour for carrying out any works, or service, contract. |
|
3. |
Payment in respect of advertising |
One per cent. |
4. |
Payment in respect of carriage of goods and passengers by any mode of transport other than by railways. |
One per cent. |
5. |
Interest |
Ten per cent. |
6. |
Dividend other than dividend in respect of which dividend distribution tax is payable. |
Ten per cent. |
7. |
Commission, brokerage, remuneration, or prize, (by whatever name called) for rendering any services. |
Ten per cent. |
8. |
Fees for professional or technical services |
Ten per cent. |
9. |
Payment for royalty or non-compete fee |
Ten per cent. |
10. |
Payment of compensation on compulsory acquisition of immovable property, other than agricultural land |
Ten per cent. |
11. |
Rent |
|
|
(i) For the use of machinery or plant or equipment |
(i) One per cent |
|
(ii) For use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings. |
(ii) Ten per cent. |
12. |
Winning from any lottery or crossword puzzle or card game or other game of any sort |
Thirty per cent. |
13. |
Winnings from any horse race |
Thirty per cent. |
14. |
Any other income |
Ten per cent. |
Explanation : For the purposes of this Schedule,-
(a) 'contract' and 'contractor' include 'sub-contract' and 'sub-contractor' respectively;
(b) 'broadcasting and telecasting' includes production of programmes for broadcasting; and
(c) 'service contract' includes a contract for job work.