THE THIRD SCHEDULE
[see sections 195(2) and 314(187)(b)]
RATES FOR DEDUCTION OF TAX AT SOURCE
(Rates for deduction of tax at source in the case of resident deductee)
|
Serial number |
Nature of payment (Specified payment) |
Rate |
|
(1) |
(2) |
(3) |
|
1. |
Income from employment |
The average rate of income-tax on estimated income from employment during the financial year, computed on the basis of the rates specified in Part 1 of the First Schedule |
|
2. |
Payment in respect of —
(a) works contract;
(b) service contract;
(c) broadcasting and telecasting;
(d) supply of labour for carrying out any works, or (e) service contract;
advertising; or
(f) carriage of goods and passengers by any mode of transport other than by railways. |
2 per cent. |
|
3. |
Interest. |
10 per cent. |
|
4. |
Dividend other than dividend in respect of which dividend distribution tax is paid |
10 per cent. |
|
5. |
Income distributed by mutual fund on which income distribution tax is not paid,
(i) where the deductee is an Individual or a Hindu undivided family;
(ii) any other deductee |
10 per cent. |
|
20 per cent. |
|
6. |
Payment made by a life-insurer in respect of a life insurance policy other than the policy referred to in clause (d) or clause (e) of subsection (3) of section 59—
(i) where the deductee is an Individual or a Hindu undivided family;
(ii) any other deductee |
|
|
10 per cent. |
|
20 per cent. |
|
7. |
Commission, brokerage, remuneration, or prize (by whatever name called) for rendering any services |
10 per cent. |
|
8. |
Fees for professional or technical services |
10 per cent. |
|
9. |
Payment for royalty or non-compete fee |
10 per cent. |
|
10. |
Payment of compensation on compulsory acquisition of immovable property other than agricultural land. |
10 per cent. |
|
11. |
Rent—
(i) for the use of machinery or plant or equipment;
(ii) for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings |
2 per cent. |
|
10 per cent. |
|
12. |
Winnings from any lottery or crossword puzzle or card game or other game of any sort |
30 per cent. |
|
13. |
Winnings from any horse race. |
30 per cent. |
