TMI BlogWhat are the payments covered under the TDS mechanism and the rates for deduction of tax at source?X X X X Extracts X X X X X X X X Extracts X X X X ..... ), 15% (If total income exceeds Rs. 1 crore but doesn t exceed Rs. 2 crore), 25% (If total income exceeds Rs. 2 crore but doesn t exceed Rs. 5 crore), 37% (If total income exceeds Rs. 5 crore) HEC : 4% Sec. 192A - Payment of taxable accumulated balance of provident fund 10 Sec. 193 - Interest on securities a . interest on (a) debentures/securities for money issued by or on behalf of any local authority/statutory corporation, (b) listed debentures of a company [not being listed securities in demat form], (c) any security of the Central or State Government [i.e., 8% Savings (taxable) Bonds, 2003 or 7.75% savings (Taxable) Bonds, 2018, but not any other Government security] 10 b . any other interest on securities (including interest on non-listed debentures) 10 Sec. 194 - Dividend 10 Sec. 194A - Interest other than interest on securities 10 Sec. 194B - Winnings from lottery or crossword puzzle or card game or o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnical services 2 ii . sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; 2 iii . Any other sum 10 Note: 2% if payee is engaged in the business of operation of call center Sec. 194LA - Payment of compensation on acquisition of certain immovable property 10 Sec. 194LBA(1) - Payment of the nature referred to in section 10(23FC) or section 10(23FC)(a) or section 10(23FCA) by business trust to resident unit holders 10 Sec. 194LBB - Payment in respect of units of investment fund specified in section 115UB 10 Sec. 194LBC (1) - Payment in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA (with effect from June 1, 2016) - Section 194M Payment of contractual work, commission (not being insurance commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducation cess: 4%) TDS (inclusive of SC: 12%, Health Education cess: 4%) TDS (inclusive of SC: Nil , Health Education cess: 4%) TDS (inclusive of SC: 2%, Health Education cess: 4%) TDS (inclusive of SC: 5%,, Health Education cess: 4%) Sec. 192 - Payment of salary Normal/Special Tax Rate Normal Tax Rate plus SC, EC and SHEC Normal Tax Rate plus SC, EC and SHEC Sec. 192A - Payment of taxable accumulated balance of provident fund 10.4 11.44 11.96 - - - - - Sec. 194B - Winnings from lottery or crossword puzzle or card game or other game of any sort or from gambling or betting of any form or nature whatsoever. 31.2 34.32 35.88 31.2 34.944 31.2 31.824 32.76 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the nature referred to in section 10(23FCA) by business trust to unit holders 31.2 or 20.8 * In case of distribution of dividend received from specified domestic company. 34.32 22.88 35.88 23.92 31.2 20.8 34.944 23.30 41.6 20.8 42.432 21.22 43.68 21.84 Sec. 194LBB - Payment in respect of units of investment fund specified in Sec. 115UB 31.2 or 20.8* * In case of distribution of dividend received from specified domestic company. 34.32 22.88 35.88 23.92 31.2 20.8 34.944 23.30 41.6 23.8 42.432 21.22 43.68 21.84 Sec. 194LBC (2) - Payment in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA (with effect from June 1, 2016) 31.2 34.32 35.88 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains under Sec. 111A 15.6 17.16 17.94 15.6 17.472 15.6 15.912 16.38 e. any other long-term capital gains [not being covered by Section 10(33) , 10( 36 ) and 112A] 20.8 22.88 23.92 20.8 23.296 20.8 21.216 21.84 f. income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency (not being interest referred to in Sec. 194LB or Sec. 194LC 20.8 22.88 23.92 20.8 23.296 20.8 21.216 21.84 g. royalty [ see Note 5] 10.4 11.44 11.96 10.4 11.648 10.4 10.608 10.92 h. royalty [not being royalty of the nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidend, short-term or long-term capital gain) to Foreign Institutional Investors 20.8 22.88 23.92 20.8 23.296 20.8 21.216 21.84 Notes : 1. Under sections 192 tax is deductible from salary. The payer shall calculate salary taxable in the hands of recipient. The amount so determined is subject to tax deduction under sections 192 . Under sections 192A , tax is deductible on taxable accumulated balance of provident fund. Under section 195 , tax is deductible only if income is taxable in the hands of recipient in India. In any other case, gross payment or credit (without GST, if GST is shown separately) is subject to tax deduction. 2. In Category B, tax is deductible at the above rates or the rates specified in ADT agreements entered into by the Central Government under section 90 (whichever is lower) [ section 2( 37A )( iii ) ]. 3. Tax is not deductible under section 192A , section 193 , 194 , 194A , with effect from 1/6/2017 194D , 194DA , 194-I , or 194EE if the recipient makes a declaration in Form No. 15G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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