>

TDS



Friends, here I try to provide all information about TDS.

             We receive income through different ways, like Salary,Dividend income from mutual funds or stocks, Rent,Interest on your Bank fix Deposits/Securities, Contractor Income, Construction Labour work income etc.,

              This income we get from(providers) like Company, Bank, etc.They can deduct a certain percentage from this income it's called TDS( Tax Deducted at Source),based on certain threshold limits.

             TDS or tax deducted at source is a process of  collecting  income tax at source by the Government Of India. It is a deduction of tax from original sources of income.It is an  indirect method of collecting tax which combines concept of '' Pay as You Earn(income)" and "collect as it is being earned".

             TDS is deducted as per rules of Indian Income Tax Act, 1961. TDS is controlled by  the Central Bord of Direct Taxes and It is a part of Indian Revenue Service Department.

 

Latest TDS Rates Chart for Financial Year 2018-19


                                        TDS Rates for  FY 2018-19  ( AY: 2019-20)
Section                             Particulars Individual/HUF  TDS Rate (in %)     Explanation
1. In the case of a person other than a company
1.1 where the person is resident in India-
192 Section 192: Payment of salary Normal Slab Rate
192 A Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. 10 When the amount exceed Rs. 50,000/-
193 Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; 10 when the
amount exceeds Rs.
10,000/-In case of Debentures Threshold limit is Rs. 5000/-
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; 10
c) any security of the Central or State Government; 10
[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]
d) interest on any other security 10
194 A Section 194A: Income by way of interest other than “Interest on securities” 10 when the
amount exceeds Rs.
5,000/-. However, limit is Rs. 10,000/- in case of interest credited by banks including co‑operative banks to its members.
194 B Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 When the amount exceed Rs. 10,000/-
194 BB Section 194BB: Income by way of winnings from horse races 30 When the amount exceed Rs. 10,000/-
194 C Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1 when the amount of a particular contract exceeds Rs. 30,000/- or the total
amount of contract
during the whole year exceeds Rs. 1,00,000/-
b) Others 2
194 D Section 194D: Insurance commission 5 when the amount exceeds Rs. 15000
194 DA Section 194DA: Payment in respect of life insurance policy 1 when the amount or the total amount during the whole year exceeds                  Rs. 1,00,000/-
194 EE Section 194EE: Payment in respect of deposit under National Savings scheme 10 when the amount exceeds Rs. 2500/-
194 F Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20
194 G Section 194G: Commission, etc., on sale of lottery tickets 5 when the amount exceed Rs. 15,000/-
194 H Section 194H: Commission or brokerage 5 when the amount exceed Rs. 15,000/-
194 I Section 194-I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10 when the amount exceeds Rs. 1,80,000/-
194 IA Section 194-IA: Payment on transfer of certain immovable property other than agricultural land 1 when the land is situated in specified
area when amount exceeds Rs. 50 lacs
194 IB Section 194-IB:Payment of rent by individual or HUF not liable to tax audit 5 When amount of Rent exceeds Rs. 50,000/- per month. )
Note: This provision is applicable from June 1, 2017
194 IC Section 194-IC:Payment of monetary consideration under Joint Development Agreements 10 No minimum limit
194 J Section 194J: Any sum paid by way of 10 When the amount exceed Rs. 30,000
a)  Fee for professional services, 2 ( in case of call Center)
b)  Fee for technical services
c)  Royalty,
d)  Remuneration/fee/commission to a director or
e)  For not carrying out any activity in relation to any business
f)  For not sharing any know-how, patent, copyright etc.
Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.
194 LA Section 194LA: Payment of compensation on acquisition of certain immovable property 10 When the amount exceed Rs. 250,000
Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013.
194 LBA(1) Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. 10
194 LBB Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] 10
194  LBC Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 25% in case of Individual or HUF
30% in case of other person
Any Other Income 10
1.2 where the person is not resident in India*-
192 Section 192: Payment of Salary Normal Slab Rate
192 A Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. 10 When the amount exceed Rs. 50,000/-
194 B Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 When the amount exceed Rs. 10,000/-
194 BB Section 194BB: Income by way of winnings from horse races 30 When the amount exceed Rs. 10,000/-
194 E Section 194E: Payment to non-resident sportsmen/sports association 20
194 EE Section 194EE: Payment in respect of deposits under National Savings Scheme 10 When the amount exceed Rs. 2500 /-
194 F Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20
194 G Section 194G: Commission, etc., on sale of lottery tickets 5 when the amount exceed Rs. 15,000/-
194 LB Section 194LB: Payment of interest on infrastructure debt fund 5
194 LBA(2) Section 194LBA(2): Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders. 5
194 LBA(3) Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. 30
194 LBB Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. 30
194 LBC Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 30
194 LC Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) 5
Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.
194 LD Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor 5
Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.
195 Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen 20
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen 10
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 10
d) Income by way of long-term capital gains as referred to in Section 112A 10
e) Income by way of short-term capital gains referred to in Section 111A 15
f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A 20
g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) 20
h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India 10
i) Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 10
j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 10
k) Any other income 30
196 B Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund 10
196 C Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 10
196 D Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 20
2. In the case of a company-
2.1 where the company is a domestic company-
193 Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; 10
b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; 10 when the
amount exceeds Rs.
10,000/-In case of Debentures Threshold limit is Rs. 5000/-
c) any security of the Central or State Government; 10
[i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]
d) interest on any other security 10
194 Section 194: Dividend 10 when
amount exceeds Rs.
2,500/-
194 A Section 194A: Income by way of interest other than “Interest on securities” 10 when the
amount exceeds Rs.
5,000/-. However, limit is Rs. 10,000/- in case of interest credited by banks including co‑operative banks to its members.
194 B Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 when the
amount exceeds Rs.
10,000/-.
194 BB Section 194BB: Income by way of winnings from horse races 30 when the
amount exceeds Rs.
10,000/-.
194 C Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1 when the amount of a particular contract exceeds Rs. 30,000/- or the total
amount of contract
during the whole year exceeds Rs. 1,00,000/-
b) Others 2
194 D Section 194D: Insurance commission 10 when the
amount exceeds Rs.
15,000/-.
194 DA Section 194DA: Payment in respect of life insurance policy 1 when the amount or the total amount during the whole year exceeds Rs. 1 ,00,000/-
194 EE Section 194EE: Payment in respect of deposit under National Savings scheme 10 when the
amount exceeds Rs.
2500/-
194 F Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20
194 G Section 194G: Commission, etc., on sale of lottery tickets 5 when the
amount exceeds Rs.
15000/-.
194 H Section 194H: Commission or brokerage 5 when the
amount exceeds Rs.
15000/-.
194 I Section 194-I: Rent
a) Plant & Machinery 2 when the amount exceeds Rs. 1,80,000/-
b) Land or building or furniture or fitting 10
194 IA Section 194-IA:Payment on transfer of certain immovable property other than agricultural land 1 when the land is situated in specified
area when amount exceeds Rs. 50 lacs
194 IC Section 194-IC:Payment of monetary consideration under Joint Development Agreements 10
194 J Section 194J: Any sum paid by way of 10 when the amount exceeds Rs. 30,000/-
a)  Fee for professional services,
b)  Fee for technical services
c)  Royalty,
d)  Remuneration/fee/commission to a director or
e)  For not carrying out any activity in relation to any business
f)  For not sharing any know-how, patent, copyright etc.
Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.
194 LA Section 194LA: Payment of compensation on acquisition of certain immovable property 10 When the amount exceed Rs. 2,50,000
Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013.
194 LBA(1) Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. 10
194 LBB Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] . 10
194 LBC Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 10
Any Other Income 10
2.2 where the company is not a domestic company*-
194 B Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 When the amount exceed Rs. 10,000/-
194 BB Section 194BB: Income by way of winnings from horse races 30 When the amount exceed Rs. 10,000/-
194 E Section 194E: Payment to non-resident sports association 20
194 G Section 194G: Commission, etc., on sale of lottery tickets 5 When the amount exceed Rs. 15,000/-
194 LB Section 194LB: Payment of interest on infrastructure debt fund 5
194 LBA(2) Section 194LBA(2): Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders. 5
194 LBA(3) Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. 40
194 LBB Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. 40
194 LBC Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 40
194 LC Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) 5
Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.
194 LD Section 194LD:Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor 5
Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.
195 Section 195: Payment of any other sum
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112 10
b) Income by way of long-term capital gains as referred to in Section 112A 10
c) Income by way of short-term capital gains referred to in Section 111A 15
d) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A 20
e) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) 20
f) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India 10
g) Income by way of royalty [not being royalty of the nature referred to in point e) above C] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976 50
B. where the agreement is made after the 31st day of March, 1976 10
h) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976 50
B. where the agreement is made after the 31st day of March, 1976 10
i) Any other income 40
196 B Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund 10
196 C Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 10
196 D Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 20

 

  • There are various TDS Forms have been set depending on the reason of deduction. Different TDS forms as follows:

                            Particulars                        Form Type
    • Statement for Tax Deducted at Source from salaries
    		                   24Q
    • Statement for Tax deducted at source on all payments except salaries
    		                   26Q
    • Statement for deduction of tax payable to Non-Resident of India
    		                   27Q
    • Statement of collection of tax at source
    		                   27E Q

     


 

No comments:

Post a Comment

Subscribe to: Posts (Atom)
ke pahle pest karna hai " >