TDS is means of indirect tax collection by the income tax authorities in India, under the provision of the Income Tax Act, 1961. TDS is managed by the Central Board of Direct Taxes (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service (IRS). Any payment covered under these provisions shall be paid after deducting prescribed percentage.
Payments such as salary, lottery or game-winning, bank interest, rent, payment of commissions, income from house racing etc. fall under the provisions of Tax Deducted at Source. When making payments under these segments, a percentage of the payment is withheld by the source that is making the payments.
Following are the TDS rates for a person other than a company w.e.f 01.06.2016.
|IT Section||Description||TDS Rate||Threshold Limit|
|Section 192||Salary payment.||Normal Slab Rate.||Normal Slab Rate.|
|Section 192A||Payment of accumulated balance of provident fund which is taxable in the hands of an employee||10%||₹50,000|
|Section 193|| Interest on Securities|
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.
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.
any security of the Central or State Government. interest on any other security.
|Section 194||Dividend other than the dividend as referred to in Section 115-O.||10%||Nil|
|Section 194A||Income by way of interest other than “Interest on securities”.||10%||₹10,000|
|Section 194B||Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort.||30%||₹10,000|
|Section 194BB||Income by way of winning from horse races.||30%||₹10,000|
|Section 194C||Payment to contractor/sub-contractor.|
|Aggregate annual limit₹1,00,000|
|Section 194D||Insurance commission.||10%||₹15,000|
|Section 194DA||Payment in respect of the life insurance policy.||1%||₹l lakh|
|Section 194EE||Payment in respect of deposit under National Savings Scheme.||10%||₹2,500|
|Section 194F||Payment on account of repurchase of the unit by Mutual Funds or Unit Trust of India.||20%||Nil|
|Section 194G||Commission, etc., on a sale of lottery tickets.||5%||₹15,000|
|Section 194H||Commission or brokerage.||5%||₹15,000|
Plant & Machinery.
Land or building or furniture or fitting.
|Section 194-IA||Payment on transfer of certain immovable property other than agricultural Land.||1%||₹50 lakhs|
|Section 194J|| Any sum paid by way of|
Fee for professional services.
Fee for technical services.
Remuneration/fee/commission to a director or
For not carrying out any activity in relation to any business.
For not sharing any know-how, patent, copyright etc.
|Section 194LA||Payment of compensation on acquisition of certain immovable property.||10%||₹1 lakh|