Section

Nature of Payment

Limit for TDS Deduction

TDS Rates Applicable for Individual/Company/Other/Non -Resident/PAN Not Provided

Individual

Company

Other

Non -Resident

If PAN Not Provided

192

Payment of salary

As Per Slab

Normal Slab Rates

Normal Slab Rates

–

Normal Slab Rates

30%

192A

Payment of accumulated balance of provident fund which is taxable in the hands of an employee.

Rs. 50,000.00

10%

NA

NA

10%

20%

193

Interest on securities

Rs. 2,500.00

10%

10%

–

20%

194

Income by way of dividend

Rs. 5,000.00

10%

10%

–

20%

194A

Income by way of interest other than “Interest on securities”

Senior Citizen Rs. 50,000.00 Other Rs. 40,000.00

10%

–

–

20%

194B

Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

Rs. 10,000.00

30%

30%

–

30%

30%

194BB

Income by way of winnings from horse races

Rs. 10,000.00

30%

30%

–

30%

30%

194C

Payment to contractor/sub-contractor

Aggregate Payment  Rs. 1,00,000.00 and Single Payment Rs. 30,000.00

1%

2%

–

20%

Payment to contractor/sub-contractor

Aggregate Payment  Rs. 1,00,000.00 and Single Payment Rs. 30,000.00

1%

2%

–

20%

194D

Insurance commission

Rs. 1,50,000.00

5%

10%

–

20%

194DA

Payment in respect of life insurance policy

Rs. 1,00,000.00

5%

5%

–

20%

194EE

Payment in respect of deposit under National Savings scheme

Rs. 2,500.00

10%

10%

–

10%

20%

194F

Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India

20%

20%

–

20%

20%

194G

Commission, etc., on sale of lottery tickets

Rs. 15,000.00

5%

5%

–

5%

20%

194H

Commission or brokerage

Rs. 15,000.00

5%

5%

–

20%

194I

Rent

a) Plant & Machinery

Rs. 2,40,000.00

2%

2%

–

20%

b) Land or building or furniture or fitting

Rs. 2,40,000.00

10%

10%

–

20%

194IA

Payment on transfer of certain immovable property other than agricultural land

Rs. 50,00,000.00

1%

1%

–

20%

194IB

Payment of rent by individual or HUF not liable to tax audit

Rs. 50,000.00 P.M

5%

–

–

20%

194IC

Payment of monetary consideration under Joint Development Agreements

–

10%

10%

–

20%

194J

Fees for professional or technical services

i)  sum paid or payable towards fees for technical services

Rs. 30,000.00

2%

2%

–

20%

ii)  sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;

Rs. 30,000.00

2%

2%

–

20%

iii)  Any other sum

Rs. 30,000.00

10%

10%

–

20%

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.

194K

Income in respect of units payable to resident person

–

10%

10%

–

20%

194LA

Payment of compensation on acquisition of certain immovable property

Rs. 2,50,000.00

10%

10%

–

20%

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%

10%

–

20%

194LBA(2)

Payment of the nature referred to in Section 10(23FC)(a)

5%

194LBA(2)

Payment of the nature referred to in Section 10(23FC)(b)

10%

194LBA(3)

Payment of the nature referred to in section 10(23FCA) by business trust to unit holders

30%

194LBB

Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]

10%

10%

–

30%

30%

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

–

–

30%

30%

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 or 4*

* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC

194LD

5%

194M

Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J

Rs. 50,00,000.00

5%

5%

–

20%

Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.

194N

Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office

2%

–

–

20%

i) in excess of Rs. 1 crore

2/5

–

–

ii) in excess of Rs. 20 lakhs

* for those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired. The deduction of tax under this situation shall be at the rate of:

a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year; or

b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year.

194-O

Payment or credit of amount by the e-commerce operator to e-commerce participant

Rs. 5,00,000.00

1%

1%

–

20%

194P

Deduction of tax by specified bank in case of senior citizen having age of 75 or more

–

Tax on total income as per rate in force

–

–

–

194Q

Payment to resident for purchase of goods of the aggregate value exceeding Rs. 50 lakhs

Rs. 50,00,000.00

0.10%

–

Note: TDS is deductible on sum exceeding Rs. 50 lakhs

Any Other Income

10.00%

195

Payment of any other sum to a Non-resident

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

10.00%

b) Income by way of long-term capital gains as referred to in Section 112A

10.00%

c) Income by way of short-term capital gains referred to in Section 111A

15.00%

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

20.00%

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)

20.00%

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

10.00%

g) Income by way of royalty [not being royalty of the nature referred to in point f) above] 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

10.00%

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%

196B

Income from units (including long-term capital gain on transfer of such units) to an offshore fund

10%

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%

196D

Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.

20%