What is TDS?
Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, processional fees, interest, rent, etc.
For detailed discussion on TDS, please visit: https://www.hostbooks.com/in/blog/tds/complete-guide-tax-deducted-source-tds/Now, let’s have a look at the TDS Tax Rates.
Note: Here is the latest tds rate chart for FY 2023 -24 and income tax slab for AY 2023-24 (FY 2022-23) & AY 2024-25 (FY 2023-24).
TDS Rate Chart for F.Y. 2019-20 (A.Y : 2020-21)
| Section | Nature of payment | Threshold | Indv./HUF | Others |
|---|---|---|---|---|
| Rs. | TDS Rate (%) | |||
| 192 | Salaries | - | Normal slab rate | - |
| 192A | Premature withdrawal from EPF | 50000 | 10 | - |
| 193 | Interest on securities - 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year | 10000 | 10 | 10 |
| 193 | Interest on securities - Interest payable to Individual or HUF, resident in India, on any debenture issued by a company in which the public are substantially interested, if such interest is paid by the company by an account payee cheque | 5000 | 10 | 10 |
| 194 | Dividends | 2500 | 10 | 10 |
| 194A | Interest (Banking co., co-operative society engaged in banking, post office) | 40000 | 10 | 10 |
| 194A | Interest (Any other person) | 5000 | 10 | 10 |
| 194B | Winning from lotteries | 10000 | 30 | 30 |
| 194BB | Winning from Horse race | 10000 | 30 | 30 |
| 194C | Contractor - Single transaction | 30000 | 1 | 2 |
| 194C | Contractor - During the F.Y. | 100000 | 1 | 2 |
| 194C | Transporter (44AE) declaration with PAN | - | - | - |
| 194D | Insurance commission (15G-15H allowed) | 15000 | 5 | 10 |
| 194DA | Life insurance policy | 100000 | 5 | 5 |
| 194E | Non-resident sportsmen or sports association | - | 20 | 20 |
| 194EE | NSS | 2500 | 10 | 10 |
| 194F | Repurchase units by MFs | - | 20 | 20 |
| 194G | Commission-Lottery | 15000 | 5 | 5 |
| 194H | Commission/Brokerage | 15000 | 5 | 5 |
| 194I | Rent of Land and Building - F & F | 240000 | 10 | 10 |
| 194I | Rent of Plant/Machinery/Equipment | 240000 | 2 | 2 |
| 194IB | Rent by Individual/HUF (wef 01.06.2017) | 50000 pm | 5 | - |
| 194IA | Transfer of certain immovable property other than agriculture land | 50 lakh | 1 | 1 |
| 194J | Professional Fees/Technical Fees/ etc. | 30000 | 10 | 10 |
| 194J | Payment to call centre operator (wef 01.06.2017) | 30000 | 2 | 2 |
| 194J | Director's fees | - | 10 | 10 |
| 194LA | Compensation on transfer of certain immovable property other than agriculture land | 250000 | 10 | 10 |
| 194LA | Immovable property (TDS exempted under RFCTLARR Act wef 01.04.2017) | - | - | - |
| 194LB | Income by way of interest from infrastructure debt fund (non-resident) | - | 5 | 5 |
| 194LBA | Income from units of business trust (if recipient is resident in India) | - | 10 | 10 |
| 194LBA | Income from units of business trust (if recipient is non-resident) | - | 5 + SC + HEC | 5 + SC + HEC |
| 194LBA | Distribution of rental income to unit holders (if recipient is non-resident) | - | 30 + SC + HEC | 40 + SC + HEC |
| 194LBB | Income in respect of units of investment fund (if payee is resident) | - | 10 | 10 |
| 194LBB | Income in respect of units of investment fund (if payee is non-resident) | - | 30 + SC + HEC | 40 + SC + HEC |
| 194LBC | Income in respect of investment in securitization fund (if payee is resident) | - | 25 | 30 |
| 194LBC | Income in respect of investment in securitization fund (if payee is non-resident) | - | 30 + SC + HEC | 40 + SC + HEC |
| 194LC | Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012) | - | 5 + SC + HEC | 5 + SC + HEC |
| 194LD | Interest on certain bonds from Govt. securities (from 01.06.2013) | - | 5 + SC + HEC | 5 + SC + HEC |
| 194M | Certain payments by Individual/HUF | 50 lakh | 5 | 5 |
| 194N | Payment of certain amount in cash | 1 Crore | - | 2 |
TCS Rate Chart for F.Y. 2019-20 (A.Y : 2020-21)
| Section | Nature of payment | TCS Rate (%) |
|---|---|---|
| 206C | Scrap | 1 |
| 206C | Tendu leaves | 5 |
| 206C | Timber obtained under a forest lease or other mode | 2.5 |
| 206C | Any other forest produce not being a timber or tendu leave | 2.5 |
| 206C | Alcoholic liquor for human consumption | 1 |
| 206C | Parking lot, toll plaza, mining and quarrying (other than mining and quarrying of mineral oil, petroleum and natural gas) | 2 |
| 206C | Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) | 1 |
| 206C | Sale of motor vehicle of the value exceeding Rs. 10 Lacs (wef 01.06.2016) Motor vehicle clause not applicable on Central Government, a State Government, an embassy, a High Commission, Legation, Commission, Consulate and the Trade Representation of a foreign State; Local Authority; a Public Sector Company which is engaged in the business of carrying passengers (wef 01.04.2017) | 1 |
