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

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

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