Tax Rates of Tax Deducted at

Rates of Tax Deducted at source(TDS)

Section 192

Salary

250,000/3,00,000(As per

applicable income slab)

As per income tax slab rate

of salary

Section 192 (2A)

Premature withdrawl

of Employee PF

₹ 50,000

10% of premature

withdrawal from Employee

provident fund

Section 193

Interest on securities

₹ 5000 for debenture

payment/

₹10,000 for 8% taxable

bond

10% of the interests earned

on security investments.

Section 194

Dividend

₹ 2500

10% of proceeds

from any deemed dividends

Section 194A

Interest other than

interest on securities

₹ 10,000

10% of proceeds from

interests earned on

investments other than

securities

Section 194B

Casual Income

₹ 10,000

30% of prize money on

lottery or gaming related

winnings

Section 194BB

Casual Income when

person holding license

₹ 10,000

30% of prize money from

horse racing

Section 194C

Payment to

contractors/sub

contractors

₹ 30,000 which is for each

contract, whereas ₹

100,000 is for p.a.

Proceeds from any

contracts / sub contracts

• Individuals or

HUF @ 1%

• Non

Individual/corporate @ 2%

Section 194D

Insurance Commission

₹ 15,000

5% of earning as insurance

commissions

Section 194DA

Life Insurance Policy

₹ 100,000

1% at the time of payment

Section 194 E

Non-Resident Sports

Men and sports

association

Nil

20% of Payment to non-

resident

Sportsmen or sports

associations

of income referred to in

section

115BBA

Section 194EE

Deposit under national

saving Scheme

₹ 2,500

20% of expense in NSS

deposits

Section 194F

NIL

20% of investment

in MF or UTI units

Rates of Tax Deducted at source(TDS)

Section 194G

Commission on selling

of lottery tickets

₹ 15,000

5% of the commission

money from lottery ticket

selling.

Section 194H

Commission/Brokerage

₹ 15,000

5% of the brokerage

earnings

Section 194I

Rent

₹ 1,80,000

2% on rental amount of

plant & machinery/10% on

the rent of land & building

Section 194 IA

Transfer of Certain

Immovable Property

₹ 50 Lakh

1% of amount of transfer of

immovable property

Section 194 IB

Payment of rent by

certain individual or

HUF

₹ 50,000 pm

5% of amount of rent

Section 195 IC

Payment under

specified Agreement

₹ Nil

10%

Section 194J

Fees for professional

and technical services

₹ 30,000 p.a

10% on the

technical/professional

services

Section 194LA

Compensation on

acquisition of certain

immovable propery

₹ 2,50,000

10% on the transfer money

paid to any resident while

Rationale for TDS Deduction

• TDS is applied on any income or overheads such as incentive (over & above salary), interests on fixed deposit

from banks, lotteries, commission payment and rent payment. While making payments in any of these heads, a

fixed rate is applied and the tax liability is deducted prior making the payment. If one has deducted more than

the required tax amount, you will be eligible for a TDS Refund if you file your TDS Return.

• The source or person who deducts TDS is referred as “Deductor”. The person to whom the payment is being

done is termed as “Deductee.”. For example, a deductor is an employer/ organization paying salary or incentive

to their employee who would be a deductee.

• The employer or Deductor is accountable to provide Form 16 /16A (TDS certificate) to the employee with the

computation of the tax deducted amount. No TDS certificate can be issued for nil tax holding such as those

payments which are exempted.

TDS Deduction Exemptions

There are few cases when the TDS is exempted. TDS is not levied on payments in favor of RBI, or towards any other

recompense to the central government. Apart from this, TDS is exempted from the payment of interest from the

following:

Banking companies

Financial corporations formed under the finance bill of union government or any state

Rates of Tax Deducted at source(TDS)

Income Tax refund

Direct taxes interest payment

LIC, UTI and investments in co-operative societies

Interests earned in recurring deposit or any savings account held with any commercial banks or cooperative societies

Interest earned on Indira Vikas Patra (IVP), NSC or KVP

Interest earned on NRE account

Any institutions notified as Nil TDS organization

Apart from the above, TDS might not be pertinent on various other avenues as well. For example interest earned on the

compensation granted from Motor Vehicles Claims Tribunal.

Advance payment of Tax

Advance tax payment schedule for corporates and non-corporates (other than an eligible assessee in

respect of eligible business referred to in section 44AD or section 44DA)

Due date of

Amount payable

On or before

15th June

Not less than 15% of advance tax liability.

On or before

15th September

Not less than 45% of advance tax liability less

amount paid in earlier installment.

On or before

15th December

15th December Not less than 75% of advance

tax liability less amount paid in earlier

installment or installments.

On or before 15th March

Whole amount of advance tax liability less

amount paid in earlier installment or

installments

Interest for non-payment or short-payment of advance tax [Section 234B]

(1) Interest under section 234B is attracted for non-payment of advance tax or payment of advance tax of an amount less

than 90% of assessed tax.

(2) The interest liability would be 1% per month or part of the month from 1st April following the financial year upto the

date of determination of income under section 143(1).

(3) Such interest is calculated on the amount of difference between the assessed tax and the advance tax paid.

(4) Assessed tax is the tax calculated on total income less tax deducted at source.

Rates of Tax Deducted at source(TDS)

Interest payable for deferment of advance tax [Section 234C]- Refer table pg no. 9.84

Tax Collection at source [Section 206C]

Sellers of certain goods are required to collect tax from the buyers at the specified rates. The specified percentage for

collection of tax at source is as follows:

Nature of Goods Percentage

(i) Alcoholic liquor for human consumption 1%

(ii) Tendu leaves 5%

(iii) Timber obtained under a forest lease 2.5%

(iv) Timber obtained by any mode other than (iii) 2.5%

(v) Any other forest produce not being timber or tendu leaves 2.5%

(vi) Scrap 1%

(vii) Minerals, being coal or lignite or iron ore 1%

However, no collection of tax shall be made in the case of a resident buyer, if such buyer furnishes a declaration in

writing in duplicate to the effect that goods are to be utilised for the purpose of manufacturing, processing or producing