Check TDS Rates for Financial Year 2019-20

TDS can be collected on a regular, periodic, or occasional basis, it is applicable to salary, interest, commission, fee, etc., and the details are laid out in the schedule.

Feb 18, 2020 11:02 IST India Infoline News Service

Tax Deducted at Source
An important and efficient form of tax collections by the government is through Tax Deducted at Source (TDS). TDS is a mechanism of advance deduction of tax at the time of paying out. The rate of TDS depends on the nature of the service provided and also on whether the recipient of the transfer is a resident Indian or a NRI. If the TDS deducted is eventually more than the required tax amount, the excess tax deducted can be claimed as tax refund. The individual will be required to file their TDS Return in order to receive the refund amount. TDS can be collected on a regular, periodic, or occasional basis, it is applicable to salary, interest, commission, fee, etc., and the details are laid out in the schedule.
 
TDS chart 2019 – How much TDS to be deducted?
 
The Income Tax Act has prescribed clearly the rates applicable for different types of payments made.
 

Particulars

TDS Rates

Section 192: Payment of salary

As per Income Tax Slab applicable so as to have zero tax liability by March 31

Section 193: Interest on securities or debentures issued by or on behalf of any corporation set up by a Central, State, or Provincial Act, or issued by a local authority

10%

Debentures issued by a company and listed on a stock exchange and which acknowledge and adhere to the norms of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any other rules made there under

10%

Any security of a state government or the Central Government [7.75% Saving (Taxable) Bonds, 2018 and 8% Savings (Taxable) Bonds, 2003]

10%

Interest on any other security

10%

Section 194A: Income earned through interest other than "Interest on securities"

10%

Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles etc

30%

Section 194BB: Income earned through winnings from horse races

30%

Section 194C: Payment to contractor and/or sub-contractor: a) HUF/Individuals

1%

Section 194C: Payment to contractor and/or sub-contractor: b) Others

2%

Section 194D: Insurance commission

5%

Section 194DA: Payments made towards a life insurance policy

1%

Section 194EE: Payment made towards any deposit under the National Savings Scheme (NSS)

10%

Section 194F: Payment made towards the repurchase of unit(s) by SEBI registered mutual funds

20%

Section 194G: Income arising from commissions and/or other proceedings earned through lottery tickets sales

5%

Section 194H: Brokerage or commission

5%

Section 194-I: Rent paid for: a) Plant and Machinery

2%

Section 194-I: Rent paid for: b) Building or land or furniture or fitting

10%

Section 194 – IA: Payments made towards the transfer of some specific immovable property (except for land used for agriculture)

1%

Section 194 – IB: Payments towards rent which does not qualify for tax audit and is made by an individual or a Hindu Undivided Family (HUF) [with effect from 1 June 2017]

5%

Section 194 – IC: Monetary considerations paid under the JDAs

10%

Section 194J: Any sum paid through: a) Royalty, b) Fees paid against professional services, c) patent, know-how, copyright, and so on, d) Fees paid against technical services, e) Remuneration/commission/fee to a director, or f) For not performing any activity that is associated to any business

10%

Section 194LA: Payment of compensation arising at the time of acquiring some particular immovable property [Deduction of tax will not be made in case of the payments on which income tax is not leviable under the Right to Fair Compensation Act, 2013, wef 1 April 2017]

10%

Section 194LBA(1): Business organisations will be liable to deduct tax at the time of distribution of any amount (arising out of interest received or is receivable from a SPV and/or any income which arises out of rent, lease, or letting out of a real estate which is owned by the organisation) to the unit holders of the organisation.

10%

Section 194LBB: An investment fund which pays an income to a unit holder [except for the incomes which are exempted under Section 10(23FBB)]

10%

Section 194LBC: Income generated in regard to investments made in a securitisation trust [as mentioned in the explanation of Section 115TCA]

For individuals and/or Hindu Undivided Families (HUFs) - 25% For any other person - 30%

Any other type of income

10%


 
The above rates are applicable to resident Indians who are individuals or HUFs. The NRIs have a different list of TDS rates applicable to them depending on the nature of payout made. Adhering to timely deduction and deposition of TDS is essential to be eligible for speedy processing of your refunds and avoid penal charges for the same. The TDS rate chart above is a quick and simple view of the rates of TDS to be applied depending on the nature of the payout. Such rates are subject to change from time to time.

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