The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.
TDS deduction is applicable to multiple types of payments, including –
- Salary
- Amount under LIC
- Bank Interest
- Brokerage or Commission
- Commission payments
- Compensation on acquiring immovable property
- Contractor payments
- Deemed Dividend
- Insurance Commission
- Interest apart from interest on securities
- Interest on securities
- Payment of rent
- Remuneration paid to director of the company, etc.
- Transfer of immovable property
- Winning from games like a crossword puzzle, card, lottery, etc.
| Section | Nature of Payment | Threshold | Indv/ HUF | Others |
|---|---|---|---|---|
| Rs. | TDS Rate (%) | |||
| 192 | Salaries | - | Avg | - |
| 192A | Premature withdrawal from EPF | 50000 | 10 | - |
| 193 | Interest on Securities | 10000 | 10 | 10 |
| 194 | Dividends | 5000 | 10 | 10 |
| 194A | Interest (Banks) | 40000 | 10 | 10 |
| 194A | Interest (Others) | 5000 | 10 | 10 |
| 194A | Senior Citizen | 50000 | 10 | - |
| 194B | Winning from Lotteries | 10000 | 30 | 30 |
| 194BB | Winnings from Horse Race | 10000 | 30 | 30 |
| 194C | Contractor – Single Transaction | 30000 | 1 | 2 |
| 194C | Contractor – During the F.Y. | 1 Lakh | 1 | 2 |
| 194C | Transporter (44AE) declaration with PAN | - | - | - |
| 194D | Insurance Commission (15G-15H allowed) | 15000 | 5 | 10 |
| 194DA | Life insurance Policy | 1 Lakh | 1 | 1 |
| 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(a) | Rent of Plant / Machinery / Equipment | 2.40 Lakh | 2 | 2 |
| 194I(b) | Rent of Land Building & Furniture | 2.40 Lakh | 10 | 10 |
| 194IA | Transfer of certain immovable property other than agriculture land | 50 Lakh | 1 | 1 |
| 194IB | Rent by Individual / HUF (wef 01.06.2017) | 50000/PM | 5 | - |
| 194IC | Payment under Specified agreement applicable for F.Y: 2017-18 onwards | - | 10 | 10 |
| 194J (a) | Fees-tech srvcs, call centre, royalty for sale etc. | 30000 | 2 | 2 |
| 194J (b) | Fee for professional service or royalty etc. | 30000 | 10 | 10 |
| 194K | Payment of dividend by mutual Funds | 5000 | 10 | 10 |
| 194LA | Compensation on transfer of certain immovable property other than agriculture land | 2.50Lakh | 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 | Certain income from units of a business trust (applicable from 01.10.2014) | - | 10 | 10 |
| 194LBA | Certain income from units of a business trust to non-resident (applicable from 01.10.2014) | - | 5 | 5 |
| 194LBB | Income in respect of investment of investment fund | - | 10% for residents, 30% for non-residents | 10% for residents, 40% for non-residents |
| 194LBC | Income in respect of investment in securitization trust | - | 30% for residents, 40% for non-residents, 25% for individual & HUF | 30% for residents, 40% for non-residents, 25% for individual & HUF |
| 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 bond ‘from outside India (applicable from July 1, 2012) | - | 5 | 5 |
| 194LD | Interest on certain bonds and Govt. Securities (from 01.06.2013) | 5 | 5 | |
| 194M | Payment to commission, brokerage etc. by individual & HUF | 50 Lakh | 5 | 5 |
| 194N | Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (wef 01.09.2019) | 1 Cr | 2 | 2 |
| 194Q | TDS on e-commerce participants | 5 Lakh | 1%(01.10.2020) | 1% (01.10.2020) |
Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)
| Section | Nature of Payment | TCS Rate % |
|---|---|---|
| 206CE | Scarp | 1 |
| 206CI | Tendu Leaves | 5 |
| 206CB | Timber obtained under a forest lease or other mode | 2.5 |
| 206CD | Any other forest produce not being a timber or tendu leaves | 2.5 |
| 206CA | Alcoholic Liquor for human consumption & Tendu leaves | 1 |
| 206CF | Parking Lot | 2 |
| 206CG | Toll Plaza | 2 |
| 206CH | Mining 7 Quarrying | 2 |
| 206CJ | Minerals | 1 |
| 206CL | Sale of Motor Vehicle | 1 |
| 206CK | Bullion & Jewellery | 1 |
| 206CM | Sale in cash of any goods(other than bullion) | 1 |
| 206CN | Providing of any service (other than Ch-XVII-B) | 1 |
| 206CQ | LRS-other purposes – Liberalized Remittance Scheme | 5% (10% for non-PAN or Aadhar) |
| 206CO | Tour Program Package | 5% (10% for non-PAN or Aadhar) |
| 206CR | Sale of Goods | 0.1% (1% for non-PAN or Aadhar) |
| 206CC | Timber obtained under any other mode other than forest lease | 2.5 |
| 206CP | LRS – Educational Loan – Financial Institution | 0.5 |
| Note: TCS Rates without PAN – Double of TCS rate as above or 5% whichever is higher | ||
₹ 4000 (excluding gst)
- TDS Filing for 1 quarter
- Guidance for TDS Challan Payment and Filing, Income Tax e-Filing and Traces Registration, Filing of TDS Return, Generation of TDS Certificate
- Excluding Government Fee*.
₹ 7000 (excluding gst)
- TDS Filing for 2 quarter
- Guidance for TDS Challan Payment and Filing, Income Tax e-Filing and Traces Registration, Filing of TDS Return, Generation of TDS Certificate.
- Excluding Government Fee*.
₹ 12000 (excluding gst)
- TDS Filing for 1 year
- Guidance for TDS Challan Payment and Filing, Income Tax e-Filing and Traces Registration, Filing of TDS Return, Generation of TDS Certificate.
- Excluding Government Fee*.