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TDS Rates Applicable wef 1-10-09

 

Salaries (section 192).

 

The TDS is based on the tax at the applicable rate on the estimated income of employee for the year. No tax is required to be deducted from source unless the estimated salary exceeds the amount not chargeable to tax.

Interest on securities (section 193).

 

If aggregate amount of interest payable or creditable during the financial year exceeds Rs 5,000, you must deduct TDS at 10 %. ( No surcharge, EC or SHEC is applicable)

 

(Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 lac are not required to deduct the TDS).

From June 1, 2008, tax will not be deductible at source under the provisions of section 193 if the interest is payable on any security issued by a company and if the security is in dematerialized form and is listed in a recognised stock exchange in India issued by a company.

 

Dividend to a resident (section 194).

 

Where payments or distributions by a company to its shareholders are deemed as dividends (under section 2(22)(e)), payment exceeds Rs. 1000, you must deduct TDS at 10 %. ( No surcharge, EC or SHEC is applicable)

For any other dividend TDS rate is nil.

 

Interest other than interest on securities (section 194A).

 

If aggregate amount of interest payable or creditable by any person during the financial year exceeds Rs. 5000 (or Rs. 10,000 in case paid by a banking company, cooperative society engaged in banking or post office on notified deposit schemes), then that person must deduct TDS @ 10 % ( No surcharge, EC or SHEC is applicable)

 

(Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 are not required to deduct the TDS. Also TDS is not deductible when interest is credited or paid by a firm to its partners. There are other persons mentioned in section 194A to whom when payment is made or credited no TDS is to be made).

 

 

Winnings from lottery or crossword puzzle or card game or any other game (section 194B).

 

If the payment to a resident or non-resident (in cash or kind or partly in cash and kind) exceeds Rs. 5,000, the payer must deduct TDS at 30 % ( No surcharge, EC or SHEC is applicable)

Winnings from Horse race (section 194BB).

 

If the payment to a resident or non-resident exceeds Rs. 2,500, you must deduct TDS at 30 % of the prize. ( No surcharge, EC or SHEC is applicable)

 

194-C: Contracts

 

Payments to resident contractors (section 194C).

If any contract value exceeds Rs 20,000 or Rs. 50,000 in the aggregate during the financial year, you must deduct TDS.

(Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 lac are not required to deduct the TDS).

Earlier rates upto 30-09-09:

• Contracts = 2%
• Sub-Contracts = 1%
• Advertisement Contracts = 1%

Revised Rates wef 1-10-09

• Contracts or sub contracts to Individuals/HUF = 1%
• Contracts or sub contracts to others = 2%

No surcharge or Cess is applicable for TDS

• Payment to Transporters:

• For any Transporters, if they Provide the PAN number, the TDS on contract payments is NIL.
• But, if they do not provide the PAN during the payment,
• 1% TDS has to be made for payments to Individuals/HUF and
• 2% for payments to others.
• wef 1-4-2010, the rate of TDS will be 20 % in all cases if PAN is not provided.

 

Insurance Commission to a resident (section 194D).

 

If aggregate sum payable during the year exceeds Rs 5,000, you must deduct TDS

at 10 % . ( No surcharge, EC or SHEC is applicable)

(Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 lac are not required to deduct the TDS).

 

Payment to a non-resident sportsman or sports association (section 194E).

 

You must deduct TDS at 10 %. ( No surcharge, EC or SHEC is applicable)

Commission on sale of lottery tickets (section 194G).

 

If the payment to a resident or non-resident exceeds Rs 1,000, you must deduct TDS at 10 % of commission.( No surcharge, EC or SHEC is applicable)

(Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 lac are not required to deduct the TDS).

 

 

Commission and brokerage to a resident (section 194H).

 

You must deduct TDS at 10 % of commission and brokerage if it exceeds Rs. 2500/- .( No surcharge, EC or SHEC is applicable)

(Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lacs or professional receipts is less than Rs 10 lac are not required to deduct the TDS).

 

194-I: Rental Payments

 

If rental payment exceeds Rs. 1,20,000 during the financial year

 

Earlier rates upto 30-09-09:

• Plant and Machinery = 10%
• Land or building or furniture or fittings to Individual/HUF = 15%
• Land or building or furniture or fittings to Others = 20%

Revised Rates wef 1-10-09

• Plant and Machinery = 2%
• Land or building or furniture or fittings to anyone = 10%

No surcharge or Cess is applicable for TDS

 

Professional and Technical Services to a resident (section 194J).

 

If the payment by way of fees for professional services, or fees for technical services or royalty exceeds Rs. 20,000 in a financial year, the payer must deduct TDS rate is 10 %.

( No surcharge, EC or SHEC is applicable)

 

(Exception: Individuals and HUF whose sales/gross receipts in business is less than Rs 40 lac or professional receipts is less than Rs 10 lac are not required to deduct the TDS).

(As per CBDT notification dated 21/8/08, in relation to the sports activities, Sports Persons, Umpires and Referees, Coaches and Trainers, Team Physicians and Physiotherapists, Event Managers, Commentators, Anchors and Sports Columnists provide Professional Services for the purpose of section 194J).