TDS Rates for FY 2018-19 & 2019-20 (AY 2019-20 & 2020-21)



An amount of TDS or Tax Deduction at source is deducted for various incomes under the Income Tax Act 1961. But, do you know the rates at which such deduction is required to be made? Is it required to be done at one single rate or different rates?? The rates are prescribed in the law depending upon the nature of income like

  • Income from Salary
  • Interest Income
  • Receiving Professional Fee
  • Getting a prize or Lottery
  • etc

Find below detailed understanding on the sections, nature of payment, who needs to deduct TDS, and the TDS rates in all cases.

SectionNature of PaymentPayer or person deducting TDSPayee or Recipient of IncomeRate
192SalaryAny personEmployee                ( Resident or NR)Slab Rate
192AAccumulated Balance of Provident FundAny PersonEmployee10%
193TDS on interest on SecuritiesAny personAny Resident Person10%
194TDS on deemed DividendDomestic CompanyResident 10%
194 ATax Deduction at Source on interest (other than securities) Any person except Individual/HUF not liable to Tax Audit in last p.y.Resident Person10%
194 BWinning from lotteries, crossword, puzzles, cardGames etc.Any PersonAny person30%
194BBWining from horse raceAny personAny person30%
194 CTDS on ContractAny person except Individual/HUF not liable to Tax Audit in last p.y.Any Resident PersonIf contractor individual/ HUF 1% Others 2 %
194 DTax on insurance Commission Insurance companyResident Agent5%
194 DATDS on proceeds of a life ms policy at the time of maturityAny personAny Resident person1 %
194 ETDS on payment to Non Resident  sportsmen / Association / EntertainerAny PersonNR SportsmenNR Sports AssociationNR Entertainer20% + Cess
194 EEDeposit under National saving schemeAny personAny person10%
194 GTDS on commission on sale of lottery ticketAny PersonAny Person5 %
194 HTDS on commission & Brokerage  Any person except Individual/HUF not liable to Tax Audit in last p.y.Any Resident Person5 %
194  ITax Deduction at Source on RentAny person except Individual/HUF not liable to Tax Audit in last p.y.Any Resident Persona) Plant & Machinery-2%b) Land & Building, Furniture- 10%
194 IATDS on transfer or purchase of immovable property(other than rural agricultural landAny personAny Resident Person1 %
194 IBTax on rent of immovable propertyIndividual & HUF ( other than those covered in section 194 I )Any Resident Person 5 %
194 ICTDS payment under development agreementAny personAny Resident person10 %
194 JTax Deduction at Source on professional services Any person except Individual/HUF not liable to Tax Audit in last p.y.Any Resident Person10 %
194 LA TDS on compensation for compulsory acquisition of immovable PropertyAny personAny person10 %
194 LB TDS on interest on Infrastructure debt fundInfrastructure debt fundNon resident or foreign company5 %
194 LBAIncome distributed by business trust to unit holders Business trustUnit holderResident ( Covered u/s 10(23FC)(a)  Covered u/s 10(23FC)(a) resident Resident  10%Non resident other than company 5%Covered u/s 10(23FCA)Non resident other than company RATE IN FORCE
194 LBBIncome in respect of unit of Investment fundInvestment fundunit holdersResident 10%Non resident other than company at the RATE IN FORCE
194 LBCThe Income in respect of securitisation TrustSecuritisation trustInvestorResident Individual/HUF 25%any Other 30 %Non resident at the RATE IN FORCE
194 LCInterest from indian company and business trustCompany or business trustNon resident other than company, or to a foreign company5%
194 LDInterest on certain bond and securities ( Rupee denominated bond and a government security)Any personForeign institutional investor or a qualified foreign investor (from 1.6.2013 to 1.7.2020)5 %
195TDS on any sum payable to NR or Foreign companyAny personNon resident or foreign companya) DTAA rateorb) Rate in force
196 BIncome from units to an offshore fundand including long-term capital gain on transfer of such units10
196 C Income from foreign currency bonds or GDR (including long-term capital gain on transfer of such bonds or GDR) of an Indian company10
196 DThe Income of Foreign Institutional Investors from securities but not being a dividend or capital gain arising from such securities20



Section 192 – TDS on Salary

Things to remember at the time of deducting TDS

a) Employer shall consider details of other income & deduction of employee if furnished by employee

b) Employer shall not consider any loss except loss under the head income from house property.

For more details read


192 A – TDS on Premature Withdrawal of RPF

Things to remember at the time of deducting TDS

a) TDS applicable only if it is taxable in hands of employee

b) No TDS if amount upto Rs. 50,000

For more details read


193 – TDS on Interest on Securities

No TDS is required to be deducted if interest is

  • Paid to LIC, GIC, other insure
  • Payable on Govt. Securities
  • DMAT Securities

For more details read


194 – TDS on Dividends

Things to remember at the time of deducting TDS

a) No TDS if company paid DDT u/s 115-o means this section applicable only in case of deemed dividend u/s 2(22)(e)

b) From assessment year 2016-2017 if dividend is taxable u/s 115 BBDA then company required to deduct TDS. ( more than 10 lac dividend amount )

For more details read


194A – TDS on Interest Income other than on securities

No TDS is required to be deducted if

  • Interest paid by bank/ co-operative bank/ post office up to 10000
Interim Budget 2019 has extended the limit of 10,000 to Rs 40,000 with effect from  F.Y. 2019-20 (AY 2020-21)
  • In other cases its upto Rs. 5000
  • Interest paid by firm to partner
  • Interest on income tax
  • Interest on bank saving A/C
  • Interest paid to any bank or LIC or UTI or Any insurer etc.
  • Interest paid by co-op society to its member or to any other co-op society
  • Interest paid in respect of certain scheme of past office , Kisan vikas patra, india vikas patra, national saving certificate, P.O. monthly income A/c, P.O. Recurring deposits.

For more details read


194B – TDS on winnings from lottery and crossword puzzles

No TDS is required to be deducted  if the winning amount is up to Rs. 10,000 per wining.

For more details read


194BB – TDS on winning from Race Horses

No TDS is required to be deducted if winning is upto Rs. 10,000

For more details read


194C – TDS on Payment to Contractors

No TDS is required to be deducted if

  • Single payment is up to Rs. 30000 OR
  • Aggregate of payment in P.Y. in upto Rs. Rs. 1,00,000 OR
  • If contract is for personal purpose of individual/ HUF OR
  • No TDS if payment made to transporter & he does not own more than 10 vehicles at any time during the p.y. & he furnish a declaration AND
  • The Contract also include sub contract in all cases
  • Payment made by TV CHANNEL/ Newspaper Co. to advertising company for booking/ procuring/ canvassing for advertising  is treated as discount not commission so TDS provision not applicable.
  • In case of Job work, the TDS shall be deducted on

:- the invoice value excluding the value of material  if material value mentioned separately in invoice

:- The whole of the invoice value , if value of material is not mentioned separately in the invoice value

For more details read


194D – TDS on Insurance Commission

No TDS is required to be deducted if commission is upto Rs. 15000 p.a.

For more details read


194DA – TDS on Payment of Life Insurance Policy

No TDS is required to be deducted if

  • The amount is exempted u/s 10 (10D),
  • Amount is less than Rs. 1,00,000

For more details read


194 E – TDS on Payments to NR Sportsmen or Sports Association

TDS on Payments to Non-Resident Sportsmen or Sports Association shall be done for

  • Participation in any game in India i.e. IPL
  • Advertisement
  • Contribution of any article in newspaper etc.
  • Performance in india

For more details read


194 G – TDS on Commission for Sale of Lottery Tickets

No TDS on Commission on Sale of Lottery Tickets is required to be deducted if Commission amount is upto Rs. 15000 per annum w.e.f. 1/6/16

For more details read


194 H – TDS on Commission or Brokerage

No TDS on Commission or Brokerage is required to be deducted if

  • Commission is upto Rs. 15000
  • Commission or Brokerage amount relating to securities like commission to underwriters, Brokerage on public issue, Brokerage on stock exchange transaction etc

For more details read


194 I – TDS on Rent

No TDS on rent is required to be deducted in following cases

  • If Rent is up to Rs. 180000 per annum
Interim Budget 2019 has extended the limit of RS 1,80,000 to Rs 2,40,000 with effect from  F.Y. 2019-20 (AY 2020-21)
  • Non refundable deposits, or in case of arrears of rent received, advance rent also eligible for TDS
  • If rent is paid to business Trust (REIT) in respect of rent of real estate assets as it is exempt u/s 10 (23 FCA) then TDS not applicable
  • Landing & parking charges paid by airline co to airport authority
  • No TDS on municipal taxes

For more details read


194 IA – TDS on Sale Of  the Immovable Property

No TDS on sale of immovable property is required to be deducted if

  • Consideration is less than Rs. 50 lakh or if
  • Consideration is Rs. 50 lakh or more & only part payment is made then TDS applicable on every part payment of consideration

For more details read


194 IB – TDS On payment of rent in certain cases

No TDS on rent is required to be deducted if the amount is upto Rs. 50,000 per month or part of the month.

For more details read


194 IC – TDS Payments under Development Agreement

This provision has been inserted recently from Budget 2017 and the objective was to bring under scope ‘Joint Development Agreements’. So let’s understand this section in detail:

TDS Payments under Development Agreement shall be done for

  • Any person who pays to a resident some consideration (not in kind) under a Joint Development Agreement, has to deduct TDS u/s 194 IC.
  • Joint Development Agreement is an agreement between the owner of an asset (being land or building or both) who agrees to allow another person to build a real estate project on such asset, in return for share and/or payment in cash.
  • The rate of the tax deduction is 10% and if the PAN of the receiver is not available then the rate is 20%.
  • Time of deducting tax is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft or other modes).
  • Also, there is no threshold limit (exemption limit) under this section.

For more details read


194 J – TDS on Fees paid for Professional or Technical Services

No TDS is required to be deducted in these cases,

  • Fees for professional services is upto Rs. 30000
  • Fees for technical services upto Rs. 30000
  • Royalty is upto Rs. 30000
  • Non compete fees is upto Rs. 30000
  • In case of director fees- No limit

For more details read


194 LA – TDS on Payment of Compensation

No TDS on Payment of Compensation on Acquisition of Certain Immovable Property is required to be deducted if

  • Consideration is upto Rs. 250000 p.a.
  • Compulsory acquisition of rural agricultural land

For more details read


194LB – TDS on Income by way of Interest on IDF

For deducting TDS under this section Infrastructure debt fund shall be those referred in sec 10 (47) of the Income Tax Act 1961

For more details read


195 – TDS on other payments made to NR or Foreign Company

For deducting TDS under this section Nature of payment shall be

a) Interest OR

b) Any other some which is chargeable to tax in india( except salary u/s 192,194 B, 194 BB, 194 E, 194 LB, 194 LBA )

For more details read


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Team Tax2Win