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


(Last Updated On: November 19, 2019)

 


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.

Section Nature of Payment Payer or person deducting TDS Payee or Recipient of Income Rate
192 Salary Any person Employee                ( Resident or NR) Slab Rate
192A Accumulated Balance of Provident Fund Any Person Employee 10%
193 TDS on interest on Securities Any person Any Resident Person 10%
194 TDS on deemed Dividend Domestic Company Resident 10%
194 A Tax Deduction at Source on interest (other than securities) Any person except Individual/HUF not liable to Tax Audit in last p.y. Resident Person 10%
194 B Winning from lotteries, crossword, puzzles, cardGames etc. Any Person Any person 30%
194BB Wining from horse race Any person Any person 30%
194 C TDS on Contract Any person except Individual/HUF not liable to Tax Audit in last p.y. Any Resident Person If contractor individual/ HUF 1% Others 2 %
194 D Tax on insurance Commission Insurance company Resident Agent 5%
194 DA TDS on proceeds of a life ms policy at the time of maturity Any person Any Resident person 1 %
194 E TDS on payment to Non Resident  sportsmen / Association / Entertainer Any Person NR SportsmenNR Sports AssociationNR Entertainer 20% + Cess
194 EE Deposit under National saving scheme Any person Any person 10%
194 G TDS on commission on sale of lottery ticket Any Person Any Person 5 %
194 H TDS on commission & Brokerage   Any person except Individual/HUF not liable to Tax Audit in last p.y. Any Resident Person 5 %
194  I Tax Deduction at Source on Rent Any person except Individual/HUF not liable to Tax Audit in last p.y. Any Resident Person a) Plant & Machinery-2%b) Land & Building, Furniture- 10%
194 IA TDS on transfer or purchase of immovable property(other than rural agricultural land Any person Any Resident Person 1 %
194 IB Tax on rent of immovable property Individual & HUF ( other than those covered in section 194 I ) Any Resident Person 5 %
194 IC TDS payment under development agreement Any person Any Resident person 10 %
194 J Tax Deduction at Source on professional services Any person except Individual/HUF not liable to Tax Audit in last p.y. Any Resident Person 10 %
194 LA TDS on compensation for compulsory acquisition of immovable Property Any person Any person 10 %
194 LB TDS on interest on Infrastructure debt fund Infrastructure debt fund Non resident or foreign company 5 %
194 LBA Income distributed by business trust to unit holders Business trust Unit 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 LBB Income in respect of unit of Investment fund Investment fund unit holders Resident 10%Non resident other than company at the RATE IN FORCE
194 LBC The Income in respect of securitisation Trust Securitisation trust Investor Resident Individual/HUF 25%any Other 30 %Non resident at the RATE IN FORCE
194 LC Interest from indian company and business trust Company or business trust Non resident other than company, or to a foreign company 5%
194 LD Interest on certain bond and securities ( Rupee denominated bond and a government security) Any person Foreign institutional investor or a qualified foreign investor (from 1.6.2013 to 1.7.2020) 5 %
195 TDS on any sum payable to NR or Foreign company Any person Non resident or foreign company a) DTAA rateorb) Rate in force
196 B Income from units to an offshore fundand including long-term capital gain on transfer of such units 10
196 C Income from foreign currency bonds or GDR (including long-term capital gain on transfer of such bonds or GDR) of an Indian company 10
196 D The Income of Foreign Institutional Investors from securities but not being a dividend or capital gain arising from such securities 20

 



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

https://blog.tax2win.in/tds-salary-section-192/

 


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

https://blog.tax2win.in/tds-salary-section-192/

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

https://blog.tax2win.in/section-193-under-income-tax-act/

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

https://blog.tax2win.in/tds-section-194-section-194a-income-tax-act/

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

https://blog.tax2win.in/tds-section-194-section-194a-income-tax-act/

 


 

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

https://blog.tax2win.in/section-194b-section-194bb-under-income-tax-act/

 

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

https://blog.tax2win.in/section-194b-section-194bb-under-income-tax-act/

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

https://blog.tax2win.in/section-194c-under-income-tax-act/

194D – TDS on Insurance Commission

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

For more details read

https://blog.tax2win.in/section-194d-section-194da-under-income-tax-act/

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

https://blog.tax2win.in/section-194d-section-194da-under-income-tax-act/

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

https://blog.tax2win.in/section-194e-section-194ee-under-income-tax-act/

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

https://blog.tax2win.in/section-194g-section-194h-under-income-tax-act/

 

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

https://blog.tax2win.in/section-194g-section-194h-under-income-tax-act/

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

https://blog.tax2win.in/section-194i-194ib-194ic-under-income-tax-act/

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

https://blog.tax2win.in/sale-of-immovable-property-1-tds-194ia/

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

https://blog.tax2win.in/tds-on-rent-section-194-ib/

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

https://blog.tax2win.in/section-194i-194ib-194ic-under-income-tax-act/

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

https://blog.tax2win.in/section-194j-under-income-tax-act/

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

https://blog.tax2win.in/section-194-l-194la-194lb-194lba-194lbb-194lbc-194lc-194ld/

 

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

https://blog.tax2win.in/section-194-l-194la-194lb-194lba-194lbb-194lbc-194lc-194ld/

 

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

https://blog.tax2win.in/section-195-under-income-tax-act/

FAQ

What is the TDS rate on salary?

TDS on salary income is deducted either in monthly equal installments or in lump sum during the months of February or March of the Financial Year. The TDS amount to be deducted is calculated on the basis of total income tax payable by the individual on his income. Which means in this case first income tax calculation is done and then it is divided accordingly into the installments and such computed amount is reduced from the in hand salary of the said month.


What is the TDS rate on commission?

TDS rate on Commission or Brokerage is given under the section 194H of the income tax act 1961. The rate of TDS has been specified at 5%.


What is the TDS rate on consultancy charges?

Section 194J of the income tax act 1961 provides TDS rate of 10% for professional and technical consultancy services provided.


What is the TDS Rate under section 195?

For AY 2019-20 the TDS Rate under section 195 is

a) DTAA rate

or

b) Rate in force

TDS under this section is deducted by any person making payment to Non resident or foreign company.


To calculate the TDS Payment or Deduction try our Free TDS Calculator Now!!

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.