Rate of Tax Deducted at source During the financial year 2009-, tax is to be deducted at source at the following rate:- Sectio n Nature of Payment TDS [SC- Nil, EC- Nil, SHEC- Nil] 192 Payment of salary to resident/non resident [normal rate of tax is applicable [SC-Nil,EC-2% & SHEC -1%] 193 Interest on securities to a resident:- a)interest on :- i)debentures/securities for money issued by or on behalf of any local authority/statutory corporation, ii)listed debenture of a company [not being listed security in DEMAT form] iii)any security of the central or state government [i.e. 8% savings (taxable)bond,2003,but not any other government security] b) any other interest on securities (including interest on non listed debentures) 194 Dividend to a resident:- a) Deemed dividend U/S 2(22)(e) b) Any other dividend Nil 194A Interest other than interest on securities to a resident 194B Winning from lotteries or crossword puzzle or card game or other game of any sort to a resident or non resident 30
194BB Winning from horse race to a resident/non resident 30 194C Payment to resident contractor/sub contractor:- a)payment/credit to a contractor (in case of advertising contract) (up to September 30,2009) b)payment/credit to contractor (other than an advertising contract) 1 2 (Up to September 30,2009) c)payment/credit to a sub contractor (up to September 30,2009) d) payment/credit to individual or a HUF(with effect from October 1 1 1,2009) e)payment/credit to any person other than an individual or a HUF 2 (with effect from October 1,2009) 194D Insurance commission to a resident 194E Payment to a non-resident sportsman or sports association 194EE Payment in respect of deposit under National Savings Scheme,1987 to a resident/non resident 20 194F Payment on account of repurchase of unit of MF or UTI to resident or/non resident 20 194G Commission on sale of lottery ticket to a resident/non-resident 194H Commission or brokerage to a resident 194I Rent to a resident:- a)rent of plant, machinery, or equipment (Up to September 30,2009) b)rent of land, building or furniture to an individual an HUF (up to
September 30,2009) c)rent of land, building or furniture to a person other than an individual or HUF (Up to September 30,2009) d)rent of plant an machinery(with effect from October 1,2009) e) rent of land or building or furniture or fitting (with effect from October 1,2009) 15 20 2 194J Fees for Professional or technical services to a resident 194LA Payment of compensation to a resident on acquisition of certain immovable property. Surcharge is applicable for TDS on when the recipient is a foreign company and payment/credit subject to TDS exceed Rs.1crore.In no other case, surcharge is applicable at the time of deduction of tax at source. Education cess and secondary and higher education cess are applicable for TDS purpose in the case of Tax deduction from payment of salary to resident or a non resident. Education cess and secondary and higher education cess are also applicable in the case of payment or credit of any other sum to a non resident or a foreign company. In other case, education cess and secondary and higher education cess are applicable for TDS purpose. U/S 194B and 194BB,if recipient is a non domestic company,tax is deductible at the rate of (i.e. It 30%,EC 2% and SHEC 1%).If the recipient is a non domestic company, tax is deductible at the rate of (i.e. IT 30%,SC 2.5%,EC 2% and SHEC 1%) if payment/credit exceeds Rs.1 Crore. U/S 194 G, if the recipient is non resident (other than a foreign company)tax is deductible at the rate of.3% (i.e. IT %,EC 2%,SHEC1%).If the recipient is a non domestic company, tax is deductible at the rate of.3% (i.e. IT %,EC 2% and SHEC 1%)if the payment/credit does not exceed Rs.1 crore or at the rate of.5575% (IT %,SC 2.5% EC:-2% and SHEC 1%) if the payment/credit exceed Rs.1 crore.
If the recipient is:- (a)non resident noncorporate person (payment/credit may or may not exceed Rs.1 crore) (b) non domestic company and aggregate payment or credit does not exceed Rs.1 crore If the recipient is a non domestic company and aggregate payment/credit subject to tax deduction exceed Rs.1 crore (SC-2.5%, EC-2%, SHEC-1%) (SC-Nil, EC-2%, SHEC-1%) Nature of Payment Rate Rate Sec 195:- Payment of other sum to a non resident [see note 2]:- (a)income from foreign exchange assets payble to an Indian citizen (b)income by way of long term capital gain referred to in section 115E (c)short term capital gain U/S 111A (d)long term capital gain [not being covered by section (33),(36) and (38) ] (e)income by way of interest payable by government/indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency (f)royalty [see note 5] (i) Where the agreement is made before June 1,1997.3% 15.45% N.A N.A 15.83625% 31.6725%
(ii) where the agreement is made after May 31,1997 but before June 1,2005 (iii) where the agreement is made on or after June 1,2005 (g) royalty [not being royalty of the nature referred to in (f) Supra] [See note 6] (i) where the agreement is made after march 31,1961 but before April 1,1976 --if the recipient is a non resident non corporate person --if the recipient is a non domestic Company (ii)where the agreement is made after march 31, 1976 but before June 1,1997 (iii)where the agreement is made after may 31,1997 but before June 1,2005 (iv)where the agreement is made on or after June 1,2005 (h) Fees for technical service [see note 7]:- (i)where the agreement is made after February 29,1964 but before April 1,1976.3% 51.5%.3%.5575% NA 52.7875% 31.6725%.5575%
--if the recipient is a non resident non corporate person --if the recipient is non domestic Company (ii)where the agreement is made after march 31,1976 but before June 1,1997 (iii)where the agreement is made after May 31,1997 but before June 1,2005 (iv)where the agreement is made on or after June 1,2005 (I) Any other income:- (i) if the recipient is a non resident and non corporate assessee (ii)if the recipient is a non domestic Company Sec 196B:-Income from unit [including long term capital gain on transfer of such unit] to an offshore fund Sec 196C:- Income from foreign currency bond or GDR (including long term capital gain on transfer of such bonds) (not being divided) Sec196D:-Income from foreign institutional investor from securities (not 51.5%.3% 41.2%.3%.3% NA 52.7875% 31.6725%.5575% NA 42.23%.5575%.5575%
being dividend, short term or long term capital gain) Notes:- 1. U/S 192 tax is deductible from salary. The payer shall calculate salary taxable in the hand of the recipient. The amount so determined is subject to tax deduction U/S 192. U/S 195, tax is deductible only if income is taxable in the hand of recipient in India. In any other case,gross payment is subject to tax deduction. 2.Tax is deductible at source U/S 195 at the above rate or the rate specified in ADT agreement entered in central government U/S 90[ which ever is lower] [section 2(37A)(iii)], 3. Tax is not deductible U/S 193,194,194A or 194EE if the recipient makes a declaration in Form No.15G/15H under the provision of section 197A, 4. U/S197 the recipient can apply the assessing officer in Form no.13 to get a certificate of lower/no tax deduction. This benefit is, however, not available if the tax is deductible U/S 194B, 194BB, 194E, 194EE, 194F, 196B, 196C, or 196D. 5.Royalty payable by government or an Indian concern in pursuance of an agreement made by non resident with the government or the Indian concern after march 31,1976,where such royalty is in consideration for the transfer of all or any right ( including the granting of license) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A),to a person resident in India. 6. Not being royalty of the nature referred to above, payable by government or an Indian concern in pursuance of an agreement made by non resident with the government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the central government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy. 7. Fees for technical services payable by government or an Indian concern in pursuance of an agreement made by non resident with the government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the central government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.