Sch - 03 - THE THIRD SCHEDULE - RATES FOR DEDUCTION OF TAX AT SOURCE - Direct Taxes Code Bill, 2009

THE THIRD SCHEDULE RATES FOR DEDUCTION OF TAX AT SOURCE (Rates for deduction of tax at source in the case of resident deductee) S. No. Nature of Payment Rate 1. Salary paid to employees The average rate of income tax on salary paid during the financial year, computed on the basis of the rates specified in rule 1 of the First Schedule 2. Payment in respect of One per cent. (a) works contract; (b) service contract; (c) broadcasting and telecasting; or (d) supply of labour for carrying out any works, or service, contract. 3. Payment in respect of advertising One per cent. 4. Payment in respect of carriage of goods and passengers by any mode of transport other than by railways. One per cent. 5. Interest Ten per cent. 6. Dividend other than dividend in respect of which dividend distribution tax is payable. Ten per cent. 7. Commission, brokerage, remuneration, or prize, (by whatever name called) for rendering any services. Ten per cent. 8. Fees for professional or technical services Ten per cent. 9. Payment for royalty or non-compete fee Ten per cent. 10. Payment of compensation on compulsory acquisition of immovable property, other than agricultural land Ten per cent. 11. Rent (i) For the use of machinery or plant or equipment (i) One per cent (ii) For use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings. (ii) Ten per cent. 12. Winning from any lottery or crossword puzzle or card game or other game of any sort Thirty per cent. 13. Winnings from any horse race Thirty per cent. 14. Any other income Ten per cent. Explanation : For the purposes of this Schedule,- (a) 'contract' and 'contractor' include 'sub-contract' and 'sub-contractor' respectively; (b) 'broadcasting and telecasting' includes production of programmes for broadcasting; and (c) 'service contract' includes a contract for job work.