Schedule-03 - RATES FOR DEDUCTION OF TAX AT SOURCE - Direct Taxes Code, 2010

THE THIRD SCHEDULE [see sections 195(2) and 314(187)(b)] RATES FOR DEDUCTION OF TAX AT SOURCE (Rates for deduction of tax at source in the case of resident deductee) Serial number Nature of payment (Specified payment) Rate (1) (2) (3) 1. Income from employment The average rate of income-tax on estimated income from employment during the financial year, computed on the basis of the rates specified in Part 1 of the First Schedule 2. Payment in respect of — (a) works contract; (b) service contract; (c) broadcasting and telecasting; (d) supply of labour for carrying out any works, or (e) service contract; advertising; or (f) carriage of goods and passengers by any mode of transport other than by railways. 2 per cent. 3. Interest. 10 per cent. 4. Dividend other than dividend in respect of which dividend distribution tax is paid 10 per cent. 5. Income distributed by mutual fund on which income distribution tax is not paid, (i) where the deductee is an Individual or a Hindu undivided family; (ii) any other deductee 10 per cent. 20 per cent. 6. Payment made by a life-insurer in respect of a life insurance policy other than the policy referred to in clause (d) or clause (e) of subsection (3) of section 59— (i) where the deductee is an Individual or a Hindu undivided family; (ii) any other deductee 10 per cent. 20 per cent. 7. Commission, brokerage, remuneration, or prize (by whatever name called) for rendering any services 10 per cent. 8. Fees for professional or technical services 10 per cent. 9. Payment for royalty or non-compete fee 10 per cent. 10. Payment of compensation on compulsory acquisition of immovable property other than agricultural land. 10 per cent. 11. Rent— (i) for the use of machinery or plant or equipment; (ii) for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings 2 per cent. 10 per cent. 12. Winnings from any lottery or crossword puzzle or card game or other game of any sort 30 per cent. 13. Winnings from any horse race. 30 per cent.