Rate of Tax Deduction at Source (TDS Chart) with Threshold Limit for the Financial Year 2018-19 - Income Tax - Ready Reckoner - Income Tax

Rates of TDS for the Financial Year 2018-19 Section Particulars TDS Threshold Limit Surcharge and Education Cess 192 Salary Normal Slab Rate As per normal computation of income (+ Surcharge 10% ( if income exceeds Rs. 50 Lakhs but does not exceed 1 Crores) or 15% ( 15% if income exceeds Rs. 1 Crores) + Health and Education Cess - @4% of Income Tax 1. Surcharge: No Surcharge on TDS in case of payment is made to Resident or Domestic Company. Non Resident Individual / HUF/AOP/BOI / Artificial Jurisdical Personal 10% if income exceeds Rs. 50 Lakhs but does not exceed 1 Crores 15% if income exceeds Rs. 1 Crores Non resident co-operative society / firm 12% Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company exceeds Rs. 1 Crore. Non Resident company 2% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore to Rs. 10 Crore. In case of more than Rs. 10 Crore, 5% surcharge is applicable. 2. Cess No Cess on TDS in case of payment is made to Resident or Domestic Company [Other than Salary] Health and Education Cess - @4% of Income Tax 192A Payment of accumulated balance due of Employee s Provident fund scheme to employees 10% Rs. 50,000 193 Interest on Specified Securities 10% Rs. 5,000 in case of Listed Debentures payable to resident individual or a Hindu undivided family, by a company in which public are substantially interested Rs. 10,000 in case of 8% Savings (Taxable) Bonds, 2003 Rs. 10,000 in case of 6 per cent Gold Bonds, 1977, or 7 per cent Gold Bonds, 1980, where the Bonds are held by an individual not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value of the 6 per cent Gold Bonds, 1977, or, as the case may be, the 7 per cent Gold Bonds, 1980. No TDS on certain specified securities - see section 193 193 Interest on other Securities 10% 194 Dividend (Deemed) 10% Rs. 2,500 where shareholder is an individual 194 Dividend (Other) Nil 194A Interest other than interest on security 10% (a) Rs. 10,000/- where the payer is a banking company (b) Rs. 10,000/- where the payer is a co-operative society engaged in carrying on the business of banking; (c) Rs. 10,000/- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and (d) Rs. 5,000/- in any other case 194B Winning from Lotteries 30% Rs. 10,000 194BB Winning for horse race 30% Rs. 10,000 194C Payment to Individuals and HUF 1% Rs. 30,000 per single contract or Rs. 1,00,000 in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA 194C Payment to other contractors 2% Rs. 30,000 per single contract or Rs. 1,00,000 in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA 194D Insurance Commission 5% Rs. 15,000, if recipient is a resident (other than a company) 10% Rs. 15,000, if recipient is a domestic company 194DA Payment of Life Insurance Policy including bonus 1% Rs. 1,00,000 194E Payment to a non-resident foreign citizen sportsman / entertainer or non -resident sports association 20% - 194EE Payment for National Saving Scheme, 1987 10% Rs. 2500 194F Payment for repurchase of units 20% - 194G Commission, remuneration or prize on sale of lottery ticket 5% Rs. 15,000 194H Commission or Brokerage 5% Rs. 15,000 194I Rent on land, building or furniture 10% Rs. 1,80,000 194I Rent on plant, machinery or equipment 2% Rs. 1,80,000 194IA Payment / credit of consideration to a resident transferor for transfer of immovable property (other than rural agricultural land) [w.e.f. 1.6.2013] 1% Rs. 50,00,000 194IB Payment of rent by certain individuals or Hindu undivided family. [w.e.f. 1.6.2017] 5% Rs. 50,000 194IC Payment under specified agreement [Joint Development agreement u/s 45(5A) ] [w.e.f. 1.6.2017] 10% 194J Fees for Professional / Technical services / royalty 10% Rs. 30,000 for each services 194J Any remuneration, Fees or Commission to a director [w.e.f. 1.7.2012] 10% - 194J A payee, engaged only business of operation of call centre 2% Rs. 30,000 for each services [W.e.f. 1.6.2017] 194LA Compensation to a resident on acquisition of certain immovable property 10% Rs. 2,50,000 194LA Any award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Nil 194LB Interest payable to non-resident by an infrastructure debt fund [Rate+ SC+HEC] 5% - 194LBA Certain Income by a business trust to its unit holders - Resident 10% - 194LBA Certain Income by a business trust to its unit holders - Non resident 5% - 194LBA Certain income in the nature referred to in section 10(23FCA) - Non residents At the rate in force 194LBB Certain Income by an Investment Fund to its unit holders - Where the payee is Resident 10% - 194LBB Certain Income by an Investment Fund to its unit holders - Where the payee is Resident - where the payee is a non-resident (not being a company) or a foreign company At the rate in force 194LBC Payment in respect of an investment in a securitisation trust specified in clause ( d ) of the Explanation occurring after section 115TCA 25% if recipient is an individual or a Hindu undivided family 30% if recipient is other than individual or a Hindu undivided family 194LC Interest payable to a non-resident / foreign company by an Indian specified company or a Business Trust [Rate+ SC+HEC] 5% 194LD Interest on Bonds / Government Securities payable to a foreign institution investor or a qualified foreign investor [Rate+ SC+HEC] 5% 1. Self Declaration - Tax (TDS) is not deductible under section 192A , 193 , 194 , 194A , 194D , 194DA , 194-I, or 194EE or 194K if the recipient makes a declaration in Form 15G / 15H under the provisions of section 197A . But, the person seeking to furnish Form 15G / 15H must have PAN number on or after 1.4.2010. 2. Certificate from AO - Under Section 197 - A person can apply to AO and seek a certificate in Form 13 for no deduction of TDS or deduction of TDS at lower rates under sections192 , 193 , 194 , 194A , 194C , 194D , 194G , 194H [, 194-I , 194J , 194K , 194LA , 194LBB , 194LBC and 195 . 3. In case PAN of the deductee is not available than TDS rate will be 20%. 4. No TDS on Service Tax / GST - As per Circular 01/2014 dated 13-1-2014 , TDS is not applicable on service tax part if service tax part shown separately.