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 ₹ 50 Lakhs but does not exceed 1 Crores) or 15% ( 15% if income exceeds ₹ 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 ₹ 50 Lakhs but does not exceed 1 Crores 15% if income exceeds ₹ 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 ₹ 1 Crore. Non Resident company 2% Surcharge on TDS if the recipient is a foreign company and amount exceeds ₹ 1 Crore to ₹ 10 Crore. In case of more than ₹ 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% ₹ 50,000 193 Interest on Specified Securities 10% ₹ 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 ₹ 10,000 in case of 8% Savings (Taxable) Bonds, 2003 ₹ 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% ₹ 2,500 where shareholder is an individual 194 Dividend (Other) Nil 194A Interest other than interest on security 10% (a) ₹ 10,000/- where the payer is a banking company (b) ₹ 10,000/- where the payer is a co-operative society engaged in carrying on the business of banking; (c) ₹ 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) ₹ 5,000/- in any other case 194B Winning from Lotteries 30% ₹ 10,000 194BB Winning for horse race 30% ₹ 10,000 194C Payment to Individuals and HUF 1% ₹ 30,000 per single contract or ₹ 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% ₹ 30,000 per single contract or ₹ 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% ₹ 15,000, if recipient is a resident (other than a company) 10% ₹ 15,000, if recipient is a domestic company 194DA Payment of Life Insurance Policy including bonus 1% ₹ 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% ₹ 2500 194F Payment for repurchase of units 20% - 194G Commission, remuneration or prize on sale of lottery ticket 5% ₹ 15,000 194H Commission or Brokerage 5% ₹ 15,000 194I Rent on land, building or furniture 10% ₹ 1,80,000 194I Rent on plant, machinery or equipment 2% ₹ 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% ₹ 50,00,000 194IB Payment of rent by certain individuals or Hindu undivided family. [w.e.f. 1.6.2017] 5% ₹ 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% ₹ 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% ₹ 30,000 for each services [W.e.f. 1.6.2017] 194LA Compensation to a resident on acquisition of certain immovable property 10% ₹ 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.