Rates of TDS given under the Income-tax Act

TDS rates given under the Income Tax Law

192A – Payment of the accumulated balance due to an employee who participates in a recognized pension fund 10%
(See note 2 below)

194C – Payment to the contractor / subcontractor 1% when the payment is made to an individual / HUF. 2% in other cases (see note 1 below)

194DA  – Payment made to a resident of any amount under a life insurance policy that is not exempt u / s 10 (10D) 1%

194E – Payment to non-resident athletes or sports associations or an artist 20%

194EE – Payment with respect to deposits under the National Savings Plan covered u / s 80CCA 10%

194G – Commission, etc. to the sale of 5% lottery tickets

194H – Commission and Brokerage 5%.

194-I – Rent
– For the use of any machinery or plant or equipment 2%.
– For the use of any land or building (including the factory building) or land associated with a building (including the factory building) or furniture or accessories.
– In case the beneficiary is individual or HUF 10%.
– In any other case 10%.

194-IA – Transfer of real estate (other than agricultural land) 1%

194-IB – Payment of rent by certain individuals or an undivided Hindu family (apart from those referred to in the second condition of section 194-I) (W.e.f. 1.6.2017) 5%

194-IC – Payment of the consideration, which is not a consideration in kind according to the specified agreement (ie, the development agreement referred to in section 45 (5A)) (Wef 1.6.2017) 10 %

194J – Rate for professional or technical services or royalties or fee for non-competition or w.e.f. 1.7.2012 any remuneration, fees or commission for the name that is called, other than those over which the tax is deductible according to section 192, to a director of a company. 10%

However, in the case of a beneficiary who is dedicated solely to the call center operations business, 2%.

194LA – Payment of compensation in the acquisition of certain immovable property other than the payment of any prize or agreement that has been exempted from income tax services pursuant to section 96 of the Right to Fair Compensation and Transparency in Acquisition , rehabilitation and land resettlement Law, 2013 (RFCTLAAR Law) 10%.

194LB – Income through interest payable to non-residents (other than a company) or foreign company by Infrastructure Debt Fund
(i) When the beneficiary is a resident of 5%.
(ii) when the beneficiary is not a resident at the current rate

194LBC – Revenues from investment in securitization trusts-
(i) When the beneficiary is an individual or HUF 25%
(ii) when the beneficiary is any other person 30%

194LBA – Any distributed income referred to in section 115UA payable by a commercial trust to its owner of the unit:
– When the payment is made to a resident 10%.
– when the payment is made to a non-resident or foreign company 5%

194LBB – Revenues with respect to units of the investment fund 10%

194LC – (1) Income through interest payable to nonresidents (other than a company) or to a foreign company by an Indian company or a commercial trust for money borrowed in foreign currency by an Indian company;
(i) with respect to money lent in foreign currency from a source outside of India:

(a) under a loan agreement at any time on or after 1-72012 but before 1-7-2020; or 5%
(b) by issuing long-term infrastructure bonds at any time on or after 1-7-2012 but before 1-102014; or 5%
(c) through the issuance of any long-term bond, including the long-term infrastructure bond, at any time as of 1-10-2014 but before the 7/7/2020, 5%
(ia) with respect to funds borrowed from a source outside India through the issue of rupee bonds before 1.7.2020 (W.r.e.f. 1.4.2016) 5%

(ii) to the extent that said interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this name, taking into account the terms of the loan or bond and its reimbursement.

194LD – Interest income on rupee-dominated bonds and government securities payable from 1-6-2013 but before 1-7-2020 to a foreign institutional investor or qualified 5% foreign investor

196B – Long-term income and capital gains from units to an offshore fund 10%

196C – Long-term capital gains and profits on bonds in foreign currency or shares of Indian companies 10%

196D – Income of foreign institutional investors by values ​​20%

206C – Tax collected at source in certain cases 1% to 5%

Notes 1.W.e.f. 1.6.2015 The zero tariff will be applied only when the carrier has 10 or less freight wagons at any time during the previous year and provides a declaration to that effect together with its NAP.

According to section 206AA, the TDS rate will be 20% or the TDS rate, whichever is greater in all cases, except in section 192A and 194LC, if the deduction (including the carrier) does not deliver the BREAD to the deductor. The TDS rate according to section 192A will be the maximum marginal rate if the deduction does not deliver the PAN to the deducer.

The provisions of section 206AA shall not apply to a non-resident, who is not a company, nor to a foreign company, with respect to:

(i) payment of interest on long-term bonds as mentioned in section 194LC; Y

(ii) Any other payment subject to the conditions that may be prescribed.

According to section 206CC, the collector must provide his PAN to the collector, otherwise, the tax will be charged to the greater of the following types, namely:

(i) at double the rate specified in the relevant provision of this Act; or

(ii) at five percent.

However, the provisions of this section will not apply to a non-resident who does not have a permanent establishment in India.