what is TDS? ,TDS rates

TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. It is similar to “pay as you earn” scheme also known as Withholding Tax in many other countries, one of the countries is USA. The concept of TDS envisages the principle of “pay as you earn”. It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion as well as expands the tax net.

Section Description Threshold/cut off Individual/HUF Others
192 Salaries NA Average rates as applicable
193 Interest on debentures Rs 5,000 10 % 10 %
194 Deemed dividend NA 10 % 10 %
194 A Interest other than interest on securities-banks Rs 10,000 10 % 10 %
194 A Interest other than interest on securities-others Rs 5,000 10 % 10 %
194 B Lottery/crossword puzzle Rs 10,000 30 % 30 %
194 BB Winnings from horse race Rs 5,000 30 % 30 %
194 C(1) Payment to Contractors Rs 30,000 for single payment

 

Rs 75,000 aggregate during the financial year

1 % 2 %
194 C (2) Payment to Sub contractors / advertisements
194 D Insurance commission Rs 20,000 10 % 10 %
194 EE Payments out of deposits under NSS Rs 2,500 20 % NA
194 F Repurchase of units by MF/UTI Rs 1,000 20 % 20 %
194 G Commission on sale of lottery tickets Rs 1,000 10 % 10 %
194H Commission or brokerage Rs 5,000 10 % 10 %
194 I

Rent (land & buildings)& (furniture and fittings)

 

Rs 1,80,000 10 % 10 %
Rent (P&M ,equipment) Rs 1,80,000 2 % 2 %
194 IA Transfer of immovable property other than agriculture land Rs 50,00,000 1 % 1 %
194 J Professional/technical service charges/ royalty Rs 30,000 10 % 10 %
194 J (1) Remuneration/commission to director of the company NA 10 % 10 %
194 J (ba) Any remuneration/fees/commission paid to a director of a company, other than those on which tax is deductible u/s 192 NA 10 % 10 %
194 L Compensation on acquisition of capital asset Rs 1,00,000 10 % 10 %
194 LA Compensation on acquisition of certain immovable property Rs 2,00,000 10 % 10 %

 

source:incometaxindiapr.gov.in

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