Payment of Salary – Normal Slab Rate

I. In Case of a Person (Recipient) Other than the Company

1. Person is Resident in India

Section 192

Payment of Salary – Normal Slab Rate

Section 192 A

Payment of accumulated balance of Provident Fund taxable in the hands of an employee – 10%

Section 193

Interest on securities (This interest is exempt up to Rs. 5000 during the financial year)

• Debentures or securities issued for money by or on behalf of any local authority or a corporation established by a Central, State or provincial act – 10%
• The Debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with Securities Contracts ( Regulation) Act, 1956 and any rules made under the same – 10%
• Any security of the Central or State Government [8% Savings (Taxable) bonds 2003 and 7.75% Savings (Taxable) bonds 2018] – 10%
• Interest on any other security – 10%

Section 194 A

Income in the form of interest other than “interest on securities” (exempt up to Rs. 5,000 for any interest and Rs. 10,000 for bank interest, cooperative society or post office interest. For senior citizen this exemption is Rs. 50,000 instead of Rs. 10,000) – 10%

Section 194 B

Income earned through winning of lotteries, crossword puzzles, card games and other games of any sort (exempt up to Rs. 10,000 during the financial year) – 30%

Section 194 BB

Income earned by the way of winnings from horse races (exempt up Rs. 10,000 during the financial year) – 30%

Section 194 C

Payment to a contractor or sub – contractor (exempt up Rs. 30,000 subject to a clause that the aggregate amount does not exceed Rs. 1,00,000 per financial year)

• HUF/Individuals – 1%
• Others – 2%

Section 194 D

Insurance Commission (exempt up to Rs. 15,000 during the financial year) – 5%

Section 194 DA

Payment in respect of life insurance policy (exempt up to Rs. 1,00,000 during the financial year) – 1%

Section 194 EE

Payment in respect of deposit under National Savings Scheme (exempt up to Rs. 2,500 during the financial year) – 10%

Section 194 F

Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India – 20%

Section 194 G

Commission etc on sale of lottery tickets (exempt up to Rs. 15,000 during the financial year) – 5%

Section 194 H

Commission or brokerage (exempt up to Rs. 15,000 during the financial year) – 5%

Section 194 I

Rent (exempt up to Rs. 1,80,000 during the financial year)

• Plant and machinery – 2%
• Land or building or furniture or fitting – 10%

Section 194 IA

Payment on transfer of certain immovable property other than agricultural land (exempt up to Rs. 50,00,000 during the financial year) – 1%

Section 194 IB

Payment of rent by individual or HUF not liable to tax audit (exempt up to Rs. 50,000 during the financial year) – 5%

Section 194 IC

Payment of monetary consideration under Joint Development Agreements – 10%

Section 194 J

Any sum paid by way of technical or professional services as below (exempt up to Rs. 30,000 during the financial year) – 10%

• Fee for professional services
• Fee for technical services
• Royalty
• Remuneration/fee/commission to a director
• For not carrying out any activity in relation to any business
• For not sharing any know how, patent, copyright etc

Note: The rate TDS would be 2% in case of payee engaged in the business of operation of call centre.

Section 194 LA

Payment of compensation on acquisition of certain immovable property (exempt up to Rs. 2,50,000 during a financial year) – 10%

Note: With effect from April, 2017 no deduction of tax shall be made on any payment that is exempt from levy of income tax under right to compensation act, 2013.

Section 194 LBA (1)

Business trust shall deduct tax while distributing any interest received or receivable by it from SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders – 10%

10%

Any Other Income

Income in respect of investment made in a securitized trust (specified in explanation of section 115 TCA) – 25% in the case of individual or HUF and 30% in the case of other person

Section 194 LBC

Investment fund paying an income to a unit holder (other than income which is exempt under section 10(23 FBB)) – 10%

Section 194 LBB

2. Person is Not a Resident in India

Section 192

Payment of Salary – Normal Slab Rate

Section 192 A

Payment of accumulated balance of Provident Fund taxable in the hands of an employee – 10%

Section 194 B

Income earned through winning of lotteries, crossword puzzles, card games and other games of any sort – 30%

Section 194 BB

Income earned by the way of winnings from horse races – 30%

Section 194 E

Payment to non – resident sportsmen/sports association – 20%

Section 194 EE

Payment in respect of deposit under National Savings Scheme – 10%

Section 194 F

Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India – 20%

Section 194 G

Commission etc on sale of lottery – 5%

Section 194 LB

Payment of interest on infrastructure Debt Fund – 5%

Section 194 LBA (2)

Business Trust shall deduct tax while distributing any interest income received or receivable by it from SPV to its unit holders – 5%

Section 194 LBA (3)

Business Trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders – 30%

Section 194 LBB

Investment fund paying an income to a unit holder (other than income which is exempt under section 10(23 FBB)) – 30%

Section 194 LBC

Income in respect of investment made in a securitization trust (specified in explanation of section 115 TCA) – 30%

Section 194 LC

Payment of interest by an Indian company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long term bonds (including long term infrastructure bonds) – 5%

Note: With effect from April 1, 2018, benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020

Section 194 LD

Payment of interest on Rupee denominated bond of an Indian company or government securities to a Foreign Institutional Investor or Qualified Institutional Investor

Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.

Section 195

Payment of any other sum to a Non-resident

• Income in respect of investment made by a Non-resident Indian Citizen – 20%
• The income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen – 10%
• Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 – 10%
• The Income by way of long-term capital gains as referred to in Section 112A – 10%
• Income by way of short-term capital gains referred to in Section 111A – 15%
• Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A – 20%
• Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) – 20%
• Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern. Where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India – 10%
• Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy – 10%
• Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy – 10%
• Any other income – 30%

Section 196B

Income from units (including long-term capital gain on transfer of such units) to an offshore fund – 10%

Section 196C

Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) – 10%

Section 196D

Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)

II. In Case Of A Company

1. Where the company is a domestic company

Section 193

Interest on securities

• any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act – 10%
• debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder – 10%
• any security of the Central or State Government – 10%
• [8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]
  interest on any other security – 10%

Section 194

Dividend – 10%

Section 194A

Income by way of interest other than “Interest on securities” – 10%

Section 194B

Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort – 30%

Section 194BB

Income by way of winnings from horse races – 30%

Section 194C

Payment to contractor/sub-contractor

• HUF/Individuals – 1%
• Others – 2%

Section 194D

Insurance commission – 10%

Section 194DA

Payment in respect of life insurance policy – 1%

Section 194EE

Payment in respect of deposit under National Savings scheme – 10%

Section 194F

Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India – 20%

Section 194G

Commission, etc., on sale of lottery tickets – 5%

Section 194H

Commission or brokerage – 5%

Section 194-I

Rent

• Plant & Machinery – 2%
• Land or building or furniture or fitting – 10%

Section 194-IA

Payment on transfer of certain immovable property other than agricultural land – 1%

Section 194-IC

Payment of monetary consideration under Joint Development Agreements – 10%

Section 194J

Any sum paid by way of – 10%

• Fee for professional services
• Also,fee for technical services
• Royalty
• Remuneration/fee/commission to a director
• For not carrying out any activity in relation to any business
• And for not sharing any know-how, patent, copyright etc.

Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in the business of operation of call center.

Section 194LA

Payment of compensation on acquisition of certain immovable property – 10%

Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013.

Section 194LBA(1)

Business trust shall deduct tax while distributing, any interest received or receivable by it from an SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. – 10%

Section 194LBB

Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] . – 10%

Section 194LBC

Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) – 10%

Any Other Income

10%

2. Where the company is not a domestic company

Section 194B

Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort – 30%

Section 194BB

Income by way of winnings from horse races – 30%

Section 194E

Payment to non-resident sports association – 20%

Section 194G

Commission, etc., on sale of lottery tickets – 5%

Section 194LB

Payment of interest on infrastructure debt fund – 5%

Section 194LBA(2)

Business trust shall deduct tax while distributing any interest income received or receivable by it from an SPV to its unit holders. – 5%

Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. – 40%

Section 194LBA(3)

Section 194LBB

Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. – 40%

Section 194LBC

Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) – 40%

Section 194LC

Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long term bonds (including long-term infrastructure bond) – 5%

Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.

Section 194LD

Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor – 5%

Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.

Section 195

Payment of any other sum

1. Income by way of long-term capital gains referred to in subclause (iii) of clause (c) of sub-section (1) of Section 112 – 10%
2. Income by way of long-term capital gains as referred to in Section 112A – 10%
3. Income by way of short-term capital gains referred to in Section 111A – 15%
4. Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A – 20%
5. Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) – 20%
6. Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to subsection (1A) of Section 115A of the Income-tax Act, to a person resident in India – 10%
7. Income by way of royalty [not being royalty of the nature referred to in point e) above C] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
   1. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976 – 50%
   2. where the agreement is made after the 31st day of March, 1976 – 10%
8. Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
   1. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976 – 50%
   2. where the agreement is made after the 31st day of March, 1976 – 10%
9. Any other income – 40%

Section 196B

Income from units (including long-term capital gain on transfer of such units) to an offshore fund – 10%

Section 196D

Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) – 10%

Section 196C

Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) – 20%

*The rate of TDS shall be increased by applicable surcharge and Health & Education cess.
[As amended by Finance Act, 2018]