|
S.No
|
Nature
of income/ payment
|
Threshold
limit
|
Rate
of tax
|
Date
for deduction
|
Date
of deposit
|
|
1.
|
Salary (Section 192)
|
TDS required when the income for the year is above the minimum
not chargeable to tax.
|
Average rate of tax computed on the basis of the rates in force
for the financial year on the estimated income of the assessee.
|
At the time of payment
|
(i) On the same day where deduction is by or on behalf of Govternment.
(ii) In all other cases within one week from the date of deduction.
|
|
2.
|
Interest on securities, Debentures etc. (Section 193)
|
Entire amount is subject to tax. No tax is deductible in respect
of interest receivable in respect of items listed in the Proviso
e.g. National Defence Bonds held by a resident individual , National
Defence Loans taken from individuals ,National Development Bonds,
NSC (IVth Issue), Debentures of notified Instiutions Companies etc.
Where interest on debentures payable to a resident individual by
account payee cheque by a Company in which public are substantially
interested does not exceed Rs.2500/- during the financial year,
no tax is required to be deducted. Finance Act, 1997 has exempted
any interest payable on any security of the Central Govt. or State
Govt. from deduction of tax at source.
|
In case payee is
- Resident person other than company- Interest on Debentures or
securities issued by a local authority or Corp. established under
a Central/ State/ Provincial Act 10%. , in case of interest on
listed Debenture –10%.
b) Domestic Company 20%
c) non-resident person other company-Interest payable on moneys
borrowed in foreign currency 20%. Other interest 30% or as per rates
in force.
d) Non-Domestic Co. - interest payable on moneys borrowed in foreign
currency 20% Other interest income 48%. Or as per rates in force.
|
At the time of credit or payment which ever is earlier. Interest
credited to a n interest payable account or suspense account also
to be treated as payment.
|
i) Where it is deducted by the government, on the same day
ii) Where amount is credited in the books of payer to the a/c of
payee as on the date upto which the accounts of such person is made
, then within 2 months from the end of the month in which a/cs are
made
|
|
3.
|
Dividend (Section 194)
|
No tax to be deducted at source in respect of dividend by a domestic
company w.e.f. 1.6.97 by Finance Act, 1997. No dividend if the payment
doesnot exceed rs. 2,500 and is made by account payee cheque
|
As per rates in force.
|
Before making any payment in cash or before issuing any cheques/warrants
|
|
|
4.
|
Interest other than interest on securities (Section 194A)
|
No tax is deductible if the interest does not exceed Rs 2500/-
during the financial year. The limit is raised to Rs.10,000/- in
case of interest payment by a banking Company on term deposit or
by a co-operative Society carrying on the business of banking or
a Company carrying on the business of long term finance for construction
or purchase of houses in India for residential purposes as approved
by the Central Government.
Exception: No tax is deductible in respect of interest payable
to a Banking Company, a Financial Corporation, LIC of India, UTI,
any company or cooperative engaged in insurance business, or any
other Institution specifically exempted by notification .
TDS is not required for interest credited or paid to a partner
by the firm or by a co operative to any member of the co operative.
TDS is also not there on notified deposit schemes.
|
As per rates in force.
|
At the time of credit or payment whichever is earlier. Credit to
Suspense Account or any other account amounts to credit.
|
Same as in Serial No.2 above
|
|
5.
|
Winnings from Lottery or Crossword Puzzles (Section 194B)
|
Tax is deductible if the amount exceeds Rs.5000/-.
|
40% in all cases or as per rates in force.
|
At the time payment
|
Same day where Government is deductor. Within one week of date
of deduction in other cases.
|
|
6.
|
Winnings from horse races.
( Section 196BB)
|
Tax is deductible if the amount exceeds Rs.2500/-.
|
-do-
|
-do-
|
-do-
|
|
7.
|
Payment to contractors, Sub-Contractors (Section 194C)
|
If the payment exceeds Rs.20,000/- in respect of a contract or
sub-contract.
|
At the rate of 2% of payment (on the income comprised therein).
1% in case of sub-contractor.
1% in case of contract for advertising.
|
At the time of payment or credit whichever is earlier. Credit to
Suspense account amounts to credit.
|
(i) In case Government is the Payer on the same day.
(ii) Where amount is credited in the books of payer to the a/c
of payee as on the date upto which the accounts of such person is
made , then within 2 months from the end of the month in which a/cs
are made .
|
|
8
|
Insurance Commission (Section 194D).
|
Applicable if the total payment in the financial year exceeds Rs.5000/-.
|
Non-corporate resident person –10%.
Domestic Co.-20%.
|
At the time of payment or credit whichever is earlier.
|
-do-
|
|
9.
|
Payment to non-resident Sportsmen or Sports Association (Section
194E).
|
Applicable to every payment.
|
10% of the amount
|
-do-
|
-do-
|
|
10
|
Payment in respect of deposit under NSS (Section 194EE)
|
Tax deductible where the amount paid exceeds Rs.2500/- in the financial
year. No tax deductible where the payment is made to a heir.
|
At the rate of 20% of the payment made.
|
At the time of payment.
|
As the Payer in this case is Government – on the same day.
|
|
11
|
Payment on account of repurchase of Units by Mutual Fund or UTI
(Sec.194F)
|
Tax deductible without any exemption.
|
At the rate of 20%.
|
-do-
|
Within one week from the date of deduction
|
|
12
|
Commission etc. on sale of Lottery tickets (Sec 194G)
|
No deduction if the amount does not exceed Rs.1000/-.
|
At the rate of 10%.
|
At the time of payment or credit whichever is earlier. Credit to
Suspense Account or any other account amounts to credit.
|
(i) On the same day where payer is Government (ii) Where amount
is credited in the books of payer to the a/c of payee as on the
date upto which the accounts of such person is made , then within
2 months from the end of the month in which a/cs are made
|
|
13
|
Commission, brokerage etc (Section 194H)
|
|
Not applicable w.e.f. 1.6.92
|
|
|
|
14
|
Payment of rent (Section 194I)
|
Applicable where the total rent payable to any person in the financial
year is Rs.1,20,000/- or more
|
15% where payee is individual or HUF 20% in other cases.
|
At the time of payment or credit whichever is earlier. Credit to
Suspense Account or any other Account amounts to credit.
|
As in item 12 above.
|
|
15
|
Fees for professional or technical services (Section 194J)
|
Applicable where the amount paid or credited in the financial year
exceeds Rs 20,000 in the case of Professional services and where
the amount paid or credited in the financial year exceeds Rs. 20,000
in case of Technical services.
|
At the rate of 5% of the amount.
|
-do-
|
-do-
|
|
16
|
Income in respect of Units (Section 194K)
|
Where the amount exceeds Rs.10,000/- in the financial year
|
At the rate of 15% in case of any resident other than a company.
In case of Company 20%.
|
-do-
|
-do-
|
|
17
|
Payments to non-residents (Section 195)
|
Applicable to any payment by a resident to a non-resident other
than a company but including a foreign company. Not applicable to
interest on securities & salaries.
|
Rate of tax as per Finance Act for the relevant financial year.
|
At the time of payment or credit which ever is earlier. Credit
to Suspense Account or any other account amounts to credit.
At the time of payment in case the payer is Government or a Public
Sector Bank
|
i) On the same day where Government is payer
ii) Where amount is credited in the books of payer to the a/c of
payee as on the date upto which the accounts of such person is made
, then within 2 months from the end of the month in which a/cs are
made .
|
|
18.
|
Income in respect of Units of non-residents (Section 196A)
|
Applicable to any such income to any non-resident except a Company
but including a foreign company; applicable in respect of income
in respect of Units by UTI and Mutual Fund specified under Sec 10(23D).
Exemption: No TDS where the investment is by NRI Individual
or non resident HUF in Units of UTI through NR(E) A/c or by remittance
of foreign exchange from abroad.
|
20%
|
-do-
|
-do-
|
|
19.
|
Income from Units - Section 196B
|
Applicable in respect of any income from Units & long term
capital gains payable to Offshore Fund –See Section 115AB.
|
At the rate of 10%.
|
At the time of payment or credit whichever is earlier
|
-do-
|
|
20.
|
Income from foreign currency bonds or shares of Indian company
Section 196C
|
Applicable to any income by way of interest or dividend in respect
of bonds and shares or long-term capital gains arising from the
transfer of such bonds and shares - see sec. 115AC. Dividend declared,
distributed or payable by domestic companies on or after 1.6.97
is exempted from TDS.
|
-do-
|
-do-
|
-do-
|
|
21.
|
Income of Foreign Institutional Investors (FIIs) Sec 196D.
|
Applicable to income from shares, securities (other than Units
referred to in sec 115AD) listed in recognised Stock Exchange. (Dividend
declared, distributed or payable on or after 1.6.97 by domestic
companies exempted from TDS.
|
20% in respect of income from dividend. No deduction of tax at
source in respect of income under the head of Capital Gains from
transfer of securities listed in sec 115 AD..
|
-do-
|
-do-
|
