| Nature
of payment |
Rate
of deduction of tax(as percentage of payment made)
|
| A.Salary to an employee
|
At regular rates in force |
| B. In the case of payment
to a resident other than a company : |
| 1.interest other than interest
on securities |
10 |
| 2.winning from lotteries and
crossword puzzles |
40
|
| 3.winning from horse races |
40
|
| 4.insurance commission |
10 |
| 5.interest on debentures or securities
other than a security of the Central or a State Government for money
issued by or on behalf of a local authority or a statutory corporation
or listed debentures of a company |
10 |
| 6.rent to an individual or a
Hindu undivided family |
15 |
| 7.rent to a person other than
an individual or a Hindu undivided family |
20 |
| 8.payment in respect of deposit
under National Savings Scheme, 1987 |
20 |
| 9.payment on account of repurchase
of units by Mutual Fund of UTI [section 80CCB(2) |
20 |
| 10.commission on sale of lottery
tickets |
10 |
| 11.payment to contractor ( in
the case of advertising contracts : 1 per cent) |
2 |
| 12.payment to sub contractor |
1 |
| 13.fees for professional or technical
services |
5 |
| 14.income in respect of units
of a mutual fund [section 10(23D) or of UTI] |
15
|
| 15.any other income |
20
|
| C. In the case of payments
to a domestic company: |
|
1.interest other than interest on securities
|
20 |
|
2.winning from lotteries and crossword puzzles
|
40 |
| 3.winning from horse races |
40 |
| 4.commission on sale of lottery
tickets |
10 |
| 5.payments to a contractor (
in the case of advertising contracts : 1 per cent) |
2 |
| 6.payments to sub-contractor
|
1 |
| 7.rent |
20 |
| 8.fees for professional or technical
services |
5 |
| 9.income in respect of units
of mutual fund [section 10(23D)] or of UTI |
20
|
| 10.any other income |
20
|
| D. In the case of payment
to a non-resident other than a company [see note 1] |
| 1.income from foreign exchange
assets payable to an Indian citizen |
20
|
| 2.income by way of long-term
capital gains referred to in section 115E |
10
|
| 3.income by way of interest payable
by Government/Indian concern on money borrowed or debt incurred by
Government or Indian concern in foreign currency |
20
|
| 4.rent to an individual or a
Hindu Undivided Family |
15
|
| 5.rent to a person other than
an individual or a Hindu Undivided Family |
20
|
| 6.winnings from lotteries and
crossword puzzles |
40
|
| 7.winnings from horse races |
40
|
| 8.payments referred to in section
115BBA |
10 |
| 9.payments in respect of National
Savings Scheme, 1987 |
20 |
| 10.payments on account of repurchase
of units by Mutual Fund/UTI [section 80CCB(2)] |
20 |
| 11.income by way of interest/dividends
[not being dividends referred in section 115-O] payable in respect
of bonds/shares referred to in section 115AC or by way of long-term
capital gain arising from transfer of such bonds |
10 |
| 12.commission on sale of lottery
tickets |
10 |
| 13.income in respect of units
referred to in section 115AD(1)(a) payable to foreign Institutional
Investor (other than capital gain) |
20 |
| 14.income by way of long-term
capital gain |
20
|
| 15.income payable in respect
of units of a mutual fund [section 10(23D)] or of UTI |
20
|
| 16.any other income [see Note
2] |
30*
|
| E. In the case of payments
to a non-domestic company [see Note 1] |
| 1.winning from lotteries and
crossword puzzles |
40
|
| 2.winnings from horse races |
40
|
| 3.interest payable by Government
or an Indian concern on money borrowed or debt incurred in foreign
currency |
20
|
| 4.royalty payable by Government
or an Indian concern in pursuance of an agreement made by it with
the Government or the Indian concern after March 31, 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 Act, to the Indian concern or in respect
of computer software referred to in the second proviso to section
115A(1A), to a person resident in India :- |
|
| --where the agreement is made
before June 1, 1997 |
30
|
| --where the agreement is made
after May 31, 1997 |
20
|
| 5.royalty [not being royalty
of the nature referred to in (d) supra] 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 matter included in the industrial policy, the agreement is in accordance
with that policy:- |
|
| --where the agreement is made
after March 31, 1961 but before April 1, 1976 |
50
|
| --where the agreement is made
after March 31, 1976 but before June 1, 1997 |
30
|
| --where the agreement is made
after May 31, 1997 |
20
|
| 6.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 matter included in the
industrial policy, the agreement is in accordance with that policy
|
|
| --where the agreement is made
after February 29, 1964 but before April 1976 |
50 |
| --where the agreement is made
after March 31, 1976 but before June 1, 1997 |
30
|
| --where the agreement is made
after May 31, 1997 |
20
|
| 7.rent |
20
|
| 8.long-term capital gains |
20
|
| 9.on income payable in respect
of units of Mutual Fund specified under section 10(23D) or of the
UTI |
20
|
| 10.payments referred to in section
115BBA |
10
|
| 11.commission on sale of lottery
tickets |
10
|
| 12.payments to overseas financial
corporation covered by section 115AB or by long-term capital gains
arising from transfer of such units |
10
|
| 13.income by way of interest/dividend
[not being dividend referred in section 115-O] in respect of bonds/shares
referred to in section 115AC or by way of long-term capital gain arising
from transfer of such bonds |
10
|
| 14.income (other than capital
gain) in respect of units referred to in section 115AD(1)(a) payable
to Foreign Institutional Investor |
20
|
| 15.on any other income |
48 |
