Rates for Tax Deduction at Source (TDS Rate)
Tax is deductible at source at the rates given in table (infra). If PAN of the deductee is not intimated to the deductor, tax will be deducted at source either at the rate given in the table or at the rate of 20 per cent, whichever is higher. Further, under section 94A(5), if payment or credit is made or given to a deductee who is located in a notified jurisdictional area, tax is deductible at the rate given in the table or at the rate of 30 per cent, whichever is higher. TDS rates for the financial year 2013-14 are as follows –
Category A - When recipient is resident
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Nature of payment
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TDS (SC : Nil, EC : Nil, SHEC : Nil)
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Limit
|
l Sec. 192 - Payment of salary [normal tax rates are applicable –, SC : 10% (if net income exceeds Rs. 1 crore), EC : 2% and SHEC : 3%]
|
—
| |
l Sec. 193 - Interest on securities—
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a. interest on (a) debentures/securities for money issued by or on behalf of any local authority/statutory corporation, (b) listed debentures of a company [not being listed securities in demat form], (c) any security of the Central or State Government [i.e., 8% Savings (taxable) Bonds, 2003, but not any other Government security]
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10
|
5000
|
b. any other interest on securities (including interest on non-listed debentures)
|
10
|
10000
|
l Sec. 194 - Dividend—
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a. deemed dividend under section 2(22)(e)
|
10
|
5000
|
b. any other dividend
|
Nil
| |
l Sec. 194A - Interest other than interest on securities
|
10
|
Banking-10000
Other- 5000 |
l Sec. 194B - Winnings from lottery or crossword puzzle or card game or other game of any sort
|
30
|
10000
|
l Sec. 194BB - Winnings from horse races
|
30
|
5000
|
l Sec. 194C - Payment or credit to a resident contractor/sub-contractor—
|
Single sum 30000
Aggregate- 75000 | |
a. payment/credit to an individual or a Hindu undivided family
|
1
| |
b. payment/credit to any person other than an individual or a Hindu undivided family
|
2
| |
l Sec. 194D - Insurance commission
|
10
|
20000
|
l Sec. 194EE – Payment in respect of deposits under National Savings Scheme, 1987
|
20
|
2500
|
l Sec. 194F - Payment on account of repurchase of units of MF or UTI
|
20
| |
l Sec. 194G - Commission on sale of lottery tickets
|
10
|
1000
|
l Sec. 194H - Commission or brokerage
|
10
|
5000
|
l Sec. 194-I – Rent—
|
180000
| |
a. rent of plant and machinery
|
2
| |
b. rent of land or building or furniture or fitting
|
10
| |
l Sec. 194-IA - Payment/credit of consideration to a resident transferor for transfer of any immovable property (other than rural agricultural land) (applicable from June 1, 2013)
|
1
|
5000000
|
l Sec. 194J - Professional fees, technical fees, royalty or remuneration to a director
|
10
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30000
|
l Sec. 194LA - Payment of compensation on acquisition of certain immovable property
|
10
|
200000
|
Category B - When recipient is non-resident or foreign company
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Nature of payment
|
If recipient is non- resident non-corporate person
|
If recipient is non-domestic company
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Payment/ credit does not exceed Rs. 1 crore(inclusive of SC : Nil, EC : 2%, SHEC : 1%)
|
Payment/ credit exceeds Rs. 1crore (inclusive of SC : 10%, EC : 2%, SHEC : 1%)
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Payment/ credit does not exceedRs. 1 crore(inclusive of SC :Nil, EC : 2%,SHEC : 1%)
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Payment/credit exceeds Rs. 1 crorebut does no exceedRs. 10 crore(inclusive of SC : 2%, EC : 2%, SHEC : 1%)
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Payment/credit exceedsRs. 10 Crore (inclusive of SC : 5%, EC : 2%,SHEC : 1%)
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l Sec. 192 - Payment of salary [normal tax rates are applicable –, SC : 10% (if net income exceedsRs. 1 crore), EC : 2% and SHEC : 3%]
|
–
|
–
|
–
|
–
|
–
|
l Sec. 194B - Winnings from lottery or crossword puzzle or card game or other game of any sort
|
30.9
|
33.99
|
30.9
|
31.518
|
32.445
|
l Sec. 194BB - Winnings from horse races
|
30.9
|
33.99
|
30.9
|
31.518
|
32.445
|
l Sec. 194E - Payment to a non-resident foreign citizen sportsman/entertainer or non-resident sports association
|
20.6
|
22.66
|
20.6
|
21.012
|
21.63
|
l Sec. 194EE - Payment in respect of deposits under National Saving Scheme, 1987
|
20.6
|
22.66
|
NA
|
NA
|
NA
|
l Sec. 194F - Re-purchase of units of MF or UTI
|
20.6
|
22.66
|
NA
|
NA
|
NA
|
l Sec. 194G - Commission on sale of lottery tickets
|
10.3
|
11.33
|
10.3
|
10.506
|
10.815
|
l Sec. 194LB - Payment/credit by way of interest by infrastructure debt fund
|
5.15
|
5.665
|
5.15
|
5.253
|
5.4075
|
l Sec. 194LC - Payment/credit of interest by an Indian specified company on foreign currency approved loan/long-term infrastructure bonds from outside India
|
5.15
|
5.665
|
5.15
|
5.253
|
5.4075
|
l Sec. 194LD - Interest on a rupee denominated bond of an Indian company or Government security (from June 1, 2013)
|
5.15
|
5.665
|
5.15
|
5.253
|
5.4075
|
l Sec. 195 - Payment/credit of other sum to a non-resident —
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a. income of foreign exchange assets payable to an Indian citizen
|
20.6
|
22.66
|
NA
|
NA
|
NA
|
b. income by way of long-term capital gains referred to in section 115E or section 112(1)(c)(iii)
|
10.3
|
11.33
|
10.3
|
10.506
|
10.815
|
c. short-term capital gains under section 111A
|
15.45
|
16.995
|
15.45
|
15.759
|
16.2225
|
d. any other long-term capital gains [not being covered by section 10(33), 10(36) and 10(38)]
|
20.6
|
22.66
|
20.6
|
21.012
|
21.63
|
e. income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency (not being interest referred to in section 194LB or 194LC or 194LD)
|
20.6
|
22.66
|
20.6
|
21.012
|
21.63
|
f. royalty [see Note 5]
|
25.75
|
28.325
|
25.75
|
26.265
|
27.0375
|
g. royalty [not being royalty of the nature referred to in (f) supra] [see Note 6] –
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• where the agreement is made after March 31, 1961 but before April 1, 1976
|
30.9
|
33.99
|
51.5
|
52.53
|
54.075
|
• where the agreement is made on or after April 1, 1976
|
25.75
|
28.325
|
25.75
|
26.265
|
27.0375
|
h. fees for technical services [see Note 7] –
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• where the agreement is made after February 29, 1964 but before April 1, 1976
|
30.9
|
33.99
|
51.5
|
52.53
|
54.075
|
• where the agreement is made on or after April 1, 1976
|
25.75
|
28.325
|
25.75
|
26.265
|
27.0375
|
i. any other income
|
30.9
|
33.99
|
41.20
|
42.024
|
43.26
|
l Sec. 196B - Payment/credit of income from units (including long-term capital gains on transfer of such units) to an offshore fund
|
10.3
|
11.33
|
10.3
|
10.506
|
10.815
|
l Sec. 196C - Payment/credit of interest of foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend referred to in section 115-O)
|
10.3
|
11.33
|
10.3
|
10.506
|
10.815
|
l Sec. 196D - Payment/credit of income from securities (not being dividend, short-term or long-term capital gain) to Foreign Institutional Investors
|
20.6
|
22.66
|
20.6
|
21.012
|
21.63
|
Notes :
1. Under section 192 tax is deductible from salary. The payer shall calculate salary taxable in the hands of recipient. The amount so determined is subject to tax deduction under section 192. Under section 195, tax is deductible only if income is taxable in the hands of recipient in India. In any other case, gross payment is subject to tax deduction.
2. In Category B, tax is deductible at the above rates or the rates specified in ADT agreements entered into by the Central Government under section 90 (whichever is lower) [section 2(37A)(iii)].
3. Tax is not deductible under section 193, 194, 194A, or 194EE if the recipient makes a declaration in Form No. 15G/15H under the provisions of section 197A.
4. Under section 197 the recipient can apply the Assessing Officer in Form No. 13 to get a certificate of lower/no tax deduction. This benefit is, however, not available if tax is deductible under section 194B, 194BB, 194E, 194EE, 194F, 194-IA, 194LB, 194LC, 196B, 196C or 196D.
5. Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident 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 section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India.
6. Not being royalty of the nature referred to above, payable by Government or an Indian concern in pursuance of an agreement made by non-resident 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.
7. Fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident 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.
Rates for tax collection at source
During the financial year 2013-14, tax shall be collected under section 206C at the following rates—
 |
Status of purchaser or licensee or lessee
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Resident
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Non-resident non- corporate person
|
Non-domestic company
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Any amount
|
Rs. 1 crore or less
|
More than Rs. 1crore
|
Rs. 1 crore or less
|
More than Rs. 1 crore but not more thanRs. 10 crore
|
More thanRs. 10crore
| |
TCS rate (inclusive of SC :Nil, EC :Nil,SHEC : Nil)
|
TCS rate (inclusive of SC : Nil, EC : 2%,SHEC : 1%)
|
TCS rate (inclusive of SC : 10%, EC : 2%,SHEC : 1%)
|
TCS rate (inclusive of SC :Nil, EC : 2%,SHEC : 1%)
|
TCS rate (inclusive ofSC : 2%, EC : 2%, SHEC : 1%)
|
TCS rate (inclusive of SC : 5% , EC : 2%,SHEC : 1%)
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Category A –
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A1. Alcoholic liquor for human consumption (other than Indian made foreign liquor)
|
1
|
1.03
|
1.133
|
1.03
|
1.0506
|
1.0815
|
A2. Indian made foreign liquor
|
1
|
1.03
|
1.133
|
1.03
|
1.0506
|
1.0815
|
A3. Tendu leaves
|
5
|
5.15
|
5.665
|
5.15
|
5.253
|
5.4075
|
A4. Timber obtained under a forest lease
|
2.5
|
2.575
|
2.8325
|
2.575
|
2.6265
|
2.70375
|
A5. Timber obtained by any mode other than a forest lease
|
2.5
|
2.575
|
2.8325
|
2.575
|
2.6265
|
2.70375
|
A6. Any other forest produce (not being timber/tendu leaves)
|
2.5
|
2.575
|
2.8325
|
2.575
|
2.6265
|
2.70375
|
A7. Scrap
|
1
|
1.03
|
1.133
|
1.03
|
1.0506
|
1.0815
|
A8. Minerals, being coal or lignite or iron ore
|
1
|
1.03
|
1.133
|
1.03
|
1.0506
|
1.0815
|
Category B –
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B1. Parking lot, toll plaza, mining and quarrying
|
2
|
2.06
|
2.266
|
2.06
|
2.1012
|
2.163
|
Category C –
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C1. Bullion [excluding (up to May 31, 2013) coin/article weighing 10 gms. or less]/ jewellery
|
1
|
1.03
|
1.133
|
1.03
|
1.0506
|
1.0815
|
