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TDS stands for Tax Deducted at Source. The following tables list the various TDS rates applicable to resident and non-resident Indians as well as domestic and international companies in India. Any person paying income is responsible to deduct tax at source and needs to deposit this tax within the time stipulated.

TDS Rates Applicable for Persons Resident in India

Particulars TDS Rate (%)
Section 192: Payment of salary Normal Slab Rate
Section 193: Interest on securities. a) 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; b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made there under; c) any security of the Central or State Government; d) interest on any other security 10
Section 194: Dividend other than the dividend as referred to in Section 115-O 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-contractors.

a)   HUF/Individuals

b)   Others

 

 

1

2

Section 194D: Insurance commission 5

( w.e.f 01.06.2016)

(10% from 01.04.2015 to 31.05.2016

Section 194DA: Payment in respect of life insurance policy 1

(  w.e.f 01.06.2016)

(2% from 01.04.2015 to 31.05.2016)

Section 194EE: Payment in respect of deposit under National Savings scheme 10

(w.e.f 01.06.2016)

(20% from 01.04.2015 to 31.05.2016)

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

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

Section 194H: Commission or brokerage 5

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

Section 194-I: Rent on a) Plant & Machinery

b) Land or building or furniture or fitting

(a) 2

(b) 10

Section 194-IA: Payment on transfer of certain immovable property other than agricultural land

Section 194 -IB   :  Rent payable by an individual or HUF not covered u/s. 194I (w.e.f from 01.06.2017)

1

 

5

(w.e.f from 01.06.2017)

(If payment of Rent exceeds Rs. 50,000/- per month. )

Section 194J: Any sum paid by way of:a) Fee for professional services b) Fee for technical services c) Royalty d) Remuneration/fee/commission to a director ore) For not carrying out any activity in relation to any businessf) For not sharing any know-how, patent, copyright etc. 10
Section 194LA: Payment of compensation on acquisition of certain immovable property 10
Section 194LBA: Certain income distributed by a business trust to its unit holder 10
Any Other Income 10

TDS Rates Applicable for Persons not Resident in India (NRIs)

Section 192: Payment of Salary Normal Slab Rate
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 sportsmen/sports association 20
Section 194EE: Payment in respect of deposits 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 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA: Certain income distributed by a business trust to its unit holder 5
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
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
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen 20
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen 10
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 193 10
d) Income by way of short-term capital gains referred to in Section 111A 15
e) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] 20
f) 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
g) 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
h) Income by way of royalty [not being royalty of the nature referred to in sub-item (b)(i)(F)] 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
i) 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
j) 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) 20

TDS Rates Applicable for a Domestic Company

Section 193: Interest on securities
a) 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;
b) any 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;
c) any security of the Central or State Government;
d) 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
a) HUF/Individuals
b) Others
1
2
Section 194D: Insurance commission 10
Section 194DA: Payment in respect of life insurance policy 1

(  w.e.f 01.06.2016)

(2% from 01.04.2015 to 31.05.2016)

Section 194EE: Payment in respect of deposit under National Savings scheme 10

(w.e.f 01.06.2016)

(20% from 01.04.2015 to 31.05.2016)

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 10

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

Section 194H: Commission or brokerage 5

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

Section 194-I: Rent
a) Plant & Machinery
b) Land or building or furniture or fitting
2
10
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land 1
Section 194J: Any sum paid by way of
a) Fee for professional services,
b) Fee for technical services
c) Royalty,
d) Remuneration/fee/commission to a director or
e) For not carrying out any activity in relation to any business
f) For not sharing any know-how, patent, copyright etc.
10
Section 194LA: Payment of Compensation on acquisition of certain immovable property 10
Section 194LBA: Certain income distributed by a business trust to its unit holder 10
Any Other Income 10

TDS Rates Applicable for a company other than 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:Certain income distributed by a business trust to its unit holder 5
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
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
Section 195: Payment of any other suma) 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
b) Income by way of short-term capital gains referred to in Section 111A 15
c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] 20
d) 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
e) 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 and where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of a 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 reisdent in India 10
f) Income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)] 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
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976.

where the agreement is made after the 31st day of March, 1976

50

 

10

g) 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—
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976B.

where the agreement is made after the 31st day of March, 1976)

Any other income

50

 

10

40

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) 20

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