Income Tax

The TDS rates as updated from the Finance act 2019 (Budget 2019)

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

Rates for deduct of tax at source

Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered. The TDS rates is amended by the Finance Act from time to time.  The TDS rates as updated from the Finance act 2019 (Budget 2019) are as under:

 

    Individual / HUF TDS Other than Individual/ HUF

TDS

Section Nature of Payment Threshold Limit Rs Rate (%) Rate (%)
192 Salaries As per tax Slab
192A Premature withdrawal from EPF 50,000 10
193 Interest on Securities/ Debentures 10,000 10 10
194 Dividends (other than listed Companies) 10 10
194A Interest (Banks)/ For Senior Citizen Rs. 50000 40,000 10 10
194A Interest (Others) 5,000 10 10
194B Winning from Lotteries 10,000 30 30
194BB Winning from Horse Race 10,000 30 30
194C Contractor – Single Transaction 30,000 1 2
194C Contractor – During the F.Y. 1,00,000 1 2
194C Transporter (44AE) declaration with PAN
194D Insurance Commission (15G – 15H allowed) 15,000 5 10
194DA Life insurance Policy 1,00,000 1 1
194E Non-Resident Sportsmen or Sports Association 20 20
194EE NSS 2,500 10 10
194F Repurchase Units by MFs 20 20
194G Commission – Lottery 15,000 5 5
194H Commission / Brokerage 15,000 5 5
194I Rent of Land and Building – F&F 2,40,000 10 10
194I Rent of Plant / Machinery / Equipment 2,40,000 2 2
194IB Rent by Individual / HUF (wef 01.06.2017) 50000/PM 5
194IA Transfer of certain immovable property other than agriculture land 50,00,000 1 1
194J Professional Fees / Technical Fees / etc. 30,000 10 10
194J Payment to Call Centre Operator 30,000 2 2
194IA Compensation on transfer of certain immovable property other than agricultural land 2,50,000 10 10
194LB Income by way of interest from from infrastructure debt fund 5 5
194LD Interest on Certain bonds. Securities 5 5
194M TDS on payment to Contractor or Professional by Individual/HUF office (Applicable w.e.f. 01/09/2019) 50,00,000 5 5
194N Cash Withdrawal from Bank from banks or cooperative bank or post office (Applicable w.e.f. 01/09/2019) 1 CR. 2 2

 

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