Different TDS rates are applicable to different assessees on the basis of the age and income bracket that they fall under. The TDS rates chart is predetermined and the tax is deducted for different assessees on the basis of these charts.
Tax Deducted at Source or TDS is referred to a type of tax where an individual is liable to deduct tax for services rendered. The tax deducted from the total payment amount goes to the government for various types of activities such as infrastructure development, defence, development, etc. Depending on the type of service, a certain type of tax (TDS) is levied that the payee is expected to deduct. If the individual has deducted more than the required tax amount, he/she will be eligible for a TDS Refund. The individual will be required to file their TDS Return in order to receive the refund amount. TDS can be collected on a regular, periodic, or occasional basis, it is applicable to salary, interest, commission, fee, etc.
The charts listed below show the TDS amount which is applicable to different types of payment:TDS Rate Chart for FY 2019-2020 for a Person (other than a Company) who is Resident in India:
| Particulars | TDS Rates(in %) |
|---|---|
| Section 192: Payment of salary | As per the Income Tax Slab |
| Section 193: Interest on securities: a) any securities or debentures for money which is provided by or on behalf of any corporation which is set up by a Central, State, or Provincial Act, or issued by a local authority | 10 |
| b) any debentures which are provided by a company wherein the debentures are listed on a stock exchange which are acknowledged and adhere to the norms of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any other rules made thereunder | 10 | c) any security of a state government or the Central Government [7.75% Saving (Taxable) Bonds, 2018 and 8% Savings (Taxable) Bonds, 2003] | 10 |
| d) Interest on any other security | 10 |
| Section 194A: Income earned through interest other than "Interest on securities" | 10 |
| Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other type of games | 30 |
| Section 194BB: Income earned through winnings from horse races | 30 |
| Section 194C: Payment to contractor and/or sub-contractor: a) HUF/Individuals | 1 |
| Section 194C: Payment to contractor and/or sub-contractor: b) Others | 2 |
| Section 194D: Insurance commission | 5 |
| Section 194DA: Payments made towards a life insurance policy | 1 |
| Section 194EE: Payment made towards any deposit under the National Savings Scheme (NSS) | 10 |
| Section 194F: Payment made towards the repurchase of unit(s) by Mutual Fund or Unit Trust of India | 20 |
| Section 194G: Income arising from commissions and/or other proceedings earned through lottery tickets sales | 5 |
| Section 194H: Brokerage or commission | 5 |
| Section 194-I: Rent paid for: a) Plant and Machinery | 2 |
| Section 194-I: Rent paid for: b) Building or land or furniture or fitting | 10 |
| Section 194 – IA: Payments made towards the transfer of some specific immovable property (except for land used for agriculture) | 1 |
| Section 194 – IB: Payments towards rent which does not qualify for tax audit and is made by an individual or a Hindu Undivided Family (HUF) [with effect from 1 June 2017] | 5 |
| Section 194 – IC: Monetary considerations which are paid under the Joint Development Agreements | 10 |
| Section 194J: Any sum that is paid through the following: a) Royalty, b) Fees paid against professional services, c) For not sharing any patent, know-how, copyright, and so on, d) Fees paid against technical services, e) Remuneration/commission/fee to a director, or f) For not performing any activity that is associated to any business [the rate of Tax Deducted at Source (TDS) will be taken as 2% in case the payee is engaged with business operations in a call centre, with effect from 1 June 2017] | 10 |
| Section 194LA: Payment of compensation arising at the time of acquiring some particular immovable property [Deduction of tax will not be made in case of the payments on which income tax is not leviable under the Right to Fair Compensation Act, 2013, w.e.f. 1 April 2017] | 10 |
| Section 194LBA(1): Business organisations will be liable to deduct tax at the time of distribution of any amount (arising out of interest received or is receivable from a SPV and/or any income which arises out of rent, lease, or letting out of a real estate which is owned by the organisation) to the unitholders of the organisation. | 10 |
| Section 194LBB: An investment fund which pays an income to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] | 10 |
| Section 194LBC: Income which is generated in regard to investments made in a securitisation trust [as mentioned in the explanation of Section 115TCA] | For individuals and/or Hindu Undivided Families (HUFs) - 25 For any other person - 30 |
| Any other type of income | 10 |
TDS Rate Chart for FY 2019-2020 for a Person who is not resident in India (NRI):
| Particulars | TDS Rates(in %) |
|---|---|
| Section 192: Payment of salary | As per the Income Tax Slab |
| Section 192A: Payment made to an employee in regard to the accumulated taxable balance of provident fund | 10 |
| Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other type of games | 30 |
| Section 194BB: Income earned through winnings from horse races | 30 |
| Section 194E: Payment made towards a non-resident sportsman and/or sports association | 20 |
| Section 194EE: Payment made towards any deposit under the National Savings Scheme (NSS) | 10 |
| Section 194F: Payment made towards the repurchase of unit(s) by Mutual Fund or Unit Trust of India | 20 |
| Section 194G: Income arising from commissions and/or other proceedings earned through lottery ticket sales | 5 |
| Section 194LB: Payment made towards interest on infrastructure debt fund | 5 |
| Section 194LBA(2): Business organisations will be liable to deduct tax at the time of distribution of any amount (arising out of interest income which is received or is receivable from a SPV) to the unitholders of the organisation. | 5 |
| Section 194LBA(3): Business organisations will be liable to deduct tax at the time of distribution of any amount (which arises out of rent, lease, or letting out of a real estate which is owned by the organisation) to the unitholders of the organisation. | 30 |
| Section 194LBB: An investment fund which pays an income to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] | 30 |
| Section 194LBC: Income which is generated with regard to investments made in a securitisation trust [as mentioned in the explanation of Section 115TCA] | 30 |
| Section 194LC: Payment made towards interest by an Indian Company or business organisation in relation to foreign currency which is borrowed under an agreement of loan or via the issuance of long-term bonds (including infrastructure bonds) [With effect from 1 April 2018, the benefits of such concessions on the TDS rate have been extended by 3 years. Thus, borrowings which are made before 1 July 2020 will be eligible for the concessional TDS rate of 5%] | 5 |
Section 194LD:
|
5 |
| Section 195: Payment of any other sum to a Non-resident: a) Income arising out of investments made by a Non-resident Indian (NRI) citizen | 20 |
| Section 195: Payment of any other sum to a Non-resident: b) Income arising out of short-term capital gains as per the recommendations of Section 111A | 15 |
| Section 195: Payment of any other sum to a Non-resident: c) Income arising in relation to long-term capital gains as per the reference of Section 115E in case of Non-resident Indian (NRI) citizen | 10 |
| Section 195: Payment of any other sum to a Non-resident: d) Income earned in terms of fees which is payable by the Government or an Indian organisation for technical services, subject to certain conditions | 10 |
| Section 195: Payment of any other sum to a Non-resident: e) Income arising out of royalty which is payable by the Government or an Indian organisation | 10 |
| Section 195: Payment of any other sum to a Non-resident: f) Any other income arising out of long-term capital gains except for long-term capital gains as per the recommendation of clauses 10(33), 10(36), and Section 112A | 20 |
| Section 195: Payment of any other sum to a Non-resident: g) Income arising out of royalty which is payable by the Government or an Indian organisation | 10 |
| Section 195: Payment of any other sum to a Non-resident: h) Income arising out of interest which is payable by the Government or an Indian organisation on debt incurred or money borrowed by them in foreign currency (except for the income which is earned through interest as per the reference in Section 194LB or Section 194LC) | 20 |
| Section 195: Payment of any other sum to a Non-resident: i) Income arising from any other source | 30 |
| Section 195: Payment of any other sum to a Non-resident: j) Income arising from long-term capital gains as mentioned in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 | 10 |
| Section 195: Payment of any other sum to a Non-resident: k) Income arising out of long-term capital gains as per the recommendations of Section 112A | 10 |
| Section 196B: Income arising from units to an offshore fund (this includes long-term capital gains which arise due to the transfer of these units) | 10 |
| Section 196C: Income arising out of GDR or foreign currency bonds of an Indian company (this includes long-term capital gains which arise due to the transfer of these GDRs or bonds) | 10 |
| Section 196D: Income of foreign institutional investors from securities (this income does not include the capital gain or dividend which arises from these securities) | 20 |
TDS Rate Chart for FY 2019-2020 for a company:
TDS Rate Chart for FY 2019-2020 for a domestic company:
| Particulars | TDS Rates (in %) |
|---|---|
| Section 193: Interest on securities: a) any securities or debentures for money which is provided by or on behalf of any corporation which is set up by a Central, State, or Provincial Act, or issued by a local authority | 10 |
| b) any debentures which are provided by a company wherein the debentures are listed on a stock exchange which are acknowledged and adhere to the norms of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any other rules made thereunder | 10 |
| c) any security of a state government or the Central Government [7.75% Saving (Taxable) Bonds, 2018 and 8% Savings (Taxable) Bonds, 2003] | 10 |
| d) Interest on any other security | 10 |
| Section 194: Dividend | 10 |
| Section 194A: Income earned through interest other than "Interest on securities" | 10 |
| Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other type of games | 30 |
| Section 194BB: Income earned through winnings from horse races | 30 |
| Section 194C: Payment to contractor and/or sub-contractor: a) HUF/Individuals | 1 |
| Section 194C: Payment to contractor and/or sub-contractor: b) Others | 2 |
| Section 194D: Insurance commission | 10 |
| Section 194DA: Payments made towards a life insurance policy | 1 |
| Section 194EE: Payment made towards any deposit under National Savings Scheme (NSS) | 10 |
| Section 194F: Payment made towards the repurchase of unit(s) by Mutual Fund or Unit Trust of India | 20 |
| Section 194G: Income from commission and other proceedings earned on the sale of lottery tickets | 5 |
| Section 194H: Brokerage or commission | 5 |
| Section 194 – I: Rent paid for: a) Plant & Machinery | 2 |
| Section 194 – I:Rent paid for: b) Building or land or fitting or furniture | 10 |
| Section 194 – IA: Payment made towards the transfer of some specific immovable property except for land which is used for agriculture | 1 |
| Section 194 – IC: Payment made in the form of a monetary consideration under the Joint Development Agreements | 10 |
| Section 194J: Any sum that is paid through the following: a) Royalty, b) Fees paid against professional services, c) For not sharing any patent, know-how, copyright, and so on, d) Fees paid against technical services, e) Remuneration/commission/fee to a director, or f) For not performing any activity that is associated to any business [the rate of Tax Deducted at Source (TDS) will be taken as 2% in case the payee is engaged with business operations in a call centre, with effect from 1 June 2017] | 10 |
| Section 194LA: Payment of compensation arising at the time of acquiring some particular immovable property [Deduction of tax will not be made in case of payments on which income tax is not leviable under the Right to Fair Compensation Act, 2013, w.e.f. 1 April 2017] | 10 |
| Section 194LBA(1): Business organisations will be liable to deduct tax at the time of distribution of any amount (arising out of interest received or is receivable from a SPV and/or any income which arises out of rent, lease, or letting out of a real estate which is owned by the organisation) to the unitholders of the organisation. | 10 |
| Section 194LBB: An investment fund which pays an income to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] | 10 |
| Section 194LBC: Income which is generated from investments made in a securitisation trust [as mentioned in the explanation of Section 115TCA] | 10 |
| Any Other Income | 10 |
TDS Rate Chart for FY 2019-2020 for other companies except domestic companies:
| Particulars | TDS Rates (in %) |
|---|---|
| Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other type of games | 30 |
| Section 194BB: Income earned through winnings from horse races | 30 |
| Section 194E: Payment made towards a non-resident sportsman and/or sports association | 20 |
| Section 194G: Income from commission and other proceedings earned on the sale of lottery tickets | 5 |
| Section 194LB: Payment of interest in regard to infrastructure debt fund | 5 |
| Section 194LBA(2): Business organisations will be liable to deduct tax at the time of distribution of any amount (arising out of interest income which is received or is receivable from a SPV) to the unitholders of the organisation. | 5 |
| Section 194LBA(3): Business organisations will be liable to deduct tax at the time of distribution of any amount (which arises out of rent, lease, or letting out of a real estate which is owned by the organisation) to the unitholders of the organisation. | 40 |
| Section 194LBB: An investment fund which pays an income to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] | 40 |
| Section 194LBC: Income which is generated in regard to investments made in a securitisation trust [as mentioned in the explanation of Section 115TCA] | 40 |
| Section 194LC: Payment made towards interest by an Indian Company or business organisation in relation to foreign currency which is borrowed under an agreement of loan or via the issuance of long-term bonds (including infrastructure bonds) [With effect from 1 April 2018, the benefits of such concessions on the TDS rate have been extended by 3 years. Thus, borrowings which are made before 1 July 2020 will be eligible for the concessional TDS rate of 5%] | 5 |
Section 194LD:
|
5 |
| Section 195: Payment of any other amount to a Non-resident company: a) Income arising through long-term capital gains as mentioned in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 | 10 |
| Section 195: Payment of any other amount to a Non-resident company: b) Income arising out of short-term capital gains as per the recommendations of Section 111A | 15 |
| Section 195: Payment of any other amount to a Non-resident company: c) Income earned in terms of fees which is payable by the Government or an Indian organisation for technical services, subject to certain conditions: (I) If the agreement is done post 31 March 1961 but before 1 April 1976 | 50 |
| Section 195: Payment of any other amount to a Non-resident company: c) Income earned in terms of fees which is payable by the Government or an Indian organisation for technical services, subject to certain conditions: (II) If the agreement is done post 31 March 1976 | 10 |
| Section 195: Payment of any other amount to a Non-resident company: d) Income arising out of long-term capital gains as per the recommendations of sub-clause (iii) of clause (c) of sub-section (1) of Section 112 | 10 |
| Section 195: Payment of any other amount to a Non-resident: e) Income arising out of royalty which is payable by the Government or an Indian organisation subject to certain conditions | 10 |
| Section 195: Payment of any other amount to a Non-resident company: f) Any other type of income arising out of long-term capital gains except for long-term capital gains as per the recommendation of clauses (33), (36), and (38) of Section 10 and Section 112A. | 20 |
| Section 195: Payment of any other amount to a Non-resident company: g) Income arising out of royalty which is payable by the Government or an Indian organisation: (I) If the agreement is done post 31 March 1961 but before 1 April 1976 | 50 |
| Section 195: Payment of any other amount to a Non-resident company: g) Income arising out of royalty which is payable by the Government or an Indian organisation [not of the nature which is referred to in the point e) above C]: (II) If the agreement is done post 31 March 1976 | 10 |
| Section 195: Payment of any other amount to a Non-resident company: h) Income arising out of interest which is payable by the Government or an Indian organisation on debt incurred or money borrowed by them in foreign currency (except for the income through interest which is mentioned in Section 194LB and/or Section 194LC) | 20 |
| Section 195: Payment of any other amount to a Non-resident company: i) Income arising from any other source | 40 |
| Section 195: Payment of any other sum to a Non-resident: k) Income arising out of long-term capital gains as per the recommendations of Section 112A | 10 |
| Section 196B: Income arising from units to an offshore fund (this includes long-term capital gains which arise due to the transfer of these units) | 10 |
| Section 196C: Income arising out of GDR or foreign currency bonds of an Indian company (this includes long-term capital gains which arises due to the transfer of these GDRs or bonds) | 10 |
| Section 196D: Income of foreign institutional investors from securities (this income does not include the capital gain or dividend which arises these securities) | 20 |
The TDS on income/salary is calculated on an annual basis. The TDS is calculated on the basis of the different types of slabs as indicated in the interim Budget 2019-20. The applicable tax slabs for different types of persons and the applicable tax rate and cess are mentioned in the tables listed below:
Frequently Asked Questions
- What is a TDS Certificate?
-
What is Form 16?
Form 16 is issued by employers to employees. It contains details regarding the tax deducted over the course of the year.
- What is Form 16A?
- What are the TDS rates that are applicable to interest on securities?
- What is the minimum exemption limit for individuals under 60 years of age?
A TDS certificate is a document that is issued by a deductor to a deductee. The two kinds of TDS certificates are Form 16 and Form 16A.
Form 16A certifies the amount which is deducted at source, the nature of the payments made, and the TDS payments that have been deposited with the IT Department. It is issued for payments apart from salary, such as rent, professional charges, bank interest payments, etc.
The TDS rate for interest on securities is 10%.
Individuals who are below 60 years of age and who earn under Rs.2.5 lakh will be exempt from tax.
