* The basic rate of 30% applies for annual income exceeding Rs. 5,00,000. The tax payable for income below Rs 5,00,000 is as per slabs provided
Rent (Section 194I) As per section 194-I, “rent” means any payment, by whatever name called, [Threshold amount is Rs 120,000 in a financial year] under any lease, sublease, tenancy or any other agreement or arrangement for the use of (either separately or together) any, land; or building Individuals (Income lesser than/ equal to Rs 1,000,000) 15 - 3 15.450 (including factory building); or land appurtenant to a building (including Individuals (Income greater than Rs 1,000,000) 15 10 3 16.995 factory building); or machinery; or plant; or equipment; or furniture; or Local authority, co-operative societies 15 3 15.450 fittings, whether or not any or all of the above are owned by the payee Companies, firms (Income lesser than/ equal to Rs 10,000,000) 20 - 3 20.600 Companies, firms (Income greater than Rs 10,000,000) & artificial judicial person not falling in any other category 20 10 3 22.660
Incase of rent for use of 'any machinery or plant or equipment' Individuals (Income lesser than/ equal to Rs 1,000,000) 10 - 3 10.300 As per finance Act 2007, rent payable on use of plant & machinery or equipment will Individuals (Income greater than Rs 1,000,000) 10 10 3 11.330 attract a lower rate of 10% with effect from June 1, 2007 Local authority, co-operative societies 10 - 3 10.300 Companies, firms (Income lesser than/ equal to Rs 10,000,000) 10 - 3 10.300 Companies, firms (Income greater than Rs 10,000,000) & artificial judicial person not falling in any other category 10 10 3 11.330
Professional Services/ Technical Services (Section 194J) As per section. 194J, "professional services" means services rendered [Threshold amount is Rs 20,000 in a financial year] by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of Individuals (Income lesser than/ equal to Rs 1,000,000) 10 - 3 10.300 accountancy or technical consultancy or interior decoration or advertising Individuals (Income greater than Rs 1,000,000) 10 10 3 11.330 "fees for technical services" shall have the same Local authority, co-operative societies 10 - 3 10.300 meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9. Companies, firms (Income lesser than/ equal to Rs 10,000,000) 10 - 3 10.300 S. 9(1)(vii) "fees for technical services" means any consideration (including any lump sum Companies, firms (Income greater than Rs 10,000,000) & artificial judicial person not falling in any other category 10 10 3 11.330 consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries". " Royalty" means consideration (including any lum sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head 'Capital gain') for: (i) the transfer of all or any right (including the granting of a license) in respect of a patent, invention, model, design, secret formula or process or trade mark or similar property; (ii) the imparting of any information concerning the working of, or use of, a patent, invention, model, design, secret formula or process or trade mark or similar property; (iii) the use of any patent, invention, model, design, secret formula or process or trade mark or similar property; (iv) the imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill; (iva) the use or right to use any industrial, commercial or scientific equipment (v) the transfer of all rights or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with (vi) the rendering of any services in connection with the activities referred to in sub-clauses (i) to (v) above. " any sum referred in clause (va) of section 28 of the Income-tax Act" means any sum whether paid or payable, in cash or kind, under an agreement for: (a) not carrying out any activity in relation to any business ; or (b) not sharing any know-how, patent, copyright, trade mark, licence, franchise or any other business or commercial right of similar nature or information or technique likely to assist in the manufacture or processing of goods or provisions for services However, any sum chargeable under the head capital gains would not be covered in the above definition.
Contractual payments (Section 194C) As per section 194C, any person paying any sum to a resident for carrying [TDS applicable where amount paid/ credited to a contractor exceeds out any 'work' (including supply of labour for carrying out any work) in Rs 20,000 in a single instance. Additionally, TDS also applicable if pursuance of contract. aggregate sums paid/ credited in a financial year to contractors exceed The expression work shall also include - a) advertising, b) broadcasting and Rs 50,000, even if individual contracts does not exceed Rs 20,000] telecasting c) carriage of goods and passengers by any mode of transport other than by railways; d) catering Individuals (Income lesser than/ equal to Rs 1,000,000) 2 - 3 2.060 Individual (Income greater than Rs 1,000,000) 2 10 3 2.266 Local authority, co-operative societies 2 - 3 2.060 Companies, firms (Income lesser than/ equal to Rs 10,000,000) 2 - 3 2.060 Companies, firms (Income greater than Rs 10,000,000) & artificial judicial person not falling in any other category 2 10 3 2.266
Payments pursuant to advertising contracts and Sub-contractual payments (Section 194C) [TDS applicable where amount paid/ credited to a contractor/ sub contractor exceeds Rs 20,000 in a single instance. Additionally, TDS also applicable if aggregate sums paid/ credited in a financial year to contractors/ sub- contractors exceed Rs 50,000, even if individual contracts does not exceed Rs 20,000]
Individuals (Income lesser than/ equal to Rs 1,000,000) 1 - 3 1.030 Individual (Income greater than Rs 1,000,000) 1 10 3 1.133 Local authority, co-operative societies 1 - 3 1.030 Companies, firms (Income lesser than/ equal to Rs 10,000,000) 1 - 3 1.030 Companies, firms (Income greater than Rs 10,000,000) & artificial judicial person not falling in any other category 1 10 3 1.133
Interest other than interest on securities (Section 194A) As per section 194A, any person paying interest other than interest on securities shall be liable to deduct TDS. However, this provision shall not apply to income credited / paid to any banking company to which Banking Regulation Act, 1949 applies, finan [Threshold amount is Rs 5,000 in a financial year]
Individuals (Income lesser than/ equal to Rs 1,000,000) 10 - 3 10.300 Individuals (Income greater than Rs 1,000,000) 10 10 3 11.330 Local authority, co-operative societies 10 - 3 10.300 Companies, firms (Income lesser than/ equal to Rs 10,000,000) 20 - 3 20.600 Companies, firms (Income greater than Rs 10,000,000) & artificial judicial person not falling in any other category 20 10 3 22.660
Commission / brokerage (Section 194H) As per S. 194H, commission or brokerage" includes any payment received [Threshold amount is Rs 2,500 in a financial year] or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or Individuals (Income lesser than/ equal to Rs 1,000,000) 10 - 3 10.300 for any services in the course of buying or selling of goods or in relation Individuals (Income greater than Rs 1,000,000) 10 10 3 11.330 to any transaction relating to any asset, valuable article or thing, not being Local authority, co-operative societies 10 - 3 10.300 "securities; " Companies, firms (Income lesser than/ equal to Rs 10,000,000) 10 - 3 10.300 Companies, firms (Income greater than Rs 10,000,000) & artificial judicial person not falling in any other category 10 10 3 11.330
Notes: - The list of items covered under each section is only an illustrative list. In case of any doubt, we could have a call to discuss TDS implications. - Special rates of TDS apply on payments to non-residents taking into account the provisions of the Act and the applicable tax treaty
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