TDS

Sumit Jain (CA) (4760 Points)

24 March 2009  

 

Tax Deducted as Source (TDS)

Nature of Payment
Person from whose income tax is being deducted. (assessee)
Person liable for deducting tax
Exemption Limit
Time of deduction
Rate
(plus surcharge plus education cess plus SAH)
Deduction at lower rate
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Salary
 (section 192)
Employee
Employer
Taxable minimum
i.e. Rs.1,10,000 or 1,45,000 or 1,95,000
At the time of payment
Average of income tax computed on the basis of the rates in force.
Allowed
Interest on securities (section 193)
A resident person holding securities
Payer of interest
Exempt categories listed, monetary limit of Rs. 2,500 for the entire P/Y in case of listed debentures if paid by account payee cheque; otherwise no minimum.
At the time of payment or credit whichever is earlier.
Non corporate assessee
o    10% - listed debentures
o    20% - non listed debentures
Corporate assessee – 20%
Allowed
Interest other than interest on securities (section 194A)
Resident person
a)      other than Individual/ HUF – always
b)      for Individual/ HUF – only if a/c were audited in the preceding financial year.
Rs. 10,000 by banks and co-operative societies and Rs. 5,000 by others
-do-
Non corporate assessee – 10%
Corporate – 20%
Allowed
Winnings from lotteries or crossword puzzles and horse races
(section 194B and 194BB)
Any person
Person paying winnings from crosswords, lotteries or race horses
In case of lotteries, crosswords - Rs. 5,000
In case of race horses – Rs. 2,500
At the time of payment
30%
Not Allowed
Payment to Contractor/
Sub contractors
(section 194C)
Resident contractor/ sub contractor
a) other than Individual/ HUF – always
b) for Individual/ HUF – only if a/c were audited in the preceding P/Y
Rs. 20,000 per payment or Rs. 50,000 for the financial year.
At the time of payment or credit whichever is earlier
Payment made to contractor
o     1% - advertising works
o     2% - others
Payment to sub contractor – 1%
Allowed
Insurance commission (section 194D)
Resident person
Any person paying insurance commission
Rs. 5,000
-do-
Non corporate assessee – 10%
Corporate – 20%
Allowed
Commission on sale of lottery tickets (section 194G)
Any person
Any person paying commission on sale of lottery tickets
Rs. 1,000
At the time of payment or credit whichever is earlier.
10%
Allowed
Commission or brokerage
(section 194H)
Any resident person
a)   other than Individual/ HUF – always
b)   for Individual/ HUF – only if a/c were audited in the preceding financial year
Rs. 2,500
-do-
10%
Allowed
Rent
(section 194I)
Any resident person
-do-
Rs. 1,20,000 for the previous year
-do-
Rent of P/M – 10%
Rent of L/B or F/F
o Recipient is HUF/ Ind – 15%
o Others – 20%
Allowed
Fees for professional or technical services (section 194J)
Any resident person
-do-
Rs. 20,000
-do-
10%
Allowed