TDS is basically a spot tax, deducted
from the actual source of income. The same is described in the indirect tax
section of Income Tax Act 1961. It is implied on the income received from
financial products like interest received on fixed deposits, incentives from
the employer, commission’s payments, dividends on bonds, sale/purchase, or rent
of any immovable property and money earned as lottery or awards. The TDS rate
applicable under different sections & subsection is between 1%- 30%. To
know more about TDS read my article Pay TDS (Tax Deducted at Source)on time and avoid penalty of 1.5% per month
Section
Rate of TDS
192
As per income tax slab rate
Section 193
10% of the interests earned on security investments.
Section 194
10% of proceeds from any deemed dividends
Section
194A
10% of proceeds from interests earned on investments other than
securities
Section 194B
30% of prize money on lottery or gaming-related winnings
Section 194BB
30% of prize money from horse racing
Section 194C
Proceeds from any contracts / subcontracts
Section 194D
5% of earning as insurance commissions
Section 194EE
20% of expense in NSS deposits
Section 194F
20% of investment in MF or UTI units
Section 194G
5% of the commission money from lottery ticket selling.
Section 194H
5% of the brokerage earnings
Section 194I
2% on rental amount of plant & machinery/
Section 194J
10% on the technical/professional services
Section 194LA
10% on the transfer money paid to any resident while acquiring
an immovable property
For indirect taxes such as service
tax, TDS are also collected prior release of payment. The TDS rates and
collection is regulated by CBTD (Central Board for Direct Taxes).
TDS is basically a spot tax, deducted
from the actual source of income. The same is described in the indirect tax
section of Income Tax Act 1961. It is implied on the income received from
financial products like interest received on fixed deposits, incentives from
the employer, commission’s payments, dividends on bonds, sale/purchase, or rent
of any immovable property and money earned as lottery or awards. The TDS rate
applicable under different sections & subsection is between 1%- 30%. To
know more about TDS read my article Pay TDS (Tax Deducted at Source)on time and avoid penalty of 1.5% per month
Section |
Rate of TDS |
192
|
As per income tax slab rate
|
Section 193
|
10% of the interests earned on security investments.
|
Section 194
|
10% of proceeds from any deemed dividends
|
Section
194A
|
10% of proceeds from interests earned on investments other than
securities
|
Section 194B
|
30% of prize money on lottery or gaming-related winnings
|
Section 194BB
|
30% of prize money from horse racing
|
Section 194C
|
Proceeds from any contracts / subcontracts
• Individuals or HUF @ 1%
• Non Individual/corporate @ 2%
|
Section 194D
|
5% of earning as insurance commissions
|
Section 194EE
|
20% of expense in NSS deposits
|
Section 194F
|
20% of investment in MF or UTI units
|
Section 194G
|
5% of the commission money from lottery ticket selling.
|
Section 194H
|
5% of the brokerage earnings
|
Section 194I
|
2% on rental amount of plant & machinery/
10% on the rent of land & building
|
Section 194J
|
10% on the technical/professional services
|
Section 194LA
|
10% on the transfer money paid to any resident while acquiring
an immovable property
|
For indirect taxes such as service
tax, TDS are also collected prior release of payment. The TDS rates and
collection is regulated by CBTD (Central Board for Direct Taxes).
