TDS Rates / TDS Rate Chart

Article compiles Section wise TDS Rates / TDS Rate Chart for Financial Year 2018-19 or Assessment Year 2019-20 with Nature of Payment, Threshold Limit and Percentage TDS rate applicable to Individual, HUF and to other categories of Assessees.

Section	Nature of Payment	Threshold Rs	Indv / HUF TDS Rate (%)	Others TDS Rate (%)
192	Salaries	–	Basis on Slab	–
192A	Premature withdrawal from EPF	50,000	10	–
193	Interest on Securities	10,000	10	10
194	Dividends	2,500	10	10
194A	Interest (Banks)	10,000	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	1,80,000	10	10
194I	Rent of Plant / Machinery / Equipment	1,80,000	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
194LA	Compensation on a transfer of certain immovable property other than agricultural land	2,50,000	10	10
194LB	Income by way of interest from infrastructure debt fund		5	5

TCS RATE CHART FOR FY: 2018 19 (AY: 2019-20)
Section	Nature of Payment	TCS Rate %
206C	Scrap	1
206C	Tendu Leaves	5
206C	Timber obtained under a forest lease or other mode	2.5
206C	Any other forest produce not being a timber or tendu leaves	2.5
206C	Alcoholic Liquor for human consumption	1
206C	Parking Lot, Toll Plaza, Mining and Quarrying	2
206C	Minerals, being coal or lignite or iron ore (applicable from July 1,2012)	1
206C	Sale of a motor vehicle of the value exceeding Rs. 10 Lacs; (wef 01.06.2016)	1

	Motor vehicle clause not applicable on Central Government, a State Government, an embassy, a High Commission, Legation, Commission, Consulate and the Trade Representation of a foreign State; Local Authority; a Public Sector Company which is engaged in the business of carrying passengers (wef 01.04.2017)
206C	Bullion if consideration (excluding any coin/article weighing 10 grams or less) exceeds Rs. 2 Lakhs	1
206C	TCS on sale in case of any goods (other than bullion/jewelry)	1
206C	TCS on providing of any services (other than Ch-XVII-B)	1
Note: TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

What is Tax Deducted at Source (TDS) ?

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving the payment is called the deductee. It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government. TDS is deducted irrespective of the mode of payment–cash, cheque or credit–and is linked to the PAN of the deductor and deducted.

TDS is deducted on the following types of payments:

Salaries
Interest payments by banks
Commission payments
Rent payments
Consultation Fees
Professional fees

However, individuals are not required to deduct TDS when they make rent payments or pay fees to professionals like lawyers and doctors.

TDS is one kind of advance tax. It is tax that is to be deposited with the government periodically and the onus of the doing the same on time lies with the deductor. For the deductee, the deducted TDS can be claimed in the form of a tax refund after they file their ITR.