document created on 01.11.2017

TDS Rates AY 2018-19 for Non-residents

TDS Rate for Payment of Salary and Wages

SectionPayment of Salary and Wages
Section 192Criterion of Deduction :

TDS is deducted if the estimated income of the employee is taxable.

Employer must not deduct tax on non-taxable allowances like conveyance allowance, rent allowance, medical allowance and deductions allowed under sections 80C to 80U.

No tax is required to be deducted at source if the estimated total income of the employee is less than the minimum taxable income.

TDS Rate :

As per Income Tax, Surcharge and Education Cess rates applicable on the estimated income of employee for the year.

Section 192A Payment of accumulated balance of provident fund exceeding Rs. 50,000/- which is taxable in the hands of an employee.

TDS Rate : 10%

TDS Rates for Payments other than Salary and Wages to Non-Residents

SectionFor Payment ofTDS Rate
194 B Winnings from Lotteries / Puzzle / Game exceeding Rs. 10,000 in financial year 30%
194 BB Winnings from Horse Race exceeding Rs. 10,000 in financial year 30%
194 E Payment to non-resident sportsmen/sports association 20%
194 EE Payment of NSS Deposits exceeding Rs. 2,500 in financial year 10%
194 F Repurchase of units by Mutual Funds / UTI 20%
194 G Commission on Sale of Lottery tickets exceeding Rs. 15,000 in financial year 5%
194 LB Interest on infrastructure debt fund 5%
194 LBA(2) Interest income distribution by a Business Trust 5%
194 LBA(3) Real Estate income distribution by a Business Trust 30%
194 LBB Income distribution by a Investment Fund u/s 115UB 30%
194 LBC Income distribution by a Securitisation Trust u/s 115TCA 30%
194 LC Interest income from Indian company on money borrowed in foreign currency 5%
194 LD Income by way of interest on certain rupee denominated bonds and Government securities 5%
195 Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen20
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen10
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 11210
d) Income by way of short-term capital gains referred to in Section 111A15
e) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10]20
f) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)20
g) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India10
h) Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy10
i) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy10
j) Any other income30
196 B Income from Units (including long-term capital gain on transfer of such units) to an offshore fund 10%
196 C Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 10%
196 D Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 20%

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