document modified on 10.08.2017

TDS Rates

TDS Rates for AY 2018-19 (FY 2017-18)
for Payment of Salary and Wages to Residents

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 like 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/- (Rs. 30,000/- upto 31.05.2016) which is taxable in the hands of an employee.

TDS Rate : 10%

TDS Rates AY 2018-19 (FY 2017-18)
for Payments other than Salary and Wages to Residents

SectionFor Payment ofOn Payments ExceedingIndividual/HUFOthers
192A Premature withdrawal from EPF Rs. 50,000/- 10% Not Applicable
193 Interest on Securites Rs. 10,000/- 10% 10%
194 Dividend other than the dividend as referred to in Section 115-O Rs. 2,500/- 10% 10%
194 A Interest payment by banks, Co-op. Societies or Post Offices Rs. 10000/- 10% 10%
194 A Interest payment by others Rs. 5000/- 10% 10%
194 B Winnings from Lotteries / Puzzle / Game Rs. 10000/- 30% 30%
194 BB Winnings from Horse Race Rs. 10000/- 30% 30%
194 C Payment to Contractors/sub-contractors Rs. 30,000/- for single payment and Rs. 1,00,000/- for aggregate payment during Financial Year. 1% 2%
194 D Payment of Insurance Commission Rs. 15000/- 5% 5%
194 DA Life Insurance Policy Rs. 1,00,000/- 1% 1%
194 EE Payment of NSS Deposits Rs. 2500/- 10% NA
194 F Repurchase of units by Mutual Funds / UTI No minimum 20% 20%
194 G Commission on Sale of Lottery tickets Rs. 15,000/- 5% 5%
194 H Commission or Brokerage Rs. 15,000/- 5% 5%
194 I Rent of Land, Building or Furniture Rs. 180000/- 10% 10%
Rent of Plant & Machinery Rs. 180000/- 2% 2%
194 IA Consideration for transfer of an immovable property other than agricultural land Rs. 50 lacs 1% 1%
194 IB Payment of rent by individual or HUF not liable to tax audit (w.e.f. 01.06.2017 Rs. 50,000/- per month 5% NA
194 J Professional / technical services, royalty Rs. 30000/- 10% 10%
194 LA Compensation on acquisition of certain immovable property Rs. 250000/- 10% 10%
194 LBA Income distribution by a Business Trust u/s 115UA No minimum 10% 10%
194 LBB Income distribution by a Investment Fund u/s 115UB No minimum 10% 10%
194 LBC Income distribution by a Securitisation Trust u/s 115TCA No minimum 25% 30%
Any other Income No minimum 10% 10%
  1. No surcharge or education cess is deductible / collectible at source on payments made to residents (Individuals / HUF / Society / AOP / Firm / Domestic Company) on payment of incomes other than salary or wages.
  2. TDS at higher rate of 20% or TDS rate, whichever is higher, has to be deducted if the deductee does not provide PAN to the deductor.(section 206AA)

All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).


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