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 ₹ 50,000/- (₹ 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 ₹ 50,000/- 10% Not Applicable
193 Interest on Securites ₹ 10,000/- 10% 10%
194 Dividend other than the dividend as referred to in Section 115-O ₹ 2,500/- 10% 10%
194 A Interest payment by banks, Co-op. Societies or Post Offices ₹ 10000/- 10% 10%
194 A Interest payment by others ₹ 5000/- 10% 10%
194 B Winnings from Lotteries / Puzzle / Game ₹ 10000/- 30% 30%
194 BB Winnings from Horse Race ₹ 10000/- 30% 30%
194 C Payment to Contractors/sub-contractors ₹ 30,000/- for single payment and ₹ 1,00,000/- for aggregate payment during Financial Year. 1% 2%
194 D Payment of Insurance Commission ₹ 15000/- 5% 5%
194 DA Life Insurance Policy ₹ 1,00,000/- 1% 1%
194 EE Payment of NSS Deposits ₹ 2500/- 10% NA
194 F Repurchase of units by Mutual Funds / UTI No minimum 20% 20%
194 G Commission on Sale of Lottery tickets ₹ 15,000/- 5% 5%
194 H Commission or Brokerage ₹ 15,000/- 5% 5%
194 I Rent of Land, Building or Furniture ₹ 180000/- 10% 10%
Rent of Plant & Machinery ₹ 180000/- 2% 2%
194 IA Consideration for transfer of an immovable property other than agricultural land ₹ 50 lacs 1% 1%
194 IB Payment of rent by individual or HUF not liable to tax audit (w.e.f. 01.06.2017 ₹ 50,000/- per month 5% NA
194 J Professional / technical services, royalty ₹ 30000/- 10% 10%
194 LA Compensation on acquisition of certain immovable property ₹ 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%
Notes:
  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).

Disclaimer:

All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

You may like to View / Use:

●  TDS Calculators
●  TDS forms in Excel