TDS Chart

Section	Applicable Rules	Nature of Payment	Exemption & Limit	Rate of Deduction for F. Y. 2018-19 (Ref. Note 1 & Note 5)	Procedure for Nil/ Lower Deduction	Section 200 Return Statement Form No./ Due Date (w.e.f. A.Y. 2018-19)	TDS Certificate Form No./Due Date
192 Refer Note 3	26, 26A, 26B, 26C, 28, 28AA, 28AB 30, 31, 31A 31AB, 33, 37BA & 37BB	Salary to any person	₹ 3,00,000 for senior citizen, ₹ 5,00,000 for very senior citizen and ₹ 2,50,000 for others after considering deduction u/ss. 16, 80C, 80CCC, 80CCB 80CCF, 80D, 80DD, 80DDB, 80E, 80GG, 80TTA and 80U and loss under the head 'Income from House Property' The employer has an option not to deduct tax on non-monetary perquisites provided to employee and instead, pay it himself	As applicable to individual Refer Part III of 1st Schedule of Finance Act, 2017	Employee can apply to the AO in Form 13	Quarterly statement in Form No. 24Q/ 31st July, 31st Oct., 31st Jan., 31st May (for quarter ending 30/6, 30/9, 31/12 and 31/3 respectively	F. 16 and 12BA/F.16AA by 31st May from the close of the financial year
193 Refer Note 3	28, 28AA, 29C, 30, 31, 31A, 31AB, 37BA	Interest on Securities to any resident	₹ 5,000 for interest on debentures (to a resident individual and HUF). ₹ 5,000 Interest on any Security No tax is to be deducted on interest payable By the Government on any security To LIC, GIC or any other similiar insurer To a corporation established by or under a Central Act which exempt from Income Tax by virtue of any law On 7 year NSC On any securities issued by a company in a dematerialised form listed on recognised stock exchange in India ₹ 10,000 for 8% savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018	10%	Senior Citizen can furnish declaration in duplicate in Form 15H if the tax on the estimated income is ₹ Nil. Refer Note 2. A person other than a company or a firm can furnish declaration in duplicate in Form 15G where the aggregate income does not exceed the maximum amount not liable to tax Refer Note 2. Payee can apply to the A.O. in Form 13.	Quarterly statement in Form No. 26Q on 31st July, 31st Oct., 31st Jan., 31st May (for quarter ending 30/6, 30/9, 31/12 and 31/3 respectively	Form 16A by 15/8, 15/11, 15/2 and 15/6, for the quarters ending 30/6, 30/9, 31/12 and 31/3 respectively
194	27, 28, 28AB, 29, 29C, 30,31, 31A, 31AB & 37BA	Payment to shareholder, resident in India of any dividend	No TDS if A/c payee cheque Amount does not exceed ₹ 2,500/- Does not apply to dividends referred to in Section 115-O	10%	—	As per S. 193 above	As per S. 193 above
194A Refer Notes 3, 4	28, 28AA, 28AB, 29C, 30, 31, 31A, 31AB, 31AC, 31ACA, 37AB	Interest (other than Interest on Securities) to resident	₹ 10,000 (₹ 50,000) in case of a senior citizen w.e.f. A.Y. 2018-19) where payer is a banking Co. or Co-operative Society engaged in Banking Business, or in case of Time Deposits (including recurring deposits) with PO under a scheme notified by Central Govt. ₹ 5,000 in any other case No deduction required on following interest payments: Firm to partner On deposits with bank made before 1-7-1995 Co-op. Soc. (other than a Co-op. Bank) to a member thereof or to such income credited/paid by a Co-op. Soc. Payment to UTI, LIC or any other Insurance company Payment to financial corporation established under any Central, State or Provincial Act. Central Govt. to assessees on excess tax paid Zero coupon bonds issued by scheduled bank To any Business Trust referred to in S. 10(23FC), etc.	10%	Same as S. 193 above	Same as S. 193 above	Same as S. 193 above
194B	30, 31, 31A, 31AB, 37BA & 37BB	Winnings from lottery & crossword puzzles including card game or other game of any sort to any person (including winning in kind)	₹ 10,000	30% All assessees	Not Applicable	As per S. 193 above	As per S. 193 above
194BB	30, 31, 31A, 31AB, 37BA & 37BB	Winnings from horse races to any person	₹ 10,000	30% All assessees	Not Applicable	As per S. 193 above	As per S. 193 above
194C Refer Notes 3, 4 & 6	28, 28AA, 28AB 29C, 30, 31, 31A, 31AB, 37BA	Payment to Resident Contractors/Sub- Contractors by persons other than individual and HUF	i. ₹ 30,000 per credit/ payment and ii. ₹ 1,00,000 per Financial Year	Cos/ Firms/ Co-op. Soc./ AOP/ BOI 2% Individual/ HUF 1%	Payee to apply in F.13 to the A.O. to obtain certificate	As per S. 193 above	As per S. 193 above
194D	28, 28AA, 30, 31, 31A, 31AB	Insurance commission to Resident	₹ 15,000 Companies	5%	Payee to apply in F.13 to the A.O. to obtain certificate (Form 15G-15H allowed, similar to section 193)	As per S. 193 above	As per S. 193 above
194DA	29C, 31, 31A, 31AB & 37BA	Payment in other than the amount exempt u/s. 10(10D) in respect of u/e Ins. policy	₹ 1,00,000 or more	1%	—	—	As per S. 193 above
194E	30, 31, 31A, 31AB, 37BA, 37BB	Payments to Non-resident sportsmen/ entertainer sports association	Any amount	20%	Not Applicable	As per S. 193 above	As per S. 193 above
194EE	29C, 30, 31, 31A, 31AB & 37BA	Payments of deposits under NSS to any person	Payments to heirs exempt. In any other case less than ₹ 2,500	10%	If F.15G/F.15H is furnished by a resident individual	As per S. 193 above	As per S. 193 above
194G	28, 28AA, 28AB, 30, 31, 31A, 31AB, 37BA	Commission/ Remuneration on sale of lottery tickets to any person	₹ 15,000	5%	Payee to apply in F.13 to the A.O. to obtain certificate	As per S. 193 above	As per S. 193 above
194H Refer Notes 3 & 4	28, 28AA, 28AB, 30, 31, 31A, 31AB & 37BA	Commission or Brokerage to a resident	Individual & HUF – not required to deduct tax (Subject to Note 4) ₹ 15,000 p.a. No deduction for commission or brokerage payable by BSNL & MTNL to their PCO franchises No deduction for brokerage on securities or New Pension Scheme Trust [S. 10(44)]	5%	Payee to apply in F. 13 to the A.O. to obtain certificate	As per S. 193 above	As per S. 193 above
194-I Refer Notes 3 & 4	28, 28AA 28AB, 30, 31, 31A, 31AB, 37BA	Rent paid to any resident for Plant Machinery, Equipment, Rents paid to any resident for Land & Building	Individual & HUF – not required to deduct tax (Subject to Note 4) ₹ 1,80,000 p.a. No tax deduction if payee is Government/Local Authority No deduction for rent paid/credited to a business trust being a REIT, in respect of any real estate asset referred to in clause 10(23FA) owned directly by such business trust	2% – Machinery, Plant, Equipment 10% – Land, Building or Furniture	Same as S. 193 above	As per S. 193 above	As per S. 193 above
194-IA	30, 31, 31A 31AB & 37BA	Payment on transfer of certain immovable properties other than agricultural land	Any person to a resident transferee ₹ 50,00,000 or above S. 203A not applicable	1%	Not Applicable	Form 26QB within 30 days from the end of the month
194IB	30, 31, 31A, 31AB & 37BA	Rent	Rent paid to any resident by any Individual & HUF(not falling under the ambit of sec-44AB ) subject to limit of ₹ 50,000/- per month (applicable from 1-6-2017)	5%		To be deducted in last month of previous year or last month of tenancy
194-IC	30, 31, 31A, 31AB & 31BA	Amount paid for Joint develop agreement	Capital gain arisen to individual or a HUF from joint development agreement	10%		At the time of credit of such sum, or payment in cash or by issue of cheque or draft
194J Refer Notes 3 & 4	28, 28AA, 28AB, 30, 31, 31A, 31AB, 37BA	Fees for professional or technical services, Remuneration/ Commission/Fees, etc. to Directors (other than those covered u/s. 192), Royalty and sum referred to in section 28(va) (i.e., non-compete & confidentiality payments) paid to a resident	a. Individuals & HUFs are not required to deduct tax (Subject to Note 4) b. ₹ 30,000	10% 2% (In case of Call Centre Services) (applicable from 1-6-2017)	Payee to apply in F. 13 to the A.O. to obtain certificate	As per S. 193 above	As per S. 193 above
194LA	28, 28AA, 28AB, 30, 31, 31A, 31AB, 37BA	Compensation to resident on acquisition of certain immovable property other than specified agricultural land	₹ 2,50,000 p.a.	10%	Payee to apply in F. 13 to the A.O. to obtain certificate	As per S. 193 above	As per S. 193 above
194LC	30, 31, 31A, 31AB, 37BA & 37BB	borrowings in foreign currency is made under a. Loan Agreement (between 01-07-2012 and 01-07-2017) b. long-term bonds issued (between 01-10-2014 and 01-07-2017)	TDS will be deducted at a concessional rate on interest payment to non-resident.	5%
194LD	30, 31, 31A, 31AB, 38BA & 37BB	Interest payable at any time (1-6-2013 to 1-7-2017) to FII and QFI on- a. Investment in Government securities b. rupee denominated corporate bonds	TDS will be charged at concessional rate (provided that the interest rate does not exceed the rate notified by central government)	5%
195 Refer Note 3	26, 28, 28AA, 28AB, 29B, 30, 31A, 31AB, 37BA, 37BB	Interest or other sums (other than salary) paid to Non- residents or to foreign companies (not being dividends u/s. 115-O after 1-6-2003)	Any sum chargeable under Income Tax	As per double taxation avoidance treaty or as per Sch. 1, Part II to the Finance Act, 2016 whichever is beneficial to the assessee	Payee to apply in Form 13 to the AO to obtain certificate Payee to apply in F. 15C/15D to the A.O. to obtain certificate Payer may apply to A.O. to determine income component in payment for lower deduction	Quarterly statement in Form No. 27Q on 15th July, 15th Oct., 15th Jan., 15th May	As per S. 193 above

Notes:

Surcharge is applicable at the following rates in case of:

Individual/ Non-Resident where the income exceeds ₹ 1 crore @ 15% & 10% for income exceeding ₹ 50 lakh.

Foreign company @ 2% where such sum exceeds ₹ 1 crore but does not exceed ₹ 10 crore and 5% where such sum exceeds ₹ 10 crore.

Health and Education Cess @ 4% is applicable to Non-Residents and Foreign Companies..

Nature of Activity

Salary

Other than Salary i.e.; Ss. 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194G, 194H, 194-I, 194J, 194LA, 194LBA

(a) Time of Deduction

When salary is paid

When income paid or credited to the account including interest “payable” or “suspense” a/c whichever is earlier.

(b) Time of deposit of tax (where deduction is made for or on behalf of the Government)

On same day

Within 7 days from the last day of the month in which the deduction is made. Quarterly deduction from salary on July 7, October 7, January 7 and April 30 with prior approval of AO.

If credited or paid in the month of March on which accounts are made, on 30th April. Any other case, within 7 days from the end of the month in which deduction is made.

Quarterly deduction from other interest, insurance commission or other commission or brokerage on July 7, October 7, January 7 and April 30 with prior approval from JC.

Note: For section 194IA refer chart above

Copies of Form Nos. 15G & 15H received by the payer have to be filed online on Income Tax Website within 7 days of the succeeding month. A declaration for non-deduction of tax u/s. 197A can be furnished by the assessee only if his aggregate income is less than threshold limit. Senior Citizens can file declaration if tax on their estimated total income is likely to be NIL. It can also be furnished in paper form with Principal Chief Commissioner / Chief commissioner / Commissioner.
Consequences of delay in payment of TDS

If the person responsible for deducting and paying tax fails to do so, he shall be considered an assessee in default, liable to pay interest @ 1% p.m. or part thereof on the amount of such tax from the date on which such tax was deductible to the date of deduction and @ 1.50% p.m. or part thereof on the amount of such tax from the date of deduction to the date of actual payment, rigorous imprisonment ranging from 3 months to 7 years and fine. The interest payment needs to be made before filing of the Quarterly Return.
Disallowance due to non-deduction:

If tax deductible under Chapter XVII-B is not deducted during the previous year or deducted and not paid before the due date of filing the return of income 30% of relevant expenditure otherwise allowable in computing total income of the payer would be liable for disallowance u/ss. 40(a)(i)/(ia). However, wherever the deduction is made in a subsequent year or the payment is made after the due date of filing the return of income, the deduction will be allowed in the year in which TDS is paid. For details see section 40(a).

Applicable to individuals or a HUF, who was liable to tax audit in the immediately preceeding financial year shall be liable to deduct income-tax u/ss. 194A, 194C, 194H, 194-I & 194J. Payments made by way of fees which are exclusively for personal purposes will not attract provisions of sections 194C and 194J.
1. In case where deductee does not furnish PAN to the deductor, tax will be deducted at the higher of rate specified in the relevant provisions, or rate in force or twenty per cent. However, with effect from 1st June 2016, the above provisions shall not apply to a foreign company or to a non-resident subject to prescribed conditions.
2. Declaration u/s. 197A; i.e., declaration in Form 15G or 15H as the case may be are not valid
3. Certificate of lower/ nil deduction will not be issued in case of such deductee.
No TDS u/s. 194C on Transport if the Contractors provides PAN & contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect.
As per newly introduced Rule 26C, employee has to furnish Form 12BB, being evidence of claims for deduction u/s. 192.
Health and Education Cess @ 4% is applicable to Non-Residents and Foreign Companies.