TDS and TCS Percentages and calculation Methods

Shruti Dutt — Sun, 17 Mar 2024 06:31:13 +0000

Know about TDS in India

Tax Deduction at source

S No.	SECTION	NATURE OF PAYMENT	Category	Method Of calculation	THRESHOLD LIMIT OF PAYMENT			RATES
1	192	INCOME FROM SALARY	A	Individually Calculation of Tax for Every Employee & deduct Tax Proportionately each month	1. SUPER SENIOR CITIZEN (80 YEARS OR MORE) 2. SENIOR CITIZEN (60 YEARS OR MORE) 3. OTHERS	BASIC EXEMPTION LIMIT FOR OLD REGIME RS. 5,00,000 RS. 3,00,000 RS. 2,50,000	FOR NEW REGIME RS. 3,00,000 RS. 3,00,000 RS. 3,00,000	AVERAGE RATE OF TAX + HEALTH & EDUCATION CESS (SURCHARGE IF SALARY > 50 LACS) TDS AS PER TAX REGIME SELECTED BY EMPLOYEE. IF NOT SELECTED, TDS DEDUCTION AS PER NEW REGIME.
2	192A	PREMATURE WITHDRAWAL FROM EPF	C	Even at the exact threshold limit the the Tds should be deducted on the aggregate value of the transaction till date in a Financial Year.	RS. 50,000			PAN AVAILABLE : 10% PAN NOT AVAILABLE : 20%
3	193	INTEREST ON SECURITIES (INCLUDING LISTED DEBENTURES)	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 5,000 (RS. 10,000 ON 8% SAVINGS (TAXABLE) BONDS, 2003)			10%
4	194	DIVIDEND	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 5,000			10%
5	194A	*INTEREST (OTHER THAN ON SECURITIES) BY A BANKING COMPANY/ POST OFFICE INTEREST (OTHER THAN ON SECURITIES) BY OTHERS	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	SENIOR CITIZEN : RS. 50,000 P.A. OTHERS : RS. 40,000 P.A. RS. 5,000 P.A.			10% 10%
6	194B	WINNING FROM LOTTERIES & CROSS WORD PUZZLES, CARD GAMES AND OTHER GAMES ON ANY SORT (OTHER THAN WINNING FROM ONLINE GAMES)	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 10,000 P.A.			30%
7	194BA	WINNING FROM ONLINE GAMES	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			30%
8	194BB	WINNINGS FROM HORSE RACES	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 10,000 P.A.			30%
9	194C	*PAYMENT TO CONTRACTOR/SUB-CONTRACTOR	Special Case	1. Once the limit of ₹ 30,000 is crossed the Tds should be deducted for all the subsequent transaction ( side by side check the limit of ₹1,00,000 as soon as the limit of 1,00,000 is crossed the tds should also be deducted for all the transactions on which previously tds was not deducted) 2. Even if a single transation does not cross ₹30,000, As soon as the Threshold limit of 1,00,000 is crossed the the Tds should be deducted on the aggregate value of the transaction till date.	a. RS.30,000 SINGLE TRANSACTION (OR) b. RS. 1,00,000 AGGREGATE OF TRANSACTIONS`			INDIVIDUAL/HUF : 1% OTHERS : 2%
10	194D	INSURANCE COMMISION	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 15,000			OTHER THAN COMPANY :5% DOMESTIC COMPANY:10%
11	194DA	PAYMENT UNDER LIFE INSURANCE POLICY (THE TAX SHALL BE DEDUCTED ON THE AMOUNT OF INCOME COMPRISED IN INSURANCE PAY-OUT)	C	Even at the exact threshold limit the the Tds should be deducted on the aggregate value of the transaction till date in a Financial Year.	RS.1,00,000 P.A.			5%
12	194E	Payments to non-resident sportsmen or sports associations	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			20%
13	194EE	PAYMENT UNDER NATIONAL SAVINGS SCHEME	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS.2,500			10%
14	194F	PAYMENT ON ACCOUNT OF REPURCHASE OF UNITS BY MUTUAL FUND OR UNIT TRUST OF INDIA	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			20%
15	194G	COMMISSION ON SALE OF LOTTERY TICKETS	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 15,000			5%
16	194H	*COMMISSION/BROKERAGE	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 15,000 P.A.			5%
17	194-I(A)	*RENT OF PLANT / MACHINERY	C	Even at the exact threshold limit the the Tds should be deducted on the aggregate value of the transaction till date in a Financial Year.	RS. 2,40,000 P.A.			2%
18	194-I(B)	*RENT OF LAND OR BUILDING OR FURNITURE OR FITTING	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 2,40,000 P.A.			10%
19	194-IA	PAYMENT OR TRANSFER OF IMMOVABLE PROPERTY (OTHER THAN RURAL AGRICULTURE LAND)	E	As soon as the Threshold limit crossed the the Tds should be deducted only for that particular transaction. Under this section each & every transaction should be evaluated seperately.	RS. 50,00,000 & ABOVE			1% (ON THE HIGHER OF AMOUNT OF CONSIDERATION OR THE STAMP DUTY VALUE)
20	194-IB	RENT PAYABLE BY AN INDIVIDUAL OR HUF NOT LIABLE TO TAX AUDIT	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS.50,000 PER MONTH			5%
21	194-IC	PAYMENT OF MONETARY CONSIDERATION UNDER JOINT DEVELOPMENT AGREEMENTS TO RESIDENT INDIVIDUAL/HUF	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			10%
22	194J	*FEES FOR PROFESSIONAL / TECHNICAL SERVICES / ROYALTY / REMUNERATION TO DIRECTOR	Special Case	1. For the transaction having threshold limit – “As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.” 2. For the transactions having No threshold limit – “No Threshold limit is prescribed for the Given section hence ,as the transaction prescribed in the Law occur the Tds should be deducted.	RS. 30,000 P.A. (RS. 0 IN CASE OF DIRECTORS)			2% (FOR CALL CENTRE, FEES FOR TECHNICAL SERVICES & ROYALTY IN CASE OF CINEMATOGRAH FILMS) 10% (FOR PROFESSIONAL SERVICES, DIRECTOR REMUNERATION AND OTHER ROYALTY)
23	194K	INCOME IN RESPECT OF UNITS OF MUTUAL FUNDS OR SPECIFIED COMPANY	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 5,000			10%
24	194LA	COMPENSATION ON ACQUISITION OF IMMOVABLE PROPERTY	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 2,50,000			10%
25	194LBA(1)	BUSINESS TRUST SHALL DEDUCT TAX WHILE DISTRIBUTING, ANY INTEREST RECEIVED OR RECEIVABLE BY IT FROM A SPV OR ANY INCOME RECEIVED FROM RENTING OR LEASING OR LETTING OUT ANY REAL ESTATE ASSET OWNED DIRECTLY BY IT, TO ITS RESIDENT UNIT HOLDERS.	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			10%
26	194LBB	PAYMENT IN RESPECT OF UNITS OF INVESTMENT FUNDS U/S 115UB [OTHER THAN INCOME WHICH IS EXEMPT UNDER SECTION 10(23FBB)]	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			10%
27	194LBC(1)	INCOME IN RESPECT OF INVESTMENT MADE IN A SECURITISATION TRUST	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			INDIVIDUAL OR HUF: 25% OTHER : 30%
28	194LC	Income by way of interest from Indian company	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			5% OR 4%(For certain specified borrowings on or after 01st April 2020 but before 01st July, 2023)
29	194LD	Income by way of interest on certain bonds and Government securities.	F	No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.	NO LIMIT			5%
30	194M	PAYMENT TO RESIDENT CONTRACTORS AND PROFESSIONALS OR BY WAY OF COMMISSION / BROKERAGE (OTHER THAN THOSE WHO COVERED U/S 194C OR 194J) BY INDIVIDUAL/HUF NOT LIABLE FOR TAX AUDIT.	B	“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”	RS. 50 LACS			5%
31	194N	AGGREGATE CASH WITHDRAWAL FROM BANK / CO-OPERATIVE BANK / POST OFFICE ETC. (* BY PERSONS WHO HAVE NOT FILED ITR FOR 3 PREVIOUS YEARS IMMEDIATELY PRECEDING THE PREVIOUS YEAR AND THE DUE DATE FOR FILING ITR UNDER SECTION 139(1) HAS EXPIRED)	D	Tds should be deducted ONLY for the part which is exceeding the Threshold Limit & not on the aggregate value till date, but for checking the threshold limit, all the aggregate value during the year should be checked.	RS. 20 LAKHS			a. CASH WITHDRAWAL BETWEEN RS. 20 LAKHS TO RS. 1 CRORE : 2% b. CASH WITHDRAWAL ABOVE RS. 1 CRORE : 5%

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TDS and TCS Percentages and calculation Methods

Know about TDS in India

S No.

SECTION

NATURE OF PAYMENT

Category

Method Of calculation

THRESHOLD LIMIT OF PAYMENT

RATES

1

192

INCOME FROM SALARY

A

Individually Calculation of Tax for Every Employee & deduct Tax Proportionately each month

1. SUPER SENIOR CITIZEN (80 YEARS OR MORE) 2. SENIOR CITIZEN (60 YEARS OR MORE) 3. OTHERS

BASIC EXEMPTION LIMIT FOR OLD REGIME RS. 5,00,000 RS. 3,00,000 RS. 2,50,000

FOR NEW REGIME RS. 3,00,000 RS. 3,00,000 RS. 3,00,000

AVERAGE RATE OF TAX + HEALTH & EDUCATION CESS (SURCHARGE IF SALARY > 50 LACS) TDS AS PER TAX REGIME SELECTED BY EMPLOYEE. IF NOT SELECTED, TDS DEDUCTION AS PER NEW REGIME.

2

192A

PREMATURE WITHDRAWAL FROM EPF

C

Even at the exact threshold limit the the Tds should be deducted on the aggregate value of the transaction till date in a Financial Year.

RS. 50,000

PAN AVAILABLE : 10% PAN NOT AVAILABLE : 20%

3

193

INTEREST ON SECURITIES (INCLUDING LISTED DEBENTURES)

B

“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”

RS. 5,000 (RS. 10,000 ON 8% SAVINGS (TAXABLE) BONDS, 2003)

10%

4

194

DIVIDEND

B

“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”

RS. 5,000

10%

5

194A

*INTEREST (OTHER THAN ON SECURITIES) BY A BANKING COMPANY/ POST OFFICE INTEREST (OTHER THAN ON SECURITIES) BY OTHERS

B

“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”

SENIOR CITIZEN : RS. 50,000 P.A. OTHERS : RS. 40,000 P.A. RS. 5,000 P.A.

10% 10%

6

194B

WINNING FROM LOTTERIES & CROSS WORD PUZZLES, CARD GAMES AND OTHER GAMES ON ANY SORT (OTHER THAN WINNING FROM ONLINE GAMES)

B

“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”

RS. 10,000 P.A.

30%

7

194BA

WINNING FROM ONLINE GAMES

F

No Threshold limit is prescribed for the Given section hence , as the transaction prescribed in the Law occur the Tds should be deducted.

NO LIMIT

30%

8

194BB

WINNINGS FROM HORSE RACES

B

“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”

RS. 10,000 P.A.

30%

9

194C

*PAYMENT TO CONTRACTOR/SUB-CONTRACTOR

Special Case

a. RS.30,000 SINGLE TRANSACTION (OR) b. RS. 1,00,000 AGGREGATE OF TRANSACTIONS`

INDIVIDUAL/HUF : 1% OTHERS : 2%

10

194D

INSURANCE COMMISION

B

“As soon as the Threshold limit crossed the the Tds should be deducted on the aggregate value of the transaction till date in the Financial year.”

RS. 15,000

1. SUPER SENIOR CITIZEN (80 YEARS OR MORE)
2. SENIOR CITIZEN (60 YEARS OR MORE)
3. OTHERS

BASIC EXEMPTION LIMIT FOR OLD REGIME
RS. 5,00,000
RS. 3,00,000
RS. 2,50,000

FOR NEW REGIME RS. 3,00,000
RS. 3,00,000
RS. 3,00,000

AVERAGE RATE OF TAX + HEALTH & EDUCATION CESS (SURCHARGE IF SALARY > 50 LACS)
TDS AS PER TAX REGIME SELECTED BY EMPLOYEE.
IF NOT SELECTED, TDS DEDUCTION AS PER NEW REGIME.

RS. 5,000
(RS. 10,000 ON 8% SAVINGS (TAXABLE) BONDS, 2003)

*INTEREST (OTHER THAN ON SECURITIES) BY A BANKING COMPANY/ POST OFFICE INTEREST
(OTHER THAN ON SECURITIES) BY OTHERS

10%
10%

a. RS.30,000 SINGLE TRANSACTION (OR)
b. RS. 1,00,000 AGGREGATE OF TRANSACTIONS`

INDIVIDUAL/HUF : 1%
OTHERS : 2%

PAYMENT UNDER LIFE INSURANCE POLICY (THE TAX SHALL BE DEDUCTED ON THE
AMOUNT OF INCOME COMPRISED IN INSURANCE PAY-OUT)

1%
(ON THE HIGHER OF AMOUNT OF CONSIDERATION OR THE STAMP DUTY VALUE)