TDS and TCS Percentages and calculation Methods
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) | BASIC EXEMPTION LIMIT FOR OLD REGIME | FOR NEW REGIME RS. 3,00,000 | AVERAGE RATE OF TAX + HEALTH & EDUCATION CESS (SURCHARGE IF SALARY > 50 LACS) |
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 | 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 | 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% | ||
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) | a. RS.30,000 SINGLE TRANSACTION (OR) | INDIVIDUAL/HUF : 1% | ||
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 | 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% | ||
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.” | RS. 30,000 P.A. (RS. 0 IN CASE OF DIRECTORS) | 2% | ||
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 | 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 | 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 | 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. | 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% | ||