TDS Rates table For Financial Year 2019 – 2020

Different TDS rates are applicable to different assessees on the idea of the age and income tax bracket that they represent. The TDS rates chart is predetermined and therefore the tax is deducted for various assessees on the idea of those charts.

Tax Deducted at Source or TDS is stated as a kind of tax where a private is susceptible to deduct tax for services rendered. The tax deducted from the entire payment amount goes to the govt for various sorts of activities like infrastructure development, defence, development, etc. Depending on the sort of service, a particular sort of tax (TDS) is levied that the payee is anticipated to deduct. If the individual has deducted quite the specified tax amount, he/she are going to be eligible for a TDS Refund. The individual are going to be required to file their TDS Return so as to receive the refund amount. TDS are often collected on a daily , periodic, or occasional basis, it’s applicable to salary, interest, commission, fee, etc.

The table listed below show that he TDS amount which is suitable to different types of payment:

TDS Rate Chart for FY 2019-2020 for a Person (other than a Company) who is Resident in India:

Particulars TDS Rates(in %)
Section 192: Payment of salary As per the profit Income Tax
Section 193: Interest on securities: a) any securities or debentures for money which is provided by or on behalf of any corporation which is ready up by a Central, State, or Provincial Act, or announced by a local authority 10
b) any debentures which will be given by a company wherein the bonds are listed on a stock exchange which are acknowledged and adhere to the norms of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any other guidelines made thereunder 10
c)any agreement of a state government or the Central Government [7.75% Saving (Taxable) Bonds, 2018 and 8% Savings (Taxable) Bonds, 2003] 10
d) Interest on any other security 10
Section 194A: Income collect through interest other than “Interest on securities” 10
Section 194B: Income collect through winnings from lotteries, card games, crossword puzzles, and/or any other type of games 30
Section 194BB: Income collect through winnings from horse races 30
Section 194C: Payment to constructor and/or sub-constructor: a) HUF/Individuals 1
Section 194C: Payment to constructor and/or sub-constructor: b) Others 2
Section 194D: Insurance commission 5
Section 194DA: Payment paid towards a life insurance policy 1
Section 194EE: Payment paid towards any deposit under the National Savings Scheme (NSS) 10
Section 194F: Payment paid towards the repurchase of unit(s) by Mutual Fund or Unit Trust of India 20
Section 194G: Income proceeding from commissions and/or other proceedings earned through lottery tickets sales 5
Section 194H: Brokerage or commission 5
Section 194-I: Rent repaid for: a) Plant and Machinery 2
Section 194-I: Rent repaid for: b) Building or land or furniture or fitting 10
Section 194 – IA: Payments made towards the transfer of some specific stable property (except for land used for agriculture) 1
Section 194 – IB: Payments made towards rent which doesn’t qualify for tax audit and is formed by a private or a Hindu Undivided Family (HUF) [with effect from 1 June 2017] 5
Section 194 – IC: Monetary considerations which are compensated under the Joint Development Agreements 10
Section 194J: Any sum that’s paid through the following: a) Royalty, b) Fees paid against professional services, c) For not sharing any patent, know-how, copyright, and so on, d) Fees paid against technical services, e) Remuneration/commission/fee to a director, or f) For not performing any activity that’s associated to any business [the rate of Tax Deducted at Source (TDS) will be taken as 2% in case the collector is engaged with business operations in a call centre, with effect from 1 June 2017] 10
Section 194LA: Payment of compensation arising at the time of acquiring some particular immovable property [Deduction of tax won’t be made just in case of the payments on which income tax isn’t leviable under the proper to Fair Compensation Act, 2013, w.e.f. 1 April 2017] 10
Section 194LBA(1):Business organisations are going to be susceptible to deduct tax at the time of distribution of any amount (arising out of interest received or is receivable from a SPV and/or any income which arises out of rental, lease, or letting out of a real estate which is owned by the organisation) to the unitholders of the organisation. 10
Section 194LBB: An investment fund which pays profit to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] 10
Section 194LBC: Income which is generated in regard to invest made in a securitisation trust [as mentioned in the explanation of Section 115TCA] For individuals and/or Hindu Undivided Families (HUFs) – 25 For any other person – 30
Any other type of income 10

TDS Rate Chart for FY 2019-2020 for a Person who is not resident in India (NRI):

Particulars TDS Rates(in %)
Section 192: Payment of earnings As per the Income Tax
Section 192A: Payment made to a worker in regard to the accumulated taxable balance of provident fund 10
Section 194B: Income earned through acquirement from lotteries, card games, crossword puzzles, and/or any other type of games 30
Section 194BB: Income earned through acquirement from horse races 30
Section 194E: Payment made towards a adopted sportsman and/or sports association 20
Section 194EE: Payment made towards any installment under the National Savings Scheme (NSS) 10
Section 194F: Payment made towards the deliver of unit(s) by Mutual Fund or Unit Trust of India 20
Section 194G: Income arising from commissions and/or any other proceedings earned through lottery ticket sales 5
Section 194LB: Payment made towards interest on infrastructure damage fund 5
Section 194LBA(2): Business organisations are going to be susceptible to deduct tax at the time of distribution of any amount (arising out of interest income which is received or is receivable from a SPV) of the organisation. 5
Section 194LBA(3): Business organisations are going to be susceptible to deduct tax at the time of distribution of any amount (which arises out of rent, lease, or letting out of a true estate which is owned by the organisation) to the unitholders of the management. 30
Section 194LBB: An investment fund which pays interest to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] 30
Section 194LBC: Income which is generated with regard to investments made in a security trust [as mentioned in the explanation of Section 115TCA] 30
Section 194LC: Payment made towards interest by an Indian Company or business in regard to foreign currency which is borrowed under an agreement of loan or via the issuance of long-term bonds (including infrastructure bonds) [With effect from 1 April 2018, the advantages of such concessions on the TDS rate are extended by 3 years. Thus, borrowings which are made before 1 July 2020 are going to be eligible for the concessional TDS rate of 5%] 5
Section 194LD:

  • Payment made towards the significance on a rupee-denominated bond which is issued by an Indian Company
  • Payment made towards the significance on a agency security which is issued to a different Institutional Investor or a professional Foreign Investor

[With effect from 1 April 2018, the advantages of such concessions on the TDS rate are extended by 3 years. Thus, financing which are made before 1 July 2020 will be eligible for the concessional TDS rate of 5%]

5
Section 195: Payment of any other sum to a Non-resident: a) Income arising out of loan made by a Non-resident Indian (NRI) citizen 20
Section 195: Payment of any other sum to a Non-resident: b) Income arising out of long-term capital gains as per the recommendations of Section 111A 15
Section 195: Payment of the other sum to a Non-resident: c) Income arising in reference to long-term capital gains as per the reference of Section 115E just in case of Non-resident Indian (NRI) citizen 10
Section 195: Payment of the other sum to a Non-resident: d) Income earned in terms of fees which is payable by the govt or an Indian organisation for technical services, subject to certain conditions 10
Section 195: Payment of any other sum to a Non-resident: e) Income arising out of authority which is payable by the Government or an Indian organisation 10
Section 195: Payment of the other sum to a Non-resident: f) The other income arising out of short-term capital gains apart from long-term capital gains as per the advice of clauses 10(33), 10(36), and Section 112A 20
Section 195: Payment of the opposite sum to a Non-resident: g)Income arising out of royalty which is unpaid by the Government or an Indian organisation 10
Section 195: Payment of the opposite sum to a Non-resident: h) Income arising out of interest which is unpaid by the govt. or an Indian organisation on debt incurred or money borrowed by them in foreign coins (except for the income which is earned through interest as per the reference in Section 194LB or Section 194LC) 20
Section 195: Payment of any other sum to a Non-resident: i) Income arising from any other origin 30
Section 195: Payment of the other sum to a Non-resident: j) Income arising from long-term capital gains as mentioned in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 10
Section 195: Payment of any other sum to a Non-resident: k) Income arising out of short-term capital gains as per the recommendations of Section 112A 10
Section 196B: Income arising from units to an offshore fund (this includes long-term capital gains which arise due to the transmission of these units) 10
Section 196C: Income arising out of GDR or foreign currency bonds of an Indian company (this includes long-term capital gains which arise thanks to the transfer of those GDRs or bonds) 10
Section 196D: Income of foreign institutional investors from securities (this income doesn’t include the financial gain or dividend which arises from these securities) 20

TDS Rate Chart for FY 2019-2020 for a company:

TDS Rate Chart for FY 2019-2020 for a domestic company:

Particulars TDS Rates (in %)
Section 193: Interest on securities: a) any securities or debentures for money which is provided by or on behalf of any corporation which is about up by a Central, State, or Provincial Act, or issued by an area authority 10
b) any bonds which are provided by a company wherein the bonds are listed on a supply of exchange which are acknowledged and adhere to the norms of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the other rules made thereunder 10
c) any security of a government or the Central Government [7.75% Saving (Taxable) Bonds, 2018 and eight percent Savings (Taxable) Bonds, 2003] 10
d) Interest on any other security 10
Section 194: Dividend 10
Section 194A: Income collect through interest aside from “Interest on securities” 10
Section 194B: Income collect through winnings from lotteries, card games, crossword puzzles, and/or the other sort of games 30
Section 194BB: Income earned through achievementss from horse races 30
Section 194C: Payment to constructor and/or sub-constructor: a) HUF/Individuals 1
Section 194C: Payment to constructor and/or sub-constructor: b) Others 2
Section 194D: Insurance commission 10
Section 194DA: Payments made towards a life assurance policy 1
Section 194EE: Payment made towards any security under National Savings Scheme (NSS) 10
Section 194F: Payment made towards the repurchase of unit(s) by open-end fund or unit investment trust of India 20
Section 194G: Salary from commission and other proceedings earned on the sale of lottery tickets 5
Section 194H: Brokerage or commission 5
Section 194 – I: Rent compensated for: a) Plant & Machinery 2
Section 194 – I: Rent compensated for: b) Building or land or fitting or furniture 10
Section 194 – IA: Payment made towards the transfer of some specific immovable property apart from land which is employed for agriculture 1
Section 194 – IC: Payment made within the sort of a monetary consideration under the Joint Development Agreements 10
Section 194J: Any sum that’s paid through the following: a) Royalty, b) Fees paid against professional services, c) For not sharing any patent, know-how, copyright, and so on, d) Fees paid against technical services, e) Remuneration/commission/fee to a director, or f) For not performing any activity that’s associated to any business [the rate of Tax Deducted at Source (TDS) will be taken as 2% just in case the payee is engaged with business operations during a call center , with effect from 1 June 2017] 10
Section 194LA: Payment of compensation arising at the time of acquiring some particular immovable property [Deduction of tax won’t be made just in case of payments on which tax is not leviable under the proper to Fair Compensation Act, 2013, w.e.f. 1 April 2017] 10
Section 194LBA(1): Business organisations are going to be susceptible to deduct tax at the time of distribution of any amount (arising out of interest received or is receivable from a SPV and/or any income which arises out of rent, lease, or letting out of a true estate which is owned by the organisation) to the unitholders of the organisation. 10
Section 194LBB: An investment fund which pays salary to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] 10
Section 194LBC: ncome which is generated from investments made during a securitisation trust [as mentioned within the explanation of Section 115TCA] 10
Any Other Income 10

TDS Rate Chart for FY 2019-2020 for other companies except domestic companies:

Particulars TDS Rates (in %)
Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or the other sort of games 30
Section 194BB: Income get through winnings from horse races 30
Section 194E: Payment made towards a different sportsman and/or sports association 20
Section 194G: Income from commission and other businesses earned on the sale of lottery tickets 5
Section 194LB: Payment of interest in reference to infrastructure debt fund 5
Section 194LBA(2): Business organisations are going to be susceptible to deduct tax at the time of distribution of any amount (arising out of interest income which is received or is receivables from a SPV) to the unitholders of the organisation. 5
Section 194LBA(3): Business organisations are going to be susceptible to deduct tax at the time of distribution of any amount (which arises out of rent, lease, or letting out of a real estate which is owned & managed by the organisation) to the unitholders of the organisation. 40
Section 194LBB: An investment fund which pays an profit income to a unitholder [except for the incomes which are exempted under Section 10(23FBB)] 40
Section 194LBC: Income which is generated in reference to investments made during a securitisation trust [as mentioned within the explanation of Section 115TCA] 40
Section 194LC: Payment made towards interest by an Indian Company or business in reference to foreign currency which is borrowed under an agreement of loan or via the issuance of long-term bonds (including infrastructure bonds) [With effect from 1 April 2018, the advantages of such concessions on the TDS rate are extended by 3 years. Thus, borrowings which are made before 1 July 2020 are going to be eligible for the concessional TDS rate of 5%] 5
Section 194LD:

  • Payment made towards the interest on a rupee-denominated connection which is issued by an Indian Company
  • Payment made towards the interest on a agency security which is issued to a far off Institutional Investor or a professional Foreign Investor

[With effect from 1 April 2018, the advantages of such concessions on the TDS rate has been extended by 3 years. Thus, borrowings which are made before 1 July 2020 are going to be eligible for the concessional TDS rate of 5%]

5
Section 195: Payment of the other amount to a Non-resident company: a) Income arising through long-term capital gains as mentioned in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 10
Section 195: Payment of the other amount to a Non-resident company: b) Income arising out of short-term capital gains as per the recommendations of Section 111A 15
Section 195: Payment of the other amount to a Non-resident company: c) Income earned in terms of fees which is payable by the govt or an Indian organisation for technical services, subject to certain conditions: (I) If the agreement is completed post 31 March 1961 but before 1 April 1976 50
Section 195: Payment of the other amount to a Non-resident company: c) Income earned in terms of fees which is payable by the govt or an Indian organisation for technical services, subject to certain conditions: (II) If the agreement is completed post 31 March 1976 10
Section 195: Payment of the other amount to a Non-resident company: d) Income arising out of long-term capital gains as per the recommendations of sub-clause (iii) of clause (c) of sub-section (1) of Section 112 10
Section 195: Payment of the other amount to a Non-resident: e) Income arising out of royalty which is payable by the govt or an Indian organisation subject to certain conditions 10
Section 195: Payment of the other amount to a Non-resident company: f) the other sort of income arising out of long-term capital gains apart from long-term capital gains as per the recommendation of section (33), (36), and (38) of Section 10 and Section 112A. 20
Section 195: Payment of the other amount to a Non-resident company: g) Income arising out of royalty which is payable by the govt or an Indian organisation: (I) If the agreement is completed post 31 March 1961 but before 1 April 1976 50
Section 195: Payment of the other amount to a Non-resident company: g) Income arising out of royalty which is payable by the govt or an Indian organisation [not of the nature which is mentioned within the point e) above C]: (II) If the agreement is completed post 31 March 1976 10
Section 195: Payment of the other amount to a Non-resident company: h) Income arising out of interest which is payable by the govt or an Indian organisation on debt incurred or money borrowed by them in foreign coins (except for the income through interest which is mentioned in Section 194LB and/or Section 194LC) 20
Section 195: Payment of the other amount to a Non-resident company: i) Income arising from the other source 40
Section 195: Payment of the other sum to a Non-resident: k) Income arising out of long-term capital gains as per the recommendations of Section 112A 10
Section 196B: Income arising from units to an offshore fund (this includes long-term capital gains which arise thanks to the transfer of those units) 10
Section 196C: Income arising out of GDR or foreign currency bonds of an Indian company (this includes long-term capital gains which arises thanks to the transfer of those GDRs or bonds)
10
Section 196D: Income of foreign institutional investors from securities (this income doesn’t include the financial gain or dividend which arises these securities) 20

The TDS on income/salary is calculated on an yearly basis. The TDS is calculated on the basis of the different types of slabs as indicated in the interim Budget 2019-20. The applicable tax slabs for various sorts of persons and therefore the applicable rate and cess are mentioned within the tables listed below:

Frequently Asked Questions

  1. What is a TDS Certificate? It is a document that’s issued by a deductor to a deductee. The two sorts of TDS certificates are Form 16 and Form 16A.
  2. What is Form 16? Form 16 is issued by employers to employees. It contains details regarding the tax deducted over the course of the year.
  3. What is Form 16A? Form 16A certifies the number which is deducted at source, the quality of the payments made, and therefore the TDS payments that are deposited with the IT Department. It is issued for payments except salary, like rent, professional charges, bank interest payments, etc.
  4. What are the TDS amount that are applicable to interest on securities? The TDS rate for interest on securities is 12%.
  5. What is the minimum exemption limit for people under 60 years of age? Individuals who are below 60 years aged and who earn under Rs.2.5 lakh are going to be exempt from tax

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