TDS Provisions made Simple (Tax Deducted at Source)

CA Kunal Mineeyar 07 Oct 2019 4,728 Views 0 comment Print Income Tax | Articles

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Article explains Section wise requirement of TDS deduction, Threshold exemption limit and rate at which TDS needs to be deducted. Article is updated as on 01.10.2019 to include sections under which TDS needs to be deducted from 01^st October 2019. Newly introduced section are Section 194M – TDS on any work in pursuance of contract (Commission, brokerage or professional Services) and Section 194N – TDS on Payment in Cash.

Section	Deductor	Deductee	Limit	Rate
192 – TDS on Salary	Any Person (Employer)	Any Person (Employee)	Basic Exemption Limit	Rate Applicable to employee
192A – TDS on payment of Accumulated balance in employee’s PF	Employee’s PF Scheme	Employee	50,000/-	10%
193 – TDS on Interest on Securities	Any Person	Any resident Person	–	10%
194 – TDS on Dividend	Domestic Company	Any resident Person	–	10%
194A – TDS on Interest (other than Interest on Securities)		Any resident Person	5000/-	10%
194B – TDS on Winning from lotteries	Any Person	Any person	10,000/-	30%
194BB – TDS on Winning from Horse Racing	Any Person holding license granted by govt.	Any Person	10,000/-	30%
194C – TDS on payments to Contractors	Any Person (Applicable to IND, HUF, AOP, BOI only if covered by Sec 44AB in the immediately preceding PY)	Any resident Contractors	If Single payment exceeds Rs. 30,000/- OR Aggregate of all payments to a person during FY exceeds Rs. 1,00,000/-	If Deductee is Ind/HUF – 1% Other Deductees – 2%
194D – TDS on Insurance Commission	Any Person	Ay Resident Person	15,000/-	5%
194DA – TDS on maturity proceeds of Life Insurance Policy	Any Person	Any Resident Person	1,00,000/- or more in a year	5% (w.e.f. 01/09/19)
194E – TDS on payment to NR Sportsmen, entertainer, Sports association or institution.	Any Person	NR Sportsmen, entertainer, Sports association or institution.	–	20% + 4% E cess
194EE – TDS on National Savings Schemes Payments	Any Person	Any Person	2500/-	10%
194G – TDS on Commission on sale of lottery tickets, etc.	Any Person	Any Person	15,000/-	5%
194H – TDS on Brokerage or Commission	Any person (Applicable to IND & HUF only if their turnover/gross receipts exceed monetary limits specified in Sec 44AB in Preceding FY)	Any Resident Person	15,000/-	5%
194I – TDS on Rent	Any person (Applicable to IND & HUF only if their turnover/ gross receipts exceed monetary limits specified in Sec 44AB in Preceding FY )	Any Resident Person	2,40,000/-	Rent for Land & building – 10% Rent for Plant & machinery – 2%
194IA – TDS on transfer of Immovable Property other than Agriculture Land	Any Person	Any Resident Person	50,00,000/-	1%
194IB – TDS on Payment of Rent by Ind Or HUF	Ind or HUF whose turnover/ gross receipts does not exceed the limits of Sec 44AB in Preceding FY	Any Resident Person	50,000/- per month	5%
194IC – TDS on payment under Joint Development Agreement	Any Person	Any Resident Person	–	10%
194J – TDS on Professional Fees/ Technical Services	Any person (Applicable to IND & HUF only if their turnover/ gross receipts exceed monetary limits specified in Sec 44AB in Preceding FY)	Any Resident Person	30,000/-	10% (For call centres – 2%)
194LA – TDS on Compensation for Compulsory acquisition of Immovable Property	Any Person	Any Resident Person	2,50,000/- in a FY	10%
194LB – TDS on Interest from Infrastructure Debt Fund	Notified Infrastructure Debt Fund	Non Resident & Foreign Company	–	5%
194LC – TDS on Interest from an Indian Company	Indian Company	Non Resident & Foreign Company	–	5%
194LD – TDS on Interest on Govt Securities/ Rupee Denominated Bond	Indian Company or Government	Foreign Institutional Investors (FII) or Qualified Foreign Investor (QFI)	–	5%
194M – TDS on any work in pursuance of contract (Commission, brokerage or professional Services)	IND/HUF (other than those covered u/s 194C, 194H & 194J)	Any Resident Person	50,00,000/-	5% (w.e.f. 01/09/19)
194N – TDS on Payment in Cash	Banks, Co- operative banks & Post Offices.	Any Person	1,00,00,000/-	2% (w.e.f. 01/09/19)
195 – TDS on Payments to Non Residents or Foreign Company (payments not covered specifically in other sections)	Any Person	Non Resident or Foreign Company	–	Rate as per Finance Act or Rate Prescribed u/s 90 or 90A.