Rates for tax deduction at source for Assessment year 2016-17
Particulars TDS Rates(in %)
1. In the case of a person other than a company
1.1 where the person is resident in India
Section 192: Payment of salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable 10
in the hands of an employee (with effect from 01.06.2015).
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local 10
authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a 10
recognised stock exchange in accordance with the Securities Contracts (Regulation)
Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government; 10
d) interest on any other security 10
Section 194: Dividend other than the dividend as referred to in Section 115O 10
Section 194A: Income by way of interest other than "Interest on securities" 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/subcontractor
a) HUF/Individuals 1
b) Others 2
Section 194D: Insurance commission 10
Section 194DA: Payment in respect of life insurance policy 2
Section 194EE: Payment in respect of deposit under National Savings scheme 20
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit 20
Trust of India
Section 194G: Commission, etc., on sale of lottery tickets 10
Section 194H: Commission or brokerage 10
Section 194I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10
Section 194IA: Payment on transfer of certain immovable property other than 1
agricultural land
Section 194J: Any sum paid by way of 10
a) Fee for professional services,
b) Fee for technical services
c) Royalty,
d) Remuneration/fee/commission to a director or
e) For not carrying out any activity in relation to any business
f) For not sharing any knowhow, patent, copyright etc.
Section 194LA: Payment of compensation on acquisition of certain immovable 10
property
Section 194LBA(1): Business trust shall deduct tax while distributing, any income 10
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 unit holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than 10
income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with
effect from 01.06.2015).
Any Other Income 10
1.2 where the person is not resident in India
Section 192: Payment of Salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable 10
in the hands of an employee (with effect from 01.06.2015).
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to nonresident sportsmen/sports association 20
Section 194EE: Payment in respect of deposits under National Savings Scheme 20
Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit 20
Trust of India
Section 194G: Commission, etc., on sale of lottery tickets 10
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): Business trust shall deduct tax while distributing any interest 5
income received or receivable by it from a SPV to its unit holders.
Section 194LBA(3): Business trust shall deduct tax while distributing any income 30
received from renting or leasing or letting out any real estate asset owned directly by
it to its unit holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than 10
income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with
effect from 01.06.2015).
Section 194LC: Payment of interest by an Indian Company or a business trust in 5
respect of money borrowed in foreign currency under a loan agreement or by way of
issue of longterm bonds (including longterm infrastructure bond)
Section 194LD: Payment of interest on rupee denominated bond of an Indian 5
Company or Government securities to a Foreign Institutional Investor or a Qualified
Foreign Investor
Section 195: Payment of any other sum to a Nonresident
a) Income in respect of investment made by a Nonresident Indian Citizen 20
b) Income by way of longterm capital gains referred to in Section 115E in case of a 10
Nonresident Indian Citizen
c) Income by way of longterm capital gains referred to in subclause (iii) of clause 10
(c) of subSection (1) of Section 112
d) Income by way of shortterm capital gains referred to in Section 111A 15
e) Any other income by way of longterm capital gains [not being longterm capital 20
gains referred to in clauses (33), (36) and (38) of Section 10]
f) Income by way of interest payable by Government or an Indian concern on 20
moneys borrowed or debt incurred by Government or the Indian concern in foreign
currency (not being income by way of interest referred to in Section 194LB or
Section 194LC)
g) Income by way of royalty payable by Government or an Indian concern in 10
pursuance of an agreement made by it with the Government or the Indian concern
where such royalty is in consideration for the transfer of all or any rights (including
the granting of a licence) in respect of copyright in any book on a subject referred to
in the first proviso to subsection (1A) of Section 115A of the Incometax Act, to the
Indian concern, or in respect of any computer software referred to in the second
proviso to subsection (1A) of Section 115A of the Incometax Act, to a person
resident in India
h) Income by way of royalty [not being royalty of the nature referred to point g) 10
above E] payable by Government or an Indian concern in pursuance of an agreement
made by it with the Government or the Indian concern and where such agreement is
with an Indian concern, the agreement is approved by the Central Government or
where it relates to a matter included in the industrial policy, for the time being in
force, of the Government of India, the agreement is in accordance with that policy
i) Income by way of fees for technical services payable by Government or an Indian 10
concern in pursuance of an agreement made by it with the Government or the Indian
concern and where such agreement is with an Indian concern, the agreement is
approved by the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of India, the
agreement is in accordance with that policy
j) Any other income 30
Section 196B: Income from units (including longterm capital gain on transfer of 10
such units) to an offshore fund
Section 196C: Income from foreign currency bonds or GDR of an Indian company 10
(including longterm capital gain on transfer of such bonds or GDR)
Section 196D: Income of foreign Institutional Investors from securities (not being 20
dividend or capital gain arising from such securities)
2. In the case of a company
2.1 where the company is a domestic company
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local 10
authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a 10
recognised stock exchange in accordance with the Securities Contracts (Regulation)
Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government; 10
d) interest on any other security 10
Section 194: Dividend 10
Section 194A: Income by way of interest other than "Interest on securities" 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/subcontractor
a) HUF/Individuals
1
b) Others 2
Section 194D: Insurance commission 10
Section 194DA: Payment in respect of life insurance policy 2
Section 194EE: Payment in respect of deposit under National Savings scheme 20
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit 20
Trust of India
Section 194G: Commission, etc., on sale of lottery tickets 10
Section 194H: Commission or brokerage 10
Section 194I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10
Section 194IA:Payment on transfer of certain immovable property other than 1
agricultural land
Section 194J: Any sum paid by way of 10
a) Fee for professional services,
b) Fee for technical services
c) Royalty,
d) Remuneration/fee/commission to a director or
e) For not carrying out any activity in relation to any business
f) For not sharing any knowhow, patent, copyright etc.
Section 194LA:Payment of Compensation on acquisition of certain immovable 10
property
Section 194LBA(1): Business trust shall deduct tax while distributing, any income 10
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 unit holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than 10
income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with
effect from 01.06.2015).
Any Other Income 10
2.2 where the company is not a domestic company
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30
games and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to nonresident sports association 20
Section 194G: Commission, etc., on sale of lottery tickets 10
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): Business trust shall deduct tax while distributing any interest 5
income received or receivable by it from a SPV to its unit holders.
Section 194LBA(3): Business trust shall deduct tax while distributing any income 40
received from renting or leasing or letting out any real estate asset owned directly by
it to its unit holders.
Section 194LBB: Investment fund paying an income to a unit holder [other than 10
income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with
effect from 01.06.2015).
Section 194LC: Payment of interest by an Indian Company or a business trust in 5
respect of money borrowed in foreign currency under a loan agreement or by way of
issue of longterm bonds (including longterm infrastructure bond)
Section 194LD:Payment of interest on rupee denominated bond of an Indian 5
Company or Government securities to a Foreign Institutional Investor or a Qualified
Foreign Investor
Section 195: Payment of any other sum
a) Income by way of longterm capital gains referred to in subclause (iii) of clause 10
(c) of subsection (1) of Section 112
b) Income by way of shortterm capital gains referred to in Section 111A 15
c) Any other income by way of longterm capital gains [not being longterm capital 20
gains referred to in clauses (33), (36) and (38) of Section 10]
d) Income by way of interest payable by Government or an Indian concern on 20
moneys borrowed or debt incurred by Government or the Indian concern in foreign
currency (not being income by way of interest referred to in Section 194LB or
Section 194LC)
e) Income by way of royalty payable by Government or an Indian concern in 10
pursuance of an agreement made by it with the Government or the Indian concern
after the 31st day of March, 1976 where such royalty is in consideration for the
transfer of all or any rights (including the granting of a licence) in respect of
copyright in any book on a subject referred to in the first proviso to subsection (1A)
of Section 115A of the Incometax Act, to the Indian concern, or in respect of any
computer software referred to in the second proviso to subsection (1A) of Section
115A of the Incometax Act, to a person resident in India
f) Income by way of royalty [not being royalty of the nature referred to in point e)
above C] payable by Government or an Indian concern in pursuance of an agreement
made by it with the Government or the Indian concern and where such agreement is
with an Indian concern, the agreement is approved by the Central Government or
where it relates to a matter included in the industrial policy, for the time being in
force, of the Government of India, the agreement is in accordance with that policy—
A. where the agreement is made after the 31st day of March, 1961 but before the 1st 50
day of April, 1976
B. where the agreement is made after the 31st day of March, 1976 10
g) Income by way of fees for technical services payable by Government or an Indian
concern in pursuance of an agreement made by it with the Government or the Indian
concern and where such agreement is with an Indian concern, the agreement is
approved by the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of India, the
agreement is in accordance with that policy—
A. where the agreement is made after the 29th day of February, 1964 but before the 50
1st day of April, 1976
B. where the agreement is made after the 31st day of March, 1976 10
h) Any other income 40
Section 196B: Income from units (including longterm capital gain on transfer of 10
such units) to an offshore fund
Section 196C: Income from foreign currency bonds or GDR of an Indian company 10
(including longterm capital gain on transfer of such bonds or GDR)
Section 196D: Income of foreign Institutional Investors from securities (not being 20
dividend or capital gain arising from such securities)
