Direct Taxes

TDS Chart

Section	Applicable Rules	Nature of Payment	Exemption & Limit	Rate of Deduction for F. Y. 2019-20 (Ref. Note 1 & Note 5)	Procedure for Nil/ Lower Deduction	Section 200 Return Statement Form No./Due Date (w.e.f. A.Y. 2018-19)	TDS Certificate Form No./Due Date
192 Refer Note 3	26, 26A, 26B, 26C, 28, 28AA, 28AB 30, 31, 31A 31AB, 33, 37BA & 37BB	Salary to any person	₹ 3,00,000 for senior citizen (ie 60 years or more), ₹ 5,00,000 for very senior citizen (i.e., 80 years or more) and ₹ 2,50,000 for others after considering deductions under Sections 16, 80C, 80CCA, 80CCB, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80GG, 80TTA , 80TTB and 80U and loss under the head ‘Income from House Property’ The employer has an option not to deduct tax on non-monetary perquisites provided to employee and instead, pay it himself	As applicable to individual Refer Part III of 1st Schedule of Finance Act, 2019	Employee can apply to the AO in Form 13	Quarterly statement in Form No. 24Q/31 July, 31 Oct., 31 Jan., 31 May (for quarter ending 30/6, 30/9, 31/12 and 31/3 respectively)	Form 16 and Form 12BA by 15 June from the close of the financial year
193 Refer Note 3	28, 28AA, 29C, 30, 31, 31A, 31AB, 37BA	Interest on Securities to any resident	₹ 5,000 for interest on debentures (to a resident individual and HUF). No tax is to be deducted on interest payable By the Government on any security To LIC, GIC or any other similar insurer To a corporation established by or under a Central Act which exempt from Income Tax by virtue of any law On 7 year NSC On any securities issued by a company in a dematerialised form listed on recognised stock exchange in India ₹ 10,000 for 8% savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018	10%	Senior Citizen can furnish declaration in duplicate in Form 15H if the tax on the estimated income is Nil. Refer Note 2. A person other than a company or a firm can furnish declaration in duplicate in Form 15G where the aggregate income does not exceed the maximum amount not liable to tax Refer Note 2. Payee can apply to the A.O. in Form 13.	Quarterly statement in Form No. 26Q on 31 July, 31 Oct., 31 Jan., 31 May (for quarter ending 30/6, 30/9, 31/12 and 31/3 respectively	Form 16A by 15/8, 15/11, 15/2 and 15/6, for the quarters ending 30/6, 30/9, 31/12 and 31/3 respectively
194	27, 28, 28AB, 29, 29C, 30,31, 31A, 31AB & 37BA	Payment to shareholder, resident in India of any dividend	No TDS if A/c payee cheque Amount does not exceed ₹ 2,500/- Does not apply to dividends referred to in Section 115-O	10%	—	As per Section 193 above	As per Section 193 above
194A Refer Notes 3, 4	28, 28AA, 28AB, 29C, 30, 31, 31A, 31AB, 31AC, 31ACA, 37AB	Interest (other than Interest on Securities) to resident	₹ 40,000 (w.e.f. AY 2019-20)/(₹50,000 in case of a senior citizen w.e.f. A.Y. 2018-19) where payer is a banking Co. or Co-operative Society engaged in Banking Business, or in case of Time Deposits (including recurring deposits) with PO under a scheme notified by Central Govt. ₹ 5,000 in any other case No deduction required on following interest payments: Firm to partner On deposits with bank made before 1 July 1995 Co-op. Soc. (other than a Co-op. Bank) to a member thereof or to such income credited/paid by a Co-op. Soc. Payment to UTI, LIC or any other Insurance company Payment to financial corporation established under any Central, State or Provincial Act. Central Govt. to assessees on excess tax paid Zero coupon bonds issued by scheduled bank To any Business Trust referred to in Section 10(23FC), etc.	10%	Same as S. 193 above	As per Section 193 above	As per Section 193 above
194B	30, 31, 31A, 31AB, 37BA & 37BB	Winnings from lottery & crossword puzzles including card game or other game of any sort to any person (including winning in kind)	₹ 10,000	30% All assessees	Not Applicable	As per Section 193 above	As per Section 193 above
194BB	30, 31, 31A, 31AB, 37BA & 37BB	Winnings from horse races to any person	₹ 10,000	30% All assessees	Not Applicable	As per Section 193 above	As per Section 193 above
194C Refer Notes 3, 4 & 6	28, 28AA, 28AB 29C, 30, 31, 31A, 31AB, 37BA	Payment to Resident Contractors/Sub- Contractors by persons other than individual and HUF	₹ 30,000 per credit/payment and ₹ 1,00,000 per Financial Year	2% in case of Cos/Firms/Co-op. Soc./AOP/BOI 1% in case of Individual/HUF	Payee to apply in Form 13 to the A.O. to obtain certificate	As per Section 193 above	As per Section 193 above
194D	28, 28AA, 30, 31, 31A, 31AB	Insurance commission to Resident	₹ 15,000	5% if recipient is a resident (other than a company) 10% if recipient is a domestic company	Payee to apply in Form 13 to the A.O. to obtain certificate (Form 15G-15H allowed, similar to Section 193)	As per Section 193 above	As per Section 193 above
194DA	29C, 31, 31A, 31AB & 37BA	Payment to Resident of any sum under life insurance policy (including bonus) other than the amount exempt under Section 10(10D)	₹ 1,00,000 or more With effect from 1 September 2019, TDS to be applicable only on income (ie sum assured minus insurance premiums paid)	5% w.e.f. 1 September 2019 (1% up to 31 August 2019)	—	As per Section 193 above	As per Section 193 above
194E	30, 31, 31A, 31AB, 37BA, 37BB	Payments to Non-resident sportsmen (including an athlete)/entertainer sports association or institution	Any amount	20%	Not Applicable	As per Section 193 above	As per Section 193 above
194EE	29C, 30, 31, 31A, 31AB & 37BA	Payments of deposits under National Savings Scheme to any person	Payments to heirs exempt. In any other case less than ₹ 2,500	10%	If Form 15G/Form15H is furnished by a resident individual	As per Section 193 above	As per Section 193 above
194G	28, 28AA, 28AB, 30, 31, 31A, 31AB, 37BA	Commission/Remuneration or Prize on sale of lottery tickets to any person	₹ 15,000	5%	Payee to apply in Form 13 to the A.O. to obtain certificate	As per Section 193 above	As per Section 193 above
194H Refer Notes 3 & 4	28, 28AA, 28AB, 30, 31, 31A, 31AB & 37BA	Commission or Brokerage to a resident	Individual & HUF – not required to deduct tax (Subject to Note 4) ₹ 15,000 p.a. No deduction for commission or brokerage payable by BSNL & MTNL to their PCO franchises No deduction for brokerage on securities or New Pension Scheme Trust [Section 197A read with Section 10(44)]	5%	Payee to apply in Form 13 to the A.O. to obtain certificate	As per Section 193 above	As per Section 193 above
194-I Refer Notes 3 & 4	28, 28AA 28AB, 30, 31, 31A, 31AB, 37BA	Rent paid to any resident for Plant Machinery, Equipment, Rents paid to any resident for Land & Building	Individual & HUF – not required to deduct tax (Subject to Note 4) ₹ 2,40,000 p.a. No tax deduction if payee is Government/Local Authority No deduction for rent paid/credited to a business trust being a REIT, in respect of any real estate asset referred to in clause 10(23FCA) owned directly by such business trust	2% – Machinery, Plant, Equipment 10% – Land, Building or Furniture	Same as Section 193 above	As per Section 193 above	As per Section 193 above
194-IA	30, 31, 31A 31AB & 37BA	Payment on transfer of certain immovable properties other than agricultural land	Any person to a resident transferor ₹ 50,00,000 or above Section 203A not applicable W.e.f 1 September 2019 consideration for immovable property to include charges in nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fees for any other charges of similar nature incidental to transfer of immovable property	1%	Not Applicable	Form 26QB within 30 days from the end of the month
194-IB	30, 31, 31A, 31AB & 37BA	Rent	Rent paid to any resident by any Individual & HUF (not falling under ambit of Section 44AB) subject to limit of ₹ 50,000 per month Section 203A not applicable (applicable from 1 June 2017)	5%		To be deducted in last month of previous year or last month of tenancy
194-IC	30, 31, 31A, 31AB & 31BA	Amount paid for Joint develop agreement	Capital gain arisen to individual or a HUF from joint development agreement	10%		At the time of credit of such sum, or payment in cash or by issue of cheque or draft
194J Refer Notes 3 & 4	28, 28AA, 28AB, 30, 31, 31A, 31AB, 37BA	Fees for professional or technical services, Remuneration/Commission/Fees, etc. to Directors (other than those covered under Section 192), Royalty and sum referred to in Section 28(va) (i.e., non-compete & confidentiality payments) paid to a resident	Individuals & HUFs are not required to deduct tax (Subject to Note 4) ₹ 30,000	10% 2% (In payee is engaged in the business of operation of Call Centre) (applicable from 1 June 2017)	Payee to apply in Form 13 to the A.O. to obtain certificate	As per Section 193 above	As per Section 193 above
194LA	28, 28AA, 28AB, 30, 31, 31A, 31AB, 37BA	Compensation to resident on acquisition of certain immovable property other than specified agricultural land	₹ 2,50,000 p.a.	10%	Payee to apply in Form 13 to the A.O. to obtain certificate	As per Section 193 above	As per Section 193 above
194LC	30, 31, 31A, 31AB, 37BA & 37BB	Borrowings in foreign currency is made under/by Loan Agreement (between 1 July 2012 and 1 July -2020) long-term bonds issued (between 1 Oct 2014 and 1 July -2020) Issues of rupee denominated bonds (before 1 July 2020)	TDS will be deducted at a concessional rate on interest payment to non-resident.	5%
194LD	30, 31, 31A, 31AB, 38BA & 37BB	Interest payable at any time (1-6-2013 to 1-7-2020) to FII and QFI on- Investment in Government securities rupee denominated corporate bonds	TDS will be charged at concessional rate (provided that the interest rate does not exceed the rate notified by central government)	5%
194M (with effect from 1 September 2019)	30, 31, 31A, 31AB, 38BA & 37BB	Payment by an Individual or HUF under a contract for work or professional fees	Not applicable to Individuals and HUF covered under Section 194C, and Section 194H or Section 194J Up to ₹ 50,00,000 Section 203A not applicable	5%	Payee to apply in Form 13 to the A.O. to obtain certificate	As per Section 193 above (unless specifically carved out)	As per Section 193 above (unless specifically carved out)
194N (with effect from 1 September 2019)	30, 31, 31A, 31AB, 38BA & 37BB	Payment of certain amount in cash by banking company (including bank or banking institution), co-operative bank or post office	Payment (cash withdrawal) by any person in excess of ₹ 1 crore from an account one or more account Not applicable to payment made to the Government, any banking company or co-operative society carrying on business of banking and their banking correspondent and white label ATM operator, any other person to be notified.	2%	Not applicable	As per Section 193 above	As per Section 193 above
195 Refer Note 3	26, 28, 28AA, 28AB, 29B, 30, 31A, 31AB, 37BA, 37BB	Interest or other sums (other than salary) paid to Non- residents or to foreign companies (not being dividends under Section 115-O after 1 June 2003)	Any sum chargeable under Income Tax	As per double taxation avoidance treaty or as per Schedule 1, Part II to the Finance Act, 2019 whichever is beneficial to the assessee	Payee to apply in Form 13 to the AO to obtain certificate Payee to apply in Form 15C/15D to the A.O. to obtain certificate Payer may apply to A.O. to determine income component in payment for lower deduction	Quarterly statement in Form No. 27Q on 15 July, 15 Oct., 15 Jan., 15 May	As per Section 193 above

Notes:

Surcharge is applicable at the following rates in case of:

Individual, HUF, AOP or BOI being non-resident :

Total income (Rs)	Surcharge rate
Exceeds ₹ 50 lakhs	10%
Exceeds ₹ 1 crore	15%
Exceeds ₹ 2 crores	25%
Exceeds ₹ 5 crores	37%

Foreign company @ 2% where such sum exceeds ₹ 1 crore but does not exceed Rs 10 crore and 5% where such sum exceeds ₹ 10 crore.

Health and Education Cess @ 4% is applicable to Non-Residents and Foreign Companies.

Nature of Activity	Salary	Other than Salary i.e.; Ss. 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194G, 194H, 194-I, 194J, 194LA, 194LBA, 194LC, 194LD, 194M, 194N
(a) Time of Deduction	When salary is paid	When income paid or credited to the account including interest “payable” or “suspense” account whichever is earlier.
(b) Time of deposit of tax (where deduction is made for or on behalf of the Government)	On same day	On same day
(c) Time of deposit of tax (where deduction is other than for or on behalf of Government)	Within 7 days from the last day of the month in which the deduction is made. Quarterly deduction from salary on July 7, October 7, January 7 and 30 April with prior approval of AO.	If credited or paid in the month of March on which accounts are made, on 30 April. Any other case, within 7 days from the end of the month in which deduction is made. Quarterly deduction from other interest, insurance commission or other commission or brokerage on July 7, October 7, January 7 and April 30 with prior approval from JC.

Nature of Activity

Salary

Other than Salary i.e.; Ss. 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194G, 194H, 194-I, 194J, 194LA, 194LBA, 194LC, 194LD, 194M, 194N

(a) Time of Deduction

When salary is paid

When income paid or credited to the account including interest “payable” or “suspense” account whichever is earlier.

(b) Time of deposit of tax (where deduction is made for or on behalf of the Government)

On same day

Within 7 days from the last day of the month in which the deduction is made. Quarterly deduction from salary on July 7, October 7, January 7 and 30 April with prior approval of AO.

If credited or paid in the month of March on which accounts are made, on 30 April. Any other case, within 7 days from the end of the month in which deduction is made.

Quarterly deduction from other interest, insurance commission or other commission or brokerage on July 7, October 7, January 7 and April 30 with prior approval from JC.

Note: For Section 194-IA and Section 194-IB refer chart above

Copies of Form Nos. 15G & 15H received by the payer have to be filed online on Income Tax Website within 7 days of the succeeding month. A declaration for non-deduction of tax under Section 197A can be furnished by the assessee only if his aggregate income is less than threshold limit. Senior Citizens can file declaration if tax on their estimated total income is likely to be NIL. It can also be furnished in paper form with Principal Chief Commissioner/Chief commissioner/Commissioner.
Consequences of delay in payment of TDS

If the person responsible for deducting and paying tax fails to do so, he shall be considered an assessee in default, liable to pay interest @ 1% p.m. or part thereof on the amount of such tax from the date on which such tax was deductible to the date of deduction and @ 1.50% p.m. or part thereof on the amount of such tax from the date of deduction to the date of actual payment, rigorous imprisonment ranging from 3 months to 7 years and fine. The interest payment needs to be made before filing of the Quarterly Return. For Penalty please refer page 15.
Disallowance due to non-deduction:
If tax deductible under Chapter XVII-B is not deducted during the previous year or deducted and not paid before the due date of filing the return of income than the relevant expenditure/30% of relevant expenditure otherwise allowable in computing total income of the payer would be liable for disallowance under Section 40(a)(i)/(ia) for non-resident and resident respectively. However, wherever the deduction is made in a subsequent year or the payment is made after the due date of filing the return of income, the deduction will be allowed in the year in which TDS is paid. For details see section 40(a).

Applicable to individuals or a HUF, who was liable to tax audit in the immediately preceding financial year shall be liable to deduct income-tax under Sections 194A, 194C, 194H, 194-I & 194J. Payments made by way of fees which are exclusively for personal purposes will not attract provisions of Sections 194C and 194J.
i. In case where deductee does not furnish PAN to the deductor, tax will be deducted at the higher of rate specified in the relevant provisions, or rate in force or twenty per cent. However, with effect from 1 June 2016, the above provisions shall not apply to a foreign company or to a non-resident subject to prescribed conditions.
ii. Declaration under Section 197A; i.e., declaration in Form 15G or 15H as the case may be are not valid

iii. Certificate of lower/nil deduction will not be issued in case of such deductee.
No TDS under Section 194C on Transport if the Contractors provides PAN and contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect.
As per newly introduced Rule 26C, employee has to furnish Form 12BB, being evidence of claims for deduction under Section 192.