|Section||Nature of payment||Person responsible to deduct TDS||Type of payee||Rate of TDS||Exemption Limit|
|192||Salary||All employers||Employee||As applicable to the individual||Basic exemption applicable to individuals (Rs. 2,00,000/ Rs2,50,000)|
|193||Interest on debentures||All persons||Any resident in India||Domestic Companies and resident Non – Corporate Assessees – 10%||Up to 30.06.2012 – Rs.2,500/- From 01/7/2012 -Rs. 5,000/-|
|194||Deemed dividend||Any company||Shareholder (Resident in India)||10%||Rs. 1,000/-(paid by account payee cheque) – only for individuals|
|194A||Interest other than interest on securities||All Assessees (except individuals and HUF who are not subject to audit u/s 44AB during preceding previous year)||Any resident in India||10%||Rs. 10,000/- if payment made by Banking Co.,Co-operative Society, Post Office
Rs. 5,000 – others
|194B||Lottery / Cross Word Puzzle||Any persons||All persons||30%||Rs. 10,000/-|
|194BB||Winnings from Horse Race||Any person being a licensed book maker||Any person||30%||5,000|
|194C||Payment to contractor / sub contractor||All Assessees including Foreign enterprises & Govt. (except individuals HUF, AOP, BOI who are not subject to audit u/s 44AB during preceding previous year)||Any resident Contractor / Sub-Contractor for any work including supply of labour||If payee is individual/HUF – 1%
Others – 2%
|Rs. 30,000/- per contract value
Rs. 75,000/-p.a. in aggregate
|194D||Insurance Commission||Insurance Companies||Any resident in India (Eg. Insurance agents)||10%||Rs. 20,000/-p.a.|
|194E||Payment to Non-resident sportsman, sports association or institution or to an entertainer||Any Person||Non-resident sportsman, sports association or institution or an entertainer||Up to 30/06/2012 – 10%
From 01/07/2012 – 20%
|194EE||Payments in respect of deposits under National Savings scheme, etc.||Any Person||Any Person||20%||Rs. 2,500/-|
|194F||Payments on account of repurchase of units of MF/UTI.||Any Person||Any Person||20%||Rs. 1,000/-|
|194G||Commission on sale of lottery tickets||Stockist, Distributor etc. of lottery ticket||Person stocking, purchasing or selling lottery tickets||10%||Rs. 1,000/-|
|194H||Commission or Brokerage||All Assessees (except individuals and HUF who are not subject to audit u/s 44AB during preceding previous year)||Any resident in India||10%||Rs. 5,000/-|
|194I||Rent||All Assessees (except individuals and HUF who are not subject to audit u/s 44AB during preceding previous year)||Any person(exempt for Govt./ Local authorities)||Plant & Machinery, Equipment – 2%
Land & Building, Furniture/ Fitting – 10%
|194J||Professional or technical fees||Any resident in India||10%||Rs. 30,000/-|
|194J(1) (ba)||Any remuneration or commission paid to director of the company – Not in the nature of salary(Effective from 1 July 2012)||company||Director of company||From 01/07/2012 – 10%
Up to 30/06/2012 – NA
|194LA||Compensation on acquisition of immovable property||Any person||Resident||10%||Up to 30/06/2012 – Rs.1,00,000/- p.a.
From 01/07/2012 – Rs. 2,00,000/- p.a.
|194LC||Payment of interest to a non-resident by an Indian Company||specified company||Non-resident or a foreign company||5%||Nil|
TCS Rates for Financial year 2012-13
|Sl. No.||Nature of goods||Rates in %|
|1||Alcoholic liquor for human Consumption||1|
|3||Timber obtained under forest lease||2.5|
|4||Timber obtained by any mode other than a forest lease||2.5|
|5||Any other forest produce not being timber or tendu leaves||2.5|
|9||Mining & Quarrying||2|
|10||Minerals, being coal or lignite or iron ore||1 wef 01/07/2012|
|11||jewellery (if the sale consideration is paid in cash exceeding INR 5 lakhs, 2 lakhs in case of Bullion)||1 wef 01/07/2012|
Important notes :
TDS at higher rate i.e., 20% is to be made if the deductee does not provide PAN to the deductor.
No TDS on Goods Transport:No deduction shall be made from any sum credited/ paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
Surcharge on Income-tax is not deductible/collectible at source in case of individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary.
In the case of Company other than Domestic Company, the rate of surcharge is @ 2% of Income-tax, where the income or the aggregate of such income paid or likely to be paid exceeds Rs.1,00,00,000/-.
No Cess on payment made to resident:Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary. Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.