Tax Deduction at Source 12022013 2

7/30/2019 Tax Deduction at Source 12022013 2

1/7

DED

AT

OTHSA

INCOME Directorate o

6th Floor, May

N

Tax Payers


2/7

DE

AT

OTH

SA


3/7

This publication should not be construed as an

exhaustive statement of the Law. In case of doubt,

reference should always be made to the relevant

provisions of the Income Tax Act, 1961, Income TaxRules, 1962 Wealth Tax Act, 1957 and Wealth Tax

Rules, 1957, and, wherever necessary, to Notifications

issued from time to time.

The provisions

Deduction at sourc

immense importance iaccount for almost 39%

The Income Tax

any default in respect

the deducted amount

Deductors need to be

to Tax Deduction at S

the Income Tax Act. Th

to put forth the variou

precise manner.

This book has be

K. Bhagat, Addl. DIT

has very painstakingly

the Law as amended u

Shri Bhagat for updat

will be appreciated and

The Directorate w

improvement of the bo

New Delhi

Dated : 8-02-2012


4/7

(1)

Section

19 3

Interest

o n

securities

19 4

Dividends

194A

Interest other

than Interest

on Security

(2)

Payer

Any person

Principal Officer

of Indian

Company/

Company which

has made

arrangement for

declaration of

dividend in India

Any person

not an individual

or HUF

(3)

Recipient

Resident

Resident

share

holder

An y

resident

(4)

Nature of payment

attracting TDS

Interest of

Securities(defined

under clause 28B of

Section 2

Dividend within

meaning of sub

clauses (a), (b), (c) or

(d) or (c) of

clause(22) section(2)

Interest other than

interest on Securities

(5)

Time of TDS

At the time of

Credit/payment in

cash/through

cheques/draft, which

ever is earlier

Before making

payment in Cash,

through Cheque/

warrant of before

making distribution

or payment

At the time of credit

or payment in cash

through cheque/draft

etc., which ever is

earlier.

(6)

Rate

As per

rate in

force

As per

rate in

force

As per

rate in

force

(7)

Amount exempt

from TDS

As 10,000/- in case

of a banking

company,

cooperative society

which is in

business of banking

or post office 5,000/

- in other cases

(8)

Exceptions & other

remarks

Securities listed specifically in Section

193

(i) No TDS in case of Individual share

holders where payment is by account

payee cheque and aggregate amount of

dividend paid/payable in the F.Y. is less

than Rs. 2500/-

(ii) No TDS in case of dividends referred

in Section 115-O

(iii) No TDS on Income credited or paid

to LIC, GIC or other insurer.

(i) TDS is to be done where recipient is

individual or HUF whose total sales/

receipts from business or profession

exceeds Rs. 40 lacs./Rs. 10 lacs.

respectively as specified u/s 44 AB. These

Limits will stand revised at Rs. 60 lakhs

and Rs. 45 lakhs respectively w.e.f. 1/4/

2011.

(ii) No TDS to be done in case of Interest

Income specified in clause iii to x of sub-

section 3 of 194(a).

Chapter 9 of booklet "TDS Other than Salaries"

Summary Table of TDS Provisions

82

83

(1)

Section

194B

Winnings

from lottery

or cross

word puzzle

194BB

Winnings

from

Horse race

194-C

Payment to

contractors

and Sub-

contractors

(2)

Payer

Any person

A book maker or a

person having license

for horse racing or

for arranging for

wagering or the

betting in an

horse race.

Any person

(4)

Nature of payment

attracting TDS

Income by way of

winning from lottery

or crossword puzzle

or card game or

other game of any

sort.

Winnings from Horse

race

Contractual payment

for carrying out any

work including

supply of labour in

pursuance of a

contract between the

contractor and

persons specified in

sub-clause c to

explanation to Sec.

194(C)

(5)

Time of TDS

At the time of

payment

At the time of

payment

At the time of

credit or at the time

of payment in cash

by cheque/draft etc.

which ever is earlier

(6)

Rate

As per

rate in

force

As per

rate in

force

(i) 1%wherepayment/credit isto anindividual/HUF.(ii) 2%

whererecipientis anyotherperson

(7)

Amount exempt

from TDS

5,000/- rupees

increased to Rs.

10,000/- w.e.f.

1/7/2010

2500/- rupees.

Increased to Rs.

5000/- w.e.f.

1/7/2011.

20,000/- rupees.

increased to Rs.

30,000/- w.e.f.

1/7/2010

(8)

Exceptions & other

remarks

Where winnings are wholly inkind or partly in cash and partlyin kind and the cash componentis not sufficient to meet the TDSliability is to be ensured thatthe tax has been paid beforereleasing the winnings.

(i) No TDS to be done by anindividual or an HUF on acontractual payment of work forthe personal purpose of theindividual or the HUF.(ii) No deduction in case ofcontractors in business ofpaying/hiring of goods orleasing goods carriage where

PAN is furnished.(iii) Where aggregate payment/credit in F.Y. is more than Rs.75,000/- then deduction is tobe done even if individualpayments is less than Rs.30,000/-

(3)

Recipient

An y

person

An y

person

An y

resident


5/7

(1)

Section

194-D

194-E

Payment to

non-resident,

sportsman

or sports

association

194-EE

Payment in

respect of

deposit under

NSS etc.

194F

Payment on

account of

re-purchase

of units by

mutual fund

or UTI

(2)

Payer

An y

person

An y

person

An y

person

Person

making

specified

payment

(3)

Recipient

Any resident

Non-resident

sportsman who

is not a citizen of

India or a non-

resident sport

association or

institution.

Any person

Any person

(4)

Nature of payment

attracting TDS

Income by way of

remuneration or

reward, whether by

way of commission or

otherwise for

soliciting or procuring

insurance business.

Income referred to

Section 115BBA to

non-resident sports

man or sports

association.

Payment under

National Savings

Scheme 1987

referred to in Section

80CC(A)(2) clause(a)

Amount referred to in

sub-section 2 of

80CCB

(5)

Time of TDS

At the time of

credit or payment

in cash or by

cheque/draft etc.

which ever is

earlier.

At the time of

credit or payment

in cash or by

cheque/draft etc.

which ever is

earlier.

At the time of

payment

At the time of

payment

(6)

Rate

As per

the rate

in force.

10 %

20 %

20 %

(7)

Amount exempt

from TDS

5000/- rupees

increased to Rs.

20,000/- w.e.f.

1/7/2010

2500/- rupees

(8)

Exceptions & other remarks

The provision is not

applicable to heirs of the

assessee.

(1)

Section

194G

Commission

etc. on sale

of lottery

tickets

194HCommission

o f

brokerage

194(I)

Rent

(2)

Payer

An y

person

An yperson

no t

being

individual

or HUF

An y

person

no t

being

individual

or HUF

(4)

Nature of payment

attracting TDS

Income by way of

commission,

remuneration or prize

on such tickets.

Any income by wayof Commission or

brokerage

(not being insurance

commission referred

in sec. 194D)

Income by way of rent

(5)

Time of TDS

At the time of

credit or

payment in cash

or by cheque/

draft etc. which

ever is earlier.

At the time ofcredit or

payment in cash

or by cheque/

draft etc. which

ever is earlier.

At the time of

credit or

payment in cash

or by cheque/

draft etc. which

ever is earlier.

(3)

Recipient

Any person

who has been

stocking,

purchasing,

selling lottery

tickets.

Any resident

Any resident

(6)

Rate

10 %

10 %

i) 2% for use ofmachinery, plantor equipmentii) 10% for use of land orbuilding (includingfactory building) or landappurtenant to a building(including) factorybuilding furniture, fittingetc. (Amended provisionsincorporated w.e.f. 1/10/2009).

(7)

Amount exempt

from TDS

1000/- rupees

2500/- rupeesIncreased to Rs.

5000/- w.e.f. 1/7/

2010

1,20,000/- rupees

Increased to Rs.

1,80,000/- w.e.f.

1/7/2010.

(8)


i) The provision will apply to an individualor HUF whose total sales/gross return/turn

over from business or profession expenses

Rs. 40,00,000/- Rs.10,00,000/- respectively.

This limit stands enhanced to Rs. 60,00,000/

- and Rs. 15,00,000/- w.e.f. 1/4/2011.

ii) No TDS to be done by BSNL or

MTNL on any commission or brokerage

payable to the PCO franchisees.

The provision will apply to an individual

or HUF whose total sales/gross return/turn

over from business or profession expenses

Rs. 40,00,000/- Rs.10,00,000/- (as

specified u/s. 44 AB limits enhanced as

specified above).

84

85


6/7

(1)

Section

194 J

Fees for

professional

or technical

services

194 K

Income in

respect of

units

194L

Payment of

compensation

o nacquisition

of capital

asset

(2)

Payer

Any person

not being

individual

or HUF

Entity

making

payment in

respect of

units of

mutual

fund/UTI

Person

acquiring

capital asset

and payingcompensation

(3)

Recipient

An y

resident

An y

resident

An y

resident

(4)

Nature of payment

attracting TDS

Fees for professional

or technical services

or royalty or any sum

referred in clause (va)

of Section 28

Income from units of

mutual fund specified

U/s 10(23) or units of

UT I

Sum being in nature

of compensation/

enhanced

compensation/consideration on

account of compulsory

acquisition of a capital

asset under any law.

(5)

Time of TDS

At the time of

credit or

payment in cash

or by cheque/

draft etc. which

ever is earlier.

At the time of

credit or

payment in cash

or by cheque/

draft etc. which

ever is earlier.

At the time of

payment of sum

in cash or by

cheque or draftor any other

mode which

ever is earlier.

(6)

Rate

10 %

10 %

10 %

(7)

Amount exempt

from TDS

20,000/- rupees

Increased to Rs.

30,000/-w.e.f. 1/

7/2010

2500/- rupees

1,00,000/- rupees

(8)


i) The provision will apply to an

individual or HUF whose total

sales/gross return/turn over from

business or profession expenses

Rs. 40,00,000/- Rs. 10,00,000/-

limits 44AB increased as specified

above w.e.f. 1/4/2011.

ii) However, an individual or HUF

making payment by way of fees for

professional services for personal

purposes is not liable to deduct tax

at source.

No deduction is to be made

under this section for any

amount credited or paid on or

after 1.4. 2003.

No deduction to be made for any

payment after 1.6.2000.

(1)

Section

194LAPayment ofcompensationo nacquisitionof certainimmovableproperty.

194LBInocme byway ofinterestfrominfrastructuredebt fund

196AIncome inrespect ofunits ofNon-residents

196- BIncomefrom Units

(2)

Payer

Any personrequiringimmovableproperty andpayingcompensation

Any personmakingpayment frominfrastructuredebt fund

Any personmakingpayment ofunits ofmutual fundor UTI

Any entitymakingpayment of

income fromunits or LTCGon their transfer

(3)

Recipient

An yresident

No nresident notbeing acompay or aforeigncompany

Any non-resident(notbeing acompany)or a foreigncompany

Off ShoreFund

(4)

Nature of paymentattracting TDS

Payment in nature ofcompensation of enhancedcompensation orconsideration forcompulsory acquisition ofimmovable property underany law(other thanagricultural land)

Payment of interest from aninfrastrucdture debt fundreferred to in sec 10(47)

Any income in respect of unitsof mutual fund specified underclause 23(D) of Section 10 orof UTI

Income in respect of unitsreferred to in Section115AB or by way of long

term capital gains arisingfrom transfer of such units

(5)

Time of TDS

At the time of creditor payment in cash orby cheque/draft etc.which ever is earlier.



At the time of creditor payment in cash orby cheque/draft etc.

which ever is earlier.

(6)

Rate

10 %

5%

20 %

10 %

(7)

Amount exemptfrom TDS

1,00,000/- rupees

----

----

(8)

Exceptions & otherremarks

Agricultural Land inIndia means landsituated in any areareferred to in items (a)& (b) of sub clause (iii)of clause (14) of Sec. 2

Introduced w.e.f.1.6.2011 by the FinanceAct, 2011

No deduction is to bemade for any paymentafter 1.4.2003.

-

86

87


7/7

(1)

Section

196-CIncomefromforeigncurrencybonds

196-DIncome ofFIIs fromSecurities

(2)

Payer

Any person

Any person

(3)

Recipient

No nresident

ForeignInstitutionalinvestor

(4)

Nature of paymentattracting TDS

Income by way of interestor dividend in respect ofbonds or GDR referred toin Section 115AC or byway of LTCG arising fromtheir transfer

Income in respect ofsecurities referred to inclause A of Sub-section(1) of Section 115AD

(5)

Time of TDS



(6)

Rate

10 %

20 %

(7)

Amount exemptfrom TDS

-----

------

(8)

Exceptions & otherremarks

No deduction to bemade in respect of anydividend referred to inSection 115-O.

No deduction to bemade in respect of anydividend referred to inSection 115-O.

ANNEXURE

I

RATESFO

RDEDUCTION

OF

TA

XAT

SOURCEIN

CERTAIN

CASE

S

Thestatueprovidesfordeductionoftaxatsource,as

perratesin

forceincaseofcertaincategoryofpayments.Th

eseratesin

forcearespecified

inpart-IIofScheduleIofFin

anceActin

eachF.Y.Inthosec

asesinwhich,undertheprovisionsofsections

193,194,194A,19

4B,194BB,194Dand195ofthe

Income-tax

Act,taxistobedeductedattheratesinforce,deductionshallbe

madefromtheincomesubjecttothedeductionatthefollowing

rates:

Rateof

in

come-tax

1.

Inthecaseof

apersonotherthanacompany

(a)

wherethepersonisresidentinIndia

(i)

on

incomebywayofinterestother

thanInterestonsecurities

10percent;

(ii)on

incomebywayofwinningsfrom

lotteries,crosswordpuzzles,card

gamesandothergamesofanysort30percent;

(iii)on

incomebywayofwinningsfrom

ho

rseraces

30percent;

(iv)on

incomebywayofinsurance

commission

10percent;

(v)on

incomebywayofinterest

payableon

10percent;

88

89

Tax Deduction at Source 12022013 2

Documents

Transcript of Tax Deduction at Source 12022013 2