Tax Deducted at Source (TDS) is a system of Indirect Tax Collection by Income Tax Department, where an individual is responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment. There is a list of various TDS rates which is applicable to a person resident in India which is discussed in this article.

TDS rates for AY (2018-19)

TDS Rates Applicable for Persons Resident in India

Section Particulars TDS Rates in % Threshold limits
192 Salary As per the rates of Income Slab As per the rates of Income Slab
192A Payment of accumulated balance of provident fund which is taxable in the hands of an employee 10
193 Interest on securities
a) Interest on Securities 10 Nil
b) Interest on Debentures; 10 Nil
194 Dividend
(other than the listed companies)
10 Nil
194A Income by way of interest other than interest on securities 10 Rs. 5,000
194B Winnings from lotteries/ puzzles/card games. 30 Rs. 10,000
194BB Income by way of Winnings from horse races 30 Rs. 5,000
194C Payment to contractor/sub- contractor

a) HUF/Individuals

b) Others

 

1

2

Rs. 30,000
194D Insurance commission 5 Rs. 20,000
194DA Payment in respect of life insurance policy 1
194EE Payment of NSS Deposits 10 Rs. 2,500
194F Payment on account of repurchase of unit by Mutual Fund or Unit trust of India 20 Nil
194G Commission on sale of lottery tickets 5 Rs. 1,000
194H Commission or brokerage 5 Rs. 5,000
194-I Rent
a) Plant & Machineryb) Land or building or furniture or fitting
2

10

Rs. 1.8 lakhs
194-IA Payment on transfer of certain immovable property other than agricultural land 1
194-IB Payment of rent by individual or HUF not liable to tax audit 5
194-IC Payment of monetary consideration under Joint Development Agreements 10
194J Any sum paid by way of

  1. Fee for professional services
  2. Fee for technical services
  3. Royalty,
  4. Remuneration/fee/commission to a director or
  5. For not carrying out any activity in relation to any business
  6. For not sharing any know-how, patent, copyright etc.
10 Rs. 30,000
194LA Payment of compensation on acquisition of certain immovable property 10 Rs. 1 lakh
194LBA Income distribution by a Business Trust u/s 115UA 10
194LBB Income distribution by a Investment Fund u/s 115UB 10
194LBC Income distribution by a Securitisation Trust u/s 115TCA 25% in case of Individual or HUF 30% in case of other individual
Any other Income 10