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

SectionParticularsTDS Rates in %Threshold limits
192SalaryAs per the rates of Income SlabAs per the rates of Income Slab
192APayment of accumulated balance of provident fund which is taxable in the hands of an employee10
193Interest on securities
a) Interest on Securities10Nil
b) Interest on Debentures;10Nil
194Dividend
(other than the listed companies)
10Nil
194AIncome by way of interest other than interest on securities10Rs. 5,000
194BWinnings from lotteries/ puzzles/card games.30Rs. 10,000
194BBIncome by way of Winnings from horse races30Rs. 5,000
194CPayment to contractor/sub- contractor

a) HUF/Individuals

b) Others

 

1

2

Rs. 30,000
194DInsurance commission5Rs. 20,000
194DAPayment in respect of life insurance policy1
194EEPayment of NSS Deposits10Rs. 2,500
194FPayment on account of repurchase of unit by Mutual Fund or Unit trust of India20Nil
194GCommission on sale of lottery tickets5Rs. 1,000
194HCommission or brokerage5Rs. 5,000
194-IRent
a) Plant & Machineryb) Land or building or furniture or fitting
2

10

Rs. 1.8 lakhs
194-IAPayment on transfer of certain immovable property other than agricultural land1
194-IBPayment of rent by individual or HUF not liable to tax audit5
194-ICPayment of monetary consideration under Joint Development Agreements10
194JAny 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.
10Rs. 30,000
194LAPayment of compensation on acquisition of certain immovable property10Rs. 1 lakh
194LBAIncome distribution by a Business Trust u/s 115UA10
194LBBIncome distribution by a Investment Fund u/s 115UB10
194LBCIncome distribution by a Securitisation Trust u/s 115TCA25% in case of Individual or HUF 30% in case of other individual
Any other Income10