TDS

TDS Ready Reckoner

Sec.	Nature of payment	Person responsible to deduct tax	Recipient	Time of deduction	Rate of TDS	Maximum payment up to which tax shall not be deducted
192	Salary	Employer	Employee	At the time of payment	Average rate of tax	Basic Exemption Limit
193	Interest on securities	Payer of interest on securities	Resident person	At the time of payment or crediting the payee, whichever is earlier	10%	Rs.2500 (Subject to certain conditions)
194	Dividend u/s 2(22)(e)	Domestic Company	Resident person	At the time of payment	10%	Rs.2500 (Subject to certain conditions)
194A	Interest other than interest on securities	Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding previous year	Resident person	At the time of payment or crediting the payee, whichever is earlier	10%	Rs.5000 (Subject to certain conditions) (Rs.10000 in case of Bank FDR)
194B	Winning from lotteries, etc.	Any person paying such income	Any person	At the time of payment	30%	Rs.5000 (Rs.10000 w.e.f. 01/07/2010)
194BB	Winning from horse races	Any person paying such income	Any person	At the time of payment	30%	Rs.2500 (Rs.5000 w.e.f. 01/07/2010)
194C(1) Upto 30/9/09	Contract	Any specified person including individual and HUF whose accounts are required to be audited during immediately preceding previous year	Resident person	At the time of payment or crediting the payee, whichever is earlier	Advertising Contract: 1% Other Contract: 2%	Rs.20000 (provided aggregate amount paid during the financial year does not exceed Rs.50000)
194C(2) Upto 30/9/09	Sub-Contract		Resident person	At the time of payment or crediting the payee, whichever is earlier	1%	a) Rs.20000 (provided aggregate amount paid during the financial year does not exceed Rs.50000) b) The amount payable to the sub-contractor being an individual (having max. 2 goods carriage) during the course of business of transport
194C From 1/10/09	Contract	Any specified person including individual and HUF whose accounts are required to be audited during immediately preceding previous year	Resident person	At the time of payment or crediting the payee, whichever is earlier	Payee is Individual or HUF : 1% Other payee: 2%	a) Rs.20000 (provided aggregate amount paid during the financial year does not exceed Rs.50000) (Rs.30000 and Rs.75000 w.e.f. 01/07/2010) b) Payment to Road transport operator if they provides PAN
194D	Insurance Commission	Any person			10%	Rs.5000 (Rs.20000 w.e.f. 01/07/2010)
194E	Sports person	Any person paying specified income	Non-resident foreign citizen sportsman or sports association	At the time of payment or crediting the payee, whichever is earlier	10%	Nil
194EE	Deposit in NSS	Post office	Any person	At the time of payment	20%	Rs.2500
194F	Units of Mutual fund/UTI	Mutual fund or UTI	Unit holder u/s 80CCB	At the time of payment	20%	Nil
194G	Commission on sale of lottery tickets	Any person paying commission on sale of lottery tickets	Any person	At the time of payment or crediting the payee, whichever is earlier	10%	Rs.1000
194H	Other commission	Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding P.Y.	Resident person	At the time of payment or crediting the payee, whichever is earlier	10%	Rs.2500 (Rs.5000 w.e.f. 01/07/2010)
194I	Rent	Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding P.Y.	Resident person	At the time of payment or crediting the payee, whichever is earlier	Plant & Mach: 10% In other case Where the payee is individual or HUF: 15% In any other case: 20% From 1/10/09 Plant & Mach: 2% Other Asset: 10%	Rs.120000 (Rs.180000 w.e.f. 01/07/2010)
194J	Professional or technical service	Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding previous year	Resident person	At the time of payment or crediting the payee, whichever is earlier	10%	Rs.20000 (Rs.30000 w.e.f. 01/07/2010)
194LA	Compensation for compulsory acquisition of immovable property (other than agro land)	Any person responsible for such payment	Resident	At the time of payment in cash or by cheque or draft or by other mode, whichever is earlier.	10%	Rs.100000
195	Any sum	Any person paying any amount chargeable under this Act	Non-resident	At the time of payment or crediting the payee, whichever is earlier	Specified Rates	Nil
196B	Units income	Any person responsible for payment referred in sec.115AB	An Offshore fund	At the time of payment or crediting the payee, whichever is earlier	10%	Nil
196C	Foreign currency bonds or GDR	Any person responsible for payment referred in sec.115AC	Non-resident	At the time of payment or crediting the payee, whichever is earlier	10%	Nil
196D	Any income	Any person responsible for payment referred in sec. 115AD(1)(a)	Foreign Institutional Investor	At the time of payment or crediting the payee, whichever is earlier	20%	Nil

Note: From April 1, 2010, TDS at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available.

Applicability of surcharge and education cess while computing TDS

On Salary (paid to resident or non-resident)	Education cess & SHEC shall be considered.
Any other payment to resident	No surcharge, education cess & SHEC shall be considered
Any other payment to non-resident
- Foreign company (where amount of such payment exceeds Rs.1 crore)	Surcharge (2.5%), education cess & SHEC shall be taken
- Foreign company (where amount of such payment does not exceed Rs.1 crore)	Education cess & SHEC shall be considered.
- Any other non-resident	Education cess & SHEC shall be considered.