TDS and their important sections

1. TDS: IMPORTANT SEC.

2. TDS: RETURNS FORMS
FORM24Q: Quarterly statement for tax deducted at source from “salaries”.
FORM 26Q: Quarterly statement of tax deducted at source in respect of all payments other
than “salaries”.
FORM 27Q: Quarterly statement of deduction of tax from interest, dividend or any other sum
payble to non-residents.
FORM 27EQ: Quarterly statement of collection of tax at source.

3. TDS: DEDUCTIONS
TDS: TAX DEDUCTION AT SOURCE
SEC.192: SALARY
For salary tax is deducted at normal rate which is prescribed by the finace act
every year.
SEC.192A: TDS FROM WITHDRAWAL FROM EMPLOYEES PROVIDENT FUND
SCHEME
• Tac is deductible from “taxable premature withdrawal” tax is deductible from accumulated
lump sum payment( at the time of retirement or at the of leaving job).

4. • Tax is deductible u/s 192A at rate of 10%
no surcharge or cess if recipient is resident
surcharge/education cess applicable if recipient is non-residents.
Threshold limit: tax is no deductible if “taxable premature withdrawal”
is less than Rs 50,000 rupees.

5. SEC..193: TDS FROM INTEREST ON SECURITES
who is payer: payer of interest on securities.
who is recipient: a resident person holding securities.
payment covered: interest on securities
Rate : 10%
when the provisions are not applicable: interest on central/state
govt. securities other
prescribed provision.

6. SEC. 194: TDS FROM DIVIDENDS
who is payer: Domestic company
who is recipient: Resident shareholder
payment covered: Deemed dividend u/s2(22)(e)
Rate of tax: 10%
When the provision are not applicable: Dividend covered by sec.115O.

7. SEC.194A: TDS FROM INTEREST OTHER THAN INTEREST ON SECURITIES
Who is payer: any person paying interest other than interest on securities(not being
an individual or a HUF whose books of account are not required to audited under
section 44AB in the immediately preceding financial year.
Who is recipient: a resident person
Payment covered: interest other than interest on securities
Threshold limit: if the amount of payment or at the time of credit is Rs.5000 or less
than Rs. 5000 ( in case of bank interest : Rs. 10000.
Rate of interest: 10%

8. SEC. 194B: TDS FROM WINNINGS FROM LOTTERIES OR CROSSWORD
PUZZLES
Who is payer: any person on paying winnings from lotteries/ cross word puzzles/
card games/ other games.
Who is recipient: any person
Threshold limit: Rs. 10000 or less than 10000
Rate of tax: 10%

9. SEC. 194BB: TDS FROM WINNINGS FROM HORSE RACES
Who is payer: any person paying winning from horse races
Who is recipient: any person
Threshold limit: Rs. 10000 or less
Rate of tax: 30%

10. SEC.194C: TDS FROM PAYMENT TO CONTRACTORS OR SUB-
CONTRACTORS
Who is payer: central govt., any local authority, any company, any trust, any person
Who is recipient: resident contractor
Rate of tax: if the recipient an individual, HUF: 1%
if the recipient is any other person: 2%
When tax is not deductible: a) the amount of any single sum credited or paid ( or
likely to be credited or paid to the contractor does not exceed Rs. 30000
b) the aggregate of the amount of such sums credited or
paid( or likely to be credited or paid) during the financial year does not exceed Rs.
100000.

11. SEC.194D: TDS FROM INSURANCE COMMISSION
Who is payer: any person paying insurance commission
Who is recipient: a resident person
Threshold limit: Rs. 15000 or less( to be calculated on aggregate basis for the entire
financial year)
Rate of tax: 5%( if recipient is a person other than company)
10%( if recipient is a company)

12. SEC.194DA: TDS FROM PAYMENT OF LIFE INSURANCE POLICY:
Who is payer: any person responsible for paying to a resident any sum under a life
insurance policy(including bonus)
Who is recipient: a resident person
Threshold limit: any amount which is less than Rs. 100000(to be calculated on
aggregate basis for the entire financial year)
Rate of tax: 2%(1% from 1st june, 2010)
When the provisions are not applicable: if the payment is exempt in the hands of
recipient under sec.10(10D)

13. SEC. 194E: TDS FROM PAYMENT TO NON-RESIDENT SPORTSMEN OR
SPORTS ASSOCIATION
Who is payer: any person
Who is recipient: non-resident foreign citizen sportsman or non-resident sports
association or institution.
There is no threshold limit.
Rate of tax: 20%

14. SEC.194EE: TDS FROM PAYMENTS IN RESPECT OF NATIONAL SAVINGS
SCHEME
Who is payer: post office
Who is the recipient: any person
Payment covered: principal interest out of national saving scheme,1987
Threshold limit: 2500 or less than 2500
Rate of tax: 20%( 10% from 1st june 2016)

15. SEC.194F: TDS ON PAYMENTS ON ACCOUNT OF REPURCHASE OF UNITS OF
MUTUAL FUNDS OR UTI
Who is payer: mutual fund or uti
Who is recipient: unit holder sec.80CCB
Rate of tax: 20%
There is no threshold limit.

16. SEC.194G: TDS FROM COMMISSION ETC. ON SALE OF LOTTERY TICKETS
Who is payer: any person paying commission on sale of lottery tickets.
Who is recipient: any person
Threshold limit: Rs.1000( 15000 from 1st june 2016 or less)
Rate of tax: 10%(5%from 1st june2016)
SEC. 194H: TDS FROM COMMISSION OR BROKERAGE
Who is payer: any person(not being an HUF and individual)
Who is recipient: any resident person
Payment covered: commission or brokerage(not being an insurance commission)
Threshold limit: Rs.5000( Rs.15000 from 1st june 2016)
Rate : 10%(5% from june 2016)

17. SEC.194I: TDS FROM RENT
Who is the payer: any person paying rent(not bring an individual or a HUF whose
books of account are not required to be audited under section 44AB in the
immediately preceding financial year.
Who is the recipient: a resident person
Payment covered: rent
Threshold limit: Rs.180000 or less than 180000
Rate: for the use of any machinery or plant: 2%
for the use of any land or building or furniture or fittings: 10%

18. SEC.194IA: TDS ON PURCHASE OF IMMOVABLE PROPERTY
1ST june2013
Any person(being a transfree) responsible for paying( other than the person referred
to in sec.194LA to a resident transferor any sum by way of consideration for transfer
of any immovable property(other than agriculture land in rural area in india) is
liable to deduct tax at source under section 194IA
Rate of tax: 1%(the recipient does not furnish his PAN to the deductor, tax will
deducted( by virtue of section 206AA) at the rate of 20%
Threshold limit: less than Rs. 5000000

19. SEC.194IB: TDS FROM PAYMENT OF RENT BY CERTAIN
INDIVIDUALS/HUF
Who is responsible for tax deduction: any individual/HUF( whose books of account
are not required to be audited under section sec.44AB in the immediately preceding
year.
Rate of tax: 5% and if PAN is not available 20%
SEC.194IC: TDS FROM PAYMENT UNDER JOINT DEVELOPMENT
AGREEMENT
Who is responsible for tax deduction: any person responsible for paying to a resident
any sum by way of consideration( not being consideration in kind) under a joint
development agreement is responsible for tax deduction under section 194IC
Threshold limit: nil
Rate : 10% (and if PAN is not available 20%)

20. SEC.194J: TDS ON FEES FOR PROFESSIONAL OR TECHNICAL
SERVICES
Who is payer: any person(not being an individual/HUF) who pays/credit
fees for professional /technical/royalty or director’s fees is responsible for
tax deduction.
Who is recipient: a resident person
Threshold limit: Rs. 30000 or less than Rs. 30000
Rate of tax: 10%(with from 1st june 2017, it is 2% if the recipient is
engaged only in the business of operation of call centre.

21. SEC.194LA: TDS FROM PAYMENT OF COMPENSATION ON ACQUISITION
OF CERTAIN IMMOVALE PROPERTY
Who is payer: any person paying compensation/enhanced compensational
consideration on account of compulsory acquisition of any land (not being rural
agricultural land) or building.
Who is recipient: a resident person
Threshold limit: does not exceed Rs. 250000
Rate of tax: 10%
SEC.194LB: TDS FROM INTEREST PAYABLE ON INFRASTRUCTURE
DEBT. FUND.
Who is payer: any person responsible for paying income by way of interst by an
infrastructure debt fund.
Who is recipient: a non- resident or a foreign company
There no threshold limit. Rate – 5%(cess)

22. SEC.195: TDS FROM OTHER SUMS
Who is payer: any person(resident or non-resident) responsible for making payment to
non-resident.
Who is recipient: a non-resident(non-corporate) person or a foreign company
Payment covered: any payment to non-resident other than salary.
SEC.196B: TDS FROM UNITS OR LONG TERM CAPITAL GAIN UNDER
REFERRED TO IN SEC. 115AB OR BY LONG TERM CAPITAL GAIN
Simple TDS rate is @10%
SEC.196C: TDS FROM INCOME OR LONG TERM CAPITAL GAIN FROM
FOREIGN CURRENCY BONDS/GLOBAL DEPOSITORY RECEIPTS:
Who is payer: any person responsible for paying income/long term capital gain from
GDR/bonds.
Who is recipient: a non-resident person
Rate: 10% and surcharge and cess

23. SEC. 196D: TDS FROM INCOME OF FOREIGN INSTITUTIONAL
INVESTORS FROM SECURITIES:
Who is payer: any person
Who is recipient: foreign institutional investors
Tax rate : 20%(cess)
Payment covered: 115O.