TDS Rates for Companies (AY 2018-19)

Particulars

TDS Rates

Section 193

Interest on securities and debentures:

a)      Issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

b)      Issued by a company where such dfebentures are listed on a recognized stock exchange in accordance with the securities contracts regulation act, 1956 and any rule made thereunder;

c)      Any security of the Central or State Government;

d)      On any other security.

10%

Section 194

Dividend

10%

Section 194A

Income from interest other than interest on securities

10%

Section 194B

Income from winnings from lotteries, crossword puzzles, card games and other games of any sort

30%

Section 194BB

30%

Section 194C

Payment to contractor/sub-contractor

a)

Individuals/HUF

1%

b)

Others

2%

Section 194D

Insurance commission

10%

Section 194DA

Payment of life insurance premium

1%

Section 194EE

Payment of deposit under National Savings Scheme

10%

Section 194F

20%

Section 194G

Commission on sale of lottery tickets

5%

Section 194H

Commission or brokerage

5%

Section 194-I

Rent

a)

Plant & Machinery

2%

b)

Land/Building/Furniture/Fitting

10%

Section 194-IA

Payment on transfer of certain immovable property other than agricultural land

1%

Section 194-IC

Payment of monetary consideration under Joint development Agreements

10%

Section 194J

Any sum paid as;

a)      Fee for professional services

b)      Fee for technical services

c)      Royalty

d)      Remuneration/fee/commission to a director

e)      For not carrying out any activity in relation to any business

f)       For not sharing any know-how, patent, copyright, etc.

(with effect from 1^st June, 2017 TDS rate will be 2% for payee engaged in business of operation of call center)

10%

Section 194LA

Payment of compensation on acquisition of certain immovable property

(with effect from 1^st April, 2017 no tax deduction shall be made on any payment which is exempt from levy of income-tax under right to fair compensation act, 2013)

10%

Section 194LBA(1)

Business trust shall deduct tax while distributing any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out real estate asset owned directly by it, to its unit holders.

10%

Section 194LBB

Investment fund paying an income to a unit holder (other than income which is exempt U/S 10(23FBB))

10%

Section 194LBC

Income from investment made in a securitization trust (specified in explanation of section 115TCA)

10%

Any other income

10%

Particulars

TDS Rates

Section 194B

Income from winnings from lotteries, crossword puzzles, card games and other games of any sort

30%

Section 194BB

Income from winnings from horse races

30%

Section 194E

Payment to non-resident sports association

20%

Section 194G

5%

Section 194LB

Payment on interest on infrastructure debt fund

5%

Section 194LBA(2)

Business trust shall deduct tax while distributing income or receivable by it from a SPV to its unit holders

5%

Section 194LBA(3)

Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders.

40%

Section 194LBB

Investment fund paying an income to a unit holder (other than income which is exempt U/S 10(23FBB))

40%

Section 194LBC

Income in respect of investment made in a securitization trust

40%

Section 194LC

Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds

(with effect from 1^st April, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before 1^st July, 2020)

5%

Section 194LD

Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor

(with effect from 1^st April, 2018 benefit of such concessional TDS rate has been further extended by 3 years. Now TDS at concessional rate of 5% will be applicable for borrowings made before 1^st July, 2020)

5%

Section 195

Payment of any other sum

a)

Income from long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

10%

b)

Income from short-term capital gains referred to in section 111A

15%

c)

20%

d)

Income from interest payable by Government or Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

20%

e)

Income from royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31^st day of march, 1976 where such royalty is in consideration for the transfer of all or any rights in respect of copyright in any book on a subject referred to in the first provision to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or is respect of any computer software referred to in the second provision to sub-section (1A) of section 115 of the income-tax act, to a person resident in India

10%

f)

Income from royalty (not being of the nature as in above point (e)) payable by government or Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the central government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy.

i)

Where agreement is made after 31^st March, 1961 but before 1^st April, 1976

50%

ii)

10%

g)

Income as fees for technical services payable by government or an Indian concern in pursuance of an agreement made by it with the government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the government of India, the agreement is in accordance with that policy

i)

Where agreement is made after 29^th February, 1964 but before 1^st April, 1976

50%

ii)

Where agreement is made after 31^st March, 1976

10%

h)

Any other income

40%

Section 196B

Income from units to an offshore fund (including long-term capital gain on transfer of such units)

10%

Section 196C

Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)

10%

Section 196D

Income of foreign Institutional Investors from securities (not being dividend or capital gain from such securities)

20%