TDS stands for Tax Deducted at Source.

The following tables list the various TDS rates

applicable to resident and non-resident Indians as well as domestic and international companies
in India. Any person paying income is responsible to deduct tax at source and needs to deposit
this tax within the time stipulated.

This article covers the following:

 TDS Rates Applicable for Resident of India

 TDS Rates Applicable for Non-Resident of India (NRIs)
 TDS Rates Applicable for a Domestic Company
 TDS Rates Applicable for a company other than Domestic Company

TDS Rates Applicable for Resident of India

Particulars TDS Rate (%)
Section 192: Payment of salary Normal Slab Rate
Section 193: Interest on securities. a) any debentures or securities for
money issued by or on behalf of any local authority or a corporation
established by a Central, State or Provincial Act; b) any debentures issued
by a company where such debentures are listed on a recognized stock 10
exchange in accordance with the Securities Contracts (Regulation) Act,
1956 (42 of 1956) and any rules made thereunder; c) any security of the
Central or State Government; d) interest on any other security
Section 194: Dividend other than the dividend as referred to in Section 115-
10
O
Section 194A: Income by way of interest other than ―Interest on securities‖

w.e.f 1st April 2018, interest up to Rs. 50,000 earned by senior citizens on:
– deposit with banks
– deposit with post offices
– fixed deposits schemes
10
– recurring deposit schemes
will be exempt from TDS

w.e.f 1st April 2019, TDS on interest income from post offices and bank
deposits have increased up to Rs. 40,000 from the present limit of Rs.
10,000.
Section 194B: Income by way of winnings from lotteries, crossword
30
puzzles, card games and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractors.
 Particulars TDS Rate (%)

a) HUF/Individuals 1

b) Others 2
5

( w.e.f 01.06.2016)
Section 194D: Insurance commission
(10% from
01.04.2015 to
31.05.2016
1

( w.e.f 01.06.2016)
Section 194DA: Payment in respect of a life insurance policy
(2% from
01.04.2015 to
31.05.2016)
10

(w.e.f 01.06.2016)
Section 194EE: Payment in respect of deposit under National Savings
scheme
(20% from
01.04.2015 to
31.05.2016)
Section 194F: Payment on account of repurchase of a unit by Mutual Fund
20
or Unit Trust of India
5

(w.e.f 01.06.2016)
Section 194G: Commission, etc., on the sale of lottery tickets
(10 % from
01.04.2015 to
31.05.2016)
5

(w.e.f 01.06.2016)
Section 194H: Commission or brokerage
(10 % from
01.04.2015 to
31.05.2016)
(a) 2
Section 194-I: Rent on a) Plant & Machinery
(b) 10
 Particulars TDS Rate (%)

b) Land or building or furniture or fitting

W.e.f 1st April 2019, TDS limit for deduction of tax on rent is increased to
Rs. 2,40,000 p.a from Rs.1,80,000 p.a.
1

Section 194-IA: Payment on transfer of certain immovable property other 5

than agricultural land
(w.e.f from
Section 194 – IB: Rent payable by an individual or HUF not covered u/s. 01.06.2017)
194I (w.e.f from 01.06.2017)
(If payment of
Rent exceeds Rs.
50,000/- per month.
)
Section 194J: Any sum paid by way of: a. Fee for professional services b)
Fee for technical services. c. Royalty d. Remuneration/fee/commission to a
10
director ore) For not carrying out any activity in relation to any business. f)
For not sharing any know-how, patent, copyright etc.
Section 194LA: Payment of compensation on acquisition of certain
10
immovable property
Section 194LBA: Certain income distributed by a business trust to its unit
10
holder
Any Other Income 10
TDS Rates Applicable for Non-Resident of India (NRIs)
Normal
Section 192: Payment of Salary
Slab Rate
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card
30
games and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to non-resident sportsmen/sports association 20
10
Section 194EE: Payment in respect of deposits under National Savings Scheme

Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit

20
Trust of India
5
Section 194G: Commission, etc., on sale of lottery tickets

Section 194LB: Payment of interest on infrastructure debt fund 5

Section 194LBA: Certain income distributed by a business trust to its unit holder 5
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 5
issue of long-term bonds (including long-term infrastructure bond)
Section 194LD: Payment of interest on rupee denominated bond of an Indian
Company or Government securities to a Foreign Institutional Investor or a Qualified 5
Foreign Investor
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen 20
b) Income by way of long-term capital gains referred to in Section 115E in case of a
10
Non-resident Indian Citizen
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c)
10
of sub-section (1) of Section 193
d) Income by way of short-term capital gains referred to in Section 111A 15
e) Any other income by way of long-term capital gains [not being long-term capital
20
gains referred to in clauses (33), (36) and (38) of Section 10]
f) Income by way of interest payable by Government or an Indian concern on money
borrowed or debt incurred by Government or the Indian concern in foreign currency 20
(not being income by way of interest referred to in Section 194LB or Section 194LC
g) Income by way of royalty payable by Government or an Indian concern in
pursuance of an agreement made by it with the Government or the Indian concern
10
where such royalty is in consideration for the transfer of all or any rights (including
the granting of a licence) in respect of copyright in any book on a subject referred to
in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the
Indian concern, or in respect of any computer software referred to in the second
proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person
resident in India
h) Income by way of royalty [not being royalty of the nature referred to in sub-item
(b)(i)(F)] 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
10
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) Income by way of 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
10
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
j) Any other income 30
Section 196B: Income from units (including long-term capital gain on transfer of such
10
units) to an offshore fund
Section 196C: Income from foreign currency bonds or GDR of an Indian company
10
(including long-term capital gain on transfer of such bonds or GDR)
Section 196D: Income of Foreign Institutional Investors from securities (not being a
20
dividend or capital gain arising from such securities)

TDS Rates Applicable for a Domestic Companyfinance you

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Section 193: Interest on securities

a) any debentures or securities for money issued by or on behalf of any local
authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a
10
recognised stock exchange in accordance with the Securities Contracts
(Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government;
d) interest on any other security
Section 194: Dividend 10
Section 194A: Income by way of interest other than ―Interest on securities‖ 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles,
30
card games and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractor 1
a) HUF/Individuals 2
b) Others
Section 194D: Insurance commission 10
1

( w.e.f
01.06.2016)
Section 194DA: Payment in respect of the life insurance policy
(2% from
01.04.2015 to
31.05.2016)
10

(w.e.f 01.06.2016)
Section 194EE: Payment in respect of deposit under National Savings
scheme
(20% from
01.04.2015 to
31.05.2016)
Section 194F: Payment on account of repurchase of unit by Mutual Fund or
20
Unit Trust of India
10

(w.e.f
01.06.2016)
Section 194G: Commission, etc., on sale of lottery tickets
(10 % from
01.04.2015 to
31.05.2016)
5

(w.e.f
01.06.2016)
Section 194H: Commission or brokerage
(10 % from
01.04.2015 to
31.05.2016)
Section 194-I: Rent
2
a) Plant & Machinery
10
b) Land or building or furniture or fitting
Section 194-IA: Payment on transfer of certain immovable property other
1
than agricultural land
Section 194J: Any sum paid by way of
a) Fee for professional services, 10
b) Fee for technical services
c) Royalty,
d) Remuneration/fee/commission to a director or
e) For not carrying out any activity in relation to any business
f) For not sharing any know-how, patent, copyright etc.
Section 194LA: Payment of Compensation on the acquisition of certain
10
immovable property
Section 194LBA: Certain income distributed by a business trust to its unit
10
holder
Any Other Income 10

TDS Rates Applicable for a company other than Domestic

Company

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games
30
and other games of any sort
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to the non-resident sports association 20
Section 194G: Commission, etc., on the sale of lottery tickets 5
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA: Certain income distributed by a business trust to its unit holder 5
Section 194LC: Payment of interest by an Indian Company or business trust in respect of
money borrowed in foreign currency under a loan agreement or by way of issue of long-term 5
bonds (including long-term infrastructure bond)
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or
5
Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor
Section 195: Payment of any other suma) Income by way of long-term capital gains
10
referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112
b) Income by way of short-term capital gains referred to in Section 111A 15
c) Any other income by way of long-term capital gains [not being long-term capital gains
20
referred to in clauses (33), (36) and (38) of Section 10]
d) Income by way of interest payable by Government or an Indian concern on money
borrowed or debt incurred by Government or the Indian concern in foreign currency (not 20
being income by way of interest referred to in Section 194LB or Section 194LC)
e) Income by way of royalty 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 royalty is
in consideration for the transfer of all or any rights (including the granting of a license) in 10
respect of a copyright in any book on a subject referred to in the first proviso to sub-section
(1A) of Section 115A of the Income Tax Act, to the Indian concern or in respect of any
computer software referred to in the second proviso to sub-section (1A) of Section 115A of
the Income Tax Act, to a person resident in India
f) Income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)]
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,
10
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—
50
A. where the agreement is made after the 31st day of March 1961 but before the 1st day of
April 1976.

where the agreement is made after the 31st day of March 1976
10
g) Income by way of 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—
50
A. where the agreement is made after the 29th day of February 1964 but before the 1st day of
April, 1976B.

where the agreement is made after the 31st day of March, 1976
10
Any other income
40
Section 196B: Income from units (including long-term capital gain on transfer of such units)
10
to an offshore fund
Section 196C: Income from foreign currency bonds or GDR of an Indian company
10
(including long-term capital gain on transfer of such bonds or GDR)
Section 196D: Income of foreign Institutional Investors from securities (not being dividend
20
or capital gain arising from such securities)