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TDS Rate Chart for FY 2018-19

TDS Rate Chart for FY 2018-19
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Here is the Latest TDS Rate chart applicable for the Financial Year (FY) 2018-19 or for the assessment year (AY) 2019-20. The rate is after considering the changes in Budget of 2018.

Please read with the following points along with the TDS rate chart of  each section mentioned.

Section 192 A : In case withdrawal of accumulated balance in RPF is includible in the total income than TDS provisions u/s I92A applies.

Section 193 :  5000 is the Exemption limit of interest paid on debentures .Rs 10000 is the Exemption limit of interest on 7.75% GOI savings (Taxable) bonds which has replaced the earlier 8% Savings (Taxable) Bonds, 2003.

Section 194A :  Threshold limit where the payer is a banking company, co-operative society engaged in the business of banking or interest on any deposit with Post Office under any notified scheme is INR 10,000.The threshold limit for TDS on interest income for Senior Citizens is increased from INR 10,000 to INR 50,000.

Section 194 c : TDS is to be deducted @ 2.0% if the payee is an AOP or BOI. No TDS is applicable on payment to Contractor during the course of plying, hiring or leasing of goods carriages, where such contractor owns 10 or less goods carriages
during the FY and furnishes declaration along with PAN.

Section 194 DA : Applicable only where amount is not exempt u/s. 10(10D).
15G/15H can be given wherever applicable.

Section 194 J : 

  • Rate of TDS is 2% instead of 10% if the payee is engaged only in the business of operation of call center.
  • TDS on Remuneration to Director which is not in the nature of Salary to be deducted @ 10%.

Section 194 LA :  No tax will be deducted if payment is made in respect ofany award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition,Rehabilitation and Resettlement Act, 2013.

Section 194 LC : .

a). The specified company shall be an Indian company engaged in the business of

  • construction of dam,
  • operation of Aircraft,
  • manufacture or production of fertilizers,
  • construction of port including inland port,
  • construction of road, toll road or bridge;
  • generation, distribution of transmission of power
  • construction of ships in a shipyard; or
  • developing and building an affordable housing project as is presently referred to in section 35AD(8)(c)(vii)
    b).
    Also, requirement of section 206AA to furnish PAN shall not apply to this section.
    c).
    TDS shall be deducted in respect of interest payment for borrowings in foreign currency from a source outside India under a loan agreement made before 01.07.2020 to boost the economy by way of introduction of foreign capital.
    d).
    Further, Borrowings would also include monies borrowed by way of issue of rupee denominated bond outside India.
    e).
    The rate of TDS will be 20% in all cases except under section 194LC, if PAN is not quoted by the deductee.

(only on the non compliance of conditions as prescribed in section 206AA).

Health and Education Cess & tds

Health and Education Cess @ 4.0% shall be leviable on TDS in respect of all payments to non resident payees. In case of resident payees Health and Education cess @ 4.0% is leviable only in respect of TDS on payment of Salaries.

TDS on payments to non resident payees

TDS on payments to non resident payees in general will be governed by section 195 or other applicable provisions read with the DTAA with the country of their residence.

RATE OF TAX DEDUCTION AT SOURCE  FY 2018-19 Payee
Section Nature of Payments made
to Resident
Threshold Limits
(INR)
Company,
Partnership Firm /
LLP / Co–op
Society / Local
Authority
Individual, HUF,
AOP & BOI
Rate Rate
192 Salary N.A N.A *At the rates applicable to particular slab of income including applicable surcharge and Health & education cess.
192A Payment of accumulated
balance due to an employee
by RPF
50,000 N.A 10.00%
193  Interest on Securities 2,500 10.00% 10.00%
194–A Other Interest 5,000 10.00% 10.00%
194–B Winning from Lotteries 10,000 30.00% 30.00%
194-BB  Winnings from Horse races 10,000 30.00% 30.00%
194–C Payment to Contractors / Sub–
Contractors
Single Transaction =
30,000
Aggregate= 1,00,000
2.00% 1.00%
194–D  Insurance Commission 15,000 5.00% 5.00%
194–DA Payment in respect of Life
Insurance Policy
1,00,000 1.00% 1.00%
194–E Income arising to a Non–Citizen,
Non–Resident Entertainer or
Sportsmen
NIL N.A 20.00%
194-EE Payment in respect of deposits
under NSS
2,500 10.00% 10.00%
194-G Commission etc. on the sale of
lottery tickets
15,000 5.00% 5.00%
194–H  Commission/Brokerage 15,000 5.00% 5.00%
194–I Rent of machinery, plant or
equipment
1,80,000 2.00% 2.00%
194–I Rent of land, building, or
Furniture
1,80,000 10.00% 10.00%
194–IA Payment on transfer of certain
immovable property other than
agricultural land
50,00,000 1.00% 1.00%
194-IB Payment of Rent by
Individuals/HUF (other than
covered by Section 44AB)
50,000 p.m.  N.A. 5.00%
194- IC Payment under Specified
Agreement for Joint Development
NIL N.A 10.00%
194–J Professional Fees 30,000 10.0% / 2.0% 10.00%
194–LA Compensation or Consideration
for Compulsory Acquisition of
Immovable Property(other than
agricultural land)
2,50,000 1.00% 1.00%
194–LC Interest Income paid to Non–
Residents by Specified
Companies or Business Trust
NIL 5.00% 5.00%

 

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