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Finance and Tax HUB

Finance and Tax Consultant

When payment made to Resident other than Company

Assessment Year 2016-17

Section

Description

TDS Rates

(in %)

Section 192

Payment of salary

Normal Slab Rate

Section 192A

Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015).

10

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;

10

b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

10

c) any security of the Central or State Government;

10

d) interest on any other security

10

Section 194

 Dividend other than the dividend as referred to in Section 115-O

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, card games and other games of any sort

30

Section 194BB

 Income by way of winnings from horse races

30

Section 194C

 Payment to contractor/sub-contractor :

 

a) HUF/Individuals

1

b) Others

2

Section 194D

 Insurance commission

10

Section 194DA

 Payment in respect of life insurance policy

2

Section 194EE

 Payment in respect of deposit under National Savings scheme

20

Section 194F

 Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India

20

Section 194G

 Commission, etc., on sale of lottery tickets

10

Section 194H

 Commission or brokerage

10

Section 194-I

 Rent :

 

a) Plant & Machinery

2

b) Land or building or furniture or fitting

10

Section 194-IA

 Payment on transfer of certain immovable property other than agricultural land

1

Section 194J

 Any sum paid by way of :

10

a) Fee for professional services,

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 acquisition of certain immovable property

10

Section 194LBA(1)

 Business trust shall deduct tax while distributing, any income received or receivable by it from a SPV or any income received from renting or leasing or letting out any 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 under Section 10(23FBB)] shall deduct tax therefrom (with effect from 01.06.2015).

10



When payment made to Non-Resident other than Company

Assessment Year 2016-17


Section

Description

TDS Rates

(in %)

Section 192

 Payment of Salary

Normal Slab

Rate

Section 192A

 Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015).

10

Section 194B

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

30

Section 194BB

 Income by way of winnings from horse races

30

Section 194E

 Payment to non-resident sportsmen/sports association

20

Section 194EE

 Payment in respect of deposits under National Savings Scheme

20

Section 194F

Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India

20

Section 194G

 Commission, etc., on sale of lottery tickets

10

Section 194LB

 Payment of interest on infrastructure debt fund

5

Section 194LBA(2)

 Business trust shall deduct tax while distributing any interest income received 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.

30

Section 194LBB

 Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with effect from 01.06.2015).

10

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 (including long-term infrastructure bond)

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

5

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 Non-resident Indian Citizen

10

c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112

10

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 gains referred to in clauses (33), (36) and (38) of Section 10]

20

f) Income by way of interest payable by Government or an 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

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 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

10 

h) Income by way of royalty [not being royalty of the nature referred to point g) above E] 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

10

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 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

10

j) Any other income

30

Section 196B

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

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 arising from such securities)

20



When payment made to Domestic Company

Assessment Year 2016-17


Section

Description

TDS Rates

(in %)

 

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;

10

 

b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

10

 

c) any security of the Central or State Government;

10

 

d) interest on any other security

10

 

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, card games and other games of any sort

30

 

Section 194BB

 Income by way of winnings from horse races

30

 

Section 194C

 Payment to contractor/sub-contractor


 

a) HUF/Individuals

1

 

b) Others

2

 

Section 194D

 Insurance commission

10

 

Section 194DA

 Payment in respect of life insurance policy

2

 

Section 194EE

 Payment in respect of deposit under National Savings scheme

20

 

Section 194F

 Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India

20

 

Section 194G

 Commission, etc., on sale of lottery tickets

10

 

Section 194H

 Commission or brokerage

10

 

Section 194-I

 Rent


 

a) Plant & Machinery

2

 

b) Land or building or furniture or fitting

10

 

Section 194-IA

Payment on transfer of certain immovable property other than agricultural land

1

 

Section 194J

 Any sum paid by way of

10

 

a) Fee for professional services,

 

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 acquisition of certain immovable property

10

 

Section 194LBA(1)

 Business trust shall deduct tax while distributing, any income received or receivable by it from a SPV or any income received from renting or leasing or letting out any 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 under Section 10(23FBB)] shall deduct tax therefrom (with effect from 01.06.2015).

10



When payment made to Non-Domestic Company

Assessment Year 2016-17


Section

Description

TDS Rates

(in %)

Section 194B

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

30

Section 194BB

 Income by way of winnings from horse races

30

Section 194E

 Payment to non-resident sports association

20

Section 194G

 Commission, etc., on sale of lottery tickets

10

Section 194LB

 Payment of interest on infrastructure debt fund

5

Section 194LBA(2)

 Business trust shall deduct tax while distributing any interest income received 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 under Section 10(23FBB)] shall deduct tax therefrom (with effect from 01.06.2015).

10

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 (including long-term infrastructure bond)

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

5

Section 195

 Payment of any other sum

 

a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112

10

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 referred to in clauses (33), (36) and (38) of Section 10]

20

d) Income by way of interest payable by Government or an 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 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 after the 31st day of March, 1976 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

10

f) Income by way of royalty [not being royalty of the nature referred to in point e) above  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—

 

A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

50

B. 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—

 

A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976

50

B. where the agreement is made after the 31st day of March, 1976

10

h) Any other income

40

Section 196B

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

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 arising from such securities)

20