TDS and TCS Rates (Tax Deducted at Source, Tax Collected at Source)

FINANCIAL YEAR 2010-11, ASSESSMENT YEAR 2011-12

 

TDS RATES

Nature of Payment Section Exemption Limit Individuals/ HUF/ BoI/ AoP Others
    upto 30-Jun-2010 01-Jul-2010 onwards with PAN without PAN with PAN without PAN
Salary 192 Normal rates Normal Rates Normal Rates Normal Rates Not applicable Not applicable
Interest on securities - Debentures of a listed company not in a Demat form 193   2500  2500  10 20 10  20 
Interest on securities - Debentures issued by or on behalf of local authority or statutory corporation  193  2500  2500  10 20  10  20 
Interest on Securities - Securities for money issued by or on behalf of local authority or statutory corporation  193  0  0  10 20  10  20 
Interest on Securities - 8% savings (taxable) bonds, 2003  193  10000  10000  10 20  10  20 
Dividend other than dividend covered by Section 115-O  194  2500  2500  10 20  10  20 
Interest other than on Securities - Banking company or Post office  194A  10000  10000  10 20  10  20 
Interest other than on Securities - Others  194A 5000  5000  10 20  10  20 
Winnings from Lottery, Crossword puzzles, Card games or any other game (in kind or cash)  194B  5000  10000  30 30  30  30 
Winnings from Horse Races  194BB  2500  5000  30 30  30  30 
Payment to a contractor, sub-sontractor  194C            
To a contractor - Advertising  194C  20000 (50000)  30000 (75000)  1 20  20 
To a contractor - Transporter  194C  0  0  0 20  20 
To a contractor - Others  194C  20000 (50000)  30000 (75000)  1 20  20 
To a sub-contractor - Advertising  194C  20000 (50000)  30000 (75000)  1 20  20 
To a sub-contractor - Transporter  194C  0  0  0 20  20 
To a sub-contractor - Others  194C  20000 (50000)  30000 (75000)  1 20  20 
Insurance Commission  194D  5000  20000  10 20  10  20 
In respect of National Savings Scheme  194EE  2500  2500  20 20  20  20 
On account of repurchase of units by Mutual Funds or UTI  194F  0  0  20 20  20  20 
Commission on Sale of lottery tickets  194G  1000  1000  10 20  10  20 
Commission or brokerage  194H  2500  5000  10 20  10  20 
Rent - Plant, Machinery or Equipment  194I  120000  180000  2 20  20 
Rent - Land, Building or Furniture  194I  120000  180000  10 20  10  20 
Fees for Professional or Technical Services  194J  20000 (50000)  30000 (75000)  10 20  10  20 
Compensation on compulsory acquisition of immovable property  194LA  100000  100  10 20  10  20 
 Payment to non resident sportsman or sports association  194E  0  0  10 20  10  20 
Income from units (including long term Capital Gain on transfer of such units) to an offshore fund  196B  0  0  10 20  10  20 
Income from foreign currency bonds or GDR of Indian Company  196C  0  10  20  10  20 
Income of FII from securities not being dividend, long term and short term capital gain  196D  0  0  20 20  20 20 

 Notes:

  • TDS should be deducted if a single transaction is more than Rs. 20000 (Rs.30000 from 01-Jul-2010). Also if all expected payments to a single person/ company in a financial year (01-Apr to 31-Mar) is likely to be more than Rs.50000 (Rs.75000 from 01-July-2010) then TDS should be deducted even if a particular transaction is less than Rs20000 (Rs.30000 from 01-Jul-2010).
  • If PAN details are not provided by the recipient, then TDS should be deducted at 20% or specified rates above, whichever is higher.
  • For Salary payments, the taxes are to be calculated based on overall earning after giving effect for allowed exemption limit and various tax savings made by the employee.
  • Applicable in case of Residents only. For NRIs, the exemption limit is 0.

 

TCS RATES

At the time of selling certain specified goods (as listed below), the seller should also collect tax from the buyer (TCS). Few scenarios where TCS is exempted are:

  • Goods are bought for personal consumption (retail sales only)
  • If the buyer is a Public Sector Undertaking, State/ Central Government undertaking, Embassy/ High commission/ Consulate or trade representation of a Foreign State, Club
  • If the buyer gives Form 27C in duplicate, a copy which is then submitted to Income tax department by the seller

The seller should issue a certificate (Form 27D) on monthly basis (and a consolidated certificate on half yearly basis on request from buyer).

Specified Goods Section Exemption Limit TCS Rate
Alcoholic liquor for human consumption and Indian made foreign liquor 206CA NIL 1
Tendu Leaves 206CI NIL 5
Any forest produce not being Tendu leaves 206CB/ CC/ CD NIL 2.5
Scrap 206CE NIL 1
Parking lot / toll plaza / mining and quarrying 206CF/ CG/ CH NIL 2

 

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