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Deduction of Tax at Source

This document outlines India's taxation deduction at source (TDS) scheme. It discusses various types of income that are subject to TDS, including salary, interest, dividends, rent, lottery winnings, and professional fees. It provides details on tax rates and thresholds for TDS on these different income types. Exceptions to TDS for certain securities, small interest amounts, and interest paid by certain government entities are also summarized. The document closes by briefly mentioning tax collection at source requirements in India.

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120 views23 pages

Deduction of Tax at Source

This document outlines India's taxation deduction at source (TDS) scheme. It discusses various types of income that are subject to TDS, including salary, interest, dividends, rent, lottery winnings, and professional fees. It provides details on tax rates and thresholds for TDS on these different income types. Exceptions to TDS for certain securities, small interest amounts, and interest paid by certain government entities are also summarized. The document closes by briefly mentioning tax collection at source requirements in India.

Uploaded by

anmoldeepsingh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Deduction of Tax at Source

Example

In certain cases of income, tax at source is deducted by person responsible for making payment of such income.

Payments covered by TDS Scheme


Payment of Salary (to Resident / NonResident). Payment other than salary to residents (namely interest, dividend, rent, commission). Lottery winnings. Winnings of races. Technical/Professional Fees. Royalty.

Tax to be deducted at source from Salary [Sec 192]

Tax to be deducted at source from Interest on Securities [Sec 193]

Securities which are not subject to Tax Deduction


Debentures issued by Co-operative society Any security of Central/State govt. Securities beneficially owned by LIC or GIC

Tax to be deducted at source from Dividends [Sec 194]

Tax to be deducted at source from Interest other than Interest on securities [Sec 194A]

Interest not subject to Tax Deduction


Where amount interest paid or credited does not exceed Rs. 5,000 (Rs. 10,000 in case of bank interest, co-operative bank interest). Where interest is credited or paid by firm to partners. Where interest is credited or paid by cooperative society to its members.

Where interest is credited or paid in respect of deposits under schemes of Post Office (PO time deposits, PO recurring deposits, Kisan Vikas Patra, Indra Vikas Patra, National Saving Certificate VIII Issue). Where interest is paid or credited by the Central Govt. under different provisions of direct taxes.

Tax to be deducted at source from Winnings from Lotteries or Crossword puzzles [Sec 194B]

Tax to be deducted at source from Winnings from Horse Races [Sec 194BB]

Tax to be deducted at source from Insurance Commission [Sec 194D]

Tax to be deducted at source from Commission on Sale of Lottery Tickets [Sec 194G]

Tax to be deducted at source from Commission or Brokerage [Sec 194H]

Tax to be deducted at source from Rent [Sec 194 - I]

Tax to be deducted on Fees for Professional or Technical Services [Sec 194 J]

Time of Deposit of TDS

TAX COLLECTED AT SOURCE

Every person being a seller, shall collect from the buyer of goods specified in section 206C(1) tax at source.

Seller means Central Govt. , State Govt., local authority, firm or any company. Buyer means person who obtains in any sale by way of auction, goods of nature specified in Section 206C(1).

Seller shall collect tax of sum equal to the following:-

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