Tax deducted at source

Section Rate Nature of transaction Deductee

192 Normal Slab rate Payment of salary R&NR
192A 10% Premature withdrawal from EPF R&NR
193 10% Interest on securities R

194 10% Payment of any dividend R

194A 10% Interest from other than securities R
(Bank deposits/post office/cooperative society

Income from lottery winnings, card games,

194B 30% crossword puzzles, and other games of any type R,NR&FC
194BA 30% Income From Online gmaes R,NR&FC
194BB 30% Income from horse race winning R,NR&FC
194C Individual/Huf-1% Payment to contractor/Subcontractor R
Others-2%
194D Domestic Comp-10% Insurance Commission R
Other than comp-5%
Income for the insurance payout-while payment of
any sum in respect of a life insurance company
194DA 5% (bonus or Sum) R
Payment to non-resident sportsmen/sports
194E 20%+surcharge+cess association NR&FC
Payment of amount standing to the credit of a
194EE 10% person under National Savings Scheme (NSS) R&NR
Payment for the repurchase of the unit by Unit
194F 20% Trust of India (UTI) or a Mutual Fund R&NR
Payments, commission, etc., on the sale of lottery
194 G 5% tickets R, NR, FC
194H 5% Commission or brokerage R
194 I Rent R
2 Rent on plant and machinery
10% Rent on land and building furniture fittings
Payment in consideration of transfer of certain
194 IA 1% immovable property other than agricultural land R
Rent payment by an individual or HUF not
195 IB 5% covered u/s. 194-I R
Payment under Joint Development Agreements
194IC 10% (JDA) to Individual/HUF R
194 J 10% Any sum paid by way of fee for professional servicR
Any sum paid by way of
194 J 10% remuneration/fee/commission to a director R
Any sum paid for not sharing any know-how,
patent, copyright, etc. R
194 J 2% Any sum paid as a fee for technical services
Any sum paid by way of royalty towards the sale
or distribution, or exhibition of cinematographic
194 J 2% films R
Treshold limit
Basic exemption limit
50000
Debenture-5000
8%(Taxable)Bond2003 or
7.7% saving (Taxable)Bond 2018-10000
Other securities-No limit
5000
Senior citizen-50000
Others -40000
interest from other than security,bank etc-5000
Aggregate income from lottery winnings,
card games, crossword puzzles etc-
10,000(singlr transaction)
Nil
10000(aggragate winning during a financial year )
Single transaction-30000
Aggregate transaction-100000
15000

100000

no limit

2500

no lmit

15000
15000

240000
240000

500000

50000 per month

No limit
30000

30000

30000
30000

30000
 Sec 192
• Applicable on payment of salary
• Employer employee relationship
• Tds deducted at the time of payment.ie, not at the time of accrual.
• If salary is not more than basic exemption limit then tds not required to deduct
• Sec 192 does not specify a rate; ie, tds deducted at the slab rate applicable to the deductee for the relevant t
• If deductee do not have PAN then slab rate or 20%+4%(cess) w e is higher is applicable
• Calculation of tds
* Computation of taxable salary
* Adding other icome to the salary , only if it is provided by the employee; however except income from house prop
* deductios u/s 80C,80CCC,80CCD,80D,80DD,80DDB,80E,80EE,80GG,80GGA,80TTA,80TTB, and 80 U
* Calculation of tax liability
* if the employer is a Government or Public sector undertaking, or company or cooperative society, local authority
* Dividing the estimate tax liability by number of month of his employeement
• If there is more than one employer, employee can provide details about salary and tds any one employer in Form 1
• Subsequently, if you resign and join a different employer, you can provide details of your previous employment in
• If you choose not to provide details of income of other employment, each employer will deduct TDS only from th
• The employer is required to provide Form 16 to you containing the details of salary such as the amount paid and t
• Time limit for deposit tds
* TDS deducted by government employer It has to be deposited on the same day.
* Other Employer March-on or before 30 th April
other month-Within 7 days of next month
• The employer has to file salary tds return in form 24Q; required to submit every quarter
• The employer is responsible for providing a TDS certificate to the employee for tax deducted from the salary.
he deductee for the relevant tax period.

except income from house property negative income from other heads cannot be add
0TTA,80TTB, and 80 U

perative society, local authority; on request of employee employer can give relief u/s 89

tds any one employer in Form 12B

of your previous employment in Form 12B to your new employer
r will deduct TDS only from the salary paid by him respectively
y such as the amount paid and tax deducted

x deducted from the salary.

 Sec 194-N
• Deductors
Bank
Cooperative bank
Post office

• Deductee
Any person including ( can be Resident or Non resident)
Individual
HUF
AOP
Company
Trust etc

• Purpose:
Withdrawal of Cash exceeding 1 cr from the account maintained in bank or cooperative bank or post office.

• Limit
* 1 cr in a fy
TDS is applicable only for the amount exceeding 1 cr
eg: if a person wihtdrew 1,50,00,000; then tds required to deduct on 5000000 only
* Limit for a specified person
20 lakhs
* Cooperative society
3 cr

• Rate
* 2%

* specified person
20lakhs to 1 cr - 2%
Exceeding 1 cr - 5%
5% is applicable only when it exeeding 1 cr
eg if a person withdre 75 lakh from bank then rate is 2%
if he again withdrew amount of Rs.40 lakhs then2% for 25 lakhs and 5% for balance 15 lakhs

• Sec 194 N is not applicable if payment is made to following persons

* Government
* Any Bank (pvt or public)
* Cooperative bank
* Post office
* Business correspondents of a banking company
* White label ATM operator of a bank
* Specified trader or commission agents operating under the Agriculture Produce Market Committee (APMC
* An authorized dealer or agent/sub-agent of its franchise
* A RBI licensed Full-Fledge Money Changer (FFMC) or any agent from its franchise subject to
* Any other person notified by the Government of India

• The limit of Rs 1 crore in a financial year is with respect to per bank or post office account and not per the taxpaye
• Section 194N is applicable when an amount is withdrawn from one or more accounts maintained with the same ban
nk or post office.

mmittee (APMC)
and not per the taxpayer’s account.
ained with the same bank
 Sec 193
• Payment of interest on securities to a resident
• Rate-10%
• Tds required to deduct at the time of payment or
at the time of credit whichever is earlier
• If deductee do ot have PAN then slab rate or 20%+4%(cess) w e is higher is applicable
• Time limit for deposit
* March 30-Apr
* other month with 7th day of the next month
• Exemption
* if debentures are issued by listed business no TDS will be taken up to Rs.5000
* In case of 8% taxable bond up to Rs.10000
• Excluded
* Debenture issued by the cooperative society, authority, institution or a public sector company notified by the centr
* Any listed demat securities
* Any securities of central or state government Exceptions include
* Securities benefiscially owned by the LICI or GICI
* Any interest payable to a "business trust" in respect of any securities by a special purpose vehicle

Sec 194A
• TDS on interest other than interest on securities
• Applicable only to resident person
• Payar can be
* Banking company, bank or banking institution only for Fixed deposit or recurring deposit
* Cooperative society engaged in banking business
* Post office
* Individual or others
• Rate 10%
20% if PAN not provided; but no surcharge or cess is not add to the rate
• Deducted at the time of payment or credit w e is eariler
• Exemption Senior Cittize 50000/-
* Bank/Cooperativebank/Post office
Others recipie40000/-
* others Any one 5000/-

• Interest income not covered under this sec

Interest earned on saving bank ac
Interest on income tax refund
Interest paid by partnership firm to the partner
 Interest paid to any bank.LIC,UTI or any insurance company

• When tax is deducted at nill rate or lower rate

* Submit declaration in form 15G or 15H u/s 197

* Following conditions should be satisfied
Recipient should be person other than a company or firm
Tax on total income of the PY is NIL
Total income does not exceed the exemption limit This condition is not applicable if the recipient is senior citiz
pany notified by the central government
he recipient is senior citizen
 Sec 194C
• Payment to resident contractor or subcontractor
• Purpose of payment:
For carrying out any of the following work including supply of labour
* Advertising
* Broadcasting or telecasting including production of programs for broadcasting or telecasting
* Carriage of goods and passengers by any mode of transportation other than railway.
* Catering
* Manufacturing or supplying product according to the requirement or specification of a customer by using the mate
as defined sec 40A(2), but does not includes manufacturing or supplying of a product according to the requiremen
* Work contract

• Rate for tds

* Individual /huf : 1%
* Others : 2%

• Threshho;d limit
single payment to a contractor exceeds 30000/-
Aggregate payment to a contractor for a FY exceeds 100000/-

• When to deduct
At the time of payment or
At the time of credit
w e is earlier

• When to deposit
* Government : same day
* Non government :
March : 30 th april
other month : 7th of next month

• Under what circumstances TDS u/s 194C is not deductible?

When payment does not exceeds threshhold limit.

Individul or huf not required to deduct tax if its for their personal purpose

• TDS certificate
Certificate are required to issue quartely in form 16A

Quarter
April to June
July to September
October to December
January to March
 • Sub contractor
A sub contractor would mean:
* who enter into a contract with the contractor for carrying out, or
For the supply of labour for carrying out the whole or part of the work undertaken by the contractor under a contra
* For the supply of, whether wholly or partly, any labor which the contractor has undertaken to supply in terms of h

• TDS to sub-contractor

Rate - 1%

Where is the Payment made to Sub-contractors, what Conditions must be

Satisfied?

Payment is made to a sub-contractor who is resident within the meaning of

* Section 6 of the Income Tax Act, 1961
* Payment is made by a resident contractor, not being an individual or a HUF
* Payment is made to carry out any work, including the supply of labor
The amount of consideration of the contract in respect to which payment is made
* should not be less than Rs. 30,000
The sum should be credited or paid by the contractor in respect of a contract
* undertaken by him with the specified bodies

Note: 1 * in case the deductor is individula or HUF this sectio is applicable only if
Total sales, turnover or gross receipt of the individula / HUF from the business or
profession carried on by him exceed Rs 1 Cr in case of business , Rs 50Lakh in
case of profession during the FY immediately prededing the financial year in which
the income

Note: 2 * If the recipient is a transport operator and he furnishes his PAN to the payer, TDS rate is NIL
Transport operator is a person who is in the business of plying or, hiring, or leasing of goods carriages.
but following conditions required to be satisfied:
- Recipient owns 10 or less than 10 goods carriages at any time during the financial year
- He give a declaration to this effect to the deductor
- Besides, He furnishesnhis PAN to the deductor

Note: * Manufacturing or supplying product according to the requirement or specification of a customer by using the mate
if value of such material is sepretly provided in the invoice tds shall be deducted on the invoice value excluding th
other wise tds shll be deducted on whole value of invoice.
casting or telecasting
han railway.

ecification of a customer by using the material purchased from such customer or its associate
g of a product according to the requirement or specifications of a customer by using material purchased from a person other than such a cus

Due date for Non- Due date for Government

Government deductor deductor
30th July 15th August
30th October 15th November
30th January 15th February
30th May 30th May
undertaken by the contractor under a contract with any of the authorities
ctor has undertaken to supply in terms of his contract with any of the authorities mentioned under this sectio

ear in which

ayer, TDS rate is NIL

g, or leasing of goods carriages.

e financial year

ecification of a customer by using the material purchased from such customer or its associate
deducted on the invoice value excluding the value of material
m a person other than such a customer.
 Sec 194Q
• This section apllies to the buyer only if:

* A buyer whose turnover/Gros receipt/sale is exceeds 10 cr in immediately preceeding Fy

* A buyer is responsible for making payment of a sum to a resident Seller
* Such payment is to be done for the purchase of goods of the value/aggregate of the value exceeding Rs 50 lakh

• Rate
0.1% on amount exceeding amount of 50 lakh in FY from a seller

ie, TDS is calculated after deducting 50 lakh from the total value of the purchase.

If PAN is not furnished

Rate 5%

When a seller is a non-resident, Section 194Q of the Income Tax Act is not
applicable to any purchases made from them. This section specifically pertains
Note 1: * to transactions involving resident sellers.
Note 2: * Diss allowance
If the buyer fails to comply with the tax deduction provisions outlined in the
Section 194Q) amendment, they may be subjected to the disallowance of
expenditure. Specifically, the disallowance can amount to up to 30% of the
transaction value. It is essential for buyers to adhere to the prescribed tax
deduction requirements to avoid such consequences.

Note 3: * Secion 194Q applies to purchases of both revenue and capital goods.
Note 3: * Sec 194Q v/s 206 C(1H)
• When both section 194Q and section 206C(1H) are applicable, the tax is required
to be deducted under section 194Q. Accordingly, the said transaction will be out of
the purview of provisions of section 206C(1H).
• Once TDS is deducted under section 194Q by the buyer, the seller is not required
to collect TCS under section 206C(1H) on the same transaction
• If TCS is collected by the seller under section 206C(1H) first (before the buyer can
collect the TDS). Then, on such a transaction, the buyer is not required to deduct
TDS under section 194Q.

Note 3: * 194O v/s 194Q

Provisions of section 194-O deal with the deduction of TDS on payments of the
sum by an e-commerce operator to e-commerce participants

• When the transaction is covered within the purview of both provisions of section
194Q and section 194-O, TDS is to be deducted under provisions of section 194-O
 and not under the provisions of section 194Q;
• When the e-commerce operator has deducted TDS u/s 194-O on all the
transactions (which includes transactions relating to section 194Q), then, the said
transaction will not be subjected to TDS u/s 194Q

Note 4: * TDS provisions under section 194Q are duly applicable to Public Sector
Undertaking or corporations that are established under the Central or State Act or
any other body/ authority/ entit
Note 5: * Transctions in securities
194Q shall not be applicable in relation to transactions in securities and
commodities which are traded through recognized exchange.

Note 6: * Adj for GSt

1 194 Q will not applicable to GST component if:
TDS is deducted at the time of credit of the amount in the account of the seller
and agreement/contractor between buyer and seller indicates GST component seperately.

2 194 Q will applicable to GST component if:

When TDS has been deducted on the payment basis (as payment is earlier than credit)

Note 7: * When seller is exempt from tax

Sec 194Q will not applicable
e value exceeding Rs 50 lakh
 Sec 194-IA
• When a buyer buys immovable property other than agricultural land sec 194IA is applicable
• Rate
1% of Consideration or stamp duty w e is higher
Consideration includes:
1 Club membership fee
2 car parking fee
3 electricity charge
4 water facility fee
5 maintenance fee
6 Advance fee
any other charges of similar nature which are incidental to the transfer of property

• Threshold limit
No tds is applicable if consideration and stamp duty value less than 50lakh
Tds is to be paid on entire sales value
If the payment is made by instalments, then TDS has to be
deducted on each instalment paid.

• Tan
provision of tan is not applicable u/s 194IA

• Time of deduction
At the time of payment or at the time of giving credit to the transferor
s applicable
 Sec 194-LA
• Any person paying compensation or enhanced compensation or consideration or enhanced
consideration for the compulsory acquisition of immovable property other than agricultural
land
Recipient should be resident person

• Rate
10%( no surcharge or cess)

• Threshold limit
250000/-
• Time of deduction
At the time of payment or at the time of giving credit
w e is earlier
 Sec 206AA
• If recipient does not furnish PAN to deductor
Tax will be deducted at the normal rate or 20% which ever is higher

Sec 206AB
• If payment is made to a specified person tax shall be
deducted at source (TDS) at higher oF below rates:

1 2 times the rate given in the Income Tax Act or Finance Act or

2 5%

Which ever is higher

If recipient does not furnish PAN then rate will be

20% or rate applicable as per sec which ever is higher

• Specified person under section

Specified person is one who

Has not filed the income tax return (ITR) for the preceding
FY, and the income tax return (not belated return) filing
1 due date has expired and

Total amount of tax deducted or collected (TDS and TCS)

2 in the last FY is Rs.50,000 or more.

• Not applicable for:

1 Salary (192)
2 Premature withdrawal of PF (192A)
3 Winnings from any lottery or card games, or crossword puzzles (Section 194B)
4 Winnings from any horse races (Section 194BB)
5 Income concerning investment in securitisation trust (Section 194LBC)
6 Cash withdrawals (Section 194N)
7 Consideration paid for the sale of immovable property (Section 194-IA)
8 Rent payment to the landlord above Rs 50,000 (Section 194-IB)
9 Payment for contractual or professional services above Rs 50 lakh (Section 194M)
### Transfer of virtual digital assets (Section 194S) to
### Non-residents who do not have a permanent establishment (PE) in India.
•
•
•
•
•
•

•
•
•
•
•
•

•
•

•
•
•
•
•
•
•
 Sec 194 F
TDS on repurchase of unit of mutual fund or UTI
Deductor: Mutual fund or UTI
Deductee : Unit holder u/s 80ccb

Limit : no limit
Time of deduction : At the time of payment

Sec 194 G
TDS on commission, remunaration etc on sale of lottery ticket
Payer : any person paying commsion or remunaration
payee : any person
Rate : 5% ( no surcharge or cess)
lmit : 15000/-
Time of deduction : At the time of payment or at the time of credit which ever is earlier

Sec 194 H
TDS on brokerage or commission
Commission or brokerage means:
Commission or brokerage includes any payment received or receivable, directly or indirectly by a person
acting on behalf of another person.
* for service rendered ( not being professional service)
* For any service in the course of buying and selling of goods.
* in relation to any transaction relating to any asset, valuable article or thing except securities
payer : Any person paying
Payee : Any resident person
Rate : 5% ( No surcharge or cess)
limit : 15000
Time of deduction : At the time of payment or at the time of credit which ever is earlier
Exceptions for 194H :
* Brokerage or commission is less than or equal to Rs.15,000 in a financial year.
* The employer is paying a commission to the employee, which is covered under Section 192 of the IT Act.
* Commission on insurance and loan underwriting.
* Individuals with a NIL TDS certificate from an authorised body will get a TDS exemption for all services.
* Charges imposed for warehouse services.
* Paying financial corporations under the range of central finance.
* Interest from the NRI account.
* Payments are made by the Reserve Bank of India (RBI) to any bank.
* Brokerage or commission for providing securities to the public.
* Income by interest from any savings with the bank and post office.
* Commissions imposed on the transaction by using a credit or debit card between an acquirer bank and merchant organisation.
* Any payment of commission or brokerage payable by Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limite
* Interest accrued from the NRE account.
Other points :

* where the airlines issued tickets to their travel agents at a concessional price, it was held that the
transaction between Airlines and travel agents was that of principal-to-principal, and the price difference
was because of discount. Therefore, such a transaction would not fall within the ambit of section 194H.
* if dealers were selling goods at the price they purchased from the company, such trade incentives
would amount to a commission for section 194H.
of the IT Act.

or all services.

bank and merchant organisation.

hanagar Telephone Nigam Limited to their public call office franchisees.
 Sec 194J
• TDS on payment for Fees for professional or Technical service

• Type of payment covered under this section

* Pofessional fees
* Fees for technical service
* Remuneration paid to the director excluding Salary
* Royalty
* Payments in the nature of non-compete fees (i.e., fees paid to not carry
on any business or profession for a specified time and within certain
geographical boundaries) or fees paid to not share any technical
knowledge or know-how.

• Rate

Nature of payments
Any payment of fees for technical service
Payments made to operators of call centres
Payment of royalty for sale, distribution or exhibition of
cinematographic films.
All other payments covered under this section (Like Professional
Services)
Payee does not furnish his/her PAN

• Threshold limit
1 Tax has to be deducted in case the payment for the professional and
technical services is greater than Rs 30,000 during the year.
However, there is no such limit for payments (commission, fees or
remuneration) made to a director by the company. The tax will have to be
2 deducted no matter how small the amount.

Please note, this Rs 30,000 maximum limit is applicable to each item or

Note 1 * payment independently.

• Persons not liable to deduct

HUF / Individual carrying on business and turnover during the preceeding Fy does not excedd 1Cr
or Carrying on profession and turnover does not exceed 50 lakh during the previous Fy

• Time of deduction
Passing such entry in the accounts or
Making the actual payment of the expense,
whichever earlier.
• Meaning of professional service
Profession includes any person engaged in the:
1 Legal
2 Medical
3 Engineering
4 Architectural
5 Technical consultancy
6 Interior decoration
7 Film artist
8 Authorized representative
9 Accountancy Profession
10 Company secretary
11 Information technology
12 Sport pesrons
13 Commentators
14 Event managers
15 Anchors
16 umpires
17 referees
18 physiotherapists
19 Coaches and trainers
20 team physicians
21 sports columnists
• Technical service
managerial
Technical
Consultancy
One can define technical services as providing services that involve
technical expertise or expertise in technology.
The scope of managerial services can be defined as running and
management of the business of the client.
Consultancy services can be understood as advisory services wherein
necessary advice and consultation are given to the clients for their
business.

• Royalty
Transfer of rights or usage of an invention, model, design, trademark,
* patent, etc.
* Use of patents, inventions, designs, etc.
Provide any information related to using an invention, patent, formula,
* etc.
Transfer of rights related to scientific findings, literary work, films or
videotapes for radio broadcasting but does not include consideration for
* the sale, exhibition, or distribution of cinematographic films.
Providing any information related to technical, industrial, commercial
* or scientific knowledge, experience or skill

• Non compete fees

Non-Compete Fees imply the payment made in cash or kind in return
for an agreement that binds them from sharing any license, patent,
trademark, franchise, know-how, commercial or business rights, or
information likely to be utilised elsewhere for processing, manufacture,
or any other provisional service.
 Rate of tax deduction
2%
2%
2%

10%
20%

preceeding Fy does not excedd 1Cr

h during the previous Fy
 Sec 194M
• TDS on payment ot a resident contractor and professionals or by way of commission( not being insurance comm
• Individual/HUF required to do Tax audit -194C and 194J, 194H
Individual/Huf not reqired to do Tax audit -194M
Personal purpose-194M
Business purpose-194C/194J/194H

• Threshold limit
5000000
It applies when the total amount paid to a resident individual, for
carrying out any contractual work or providing any professional
service, in a financial year exceeds Rs 50,00,000.

Time of deduction
At the time of credit of the amount.
At the time of payment by cash or by the issue of a cheque or draft.

Rate
5%
ion( not being insurance commission or brokerage
 Sec 194
• TDS on payment of Dividend to a resident share holder

• Deductor
Domestic company

• Deductee
Resident share holders

• Limit
5000
• Rate
10%

• Not applicable for

* LIC
* GIC
* Any insurance provider
* Business trust
* Any person notified

Sec 194 K
• TDS on payment of interest or dividend from Mutual fund

• Deductor

Any person responsible for making payment of income of Mutual fund or UTI

• Deductee
A resident person

• Lmit
5000
• Rate
10%

• When to deduct?
At the time of payment or credit which ever is earlier

• TDS should be deducted at 20% if the investor does not provide PAN
 Sec 194 BA
• TDS on income from winning from online games

• Deductor
Any person

• Deductee
Any person ( Resident or non resident)

• Limit
No limit

• Rate
30%+ cess+surcharge

• TDS deducted on net winnings ie, if winner paid any amount to game provider like registration fee then net amoun

• Time of deduction
Tax should be deducted at the end of the financial year
If however any withdrawel from user account during the FY Tax shall be deucted at the time of withdrawal for tha

Sec 194 BB
• TDSo n winning from horce race

• Deductor
Any person

• Deductee
Any person

• Lmit
10000
Rate
30%

• Time of deduction
At the time of paymemnt
gistration fee then net amount is considered for TDS deduction

e time of withdrawal for that withdrewed amount.

 Sec 194 B
• TDS on payment of Lottery, Cross word puzzles etc

• Deductor
Any person paying winning from lotteries cross word puzzle, Card game and other game

• Deductee
Any person

• Limit
10000
• Rate
30%
After surcharge and cess 31.2%

• Time of deduction
At the time of payment

• Tax on prize money received in Kind

* Entire prize is in Kind

If the prizes are given in kind say a car, then prize distributor shall ensure
before releasing the prize that tax has been paid. Tax is paid as per the
market value of the prize given. The prize distributor can either recover
from the winner or he himself can bear the burden of the tax.

* Partly in cash and partly in kind

In cases where the prize is given both in cash and kind, then the total tax
should be calculated on the cash portion of the prize and on the market
value of the prize given in kind. And the tax amount should be deducted
while giving the cash portion of the prize to the winner

* Partly in cash and partly in kind but cash is not enough

But if the cash prize is not sufficient to cover the total tax liability, then
either the winner or prize distributor should pay the deficit.
 Sec 194 E
• TDS on payment to a non resident Sportsman or Sports association

• Deductor
Any person

• Deductee
Non – resident foreign citizen sportsman (including an athlete)
Non resident Sports Association
Non resident Sports entertainer

• Payment

* Non – resident foreign citizen sportsman (including an athlete)

* Non – resident sports association or institution

* Non- resident foreign citizen entertainer

• Rate
20%+cess+surcharge

• Time of deduction
At the time of payment or At the time credit which ever is earlier

Sec 194 EE
• Tds on payment in respect of National savings scheme
• Deductor : Post office
• Deductee : Any person
• Rate : 10%( no surcharge or cess)
• limit ;2500 (at once or total during the FY)
• No deduction : When the amount is paid to the legal heirs of a deceased depositor.
• Time of deduction : At the time of payment
 participation in India in any game (other than card game or gambling, etc.)
Advertisement
contribution of articles relating to any game or sport in India in newspapers, magazines or journals

Any amount guaranteed to be paid or payable in relation of any game (other than card game, etc.) or sport played in India.

Income is from his performance in India.

ed depositor.
port played in India.
 Sec 194 LB
• TDS from interest payable on Infrastructure Debt Fund.
• Deductor : Any person responsible for paying income by way of interest by infra structure debt fund.
• Deductee : Any Non-resident person or foreign company
• Rate : 5% + SC+Cess
• Limit : No limit
• Time of deduction
At the time of payment or at the time of credit w e is earlier
• Meaning of Infrastructure Debt :
According to Section 10(47) of the Income Tax Act, 1961, an organization or
trust that has been established with the intention of investing in the
infrastructure sector, referred to as an “infrastructure debt fund” will not be
included in the total income.

Sec 194 LB
• TDS on income from unit of business trust
• Nature of payment :
This section is applicable if any business trust distributes any income reffred to in section 115UA ( being of the n
to its shareholder.

• Deductor : Business trust

• Deductee : Unit holder ( can be resident or non resident but not a company)
• Rate:
Resident ; 10%
Non resident or foreign company : 5% +SC+Cess
If it is real estate investment trust and distributes rental income
Resident ; 30%
Non resident or foreign company : 40% +SC+Cess

Sec 115UA

115UA. (1) Notwithstanding anything contained in any other provi-

sions of this Act, any income distributed by a business trust to its unit
holders shall be deemed to be of the same nature and in the same
proportion in the hands of the unit holder as it had been received by,
or accrued to, the business trust.

(2) Subject to the provisions of section 111A and section 112, the total
income of a business trust shall be charged to tax at the maximum
marginal rate.
(3) If in any previous year, the distributed income or any part thereof,
received by a unit holder from the business trust is of the nature as
referred to in 97[sub-clause (a) of] clause (23FC) 98[or clause
(23FCA)] of section 10, then, such distributed income or part thereof
shall be deemed to be income of such unit holder and shall be
charged to tax as income of the previous year.

(4) Any person responsible for making payment of the income

distributed on behalf of a business trust to a unit holder shall furnish a
statement to the unit holder and the prescribed authority, within such
time and in such form and manner as may be prescribed99, giving the
details of the nature of the income paid during the previous year and
such other details as may be prescribed.

Sec 23(FCA)

Any income of a business trust, being a real estate investment trust,

by way of renting, leasing or letting out of any real estate asset owned
directly by such business trust shall be exempt from tax.

Sec 23(FC)(a)

business trust is exempt from tax for the income of interest received
or receivable from special purpose vehicle, a company in which
business trust holds controlling interest
a structure debt fund.

in section 115UA ( being of the nature referred to in section 10(23FC)(a)/(10FCA)

 Sec 194 I
• TDS on Rent payment
• Meaning of rent :
Rent means any payment whatever name called , under an lease , sub lease, tenancy or agreement to use any of the
* land
* building
* Factory building
* appurtenant to the building
* Machinery
* Plant
* Furniture
* Equipmwnt
* Fittings
• Whether or not any or all of the above not owned by the payee, ie, Sublease
• Security advance collected not have any nature of income so sec 194I not applicable
• But advance rent received subject to TDS
Exception :
* When the advance rent crosses over to the next financial year, the TDS will be in proportion with earnings based
* When an asset is transferred or sold to another individual, the TDS credit is not available until the transfer is cre
* In case of rental agreement cancellation after advance rent payment and TDS deduction, the balance refunded to
• Payer : Any person (except individual HUF not required Tax audit)
• Payee : A resident person
• Rate :
Plant and machinery : 2%
Others : 10%
• Limit : 240000/-
• Other points :
* Where a factory building is let out, the rent received generally is income from business in the hands of the lessor
* Service charges payable to business centres are covered under the definition of rent, as they cover payments by w
* When a building and furniture/fixtures are rented out by different lessors, the payer only needs to deduct tax at s
* In cold storage facilities where items like milk, ice cream, and vegetables are stored, payments may be considere
* Payments made to the government, statutory authorities, and local authorities are exempt from tax deduction at s
* Rent paid to NRI :
Rate ; 30%+surcharge+4% cess
limit : no limit
or agreement to use any of the following together or individulally:

roportion with earnings based on Form 16 issued for aggregate rent paid in advance.
ailable until the transfer is credited to its new owner
ction, the balance refunded to tenants. Landowner must report cancellation in TDS deduction ITR form.

ness in the hands of the lessor or the owner of the factory

t, as they cover payments by whatever named called.
r only needs to deduct tax at source under Section 194I from the rent paid for the hire of the building, not the furniture/fixtures.
d, payments may be considered charges for using the plant (cold storage equipment) rather than for using the building.
xempt from tax deduction at source under Section 194I. Therefore, a person making such payments is not required to deduct tax at source.
e furniture/fixtures.

quired to deduct tax at source.

 Sec 194 IB
• TDS on payment of rent by certain individual or HUF
• payer : Individual or HUF not liable for tax audit
• payee : Any person
• rate : 5%
• Limit : 50000 per month
• Time of deduction :
*At the time of credit of rent (for the last month in the previous year or the last month of the tenancy if the proper
*At the time of payment (via cash or cheque or draft or any other mode)

Sec 194 IC
• TDS on payment under Joint development agreement
• Payer : Any person
• Payee : Resident person
• Rate : 10%
• Limit : nil
• JDA :
The joint development agreement is a registered contract with a property
owner and a promoter to construct the new projects on the landowner's
property. Based on this agreement, the promoter carries out the legal
construction work.
Further, the owner will give the land, and under this agreement, the
owner will be paid back in cash or in the form of shares in the property.
• TDS not applicable for consideration in kind.
 41

th of the tenancy if the property is vacated before during the year), or