TDS Rates Chart for AY 2018-19

TDS Rates Chart for AY 2018-19

The Tax Deducted at Source is applicable to all resident and non-resident Indians as well as domestic and international companies in the length and breadth of India. Any individual paying income tax needs to deduct tax at source which is commonly known as TDS and deposit it with the Income Tax India within the stipulated time period. TDS Rates Chart for AY 2018-19 is given below:

The different TDS rates for the Assessment Year 2018-19 are as follows:

Particulars TDS Rates (in %)
1. In the case of a person other than a company
1.1 where the person is resident in India-
Section 192: Payment of salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund 10
which is taxable in the hands of an employee.
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of 10
any local authority or a corporation established by a Central, State or
Provincial Act;
b) any debentures issued by a company where such debentures are 10
listed on a recognised stock exchange in accordance with the Securities
Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made there
under;
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 10
Section 115-O
Section 194A: Income by way of interest other than "Interest on securities" 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, 30
card games and other games of any sort
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 5
Section 194DA: Payment in respect of life insurance policy 1
Section 194EE: Payment in respect of deposit under 10
National Savings scheme
Section 194F: Payment on account of repurchase of unit by 20
Mutual Fund or Unit Trust of India
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194H: Commission or brokerage 5
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 1
property other than agricultural land
Section 194-IB:Payment of rent by individual or HUF not liable 5
to tax audit
Note: This provision is applicable from June 1, 2017
Section 194-IC:Payment of monetary consideration under 10
Joint Development Agreements
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.
Note: With effect from June 1, 2017 the rate of TDS would be 2% in
case of payee engaged in business of operation of call center.
Section 194LA: Payment of compensation on acquisition of 10
certain immovable property
Note: With effect from April 1, 2017, no deduction of tax shall be
made on any payment which is exempt from levy of income-tax
under Right to Fair Compensation Act, 2013.
Section 194LBA(1): Business trust shall deduct tax while distributing, 10
any interest 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.
Section 194LBB: Investment fund paying an income to a unit holder 10
[other than income which is exempt under Section 10(23FBB)]
Section 194LBC: Income in respect of investment made in a 25% in case of
securitisation trust (specified in Explanation of section115TCA) Individual or HUF
30% in case of
other person
Any Other Income 10
1.2 where the person is not resident in India-
Section 192: Payment of Salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund 10
which is taxable in the hands of an employee.
Section 194B: Income by way of winnings from lotteries, crossword 30
puzzles, card games and other games of any sort
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 10
National Savings Scheme
Section 194F:Payment on account of repurchase of unit by 20
Mutual Fund or Unit Trust of India
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): Business trust shall deduct tax while distributing 5
any interest income received or receivable by it from a SPV to
its unit holders.
Section 194LBA(3): Business trust shall deduct tax while distributing 30
any income received from renting or leasing or letting out any real
estate asset owned directly by it to its unit holders.
Section 194LBB: Investment fund paying an income to a unit holder 30
[other than income which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a 30
securitisation trust (specified in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or a 5
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)
Note: With effect from April 1, 2018 benefit of such concessional TDS
rate has been further extended by three years. Now TDS at concessional
rate of 5% will be applicable for borrowings made before July 1, 2020.
Section 194LD: Payment of interest on rupee denominated bond of an 5
Indian Company or Government securities to a Foreign Institutional
Investor or a Qualified Foreign Investor
Note: With effect from April 1, 2018 benefit of such concessional TDS rate
has been further extended by three years. Now TDS at concessional rate of
5% will be applicable for borrowings made before July 1, 2020.
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a 20
Non-resident Indian Citizen
b) Income by way of long-term capital gains referred to in 10
Section 115E in case of a Non-resident Indian Citizen
c) Income by way of long-term capital gains referred to in sub-clause 10
(iii) of clause (c) of sub-Section (1) of Section 112
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 20
capital gains referred to in clauses (33), (36) and (38) of Section 10]
f) Income by way of interest payable by Government or an Indian concern 20
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)
g) Income by way of royalty payable by Government or an Indian 10
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
h) Income by way of royalty [not being royalty of the nature referred to 10
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
i) Income by way of fees for technical services payable by Government or 10
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
j) Any other income 30
Section 196B: Income from units (including long-term capital gain on 10
transfer of such units) to an offshore fund
Section 196C: Income from foreign currency bonds or GDR of an Indian 10
company (including long-term capital gain on transfer of such
bonds or GDR)
Section 196D: Income of foreign Institutional Investors from securities 20
(not being dividend or capital gain arising from such securities)
2. In the case of a company-
2.1 where the company is a domestic company
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of 10
any local authority or a corporation established by a
Central, State or Provincial Act;
b) any debentures issued by a company where such debentures 10
are listed on a recognised stock exchange in accordance with the
Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any
rules made thereunder;
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 10
"Interest on securities"
Section 194B: Income by way of winnings from lotteries, 30
crossword puzzles, card games and other games of any sort
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 1
Section 194EE: Payment in respect of deposit under 10
National Savings scheme
Section 194F: Payment on account of repurchase of unit by 20
Mutual Fund or Unit Trust of India
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194H: Commission or brokerage 5
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 1
property other than agricultural land
Section 194-IC:Payment of monetary consideration under 10
Joint Development Agreements
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.
Note: With effect from June 1, 2017 the rate of TDS would be 2%
in case of payee engaged in business of operation of call center.
Section 194LA: Payment of compensation on acquisition of 10
certain immovable property
Note: With effect from April 1, 2017, no deduction of tax shall be
made on any payment which is exempt from levy of income-tax
under Right to Fair Compensation Act, 2013.
Section 194LBA(1): Business trust shall deduct tax while distributing, 10
any interest 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.
Section 194LBB: Investment fund paying an income to a unit 10
holder [other than income which is exempt under Section 10(23FBB)] .
Section 194LBC: Income in respect of investment made in a 10
securitisation trust (specified in Explanation of section115TCA)
Any Other Income 10
2.2 where the company is not a domestic company-
Section 194B: Income by way of winnings from lotteries, 30
crossword puzzles, card games and other games of any sort
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 5
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): Business trust shall deduct tax while 5
distributing any interest income received or receivable by it
from a SPV to its unit holders.
Section 194LBA(3): Business trust shall deduct tax while distributing 40
any income received from renting or leasing or letting out any
real estate asset owned directly by it to its unit holders.
Section 194LBB: Investment fund paying an income to a unit holder 40
[other than income which is exempt under Section 10(23FBB)].
Section 194LBC: Income in respect of investment made in a 40
securitisation trust (specified in Explanation of section115TCA)
Section 194LC: Payment of interest by an Indian Company or 5
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)
Note: With effect from April 1, 2018 benefit of such concessional
TDS rate has been further extended by three years. Now TDS at
concessional rate of 5% will be applicable for borrowings
made before July 1, 2020.
Section 194LD:Payment of interest on rupee denominated bond 5
of an Indian Company or Government securities to a Foreign
Institutional Investor or a Qualified Foreign Investor
Note: With effect from April 1, 2018 benefit of such concessional TDS
rate has been further extended by three years. Now TDS at
concessional rate of 5% will be applicable for borrowings made before
July 1, 2020.
Section 195: Payment of any other sum
a) Income by way of long-term capital gains referred to in 10
sub-clause (iii) of clause (c) of sub-section (1) of Section 112
b) Income by way of short-term capital gains referred to in 15
Section 111A
c) Any other income by way of long-term capital gains 20
[not being long-term capital gains referred to in
clauses (33), (36) and (38) of Section 10]
d) Income by way of interest payable by Government or an 20
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)
e) Income by way of royalty payable by Government or an Indian concern 10
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
f) Income by way of royalty [not being royalty of the nature referred to in
point e) above C] 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, 50
1961 but before the 1st day of April, 1976
B. where the agreement is made after the 31st day of 10
March, 1976
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, 50
1964 but before the 1st day of April, 1976
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 10
on transfer of such units) to an offshore fund
Section 196C: Income from foreign currency bonds or GDR of 10
an Indian company (including long-term capital gain on transfer
of such bonds or GDR)
Section 196D: Income of foreign Institutional Investors from 20
securities (not being dividend or capital gain arising from
such securities)