TDS means Tax Deducted at sources.TDS is indirect Tax. It is managed by the Central Board of Direct taxes (CBDT).It is way of collection of taxes at the time of making the specific nature payment to the other person and deducted amount is remitted to the Government Account
The person who deduct the TDS at the time of making the payment is called as the Deductor and the other person whose payment is getting deducted is called the Deductee.
TDS types and rate
TDS is calculated on the basis of threshold limit, means if any time that limits are crossed the TDS will be deducted from future income/payments.TDS percentage may vary from 1% to 30%.
TDS rate Chart for the Financial year 2016-2017/ Assessment Year 2017-2018
| Section | Nature of income | When to deduct |
TDS Rate (Individual/HUF) |
If no PAN then TDS rates |
| 192 | Salary | Income tax slab |
Slab Rate | 30% |
| 192 A | Employer Providend Fund- Premature withdrawal |
Rs.50,000 | 10% | 20% |
| 193 | Interest on securities | Rs10,000 | 10% | 20% |
| 193 | Interest on Debenture | Rs5,000 | 10% | 20% |
| 194 | Dividend | N.A. | 10% | 20% |
| 194A | Interest other than Interest on Securities | Rs10,000 | 10% | 20% |
| 194B | Winning from Lotteries & Puzzles | Rs10,000 | 30% | 30% |
| 194BB | Winning from Hoarse race | Rs10,000 | 30% | 30% |
| 194C | Payment to Contractors-(Aggregate during the Financial Yea) |
Rs 15,000 | 10% | 20% |
| 194 D | Payment of insurance commission | Rs 15,000 | 5% | 20% |
| 194DA | Payment of Life insurance Policy | Rs 1,00,000 | 1% | 20% |
| 194H | Commission & Brokerage | Rs 15,000 | 5% | 20% |
| 194Ib | Rent – Land & Building | Rs 1,80,000 | 10% | 20% |
| 194la | Rent – Plant & Machinery | Rs 1,80,000 | 2% | 20% |
| 194J | Professional Fees & Technical Services | Rs 30,000 | 10% | 20% |
| 194IA | Immovable Property other than Agricultural Land |
Rs 50,00,000 | 1% | 20% |
| 19LB | Interest From infrastructure bond | N.A. | 5% | 20% |
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