TDS is one of the forms of collecting tax. It is based on the scheme “Pay as you earn”. Tax must be deducted at the time of payment in cash or cheque or credit to the payee’s account whichever is earlier. Payee’s account refers to deductee’s account in this case.
Find the table below for the TDS (Tax Deduction at source) rates and threshold limit for financial year 2013-14 or assessment year 2014-15. In this table there is complete list of the payment on which TDS is deducted, threshold limit, Assessee type (tax payer) and rate of TDS.
TDS rates Chart for AY 2014-2015
|Nature of Payment||Threshold Limit||Rate in %||Rate in %|
|193||Interest on Debentures||5000||10||10|
|194A||Interest other than Interest on Securities (By Bank)||10000||10||10|
|4A||194A||Interest other than Interest on Securities (By Others)||5000||10||10|
|194B||Lottery / Cross Word Puzzle||10000||30||30|
|194BB||Winning form horse race||5000||30||30|
|194C(2)||Sub-Contractors / Advertisements||30000||1||2|
|10||194EE||Payments out od Deposit under NSS||2500||20||–|
|11||194F||Repurchase of units by MF / UTI||1000||20||20|
|12||194G||Commission on sale of lotter tickets||1000||10||10|
|13||194H||Commission or Brokerage||5000||10||10|
|14||194I||Rent (Land & Building) Furniture & Fittings||180000||10||10|
|14A||194I||Rent (P & M, Equipment)||180000||2||2|
|15||194 IA||TDS on transfer of Immovable property other than agriculture land (w.e.f. 01.06.2013)||50 Lacs||1||1|
|16||194J||Professional/Technical charges/ Royalty & Non compete fees||30000||10||10|
|Any remuneration or commission paid to director of the company(w.e.f. 01.07.2012)||Nil||10||10|
|194LA||Compensation on acquisition of immovable property||200000||10||10|
B. The Tax Collection at Source Rates for the Financial Year 2013-14 is tabulated below:
Nature of Goods
Rates in %
|1||Alcoholic liquor for human Consumption||1|
|3||Timber obtained under forest lease||2.5|
|4||Timber obtained by any mode other than a forest lease||2.5|
|5||Any other forest produce not being timber or tendu leaves||2.5|
|9||Mining & Quarrying||2|
|10||Minerals, being coal or lignite or iron ore||1|
|11||Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 2 lakhs)||1|
- During the Budget FY 2013-14 a new section 194IA has been added w.e.f. June 1, 2013 to deduct tax on transfer of property (other than agriculture land) at 1%.
- Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available. Thus, it is now necessary for persons who are submitting Form 15H and 15G and does not have a PAN; they must have PAN and should mention the PAN on form 15H/15G to avoid higher TDS.
- Surcharge on tax is not deductible/ collectible at source in case of Resident individual/ HUF / Firm / AOP / BOI / Domestic Company in respect of payment of income other than salary.