Income Tax – TDS (Tax Deduction at Source) Rates for Financial year 2012-2013

Under Tax Deduction At Source (TDS) scheme ,as prescribed in Income Tax Act every person is responsible for payment of any specified sum to any person is required to deduct Tax at Source and deposit it with central Goverment with in specified time. if prescribed limit of payment do not exceed there is no need for deduction of tax

NoteIn case of Pan number not available or in case of invalid PAN no. -higher of the following will be the applicable rate:

However we would like to provide you a complete chart of TDS applicable for the financial year 2012-13.

TDS (Tax deducted at Source) Rate chart For Financial Year 2012-13

TDS Rate in %

Section Nature of payments Payment Thresholds Company, firm. Co-op Society, Local authority HUF , Individual
193 Interest on securities Nil 10 10
194 Dividends Nil 10 10
194A Interest from a banking company 10000 10 10
194A Interest other than interest on securities 5000 10 10
194B Winning from Lotteries or Crossword Puzzles 10000 30 30
194BB winning from Horse races 5000 30 30
194C Payment to Contractors , Sub contractors 30000 for Single transaction 2 1
75000 for aggregate of transactions during the Financial year
194D Insurance Commission 20000 10 10
194E Payment to non resident Sportsman/Sports association
194E - Applicable up to June 30, 2012 Nil 10 10
194E - Applicable from July 1, 2012 Nil 20 20
194EE Payment in respect of national savings scheme 2500 20
194F Payment on account of re-purchase of units of mutual Fund 1000 20 20
194G Sale of Lottery Ticket 1000 10 10
194H Commission / or brokerage 5000 10 10
194I Rent for the use of land , building, furniture and fixtures 180000 10 10
194I Rent-For the use of Machinery, plant equipment 180000 10 10
194J Fees for Professional , technical services 30000 10 10
194LA Payment of compensation on acquisition of certain immovable property 100000 during the FY 10 10
194LB Income by way of interest from infrastructure debt fund (non-resident) Nil 5 5
194LC Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012) Nil 5 5
195 Other Sums Nil Average rates as applicable Nil
196C Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) Nil 10 10
196D Income of FIIs from securities Nil 20 20

Notes
1. In case of no PAN is available/or invalid PAN, section 206AA will apply, i.e., higher of the following TDS rates will be the applicable :

  • Rates specified in the relevant provisions of the Act
  • Rates or rates in force
  • At the rate of 20%

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