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 Government with in specified time. If prescribed limit of payment do not exceed there is no need for deduction of tax.
Note: In case of Pan number not available or in case of invalid PAN no. -higher of the following will be the applicable rate.
TDS Rates for Payments other than Salary and Wages to Residents (including domestic companies) for FY 2014-15 (AY 2015-16):
| Section | For Payment of | On Payments Exceeding | Individual/ | Others |
| HUF | ||||
| 193 | Interest on Securites | Rs. 5000/- | 10% | 10% |
| 194 | Deemed Dividend | No minimum | 10% | 10% |
| 194 A | Interest other than on securities by banks | Rs. 10000/- | 10% | 10% |
| 194 A | Interest other than on securities by others | Rs. 5000/- | 10% | 10% |
| 194 B | Winnings from Lotteries / Puzzle / Game | Rs. 10000/- | 30% | 30% |
| 194 BB | Winnings from Horse Race | Rs. 5000/- | 30% | 30% |
| 194 C (1) | Payment to Contractors | Rs. 30000/- for single payment | 1% | 2% |
| Rs. 75000/- for aggregate | ||||
| 194 C (2) | Payment to Sub-Contractors / for Advertisements | payment during Financial Year | ||
| 194 D | Payment of Insurance Commission | Rs. 20000/- | 10% | 10% |
| 194 EE | Payment of NSS Deposits | Rs. 2500/- | 20% | NA |
| 194 F | Repurchase of units by Mutual Funds / UTI | Rs. 1000/- | 20% | 20% |
| 194 G | Commission on Sale of Lottery tickets | Rs. 1000/- | 10% | 10% |
| 194 H | Commission or Brokerage | Rs. 5000/- | 10% | 10% |
| 194 I | Rent of Land, Building or Furniture | Rs. 180000/- | 10% | 10% |
| Rent of Plant & Machinery | Rs. 180000/- | 2% | 2% | |
| 194 IA | Transfer of Immovable Property (w.e.f. 01.06.2013) | Rs. 50 lacs | 1% | 1% |
| 194 J | Professional / technical services, royalty | Rs. 30000/- | 10% | 10% |
| 194 J (1) | Remuneration / commission to director of the company | – | 10% | 10% |
| 194 J (ba) | Any remuneration / fees / commission paid to a director of a company, other than those on which tax is deductible u/s 192. | – | 10% | 10% |
| 194 L | Compensation on acquisition of Capital Asset | Rs. 100000/- | 10% | 10% |
| 194 LA | Compensation on acquisition of certain immovable property | Rs. 200000/- | 10% | 10% |
Note: In case of no PAN is available/or invalid PAN, section 206A A 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%