Appendices

Appendices

Appendix 1

TDS rates on payments made to non-residents and foreign companies:

Nature of payment Rate of tax*
a) TDS on interest on infrastructure debt fund, on foreign currency loans (under a loan agreement or by way of issue of long term bonds), on rupee denominated bonds of any Indian company or government security 5%
b) TDS on long term infrastructure bonds issued between 1st July 2012 to 1st October 2014 4%
c) TDS on interest other than (a) and (b) 20%
d) TDS on long-term capital gains on specified assets 10%
e) TDS on long-term capital gains other than (d) 20%
f) TDS on short-term capital gains on listed shares and units of equity-oriented mutual funds 15%
g) TDS on dividend income 20%
h) TDS on short-term capital gains other than (f) and (g) 40%
i) Royalty and fees for technical services 10%
* The rate of TDS shall be increased by applicable surcharge and Health and education cess @ 4%.

Appendix 2

TDS rates on some of the common payments made to residents:

Nature of payment Rate of TDS in case of payment to Threshold limit for aggregate payment p.a
Individual or HUF Others, including corporate assessees
TDS on salaries paid According to the slab rates applicable to respective employees NA
TDS on dividend 10% 10% INR 5,000
TDS on dividend received from business trust if SPV has opted for beneficial tax regime 10% 10%
TDS on income from mutual funds 10% 10% INR 5,000
TDS on interest on securities 10% 10% INR 10,000
TDS on deemed dividends 10% 10% NA
TDS on interest other than ‘Interest on Securities’
- By banks, co-operative societies, post offices 10% 10% INR 40,000
- By others 10% 10% INR 5,000
TDS on winnings from lottery or crossword puzzle 30% 30% INR 10,000
TDS on winnings from horse races 30% 30% INR 10,000*
TDS on payments to contractors 1% 2% INR 30,000 for a single transaction and INR 100,000 for the year
- Paid by individual/HUF not liable to a tax audit 5%# 5%# INR 5,000,000
TDS on payment of insurance commission 5%# 5%# INR 15,000
TDS on commission or brokerage 5%# 5%# INR 15,000
TDS on rent
- Land, building, furniture and fittings 10% 10% INR 240,000
- Plant and machinery, equipment 2% 2% INR 240,000
- TDS on rent (Paid by individual or HUF not covered above) 5% 5% INR 600,000 (INR 50,000 p.m.)
TDS on transfer of immovable property other than agricultural land (Consideration to include incidental and amenities charges) 1% 1% INR 5,000,000
TDS on transfer of immovable property by an individual or HUF under a redevelopment agreement 10% 10% N/A
TDS by an e-commerce operator while making payments to an e-commerce participant for sale of goods or providing services or both 1% 1% INR 500,000 for individuals and HUFs, provided that such individual/HUF furnishes PAN/Aadhar to the e-commerce operator
TDS on technical services and TDS on royalty for consideration for sale, distribution or exhibition of cinematographic films 2% 2% INR 30,000
TDS on fees for professional or technical services, royalty and non-compete fees 10% 10% INR 30,000
- Paid by individual/HUF not liable to a tax audit 5%# 5%# INR 5,000,000
TDS on income from business of operation of call centers 2% 2% INR 30,000
TDS on remuneration/commission paid to director, other than salary 10% 10% NA
TDS on payment of compensation on compulsory acquisition of immovable property other than agricultural land 10% 10% INR 250,000
TDS on cash withdrawal from bank accounts# 2% 2% INR 2,500,000 to INR 10,000,000 Exceeding INR 10,000,000
5% 5%

These amendments are applicable with effect from 1 April 2020

# These amendments are introduced by The Finance Act, 2020 applicable with effect from 1 July 2020

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Manoj Gidwani
Vice President
Global Marketing and Administration

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