TDS Rates for A Y 2010-11

TDS Rates for A Y 2010-11

The Rates are applicable from 01.10.2009

All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction and Collection Account Number (TAN).

Issue of TDS Certificate

1. Section 192 TDS on Salary : The certificate on Form No. 16 should be issued by the deductor within one month of the close of the financial year in which deduction is made. (Rule 31 (1)(a)

2. In all other cases : The certificate on Form No. 16A should be issued by the deductor within one month of the month during which the credit is given or sum paid. (Rule 31(1)(b))

Note : Where more than one certificate is required to be furnished to the payee during the financial year, then on the request of the payee, one consolidated certificate may be issued within one month from the end of such financial year.

Section 192 - Payment of Salary and Wages
Section 193 - Payment of Interest on Securities
Section 194 A - Payment of Interest other than interest on securities
Section 194 B - Winnings from Lotteries or Cross Word Puzzle or Card Game or any other Game
Section 194 BB - Winnings from Horse Race
Section 194 C - Payment to Contractors (In case of Advertising Contracts)
Section 194 C - Payment to Contractors / Sub-contractors (In case of Other than Advertising Contracts)
Section 194 C - Payment to Transport Contractors / Sub-contractors
Section 194 H - Payment of Commission or Brokerage
Section 194 I - Payment of Rent of Land, Building or Furniture
Section 194 I - Payment of Rent of Plant & Machinery
Section 194 J - Payment of Professional Charges


Section 192 Payment of Salary and Wages
Criterion of Deduction TDS is deducted if the estimated income of the employee is taxable.
Employer must not deduct tax on non-taxable allowances like conveyance allowance, rent allowance, medical allowance and deductible investments under sections like 80C, 80CC, 80D, 80DD, 80DDB, 80E, 80GG and 80U.

No tax is required to be deducted at source if the estimated total income of the employee is less than the minimum taxable income.

Applicable TDS Rate Income Tax, Surcharge and Education Cess at the applicable rate on the estimated income of employee for the year.
Section 193 Payment of Interest on Securities
Criterion of Deduction TDS is deductible if payment is in excess of Rs. 5,000/- per annum.
Applicable TDS Rate
If the recipient is a Company, Firm or Cooperative Society 20.00%
If the recipient is an Individual or HUF 10.00%

Section 194 A Payment of Interest other than interest on securities

Criterion of Deduction

If payment of interest from a banking company is in excess of Rs. 10,000/- per annum.

If payment of interest from other than a banking company is in excess of Rs. 5,000/- per annum.

Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )

Section 194 B Winnings from Lotteries or Cross Word Puzzle or Card Game or any other Game

Criterion of Deduction

TDS is deductible if payment is in excess of Rs. 5,000/-.
Applicable TDS Rate
If the recipient is an Individual or HUF 30.00%
Section 194 BB Winnings from Horse Race
Criterion of Deduction TDS is deductible if payment is in excess of Rs. 2,500/- per annum.
Applicable TDS Rate
If the recipient is an Individual or HUF 30.00%

Section 194 C Payment to Contractors (In case of Advertising Contracts)
Criterion of Deduction Payment in excess of Rs. 20,000/- per contract or Rs. 50,000/- per annum.
Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * 2.00% 2.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF 1.00% 1.00% ( 20% w.e.f. 01.04.2010)

Section 194 C Payment to Contractors / Sub-contractors (In case of Other than Advertising Contracts)
Criterion of Deduction Payment in excess of Rs. 20,000/- per contract or Rs. 50,000/- per annum.
Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * 2.00% 2.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF 1.00% 1.00% ( 20% w.e.f. 01.04.2010 )

Section 194 C Payment to Transport Contractors / Sub-contractors engaged In the business of plying, hiring or leasing goods carriages
Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * Nil 2.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF Nil 1.00% ( 20% w.e.f. 01.04.2010 )

Section 194 H Payment of Commission or Brokerage
Criterion of Deduction TDS is deductible if payment is in excess of Rs. 2,500/- per annum.
Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )

Section 194 I Payment of Rent of Land, Building or Furniture
Criterion of Deduction TDS is deductible if payment is in excess of Rs. 1,20,000/- per annum.
Individuals and HUFs whose sales/gross receipts in business is less than Rs 40 lac or professional receipts is less than Rs 10 lac are not required to deduct TDS

Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )
Section 194 I Payment of Rent of Plant & Machinery
Criterion of Deduction TDS is deductible if payment is in excess of Rs. 1,20,000/- per annum.
Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * 2.00% 2.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF 2.00% 2.00% ( 20% w.e.f. 01.04.2010 )

Section 194 J Payment of Professional Charges
Criterion of Deduction TDS is deductible if payment is in excess of Rs. 20,000/- per annum.
Applicable TDS Rate If PAN is quoted If PAN is not Quoted
If the recipient is a Company, Firm or Cooperative Society * 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )
If the recipient is an Individual or HUF 10.00% 10.00% ( 20% w.e.f. 01.04.2010 )

* These rates are applicable to domestic companies and not to other than domestic companies.