Income For Salary
income tax
TDS
Income From House Property
There are around 20-25 sections which prescribe different types of payments on which tax is deductible at source. Here, we are going to discuss some of the most commonly encountered nature of payments on which tax is to be deducted at source.
| section | Nature of payment | Rate of TDS | Threshold Limit |
|---|---|---|---|
| 192 | Salary | 15% (Education and higher education cess @ 2% & 1% respectively in cases where salary exceeds Rs 1 crore) | If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens) |
| 194 | Deemed Dividend u/s 2(22)(e) | 10% | - |
| 194A | Interest other than interest on securities | 10% | Rs 10,000/- |
| 194C | Payment or credit to a resident contractor/sub-contractor | 1% (in cases of individuals and HUF) 2% (in cases of person other than individual or HUF) | a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000 b) If sum paid or payable to contractor in aggregate does not exceed Rs. 100,000 during the financial year |
| 194D | Insurance Commission | 5% (in cases of individuals and HUF) 10% (in cases of person other than individual or HUF) | Rs 15,000/- |
| 194G | Commission on sale of lottery tickets | 10% | Rs 15,000/- |
| 194H | Commission or Brokerage | 5% | Rs 15,000/- |
| 194-I | Rent | 2% (rent of plant &machinery) 10% (rent of land or building or furniture or fixtures) | If amount paid or payable during the financial year does not exceed Rs. 1,80,000 |
| 194-IA | Payment/credit of consideration to a resident transferor for transfer of any immovable property (other than rural agricultural land) | 1% | If amount paid or payable during the financial year does not exceed Rs. 50 Lakhs |
| 194J | Professional fees, technical fees, royalty or remuneration to a director | 10% | If amount paid or payable during the financial year does not exceed Rs. 30,000 |
| 194LA | Payment of compensation on acquisition of certain immovable property | 10% | Rs 2,50,000/- |