RATES FOR TAX DEDUCTION AT SOURCE

 

During the financial year 2011-12, tax is to be deducted at source at the following rates:

 

Nature of payment*

TDS (SC: Nil, EC: Nil, SHEC: Nil)

·         Sec. 192 - Payment of salary to a resident/non-resident [normal rate of tax is applicable – see para *****, SC : Nil, EC : 2% and SHEC : 1%]

·         Sec. 193 - Interest on securities to a resident—

 

   a.  interest on (a) debentures/securities for money issued by or on behalf of any local authority/statutory corporation, (b) listed debentures of a company [not being listed securities in demat form], (c) any security of the Central or State Government [i.e., 8% Savings (taxable) Bonds, 2003, but not any other Government security]

10

   b.  any other interest on securities (including interest on non-listed debentures)

10

·         Sec. 194 - Dividend to a resident—

 

   a.  deemed dividend under section 2(22)(e)

10

   b.  any other dividend

Nil

·         Sec. 194A - Interest other than interest on securities to a resident

10

·         Sec. 194B† - Winnings from lottery or crossword puzzle or card game or other game of any sort to a resident/non-resident

30

·         Sec. 194BB† - Winnings from horse races to a resident/non-resident

30

·         Sec. 194C - Payment to a resident contractor/sub-contractor—

 

   a.  payment/credit to an individual or a Hindu undivided family

1

   b.  payment/credit to any person other than an individual or a Hindu undivided family

2

·         Sec. 194D - Insurance commission to a resident

10

·         Sec. 194E‡ - Payment to a non-resident sportsman or sports association

10

·         Sec. 194EE - Payment in respect of deposits under National Savings Scheme, 1987 to a resident/non-resident

20

·         Sec. 194F - Payment on account of repurchase of units of MF or UTI to a resident/non-resident

20

·         Sec. 194G‡ - Commission on sale of lottery tickets to a resident/non-resident

10

·         Sec. 194H - Commission or brokerage to a resident

10

·         Sec. 194-I - Rent to a resident—

 

   a.  rent of plant and machinery

2

   b.  rent of land or building or furniture or fitting

10

·         Sec. 194J - Fees for professional or technical services to a resident

10

·         Sec. 194LA - Payment of compensation to a resident on acquisition of certain immovable property

10

·         Sec. 194LB†††TDS on interest payable on infrastructure debt fund to a non-resident or a foreign company

5

 

para *****

Tax rates for the assessment year 2012-13 are given below—

·  For a resident woman (who is below 60 years on the last day of the previous year, i.e., born on after April 1, 1952)—

Net income range

Income-tax rates‡

Education cess

Secondary and higher education cess

Up to Rs. 1,90,000

Nil

Nil

Nil

Rs. 1,90,000 – Rs. 5,00,000

10% of (total income minus Rs. 1,90,000)

2% of income-tax

1% of income-tax

Rs. 5,00,000 – Rs. 8,00,000

Rs. 31,000 + 20% of (total income minus Rs. 5,00,000)

2% of income-tax

1% of income-tax

Above Rs. 8,00,000

Rs. 91,000 + 30% of (total income minus Rs. 8,00,000)

2% of income-tax

1% of income-tax

 

·         For a resident senior citizen (who is 60 years or more at any time during the previous year but not more than 80 years on the last day of the previous year, i.e., born during April 1, 1932 and March 31, 1952)—

Net income range

Income-tax rates‡

Education cess

Secondary and higher education cess

Up to Rs. 2,50,000

Nil

Nil

Nil

Rs. 2,50,000 – Rs. 5,00,000

10% of (total income minus Rs. 2,50,000)

2% of income-tax

1% of income-tax

Rs. 5,00,000 – Rs. 8,00,000

Rs. 25,000 + 20% of (total income minus Rs. 5,00,000)

2% of income-tax

1% of income-tax

Above Rs. 8,00,000

Rs. 85,000 + 30% of (total income minus Rs. 8,00,000)

2% of income-tax

1% of income-tax

 

·         For a resident super senior citizen (who is 80 years or more at any time during the previous year, i.e., born before April 1, 1932)—

Net income range

Income-tax rates‡

Education cess

Secondary and higher education cess

Up to Rs. 5,00,000

Nil

Nil

Nil

Rs. 5,00,000 – Rs. 8,00,000

20% of (total income minus Rs. 5,00,000)

2% of income-tax

1% of income-tax

Above Rs. 8,00,000

Rs. 60,000 + 30% of (total income minus Rs. 8,00,000)

2% of income-tax

1% of income-tax

 

·         For any other individual (born after April 1, 1952), every HUF/AOP/BOI/artificial juridical person—

Net income range

Income-tax rates‡

Education cess

Secondary and higher education cess

Up to Rs. 1,80,000

Nil

Nil

Nil

Rs. 1,80,000 – Rs. 5,00,000

10% of (total income minus Rs. 1,80,000)

2% of income-tax

1% of income-tax

Rs. 5,00,000 – Rs. 8,00,000

Rs. 32,000 + 20% of (total income minus Rs. 5,00,000)

2% of income-tax

1% of income-tax

Above Rs. 8,00,000

Rs. 92,000 + 30% of (total income minus Rs. 8,00,000)

2% of income-tax

1% of income-tax

Notes:

1. Surcharge - Nil

2. Education cess - It is 2 per cent of income-tax.

3. Secondary and higher education cess - It is 1 per cent of income-tax.

 

*Surcharge is applicable for TDS purposes only when the recipient is a foreign company and payment/credit subject to TDS exceeds Rs. 1 crore. In no other case, surcharge is applicable at the time of deduction of tax at source. Education cess and secondary and higher education cess are applicable for TDS purposes in the case of tax deduction from payment of salary to a resident or a non-resident. Education cess and secondary and higher education cess are also applicable in the case of payment or credit of any other sum to a non-resident or a foreign company. In no other case, education cess and secondary and higher education cess are applicable for TDS purposes. Moreover, if the PAN of the deductee is not intimated to the deductor, tax will be deducted at source either at the rate given in the table or at the rate of 20 per cent, whichever is higher. Further, under section 94A(5), if payment or credit is made or given to a deductee who is located in a notified jurisdictional area, tax is deductible at the rate given in the table or at the rate of 30 per cent, whichever is higher.

†Under sections 194B and 194BB, if recipient is a non-resident (other than a foreign company), tax is deductible at the rate of 30.9% (i.e., IT: 30%, EC: 2% and SHEC: 1%). If the recipient is a non-domestic company, tax is deductible at the rate of 30.9% (i.e., IT: 30%, EC: 2% and SHEC: 1%), if payment does not exceed Rs. 1 crore or at the rate of 31.518% (i.e., IT: 30%, SC: 2%, EC: 2% and SHEC: 1%) if payment/credit exceeds Rs. 1 crore.

‡Under sections 194E & 194G, if recipient is a non-resident (other than a foreign company), tax is deductible at the rate of 10.3% (i.e., IT: 10%, EC: 2% and SHEC: 1%). If the recipient is a non-domestic company, tax is deductible at the rate of 10.3% (i.e., IT: 10%, EC: 2% and SHEC: 1%), if payment/credit does not exceed Rs. 1 crore or at the rate of 10.506% (i.e., IT: 10%, SC: 2%, EC: 2% and SHEC: 1%) if payment/credit exceeds Rs. 1 crore.

†††Under section 194LB, if recipient is a non-resident (other than a foreign company), tax is deductible at the rate of 5.15% (i.e., IT: 5%, EC: 2% and SHEC: 1%). If the recipient is a non-domestic company, tax is deductible at the rate of 5.15% (i.e., IT: 5%, EC: 2% and SHEC: 1%), if payment/credit does not exceed Rs. 1 crore or at the rate of 5.253% (i.e., IT: 5%, SC: 2%, EC: 2% and SHEC: 1%) if payment/credit exceeds Rs. 1 crore.