How do I know what rate of TDS is applicable to my income?
There are different TDS rates
described in different sections of the Income Tax Act, depending on the type
and manner of the payment. TDS is deducted by estimating the likely tax amount
on your income as per the slab rates currently prevailing for that assessment
year.
Some of the incomes are
given along with TDS rates:
Income/Payment
| Section
| TDS rate
|
Salary
| 192
| At applicable
income tax rate, including cess
|
Accumulated
taxable part of PF
| 192A- Govt.
employees (not union)
192B- Non-govt.
employees
192C- Union govt
employees
| 10%
|
Interest on
securities
| 193
| 10%
|
Deemed dividend
| 194
| 10%
|
Other interest
| 194A
| 10%
|
Lottery, game,
crossword, etc.
| 194B
| 30%
|
Winning from
horse races
| 194BB
| 30%
|
Insurance
commission
| 194D
| 5%
|
Life insurance
policies not exempt under 10(10)D
| 194DA
| 1% if payment
exceeds ₹1lakh
|
Commission,
brokerage (excluding insurance commission)
| 194H
| 5% if payment
exceeds ₹15,000
|
Payment for
purchasing land or property
| 194IA
| 1%
|
Payment of rent
by individual or HUF exceeding ₹50,000
| 194IB
| 5%
|
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TDS
TDS means any tax is deducted on your income/ receipts. You can find these details in Form 26AS. By uploading Form 26AS these data will be automatically filled up. TAN(Tax deduction and Collection account number)= You will get this at the form 16 or ...
At what rate should the TDS be deducted u/s 194A?
TDS is to be deducted at the rate of 10%. If the recipient of income doesn’t furnish his PAN to deductor, then TDS is to be deducted @ 20%. No surcharge, education cess or SHEC will be added to the basic rates.
Is there a TDS on Fixed Deposit/Recurring Deposit income?
Yes, if the amount of interest accrued or paid during the financial year exceeds Rs.10,000/-, TDS is applicable from the first interest flow.
How much TDS is applicable on Fixed Deposit and Recurring deposit interest?
TDS rates on FDs/RDs are as follows: @ 10% on interest to residents, @ 20% is applicable in absence of PAN / invalid PAN. @ 30.90% to non-resident Indians
How do I avoid TDS on my income if I expect my total income to be below the exemption limit?
In case of interest income being more than Rs.10,000 in a year, banks are liable to deduct TDS. The bank calculates this limit based on deposits held in all its branches. Similarly, TDS is deducted from EPF withdrawals, corporate bond incomes, post ...