What are the payments covered under the TDS mechanism and the rates for deduction of tax at source?
TDS rates for the financial year 2014-15 are as follows— CATEGORY A - WHEN RECIPIENT IS RESIDENT Nature of payment TDS (SC : Nil, EC : Nil, SHEC : Nil) • Sec. 192 - Payment of salary [normal tax rates are applicable – SC : 10% (if net income exceeds Rs. 1 crore), EC : 2% and SHEC : 1%] — • Sec. 193 - Interest on securities— 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— a. deemed dividend under section 2(22)(e) 10 b. any other dividend Nil • Sec. 194A - Interest other than interest on securities 10 • Sec. 194B - Winnings from lottery or crossword puzzle or card game or other game of any sort 30 • Sec. 194BB - Winnings from horse races 30 • Sec. 194C - Payment or credit 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 10 • Sec. 194DA - Payment in respect of life insurance policy (applicable from October 1, 2014) 2% • Sec. 194EE - Payment in respect of deposits under National Savings Scheme, 1987 20 • Sec. 194F - Payment on account of repurchase of units of MF or UTI 20 • Sec. 194G - Commission on sale of lottery tickets 10 • Sec. 194H - Commission or brokerage 10 • Sec. 194-I - Rent— a. rent of plant and machinery 2 b. rent of land or building or furniture or fitting 10 • Sec. 194-IA - Payment/credit of consideration to a resident transferor for transfer of any immovable property (other than rural agricultural land) 1 • Sec. 194J - Professional fees, technical fees, royalty or remuneration to a director 10 • Sec. 194LA - Payment of compensation on acquisition of certain immovable property 10 • Sec. 194LBA(1) - Payment of the nature referred to in section 10(23FC) by business trust to resident unit holders (applicable from October 1, 2014) 10%