Section of the Income-tax Act  

Nature of Payment  

Rate of TDS

Remarks

193  

Interest on Securities  

10%  

–

194  

Dividend  

10%  

As per Budget 2021- No TDS needs to be deducted to AIF Category III.

194A  

Interest other than interest on securities  

10%  

–  

194B

Winnings from lotteries, crossword puzzles, card games and other games

30%

194C  

Payment of Contractors and sub-contractors  

1% (individual/HUF)  

2% (others)  

–

194D  

Insurance Commission  

5%  (Individual)

10% (Companies)

–

194DA  

Payment in respect of life insurance policy  

5%

–

194E

Payment to non-resident sportsmen/sports association

20%

The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

194EE  

Payments in respect of deposits under National Savings Scheme  

10%  

–  

194F  

Payments on account of re-purchase of Units by Mutual Funds or UTI  

20%  

–  

194G  

Commission, prize etc., on sale of lottery tickets  

5%  

–

194H  

Commission or brokerage  

5%  

–

194-I(a)  

Rent for plant and machinery  

2%  

–

194-I(b)  

Rent for immovable property  

10%  

–

194-IA  

Payment for acquisition of immovable property  

1%  

–

194-IB  

Payment of rent by individual or HUF  

5%  

–

194-IC  

Payment for Joint Development Agreements  

10%  

–

194J  

Fee for Professional or Technical Services (FTS), Royalty, etc.  

2% (FTS, certain royalties, call centre)  

10% (others)  

–

194K  

Payment of dividend by Mutual Funds  

10%  

–

194LA  

Payment of Compensation on acquisition of immovable property  

10%  

–

194LBA(1)  

Payment of income by Business trust  

10%  

–

194LBB(i)  

Payment of income by Investment fund  

10%  

–

194LBC(1)  

Income by securitization trust  

25% (Individual/HUF)  

30% (Others)  

–

194M  

Payment to commission, brokerage etc. by Individual and HUF  

5%  

–

194N

Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office

2% / 5%

–

194-O  

TDS on e-commerce participants  

1%    

–

194Q

Purchase of goods (applicable w.e.f 01.07.2021)

0.10%

A new section 194Q is proposed to be inserted to provide for deduction of TDS by person responsible for paying any sum to any resident for purchase of goods @ 0.1%.

195

Payment of any other sum to a Non-resident

The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

195

(a) Investment made by a Non-resident Indian Citizen

20%

–

195

(b) Long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen

10%

–

195

(c) Long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112

10%

–

195

(d) Long-term capital gains as referred to in Section 112A

10%

–

195

(e) Short-term capital gains referred to in Section 111A

15%

–

(f) Any other income by way of long-term capital gains

20%

–

(g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)

20%

–

(h) Any other Income

30%

–