New TDS Rates for Financial Year 2012-13 or Assessment Year 2013-14

Friday, July 13, 2012 | comments

Friends
During the financial year 2012-13, tax is to be deducted at source at the following rates:
Nature of payment*
TDS (SC: Nil, EC: Nil,SHECNil)
l Sec. 192 - Payment of salary to a resident/non-resident [normal rate of tax is applicable � see para 0.1-1b, SC : Nil, EC : 2% and SHEC : 1%]
l 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
l Sec. 194 - Dividend to a resident�

�� a.� deemed dividend under section 2(22)(e)
10
�� b.� any other dividend
Nil
l Sec. 194A - Interest other than interest on securities to a resident
10
l Sec. 194B� - Winnings from lottery or crossword puzzle or card game or other game of any sort to a resident/non-resident
30
l Sec. 194BB� - Winnings from horse races to a resident/non-resident
30
l 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
l Sec. 194D - Insurance commission to a resident
10
l Sec. 194E* - Payment to a non-resident foreign citizen sportsman or non-resident sports association (applicable up to June 30, 2012)
10
���� -� Payment to a non-resident foreign citizen sportsman/entertainer or non-resident sports association (applicable from July 1, 2012)
20
l Sec. 194EE - Payment in respect of deposits under National Savings Scheme, 1987 to a resident/non-resident
20
l Sec. 194F - Payment on account of repurchase of units of MF or UTI to a resident/non-resident
20
l Sec. 194G� - Commission on sale of lottery tickets to a resident/non-resident
10
l Sec. 194H - Commission or brokerage to a resident
10
l 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
l Sec. 194J - Professional fees, technical fees, royalty (or with effect from July 1, 2012 remuneration to a director) paid or payable to a resident
10
l Sec. 194LA - Payment of compensation to a resident on acquisition of certain immovable property
10


*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 section 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.

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