TDS is collected at the time of making relevant payments as specified by the IT Act, 1961- such as rent, professional fees, interest accrued, salary, commission earned, etc.
In the case of salaried employees, the employer is required to deduct TDS as per the slab rates prescribed by the government. Some employees that earn an annual salary of less than the taxable limit are exempted from paying taxes.
In the case of rent paid/payable during the Financial Year, a flat 10% TDS needs to be deducted under section 1941I if the annual rent paid/payable exceeds Rs. 2.4 Lakhs.
Deductions need to be made only in the case of Businesses and professionals meeting the above criteria, who are legally required to get their tax audit conducted by chartered accountants under section 44AB. Salaried taxpayers/ businessmen/ professionals paying rent of more than Rs. 50,000 per month need to deduct TDS @ 3.75% under Section 194IB.
Under section Section 192A, the receiving accumulated part of PF attracts a 10% TDS deduction.
Under section 193, interest received on investment instruments like securities attract a 7.5% TDS.
Under Section 194 and 194K, returns received on mutual funds and a company’s shares attract 7.5% TDS deduction.
Section 194A- Interest on Fixed Deposits (any interest apart from what is received on securities) is taxable at 7.5%.
Under Section 194B and Section 194BB, winnings from games like lottery winnings, horse races etc. are taxable at 30%. Section 194C states that the Payment of Contractors and sub-contractors is taxable at 0.75% in the case of individual and HUF and 1.5% in the case of others.
In the case of Section 194D, Insurance Commission received by an Individual attracts a tax of 3.75%.
Under Section 194DA, Life Insurance Policies that are not exempt under Section 10(10D) attract a 3.75% tax.
Under Section 194EE, National Savings Scheme payments with regard to deposits are taxable at 7.50%
Payments made with respect to the re-purchase of Units (either Mutual Funds or UTI) under section 19F attract a 15% tax.
Under section 194G, earnings received from the sale of lottery tickets attract a 3.75% tax.
Commission/brokerage earned apart from insurance commissions under sec 194H attracts a 3.75% tax.
Under section 194J, payment made for professional services attract 1.5% tax (if payment is made to a call center) and 7.5% in the case of other services.Under Section 194I(a), payment made for the purchase of immovable property with the exception of agricultural land attract 0.75% TDS.
If we’ve missed out on any slab rates, you can visit the official website
for updated TDS slab rates.