CATEGORY B - WHEN RECIPIENT IS NON-RESIDENT OR FOREIGN COMPANY
| Aggregate payment or credit subject to TDS during the financial year 2014-15 → | If recipient is non-resident non-corporate person | If recipient is non-domestic company | |||
| Rs. 1 crore or less | More than Rs. 1 crore | Rs. 1 crore or less | More than Rs. 1 crore but not more than Rs. 10 crore | More than Rs. 10 crore | |
| Nature of payment | TDS (inclusive of SC :Nil, EC : 2%, SHEC : 1%) | TDS (inclusive of SC : 10%, EC : 2%, SHEC : 1%) | TDS (inclusive of SC :Nil, EC : 2%, SHEC : 1%) | TDS (inclusive of SC : 2%, EC : 2%, SHEC : 1%) | TDS (inclusive of SC : 5%, EC : 2%, SHEC : 1%) |
| • 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. 194B - Winnings from lottery or crossword puzzle or card game or other game of any sort | 30.9 | 33.99 | 30.9 | 31.518 | 32.445 |
| • Sec. 194BB - Winnings from horse races | 30.9 | 33.99 | 30.9 | 31.518 | 32.445 |
| • Sec. 194E - Payment to a non-resident foreign citizen sportsman/entertainer or non-resident sports association | 20.6 | 22.66 | 20.6 | 21.012 | 21.63 |
| • Sec. 194EE - Payment in respect of deposits under National Saving Scheme, 1987 | 20.6 | 22.66 | NA | NA | NA |
| • Sec. 194F - Re-purchase of units of MF or UTI | 20.6 | 22.66 | NA | NA | NA |
| • Sec. 194G - Commission on sale of lottery tickets | 10.3 | 11.33 | 10.3 | 10.506 | 10.815 |
| • Sec. 194LB - Payment/credit by way of interest by infrastructure debt fund | 5.15 | 5.665 | 5.15 | 5.253 | 5.4075 |
| • Sec. 194LBA(2) - Payment of the nature referred to in section 10(23FC) by business trust to unit holders (applicable from October 1, 2014) | 5.15 | 5.665 | 5.15 | 5.253 | 5.4075 |
| • Sec. 194LC - Payment/credit of interest by an Indian specified company on foreign currency approved loan/long-term infrastructure bonds (with effect from October 1, 2014, any bond) from outside India | 5.15 | 5.665 | 5.15 | 5.253 | 5.4075 |
| • Sec. 194LD - Interest on a rupee denominated bond of an Indian company or Government security (from June 1, 2013) | 5.15 | 5.665 | 5.15 | 5.253 | 5.4075 |
| • Sec. 195 - Payment/credit of other sum to a non-resident — | |||||
a. income of foreign exchange assets payable to an Indian citizen
| 20.6 | 22.66 | NA | NA | NA |
b. income by way of long-term capital gains referred to in section 115E or section 112(1)(c)(iii)
| 10.3 | 11.33 | 10.3 | 10.506 | 10.815 |
c. short-term capital gains under section 111A
| 15.45 | 16.995 | 15.45 | 15.759 | 16.2225 |
d. any other long-term capital gains [not being covered by section 10(33), 10(36) and 10(38)]
| 20.6 | 22.66 | 20.6 | 21.012 | 21.63 |
e. income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency (not being interest referred to in section 194LBor 194LC or 194LD)
| 20.6 | 22.66 | 20.6 | 21.012 | 21.63 |
f. royalty [see Note 5]
| 25.75 | 28.325 | 25.75 | 26.265 | 27.0375 |
g. royalty [not being royalty of the nature referred to in (f) supra] [see Note 6] –
| |||||
□ where the agreement is made after March 31, 1961 but before April 1, 1976
| 30.9 | 33.99 | 51.5 | 52.53 | 54.075 |
□where the agreement is made on or after April 1, 1976
| 25.75 | 28.325 | 25.75 | 26.265 | 27.0375 |
h. fees for technical services [see Note 7] –
| |||||
□ where the agreement is made after February 29, 1964 but before April 1, 1976
| 30.9 | 33.99 | 51.5 | 52.53 | 54.075 |
□ where the agreement is made on or after April 1, 1976
| 25.75 | 28.325 | 25.75 | 26.265 | 27.0375 |
i. any other income
| 30.9 | 33.99 | 41.20 | 42.024 | 43.26 |
| • Sec. 196B - Payment/credit of income from units (including long-term capital gains on transfer of such units) to an offshore fund | 10.3 | 11.33 | 10.3 | 10.506 | 10.815 |
| • Sec. 196C - Payment/credit of interest of foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend referred to in section 115-O) | 10.3 | 11.33 | 10.3 | 10.506 | 10.815 |
| • Sec. 196D - Payment/credit of income from securities (not being dividend, short-term or long-term capital gain) to Foreign Institutional Investors | 20.6 | 22.66 | 20.6 | 21.012 | 21.63 |
Notes :
1. Under section 192 tax is deductible from salary. The payer shall calculate salary taxable in the hands of recipient. The amount so determined is subject to tax deduction under section 192. Under section 195, tax is deductible only if income is taxable in the hands of recipient in India. In any other case, gross payment is subject to tax deduction.
2. In Category B, tax is deductible at the above rates or the rates specified in ADT agreements entered into by the Central Government under section 90 (whichever is lower) [section 2(37A)(iii)].
3. Tax is not deductible under section 193, 194, 194A, or 194EE if the recipient makes a declaration in Form No. 15G/15H under the provisions of section 197A.
4. Under section 197 the recipient can apply the Assessing Officer in Form No. 13 to get a certificate of lower/no tax deduction. This benefit is, however, not available if tax is deductible under section 194B, 194BB, 194E, 194EE,194F, 194-IA, 194LB, 194LC, 196B, 196C or 196D.
5. Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India.
6. Not being royalty of the nature referred to above, payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.
7. Fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.
---CATEGORY A - WHEN RECIPIENT IS RESIDENT (Click Here)
---TDS Rates for AY 2014-15 AND AY 2015-16 (Click Here)
---TAX ON DISTRIBUTION OF DIVIDEND, DISTRIBUTED INCOME FOR BUY-BACK OF SHARES AND DISTRIBUTION BY SECURITIZATION TRUST UNDER SECTIONS 115-O, 115QA AND 115TA (Click Here)
---TAX ON INCOME DISTRIBUTED BY UTI/MUTUAL FUND UNDER SECTION 115R (Click Here)