Tax Deducted at Source (TDS) Rates on payment to Non Resident
| Nature of Payment | Section | Threashold | TDS Rate |
| Salaries | 192 | As per Slab | - |
| Premature withdrawal of EPF | 192A | 50,000 | 10% |
| Winning from Lotteries | 194B | 10,000 | 30% |
| Winning from Horse Race | 194BB | 10,000 | 30% |
| Non-Resident Sports Men or Sports Association | 194E | 20% | |
| National Saving Scheme | 194EE | 2,500 | 10% |
| Repurchase Units by MFs | 194F | 20% | |
| Commission - Lottery | 194G | 15,000 | 5% |
| Income from Infrastructure Debt Fund to Non resident | 194LB | 5% | |
| Income distribution by a Investment Fund received or receivable by it from a SPV | 194LBA(2) | 5% | |
| Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset. | 194LBA(3) | 30% | |
| Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. | 194LBB | 30% | |
| Income distribution by a Securitisation Trust u/s 115TCA | 194LBC | 30% | |
| Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) | 194LC | 5% | |
| Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | 194LD | 5% | |
| Other Payment to Non Resident / Foreign Company | 195 | ||
| (a) Income from investment made by a Non-Resident Indian Citizen | 20% | ||
| (b) Long Term Capital Gain referred to in Section 115E | 10% | ||
| (c) Long Term Capital Gain referred to in Section 112(1)(c)(iii) | 10% | ||
| (d) LTCG referred to in Section 112A | 10% | ||
| (e) Short Term Capital Gain under Section 111A 15% |
15% | ||
| (f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)] | 20% | ||
| (g) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD) | 20% | ||
| (h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A). | 10% | ||
| (i) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. | 10% | ||
| (j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy | 10% | ||
| (k) Any other income | 30% | ||
| Income from units (including long-term capital gain on transfer of such units) to an offshore fund | 196B | 10% | |
| Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) | 196C | 10% | |
| Income of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) | 194D | 20% |
| Non Resident - if income/payment exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore | 10% |
| Non Resident - if income/payment exceeds Rs. 1 Crore | 15% |
| Foreign companies - if income/payment is between Rs.1 Crore and 10 Crore | 2% |
| Foreign companies - if income/payment is above Rs. 10 Crore | 5% |
| Non-Resident Co-operative Society and Firms - if income/payment exceeds Rs. 1 crore | 12% |
| Health & Education Cess | 4% of (TDS/Tax + Surcharge) |
Note:
1. TDS at higher rate of 20% or TDS rate, whichever is higher, has to be deducted if the deductee does not provide PAN to the deductor (section 206AA).
2. All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).
| Month of Deduction | Due date for Payment |
| April | 7th May |
| May | 7th June |
| June | 7th July |
| July | 7th August |
| August | 7th September |
| September | 7th October |
| October | 7th November |
| November | 7th December |
| December | 7th January |
| January | 7th February |
| February | 7th March |
| March | 30th April |
| TDS forms to be submitted | Type of Deductee |
| Form 24Q | Deductions made from salaried |
| Form 26Q | Deductions made from Non salaried people |
| Form 27Q | Deduction made from payment to NRI |
| Quarter Ending | Due date to file return by all deductors |
| 30th June | 31st July |
| 30th September | 31st October |
| 31st December | 31st January |
| 31st March | 31st May |
Penalty for nonpayment or delayed TDS on property
In case TDS is not deducted by the buyer then he is required to pay interest at
the rate of 1% per month as penalty on the amount not deducted.
In case TDS is deducted but not paid on time, then the buyer has to pay interest at the rate of 1.5% per month as penalty for delayed TDS payment.
Penalty for late filing of form 26QB
In case buyer gets late in filing TDS return, a penalty of Rs. 200 per day would
be levied.
Refund of Extra tax or TDS deducted
If the tax liability of the assessee is less than the TDS amount, the
difference amount can be claimed at the time of filing income tax return.
The extra amount will be refunded to the bank account of the assessee.