| Nature of payment |
Rate of deduction of tax(as percentage of payment made) |
Surcharge |
Total |
| A. Salary to an employee |
At regular tax rates in force See sub-module Tax Rates |
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| B. In the case of payment to a resident other than a company: |
|
| 1.interest other than interest on securities |
10 |
1 |
11 |
| 2.winning from lotteries and crossword puzzles |
40 |
4 |
44 |
| 3.winning from horse races |
40 |
4 |
44 |
| 4.insurance commission |
10 |
1 |
11 |
| 5.interest on debentures or securities other than a security of the Central or a State Government for money issued by or on behalf of a local authority or a statutory corporation or listed debentures of a company |
10 |
1 |
11 |
| 6.rent to an individual or a Hindu undivided family |
1.5 |
1.5 |
16.5 |
| 7.rent to a person other than an individual or a Hindu undivided family |
20 |
2 |
22 |
| 8.payment in respect of deposit under National Savings Scheme, 1987 |
20 |
2 |
22 |
| 9.payment on account of repurchase of units by Mutual Fund of UTI [section 80CCB(2) |
20 |
2 |
22 |
| 10.commission on sale of lottery tickets |
10 |
1 |
11 |
| 11.payment to contractor ( in the case of advertising contracts : 1 per cent) |
1 |
0.1 |
1.1 |
| 11A. Payment to a contractor other than an advertising contract |
2 |
0.2 |
2.2 |
| 12.payment to sub contractor |
1 |
0.1 |
1.1 |
| 13.fees for professional or technical services |
5 |
0.5 |
5.5 |
| 14. Payment exceeding Rs. One lakh of compensation/consideration or enhanced compensation/consideration on account of compulsory acquisition of any capital asset (applicable upto May 31st 2000) |
10 |
1 |
11 |
| 15.any other income |
20 |
2 |
22 |
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| C. In the case of payments to a domestic company: |
|
| 1.interest other than interest on securities |
20 |
2 |
22 |
| 2.winning from lotteries and crossword puzzles |
40 |
4 |
44 |
| 3.winning from horse races |
40 |
4 |
44 |
| 4.commission on sale of lottery tickets |
10 |
1 |
11 |
| 5.payments to a contractor ( in the case of advertising contracts : 1 per cent) |
1 |
0.1 |
1.1 |
| 5A. Payment to a contractor other than an advertising contract |
20 |
0.2 |
20.2 |
| 6.payments to sub-contractor |
1 |
|
|
| 7.rent |
20 |
2 |
22 |
| 8.fees for professional or technical services |
5 |
5 |
0.5 |
| 9 Payment exceeding Rs. One lakh of compensation/consideration or enhanced compensation/consideration on account of compulsory acquisition of any capital asset (applicable upto May 31st 2000) |
10 |
1 |
11 |
| 10.any other income |
20 |
2 |
22 |
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| D. In the case of payment to a non-resident other than a company |
|
| 1.income from foreign exchange assets payable to an Indian citizen |
20 |
2 |
22 |
| 2.income by way of long-term capital gains referred to in section 115E |
10 |
1 |
11 |
| 3.income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency |
20 |
2 |
22 |
| 4.rent to an individual or a Hindu Undivided Family |
15 |
- |
15 |
| 5.rent to a person other than an individual or a Hindu Undivided Family |
20 |
- |
20 |
| 6.winnings from lotteries and crossword puzzles |
40 |
4 |
44 |
| 7.winnings from horse races |
40 |
4 |
44 |
| 8.payments referred to in section 115BBA |
10 |
- |
10 |
| 9.payments in respect of National Savings Scheme, 1987 |
20 |
- |
20 |
| 10.payments on account of repurchase of units by Mutual Fund/UTI [section 80CCB(2)] |
20 |
- |
20 |
| 11.income by way of interest/dividends [not being dividends referred in section 115-O] payable in respect of bonds/shares referred to in section 115AC or by way of long-term capital gain arising from transfer of such bonds |
10 |
- |
10 |
| 12.commission on sale of lottery tickets |
10 |
- |
10 |
| 13.income in respect of units referred to in section 115AD(1)(a) payable to foreign Institutional Investor (other than capital gain) |
20 |
- |
20 |
| 14.income by way of long-term capital gain |
20 |
2 |
22 |
| 16.any other income [see Note 2] |
30* |
|
|
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| E. In the case of payments to a non-domestic company |
|
| 1.winning from lotteries and crossword puzzles |
40 |
- |
40 |
| 2.winnings from horse races |
40 |
- |
40 |
| 3.interest payable by Government or an Indian concern on money borrowed or debt incurred in foreign currency |
20 |
- |
20 |
| 4.royalty payable by Government or an Indian concern in pursuance of an agreement made by it 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 sub-section (1A) of section 115A of the Act, to the Indian concern or in respect of computer software referred to in the second proviso to section 115A(1A), to a person resident in India :- |
|
|
|
| --where the agreement is made before June 1, 1997 |
30 |
- |
30 |
| --where the agreement is made after May 31, 1997 |
20 |
- |
20 |
| 5.royalty [not being royalty of the nature referred to in (d) supra] payable by Government or an Indian concern in pursuance of an agreement made by it 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:- |
|
|
|
| --where the agreement is made after March 31, 1961 but before April 1, 1976 |
50 |
- |
50 |
| --where the agreement is made after March 31, 1976 but before June 1, 1997 |
30 |
- |
30 |
| --where the agreement is made after May 31, 1997 |
20 |
- |
20 |
| 6.fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it 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 |
|
|
|
| --where the agreement is made after February 29, 1964 but before April 1976 |
50 |
- |
50 |
| --where the agreement is made after March 31, 1976 but before June 1, 1997 |
30 |
- |
30 |
| --where the agreement is made after May 31, 1997 |
20 |
- |
20 |
| 7.rent |
20 |
- |
20 |
| 8.long-term capital gains |
20 |
- |
20 |
| 9.payments referred to in section 115BBA |
10 |
- |
10 |
| 10.commission on sale of lottery tickets |
10 |
- |
10 |
| 11.payments to overseas financial corporation covered by section 115AB or by long-term capital gains arising from transfer of such units |
10 |
- |
10 |
| 12.income by way of interest/dividend [not being dividend referred in section 115-O] in respect of bonds/shares referred to in section 115AC or by way of long-term capital gain arising from transfer of such bonds |
10 |
- |
10 |
| 13.income (other than capital gain) in respect of units referred to in section 115AD(1)(a) payable to Foreign Institutional Investor |
20 |
- |
20 |
| 14.on any other income |
48 |
- |
48 |
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