Rates of  TDS for Financial Year 2003-04

Nature of payment

IT
    
1. Salary to an employee [section 192] Regular Rates
2. In the case of payment to a resident other than a company:    
a. interest other than interest on securities 10    
b. dividend 10    
c. winnings from lotteries, crossword puzzles, card games and any other game 30    
d. winnings from horse races 30    
e. insurance commission 10    
f. 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    
g. rent to an individual or a Hindu undivided family 15    
h. rent to a person other than an individual or a Hindu undivided family 20    
i. payment in respect of deposit under National Savings Scheme, 1987 20    
j. payment on account of repurchase of units by Mutual Fund or UTI [sec.80CCB(2)] 20    
k. commission on sale of lottery tickets 10    
l. payment to a contractor (in the case of advertising contracts) 1    
m. payment to a contractor (other than an advertising contract) 2    
n. payment to a sub-contractor 1    
o. commission or brokerage (up to May 31, 2002: 10 per cent plus surcharge) 5    
p. fees for professional or technical services 5    
q. income in respect of units of UTI/Mutual Fund (applicable from June 1, 2002) 10    
r. any other income 20    
3. In the case of payment to a non-resident other than a company [see Note below]    
a. income from foreign exchange assets payable to an Indian citizen 20    
b. income by way of long-term capital gains referred to in section 115E 10    
c. other long-term capital gains 20    
d. 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    
e. rent to an individual or a Hindu undivided family 15    
f. rent to a person other than an individual or a Hindu undivided family 20    
g. winnings from lotteries, crossword puzzles, card games and any other game 30    
k winnings from horse races 30    
i. payments to non-resident sportsmen or sports association referred to in section 115BBA 10    
j. payments in respect of National Savings Scheme, 1987 20    
k. payments on account of repurchase of units by Mutual Fund/UTI [sec. 80CCB(2)] 20    
l. income by way of interest/ dividends 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    
m. commission on sale of lottery tickets 10    
n. income in respect of units referred to in section 115AD(I)(a) payable to foreign Institutional Investor (other than capital gain) 20    
o. income payable in respect of units of UTI or Mutual Fund (applicable from June 1, 2002) 20     
p. any other income 30    
4. In the case of payments to a domestic company:
a. interest other than interest on securities 20    
b. dividend 10    
c. winnings from lotteries, crossword puzzles, card game and any other game 30    
d. winnings from horse races 30    
e. commission on sale of lottery tickets 10    
f. payments to a contractor (in the case of advertising contracts) 1    
g. payment to a contractor (other than an advertising contract) 2    
h. payments to sub-contractor 1    
i. commission or brokerage (up to May 31, 2002: 10 per cent plus surcharge) 5    
j. rent 20    
k. fees for professional or technical services 5    
l. income in respect of units of UTI/ Mutual Fund (applicable from June 1, 2002) 10    
m. any other income 20    
5. In the case of payments to a non-domestic company [see Note below]    
a. winnings from lotteries, crossword puzzles, card games and any other game 30    
b. winnings from horse races 30    
c. interest payable by Government or an Indian concern on money bor rowed or debt incurred in foreign currency 20    
d. 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 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    
    where the agreement is made after May 31, 1997 20    
e. 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    
    where the agreement is made after March 31, 1976 but before June 1, 1997 30    
    where the agreement is made after May 31, 1997 20    
f. 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    
    where the agreement is made after March 31, 1976 but before June 1, 1997 30    
    where the agreement is made after May 31, 1997 20    
g. rent 20    
h. long-term capital gains 20    
i. payments referred to in section 115BBA 10    
j. commission on sale of lottery tickets 10    
k. income payable in respect of units of UTI or Mutual Fund (applicable from June 1, 2002) 20    
I. payments to overseas financial corporation covered by section 115AB or by long-term capital gains arising from transfer of such units 10    
m. income by way of interest dividend 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    
n. income (other than capital gain) in respect of units referred to in section 115AD(1)(a) payable to Foreign lnstitutional Investor 20    
o. on any other income 40    

 

Please Note: Tax is deductible at source under section 195 at the above rate or rates specified in Double tax Avoidance  agreements entered into by the Central Govenment under section 90 (whichever is lower) .

Rates of  Tax Collection at Source for Financial Year 2003-04


During the financial year 2003-04, tax shall be collected under section 206C at the following rates-
Nature of goods When purchaser is a person other than foreign company When the purchaser is a foreign company
IT SC* Total IT SC* Total
Alcoholic liquor for human cosumption (other than Indian made foreign liquor) and tendu leaves 10 Nil 10 10 Nil 10
Timber obtained under a forest lease 15 Nil 15 15 Nil 15
Timber obtained by any mode other than under a forest lease 5 Nil 5 5 Nil 5
Any other forest produce (not being timber or tendu leaves) 15 Nil 15 15 Nil 15
Pl note that sections 194B and 206C do not provide surcharge rate. Part II of the First Schedule to the Finance Bill provides surcharge rate for sections 193, 194, 194A, 194B, 194BB, 194D and 195. As a consequence, surcharge rate is not given for tax collection at source under section 206C by the Finance Bill.

 
*Clause 2( 7) of the Finance Bill, 2003, reads as under - 
"(7) In cases in which tax has to be collected under the proviso to section 194B or under section 206C of the Income-tax Act, the collection shall be made at the rates specified in that section or at the rates specified in Part II of the First Schedule, as the case may be, and shall be increased, by a surcharge for purposes of the Union, calculated in each case, in the manner provided therein."