TDS Rates for Assessment Year 2020-21 (Financial Year 2019-20)
(B) On payments to Non-Residents (subject to notes below)
|
Sr.
|
Payments to
Non-Resident Payee
|
Criteria / Conditions
for Deduction
|
Section
|
Rate (%)**
|
|
1
|
Tax on Short Term Capital Gains
|
On sale of shares or units of mutual funds
where STT is paid
|
111A
|
15
|
|
On sale of shares or units of mutual funds
where STT is not paid
|
45
|
15
|
||
|
(a) In case of companies
|
||||
|
(b) In case of persons other than companies
|
30
|
|||
|
2
|
Tax on Long Term Capital Gains
|
Not being long term capital gains referred
to section 10(33), 10(36) and 10(38) ie.
on listed shares, units of an equity oriented
fund, or units of business trust i.e. REITs
& Invits
[Except for transactions covered u/s 112(1)
(c)(iii)]
|
112
|
20
|
|
on income by way of long-term capital gains
from unlisted securities u/s 112(1)(c)(iii)
|
112
|
10
|
||
|
3
|
Tax on Long Term Capital Gains
on Transfer of Equity Share in
company or a unit of equity
oriented mutual fund or a unit of
Business Trust (Note 9)
|
(i) STT is applicable on acqusition/ transfer
(except Transfer on a recognised stock
exchange located in any International
Financial Services Centre and consideration
is received in foreign currency),
|
112A
|
10
|
|
(ii) Tax on Long Term Capital Gains
exceeding Rs. 1,00,000/-
|
112A
|
20
|
||
|
4
|
Winning From Lotteries
crossword puzzles, card games
and other games of any sort
|
Payment in excess of Rs. 10,000/-
|
194B
|
30
|
|
Winning From Horse Race
|
Payment in excess of Rs. 10,000/-
|
194BB
|
30
|
|
|
|
|
|
||
|
Tax on Interest
|
|
|
||
|
5
|
Winning From Horse Race
|
Payment in excess of Rs. 10,000/-
|
194BB
|
30
|
|
6
|
Tax on royalty or copyrights or
on fees for technical services
matters included in industrial
policy or under approved
agreements by an Indian
concern or by Government of
India
|
Agreements made or entered intoafter 31st
March, 1976
|
115A(1)(b)
|
10
|
|
6
|
Tax on Interest
|
On borrowings in foreign currency:-
|
|
|
|
(a) by an Indian concern or by Government
of India other than interest refered in (b) or
(c) below
|
115A(1)(a)
|
20
|
||
|
(b) On notified infrastructure debt fund
|
194LB
|
5
|
||
|
(c) By Specified Companies or Business
Trusts (REITs & Invits) under a loan
agreement or any long term bond (Note 7)
|
194LC
|
5
|
||
|
8
|
Income by way of interest from
SPV distributed by Business
Trusts (REITS & INVITs)
|
No Threshold Limit
|
194LBA
|
5
|
|
9
|
Income by way of Rent from
SPV distributed by REITs
|
No Threshold Limit
|
195
|
–
|
|
10
|
Income other than business
income distributed by an
Alternate Investment Fund
(Category I & II )
|
No Threshold Limit
|
194LBB
|
Rates in
Force
|
|
11
|
Income in respect of Investment
in Securitization Trust
|
No Threshold Limit
|
194LBC
|
Rates in
Force
|
|
12
|
Income by way of interest to FII
or QFI
|
On Rupee denominated Bonds of Indian
Company and Government Securities.
(Note 8)
|
194LD
|
5
|
|
13
|
Payments to Non-Resident
Sportsmen/Entertainer/Sports
Association
|
Other than to a non-resident being an Indian
citizen
|
194E
|
20
|
|
14
|
Other income
|
(a) In case of non-resident companies
|
–
|
40
|
|
(b) In case of non-residents other than
foreign companies
|
–
|
30
|
||
|
15
|
Equalisation Levy
|
(Refer Note No. 6 below)
|
||
|
Notes
|
|||
|
1
|
Cess @ 4% shall be levied additionally.
|
||
|
2
|
Treaty rates will differ from Country to Country. Treaty rates will apply only if Tax Residency Certificate is
produced.
|
||
|
3
|
NRIs opting to be taxed under chapter XII-A, tax shall be deductible at the rate of ten percent on long term
capital gains refered to in section 115E and twenty percent on investment income.
|
||
|
4
|
W.e.f. 1st April, 2010, the rate of TDS will be deducted u/s 206AA @ 20% in all cases, if PAN is not quoted
by the deductee. However, this condition is not applicable: -in respect of Royalties, FTS, Interest and Capital Gains on compliance of conditions in Rule 37BC -in respect of Interest covered u/s 194LC |
||
|
5
|
TDS is to be deducted at “Rate in Force”. The term “Rate in force” means rate as per Income Tax Act, 1961 or Relevant DTAA rate, whichever is more benificial.
|
||
|
6
|
Equalisation Levy has been introduced for online advertisement / digital advertising space services
provided by a non-resident to a resident or a permanent establishment of non-resident in India. The rate
for such levy shall be six percent of the consideration.
|
||
|
7
|
TDS on Interest Payments u/s 194LC will now be available in respect of borrowings made before 1st July,
2020.
|
||
|
8
|
TDS on Interest Payments u/s 194LD will now be available in respect of interest payable before 1st July,
2020.
|
||
|
9
|
The Long Term Capital Gains shall be computed without giving effect to 1st and 2nd proviso to Section 48.
|
||
|
10
|
No tax at source is required to be deducted under section 195 by National Technical Research Organisation
(‘NTRO’) on payments of royalty or fees for technical services paid to non resident or foreign company
|
||
|
11
|
In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D,194LBA,
194LBB, 194LBC,192A, 194C, 194DA, 194E, 194EE, 194F,194G, 194H, 194-I, 194-IA, 194-IB, 194-IC,
194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC,194LD, 194M, 194N, 196B, 196C, 196D and
195 the rate at which the tax is to be deducted shall be increased by applicable surcharge
|
||
|
*
|
Certificate for deduction at lower rate can be applied for Section 195.
|
||
|
*
|
Surcharge Applicable:-
|
||
|
|
Payee Status
|
Deduction Threshold
|
Rate (%)
|
|
Non-Resident Individual, HUF, AOP, BOI or Artificial
Judicial Person
|
Exceeding Rs. 50 lakhs upto 1crore
|
10%
|
|
|
Non-Resident Individual, HUF, AOP, BOI or Artificial
Judicial Person
|
Exceeding Rs. 1 crore upto Rs.2 crore
|
15%
|
|
|
Non-Resident Individual, HUF, AOP, BOI or Artificial
Judicial Person
|
Exceeding Rs. 2 crore upto Rs. 5
Crore
|
25%
|
|
|
Non-Resident Individual, HUF, AOP, BOI or Artificial
Judicial Person
|
Exceeding Rs. 5 crores
|
37%
|
|
|
Co-Operative Society
|
Exceeding Rs. 1 crore
|
12%
|
|
|
Foreign Company
|
Exceeding Rs. 1 crore upto Rs. 10
crores
|
2%
|
|
|
Foreign Company
|
Exceeding Rs. 10 crores
|
5%
|
|
