Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.
A TDS Return is a quarterly statement which has to be submitted to the income tax department. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you. TDS Returns include details of PAN of the deductor and deductees, particulars of tax paid to the government, TDS challan information and other details as required in the forms.
TDS Return Forms
There are different forms applicable based on the Nature of Income (or type of deductee) on which TDS has been deducted. Here are some examples :
  • TDS on Salary: Form 24Q
  • TDS where deductee is a non-resident, foreign company: Form 27Q
  • TDS on payment for transfer of certain immovable property: Form 26QB
  • TDS in any other case: Form 26Q
Particulars : TDS Rates (in %)
  • Section 192: Payment of salary: According to Income Slab
  • Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015): 10%
  • Section 193: Interest on securities
  • any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act: 10%
  • any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made there under: 10%
  • any security of the Central or State Government: 10%
  • interest on any other security: 10%
  • Section 194: Dividend other than the dividend as referred to in Section 115-O: 10%
  • Section 194A: Income by way of interest other than "Interest on securities": 10%
  • Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort: 30%
  • Section 194BB: Income by way of winnings from horse races: 30%
  • Section 194C: Payment to contractor/sub-contractor
  • HUF/Individuals: 1%
  • Others: 2%
  • Section 194D: Insurance commission: 5% (10% till Assessment year 2016-17)
  • Section 194DA: Payment in respect of life insurance policy: 1% (2% till 31-5-2016)
  • Section 194EE: Payment in respect of deposit under National Savings scheme: 10% (20% till 31-5-2016)
  • Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India: 20%
  • Section 194G: Commission, etc., on sale of lottery tickets: 5% (10% till 31-5-2016)
  • Section 194H: Commission or brokerage: 5% (10% till 31-5-2016)
  • Section 194-I: Rent
  • Plant & Machinery: 2%
  • Land or building or furniture or fitting: 10%
  • Section 194-IA: Payment on transfer of certain immovable property other than agricultural land: 1%
  • Section 194J: Any sum paid by way of, @ 10%
  • Fee for professional services
  • Fee for technical services
  • Royalty
  • Remuneration/fee/commission to a director or
  • For not carrying out any activity in relation to any business
  • For not sharing any know-how, patent, copyright etc.
  • Section 194LA: Payment of compensation on acquisition of certain immovable property: 10%
  • Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from an SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders: 10%
  • Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]: 10%
  • Section 194LBC: Income in respect of investment made in a securitization trust (specified in Explanation of Section 115TCA): 25% in case of Individual or HUF 30% in case of other individuals
  • Any Other Income: 10%