When to tax to be deducted or tax to be collected under income tax?
For F.Y. 2021-22 A.Y. 2021-22
| Section | Nature of payment | When to deduct TDS |
| 192 | Salary | At the time of payment |
| 192A | Due of Employees’ Provident Fund Scheme, 1952, to Employees (w.e.f 01-06-15) | At the time of payment |
| 193 | Interest on securities
*a) 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; b) 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; c) any security of the Central or State Government; d) interest on any other security |
At the time of credit or payment, whichever is earlier |
| 194 | Dividends | Before making payment of dividend |
| 194A | Interest other than “Interest on securities” | At the time of credit or payment, whichever is earlier |
| 194B | Winnings from lottery, cross word puzzles card games, other games of any sort including T.V. Game Shows | At the time of payment |
| 194BB | Winning from horse race | At the time of payment |
| 194C | Payment to contractors/ subcontractors | At the time of credit or payment, whichever is earlier |
| 194D | Insurance Commission | At the time of credit or payment, whichever is earlier |
| 194DA | Payment under life insurance policy (including Bonus) | At the time of payment |
| 194E | Payment to non resident sportsmen or sports association | At the time of credit or payment, whichever is earlier |
| 194EE | Payment in respect of deposits under national saving scheme etc refereed u/s 80CCA(2)(a) | At the time of payment |
| 194F | Payment on account of re-purchase of units by mutual fund or UTI refereed u/s 80CCB | At the time of payment |
| 194G | Commission etc on sale, stocking ,distributing etc of lottery tickets | At the time of credit or payment, whichever is earlier |
| 194H | Payment of commission
Brokerage |
At the time of credit or payment, whichever is earlier |
| 194I | Rent | At the time of credit or payment, whichever is earlier |
| 194IA | Payment on transfer of certain immovable property other than agriculture land exceeding Rs 50 lacs | At the time of credit or payment, whichever is earlier |
| S-194IB | TDS in respect of Payment of rent by individuals or Hindu undivided family not subject to tax audit.
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at the time of credit of rent, for the last month of the previous year or the last month of tenancy, if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment |
| S-194-IC | TDS on payment of monetary consideration under joint development agreement (JDA)
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At the time of credit or payment, whichever is earlier |
| 194J | Any sum paid by way of:-
a) Fee for professional services, b) Fee for technical services, c) Royalty, d) Remuneration/fee/commission to a director, e) f) For not sharing any know-how, patent, copyright etc. |
At the time of credit or payment, whichever is earlier |
| 194LA | Payment of compensation on acquisition of certain immovable property other than agriculture land | At the time of payment |
| 194LB | Payment of interest on infrastructure debt referred u/s 10(47) fund to non resident or foreign company | At the time of credit or payment, whichever is earlier |
| 194LBA | Payment of distributed income to resident unit holder by a business trust and Payment of distributed income to non resident unit holder by a business trust | At the time of credit or payment, whichever is earlier |
| 194LBB | Payment of distributed income to unit holder in respect of units of an investment fund (w.e.f 01-06-15) | At the time of credit or payment, whichever is earlier |
| 194LBC | Payment of Income from investment in securitisation trust referred under section 115TCA | At the time of credit or payment, whichever is earlier |
| 194LC | 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) | At the time of credit or payment, whichever is earlier |
| 194LD | Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | At the time of credit or payment, whichever is earlier |
| S-194M | Payment exceeding ₹ 50 lakh for any work/ commission /fee for professional or technical service by certain individuals or Hindu undivided family not otherwise not covered in tax audit u/s 44AB. | At the time of credit or payment, whichever is earlier |
| S-194N | Cash withdrawal from bank/post office/co-operative bank exceeding certain limit. | At the time of payment/ cash withdrawal. |
| S-194O | Payment by e-commerce operator or customer to e-commerce participant for supply through digital platform of e-commerce operator. | at the time of credit of amount of sale or services or both to the account of an e-commerce participant or at the time of payment thereof to such e-commerce participant by any mode, whichever is earlier, |
| S-194 P | Deduction of tax in case of specified senior citizen age above 75 years and having person income and interest income from the same bank – Full tax due to be deducted and no need to file ITR.
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At the time of payment. |
| 195 | Interest (other than ref u/s 194LB, 194LC,194LD) or Other sum (except salary) to non resident | At the time of credit or payment, whichever is earlier |
| 196C | Income from foreign currency bonds, GDR ref u/s 115AC or shares of Indian company-Interest, dividend other than ref u/s 115-O, long term capital gain | At the time of credit or payment, whichever is earlier |
| 196D | Income (except interest ref u/s 194LD, dividend ref u/s 115-O, capital gain)of Foreign Institutional Investors from securities ref u/s 115AD(1)(a) | At the time of credit or payment, whichever is earlier |
| S-206AB | Special provision for deduction of tax at source at higher rate for non-filers of ITR (income-tax return) for last 2 AY before due date | Based on nature of transaction and relevant section applicable. |
| 206C | Alcoholic Liquor for human consumption | At the time of debit to the account of buyer or at the time of receipt of payment from buyer whichever is earlier
At the time of receipt of such amount |
| Tendu leaves | ||
| Timber obtained under a forest lease | ||
| Timber obtained by any mode other than under a forest lease | ||
| Any other forest produce not being timber or tendu leaves | ||
| Scrap | ||
| Minerals, being coal or lignite or iron ore | ||
| Parking lot | At the time of debit of amount payable from licensee or lessee or at the time of receipt of payment from licensee or lessee
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| Toll plaza | ||
| Mining and quarrying | ||
| 206C(1F) | Motor vehicle, value exceeding Rs. 10 lakh with effect from first of June 2016 and rate of TCS shall be 1% | at the time of receipt of such amount |
| 206C(1G) | authorised dealer on foreign exchange conversion | at the time of debiting the amount payable by the buyer or at the time of receipt of such amount from the said buyer |
| 206C(1H) | sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year | at the time of receipt of such amount, collect from the buyer. |
Notes:
- In case of interest payment by co-operative banks to its members the TDS Provision is applicable from 01-06-2015.
- If the payment is made to contractor/sub contractor in transport business, no TDS shall be deducted at source in the course of payment for plying, hiring or leasing goods carriages if the contractor provides PAN and such contractor owns ten or less goods carriage at any time during the previous year and furnishes a declaration to that effect.
- In case of section 194LA, the sub-registrar shall register the document only after the challan for payment of TDS is presented before him.
- If the payment is made to a person (including non resident) whose receipts are subject to TDS shall mandatory furnish his PAN to the deductor (even though the deductee file a declaration in form no. 15G or 15H) otherwise the deductor shall deduct the TDS at higher of the following rates-
– The applicable rate prescribed in the Act or
– The rate mentioned in the Finance Act.
