(1) Where any income or sum of the nature specified in column B of the Table below, is credited or paid or distributed by the person specified in column C during the tax year, to a resident, the person responsible for paying shall deduct income-tax,—
(a) on the entire amount of such income or sum, where the amount or aggregate of amounts exceeds the threshold limit specified in column D;
(b) at the rate specified in column D;
(c) at the time of credit of such income or sum to the account of the payee or at the time of its payment in cash or by way of a cheque or a draft or by any other mode, whichever is earlier; and
(d) subject to the provisions of sub-sections (4), (5), (6), (8) and (9)
| TABLE | |||
| FOR PAYMENTS TO RESIDENT | |||
| Sl. No. | Nature of Income or Sum | Payer | Rate |
| Threshold Limit | |||
| A | B | C | D |
1 | Commission or brokerage | ||
| (i) Income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of insurance policies). | Any person | Rates in force. Threshold limit: | |
| (ii) Income by way of commission [not being insurance commission referred to in serial number 1(i)] or brokerage. | Specified person | Rate: 2% Threshold Limit: ₹ 20,000 | |
| 2 | Rent | ||
| (i) Income by way of rent. | Person other than specified person | Rate: 2% Threshold limit: | |
| (ii) Income by way of rent. | Specified person | Rate: (b) 10%, for the use of any land, or building (including factory building), or land appurtenant to a building (including factory building), or furniture, or fittings. Threshold limit [for | |
Note 1.–– In serial number 2(i), the tax shall be deducted on such income at the time of— (a) credit of rent to the account of the payee; or (b) payment thereof in cash or by way of a cheque or a draft or any other mode, whichever is earlier, for the last month of the tax year or the last month of tenancy. | |||
3 | Payment on transfer of certain immovable property other than agricultural land | ||
| (i) Any consideration for transfer of any immovable property (other than agricultural land). | Person (other than the person who are required to deduct tax under serial number 3(iii)). | Rate: 1% of such sum or stamp duty value of the property if more than ₹50,00,000, whichever is higher. Threshold Limit: ₹50,00,000 | |
| (ii) Any consideration, not being consideration in kind, under the agreement referred to in section 67(14). | Any person | Rate: 10% Threshold Limit: Nil | |
(iii)Sum, being in the nature of— (a) compensation or the enhanced compensation; or (b) consideration or the enhanced consideration, on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land). | Any person | Rate: 10% Threshold Limit: ₹5,00,000 | |
| Note 1.––Consideration for transfer of any immovable property under serial number 3(i) shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property for the purposes of the threshold limit mentioned in column D. | |||
| Note 2.— In case of consideration on which provisions of both serial numbers 3(i) and 3(ii) are applicable, tax shall be deducted under 3(ii) only. | |||
| 4 | Income from capital market | ||
(i) Any income in respect of— (a) units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21); or (b) units from the Administrator of the specified undertaking; or (c) units from the specified company. | Any person | Rate: 10% Threshold limit: ₹10,000 | |
| (ii) Any distributed income referred to in section 223, referred to in Schedule V (Table: Sl. Nos. 3 and 4) or (Table: Sl. No. 4), payable to a unitholder of a Business Trust. | Any Business Trust | Rate: 10% Threshold limit: Nil | |
| (iii) Any income, other than that proportion of income which is exempt under Schedule V (Table: Sl. No. 2), in respect of units of an investment fund specified in section 224, payable to its unitholder. | Any Investment fund specified in section 224 | Rate: 10% Threshold limit: Nil | |
| (iv) Any income, in respect of an investment in a securitisation trust specified in section 221 to an investor. | Any securitisation trust specified in section 221 | Rate: 10% Threshold limit: Nil | |
| 5 | Interest income
| ||
| (i) Any income by way of Interest on securities | Any person | Rate: Rates in force Threshold limit: ₹10,000 | |
| (ii) Any income by way of interest other than interest on securities. | (a) A banking company; or (b) a cooperative society carrying on the business of banking; or (c) a post office for a deposit made under a scheme notified by the Central Government | Rate: Rates in force Threshold limit: (a) ₹1,00,000 in the case of a senior citizen; (b) ₹50,000 in case of person other than senior citizen. | |
| iii) Any income being interest other than interest on securities. | Specified person (other than person in Sl. No. 5(ii).C]) | Rate: Rate in Force Threshold limit: ₹10,000 | |
Note 1.— In serial number 5(ii) and (iii), where the interest income (a) time deposits with a banking company;or (b) time deposits with a co-operative society engaged in carrying on the business of banking; or (c) deposits with a public company formed and registered in India with the main object of carrying on business of long-term finance for construction or purchase of houses in India for residential purposes and is eligible for deduction under section 32(e), and the person mentioned in column C has not adopted core banking solutions, the threshold limit in column D shall be computed with reference to the income credited or paid by a branch of such person | |||
| Note 2.—The person responsible for making the payment referred to in serial numbers 5(ii) and (iii) of this Table, may at the time of making any deduction, increase or reduce the amount to be deducted for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the tax year | |||
6 | Payments to contractors, fees for professional and technical services, etc | ||
| (i) Any sum for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a designated person. | Any designated person | Rate: (a) 1%, if contractor is individual or Hindu undivided family; (b) 2%, if contractor is a person other than the person mentioned in (a). Threshold limit:[for (a) ₹30,000; or or (b) ₹1,00,000 in case of aggregate of amounts. | |
(ii) Any sum–– (a) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract; or (b) by way of fees for professional services; or (c) by way of commission [not being insurance commission referred to in serial number 1(i)] or brokerage. | Any person, being an individual or Hindu undivided family [other than those required to deduct income-tax as per Sl. No. 6(i) and (iii) or Sl. No. 1(ii)]. | Rate: 2%. Threshold limit: ₹50,00,000. | |
| (iii) Any sum by way of–– (a) fees for professional services; or (b) fees for technical services; or (c) remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 392, to a director of a company; or (d) royalty; or (e) any sum referred to in section 26(2)(h). | Specified person | Rate: (a) 2% of such sum in case of— Threshold limit: [for | |
Note.––In serial number 6 (i), if any sum is paid or credited for carrying out any work specified in section 402(47)(e), tax shall be deducted at source— (a) on the invoice value excluding the value of material, if such value is specified separately in the invoice; or | |||
| 7 | DividendAny dividends (including on preference | Any domestic company. | Rate: 10%. —— Threshold limit: Nil. |
| Note.––The tax shall be deducted at source before making any distribution or payment of dividend. | |||
| 8 | Other Cases | ||
| (i) Any sum under a life insurance policy, including the sum allocated as bonus on such policy, other than the amount not includible in the total income under Schedule II (Table: Sl. No. 2). | Any Person | Rate: 2% on income comprised in such sum. —— Threshold limit: ₹1,00,000 | |
| (ii) Any sum for purchase of any goods | Any person, being a buyer | Rate: 0.1% of such sum exceeding ₹50,00,000; Threshold: ₹50,00,000 | |
| (iii) Total income of a specified senior citizen after allowing deduction under Chapter VIII and rebate under section 156 | Specified bank | Rate: Rates in force; Threshold: Nil | |
| (iv) Any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession of any resident | Any specified person | Rate: 10% of value or aggregate of values; Threshold: ₹20,000 | |
| (v) Sale of goods or provision of services by an e-commerce participant, facilitated by an e-commerce operator through its digital or electronic facility or platform | Any e-commerce operator | Rate: 0.1% of gross amount of such sale or services or both; Threshold: Nil | |
| (vi) Any sum by way of consideration for transfer of a virtual digital asset | Any person | Rate: 1%; Threshold: Nil | |
| Note1.––The deduction of tax under serial number 8(ii) shall not apply to a transaction on which tax is deductible or collectible under any of the provisions of the Act. | |||
| Note 2.––The provisions of serial number 8(iv) shall apply to any benefit or perquisite, whether in cash or in kind or partly in cash and partly in kind, provided to a resident. | |||
Note 3.––In respect of serial number 8(v)–– (a) for deduction of tax, the provisions thereof shall take precedence over any other provisions of this Chapter; (b) any payment made by a purchaser of goods or recipient of services directly to an e-commerce participant for the sale of goods or provision of services or both, facilitated by an e-commerce operator, shall be deemed to be the amount credited or paid by the e- ommerce operator to the e-commerce participant and this amount shall be included in the gross amount of such sale or services for the purposes of deduction of income-tax under this serial number; (c) e-commerce operator shall be deemed to be the person responsible for paying to e-commerce participant; (d) irrespective of anything contained in this Chapter, if— (e) clause (d) shall not apply to any amount or aggregate of amounts received or receivable by an e-commerce operator for— | |||
| Note 4.––In case of a transaction on which provisions of serial number 8(v) are applicable along with the provisions of serial number 8(vi) for deduction of tax, then tax on such transaction shall be deducted only under the provisions of serial number 8(vi). | |||
| Note 5.—The provisions of serial number 8(iii) shall take precedence over any other provisions of this Chapter and tax shall be deducted under this provision. | |||
Note 6.—For serial numbers 8(iv) and (vi),— (a) where the consideration or benefit or perquisite is— (b) “person responsible for providing” means the person providing such benefit or perquisite, or in case of a company, the company itself including the principal officer thereof. | |||
(2) Where any income or sum of the nature specified in column B of the Table below, is credited or paid by the person specified in column D during the tax year, to a non-resident specified in column C, the person responsible for paying shall deduct income-tax on the amount of such income or sum,—
(a) at the rate specified in column E;
(b) at the time of credit of income or sum to the account of the payee or at the time of its payment in cash or by way of a cheque or a draft or by any other mode, whichever is earlier; and
(c) subject to the provisions of sub-sections (4), (8) and (9).