Present By:

Jagminder & Naveen

Roll no. 48 &49

TDS means that the person responsible for making
payment of certain incomes to the income earners deduct
tax at the prescribed rate on such income before payment
is made to them.
Meaning
Section 192
TDS on salaries
Section 192 TDS on salaries
Payment should be in the nature of salary
The employer has to deduct tax from the salary that he
pays
At what rate to deduct? - TDS at average rate of tax on
the estimated income of the employee under the head
Salaries
When to deduct? - TDS is attracted on payment basis.
Thus, for example, if salary for March 2009 is paid on
7
th
April, 2009 then tax has to be deducted in April and
not March even if the expense is booked in March
When to pay the TDS to the Govt.? Within 7 days
from the end of the month in which tax is deducted


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Section 193
TDS on Interest on securities

Any person responsible for paying interest on securities shall
deduct interest at the prescribed rates. Tax is to be deducted at the
time of:-
Payment of interest or
Making interest due; which ever is earlier
No TDS on following: -
(a) 4 % National Defence bonds
(b) National development bonds
(c) 7 yrs. National Saving Certificates
(d) 6 % or 7% Gold Bonds
(e) National Development Bonds
(f) Debentures of Co-operative society
Interest on securities
Section 194
TDS on Dividends
Section 194 - Dividends
Effectively, TDS is applicable only for deemed dividend u/s.
2(22)(e) for an amount exceeding Rs. 2,500
At what rate to deduct? 10% (Rate applicable to any
other income)
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Section 194A
TDS on Interest other than
interest on securities

Applicable to all payers, except Individuals and HUF
Section applies to an Individual and HUF only if they
are liable for tax audit during the preceding financial
year
When to deduct? - TDS at the time of payment or credit
whichever is earlier
Credit to Suspense account or Interest Payable account
is deemed to be credit to the account of the payee
At what rate to deduct?
10% - whether corporate assessee or otherwise
20% - In case on non resident and foreign company
Section 194A Interest other than interest on
securities
Section 194B
Winnings from lottery or
crossword puzzle.

(i) If prize is given partly in cash and partly in kind - Tax will be
deducted from cash prize with reference to the aggregate
amount of the cash prize and the value of prize in kind. And
where in the part of cash is not sufficient to meet the liability for
tax deduction in respect of whole of the winnings then payer
has to collect the balance from the payee.
(ii) Where the prize is wholly in kind - The payer has to collect
the liability for tax deduction from payee.
Example Mr. X wins a Maruti-Zen value of Rs.3,70,000/- on
August 20, 2008, in a draw of lot organized by Maruti Udyog.
Tax liability on prize in kind comes to Rs.1,14,330/- (i.e., 30.9%
of Rs.3,70,000/-) which may be recovered by the Maruti Udyog
from Mr. X and the same can be deposited with the
government on account of tax deduction.
194 B Gift (prize by way of winnings from lottery)
given in kind
Section 194H
TDS on Commission and Brokerage
Section 194H Commission
or Brokerage
Applicable to all payers other than Individuals and HUF.

Applicable to Individuals and HUF liable to tax audit
during the preceding financial year

What is covered? - TDS on payment of income by way of
commission or brokerage
Insurance commission, brokerage for securities are not
covered

At what rate to deduct? - 10%
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Section 194-I
TDS on Rent
Section 194-I - Rent
Applicable to all payers, except Individuals and HUF
Applicable to Individuals and HUF only if they are liable to tax
audit during the preceding financial year
What is covered? Income by way of rent
When to deduct? At the time of payment or credit whichever
is earlier
Credit to suspense account is deemed to be credit to the account
of the payee
At what rate to deduct?
Machinery, Plant or Equipment - 2%
Furniture, Land or Building - In All cases: 10%
No TDS if the amount paid or likely to be paid during the
financial year does not exceed Rs. 1,20,000 in aggregate

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Section 194J
TDS from Fees for Professional
and Technical Services
Section 194J Fees for professional or technical
services
Applicable to all payers except Individuals and HUF
Applicable to Individuals and HUF only if they are liable to tax
audit during the preceding financial year
What is covered?
Fees for professional services
Fees for technical services
Royalty
When to deduct? - TDS at the time of payment or credit,
whichever is earlier
Credit to suspense account is deemed to be credit to the account
of the payee
At what rate to deduct? - 10%
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Section 195
TDS on payment to non-residents
Section 195
Section applies to all payers, including individuals
and HUF
Section covers payment made to a non-resident not
being a company or a foreign company
What is covered? Payment in the nature of interest
When to deduct? TDS at the time of payment or
credit, whichever is earlier
At what rate to deduct? Rates in force for the section
under which the payment falls (for e.g. Section 115A,
111A etc.) or treaty rate whichever is beneficial
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THanK YoU