S No

Nature of Payment

Person Responsible for deduction of tax at source

TDS necessary when payment is made to

1.

Salary and all positive incomes under any head on income but not including loss under the head income under the House property (Sec 192)

All Governments, Companies, Co operartive societies, Local authorities, University, Institutions, Associations or Body , Trustees of a recognized Provident Fund or Superannuation Fund

Any individual having taxable salary during the previous year from any number of employers

2.

Interest on Securities (Sec 193)

Any person

Any person

3.

Dividend from Domestic Companies or companies which have made prescribed arrangement for declaration/payment of dividend within India (Excluded from TDS w.e.f. 1.6.97 by Finance Act, 97) (Sec 194)

Principal Officer of a Domestic Company.

A resident shareholder when total dividend paid exceeds Rs 2,500/=

4.

Interest other than interest on securities (Sec 194A)

Any person other than individual or HUF

A resident

5.

Winnings from Lottery or crossword puzzles (Sec 194B)

Any person

Any person

6.

Winnings from horse races (Sec 194BB)

Book maker or person holding a licence for horse racing, wagering or betting in any race course

Any person

7.

1. Payment to Contractors in pursuance of any work of contract including supply of labour contract (Sec 194C)

 

 

 

 

 

 

 

 

 

 

 

2. Payment to sub-contractors (Sec 194C)

Central, State Government, local authority; Central, State or provincial Corporation; Company ; Co-operative Society; trust; University; a constituted authority engaged in housing and planning & development of Cities,Towns and Villages; and firm (firm included w.e.f. 1.7.95 vide Finance Act, 1995)

Any Contractor other than individual or HUF

Any resident person

Any resident person

8.

Insurance Commission covering all payments for procuring Insurance business(Sec 194D)

Any person responsible for payment

A resident

9.

Payment to non-resident sportsman (including athlete) or sports association or institution. In case of non-resident sportsman, it includes payments in respect of advertisements as well as articles on any game or sports in India in newspapers, magazines etc. (194E)

Any person responsible for payment

Any non-resident sportsman who is not a citizen of India and any non-resident sports association or institution

10.

Payments in respect of deposits under NSS (194EE)

Person responsible for making payment in respect of amount referred to in Section 80CCA (2)(a).

Any person except when the payment is made to the heirs.

11.

Payment on account of repurchase of Units by Mutual Fund or UTI (194F)

Person responsible for making payment in respect of amount referred to in Section 80CCB (2).

Any person

12.

Commission to Stockists, distributors, buyers and sellers of Lottery tickets including remuneration or prize on such tickets (sec 194G)

Person responsible for making payment to such agent

Any person

13.

Commission brokerage (sec 194H)

Not applicable w.e.f. 1.6.92

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14.

Payment of rent (sec 194I)

Any person responsible for making payment excluding individual & HUF.

Any person

15.

Fees for professional & technical services; professional services include legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, advertising & any profession notified under Section 44AA ; Technical fees mean any consideration for rendering any managerial , technical or Consultancy service including provision of services of technical or other personnel(sec 194J)

Any person responsible for making payment except an individual & HUF.

A resident.

16.

Income in respect of Units of Mutual Fund specified under Section 10(23D) or UTI (sec 194K)

Person responsible for making payment

A resident.

17.

Any interest (not being interest on securities) or any other sum chargeable to tax (except salaries) payable to non-resident not being a company, or to a foreign company. Dividend declared, distributed or paid by a domestic company on or after 1.6.97 exempted from TDS (sec 195)

Any person responsible for making payment.

Any non-resident person other than a company ,or to any foreign company.

18.

Interest, dividend or other sum payable to Government, RBI or Corporation established under Central Act which under the law is exempt from Income-tax; a Mutual Fund specified under Section 10 (23D) (sec 196)

No T.D.S.

19.

Income in respect of Units of UTI & of Mutual Fund specified under section 10(23D) (sec 196A)

Person responsible for making payment. No TDS where investment by NRI or NRI HUF is out of NR (External) Account or by remittance of funds in foreign currency as per FERA ,1973.

Payable to any non-resident person other than a company or a foreign company.

20.

Income from Units purchased in foreign currency or long-term capital gain arising from transfer of such Units purchased in foreign currency (sec 196B)

Person responsible for making payment

Any Offshore Fund.( Sec 115AB)

21.

Income of non-resident in respect of interest or dividend on bonds or shares of an Indian Company issued in accordance with such scheme as notified by Central Government (Section 115AC) or of a Public Sector undertaking sold by the Government and purchased by the non resident in foreign currency or long-term capital gain from such bonds or shares. (Dividend declared, distributed or paid by a domestic company on or after 1.6.97 exempted from TDS) (sec 196C)

Person responsible for making payment

Any non-resident person

22.

1. Income of FII from securities (other than units referred to in Section 115AB) listed in a recognised Stock Exchange in India (sec 196D)
2. Income in respect of capital gain arising from the transfer of such securities.

( Dividend declared, distributed or paid by a domestic company on or after 1.6.97 exempted from TDS (sec 196D)

Person responsible for making payment.

No TDS

Payable to any Foreign Institutional Investor

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