TDS - Applicability and Rates on Nature of Transaction

TDS, often known as tax deducted at source, is a tax collecting strategy used in India. The following parties are required to withhold TDS:

Employers who pay salaries to their employees.

Individuals or organisations may be the ones who pay rent, interest, commissions, professional or technical fees, royalties, contractor or subcontractor fees, insurance commissions, or payments for the purchase of real estate.

Banks and other financial institutions that pay interest on deposits.

Property buyers who are not residents.

The TDS% varies depending on the specifics of the transaction. The TDS percentages for numerous common transaction types are listed in the table below:

Natur of Payment	TDS Rate
Salary	As per Income Tax Slab
Rent of Land Building and Furniture	7.5%
Payment of Interest (Except on Securities)	7.5%
Commission or Brokerage	5%
Professional or Technical Fees	10%
Royality or Copyright Fees	10%
Payment to Contractors or Sub Contractors	1% (Individual or HUF), 2% for Others
Insurance commission	5%
On Purchase of Property above Rs. 50 Lacs	1%

TDS is guided by crucial provisions which should be adhered to for being a compliant person, our experts could assist you in understanding the nitty gritty of such laws and could assist you to be compliant. you may write to us at info@returnfiler.com

Team at www.returnfiler.com is a team of professionals who are well versed with laws of land and could guide you per se on TDS Rates and Applicability