Find the table below for the TDS (Tax Deduction at source) rates and threshold limit for financial year 2013-14 or assessment year 2014-15. In this table there is complete list of the payment on which TDS is deducted, threshold limit, assessee type (tax payer) and rate of TDS.

Also note; Threshold limit mentioned in the table below is the limit upto which no TDS will be deducted.

Sl. No.Section of ActThreshold (Rs)Nature of Payment in briefRate %
Individual/HUFOthers
1192-SalariesAverage rates as applicable
21935000Interest on debentures1010
3194-Deemed dividend1010
4194A10000Interest other than Int. on securities (by Bank)1010
4A194A5000Interest other than Int. on securities (By others)1010
5194B10000Lottery / Cross Word Puzzle3030
6194BB5000Winnings from Horse Race3030
7194C(1)30000Payment to Contractors12
8194C(2)30000Payment to Sub-contracts/ Advertisements12
9194D20000Insurance Commission1010
10194EE2500Payments out of deposits under NSS20-
11194F1000Repurchase of units by MF/UTI2020
12194G1000Commission on sale of lottery tickets1010
13194H5000Commission or Brokerage1010
14194I180000Rent (Land & building) furniture & fittings)1010
180000Rent (P & M , Equipment)22
15194 IA5000000TDS on transfer of immovable property other than agriculture land (Effective from 1 June 2013)11
16194J30000Professional/Technical charges/ Royalty & Non-compete fees1010
17194J(1)(ba) -Any remuneration or commission paid to director of the company (Effective from 1 July 2012)1010
18194LA200000Compensation on acquisition of immovable property1010

Other Important Points:

  1. During the Budget FY 2013-14 a new section 194IA has been added w.e.f. June 1, 2013 to deduct tax on transfer of property (other than agriculture land) at 1%.
  2. As per the provision under section 206AA relating to tax deduction at source (TDS) under the Income Tax Act 1961 which is applicable since 1st April 2010. Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available. Thus, it is now necessary for persons who are submitting Form 15H and 15G  and does not have a PAN ,they must have PAN and should mention the PAN on form 15H/15G to avoid higher TDS.
TDS Rates and Threshold Limit for Financial Year 2013-14

23 thoughts on “TDS Rates and Threshold Limit for Financial Year 2013-14

  • September 30, 2013 at 11:19 AM
    Permalink

    rent 30000/-per month after 5 months how to calculate rent on TDS

    Reply
    • September 30, 2013 at 1:31 PM
      Permalink

      Hi Raj,

      It’s very simple. TDS on Rent (Land and Building) is liable to be deducted @10% if the payment made is above Rs 1,80,000 during the year.

      Reply
  • October 10, 2013 at 12:33 PM
    Permalink

    Wats is the rate of tds for shipping bills,

    Reply
    • October 13, 2013 at 10:46 PM
      Permalink

      Hi Rafiq,

      As per section 172 TDS will not be deducted in case of foreign shipping company, but if you pay to Indian shipping company you have to deduct u/s 194C.

      Reply
  • November 6, 2013 at 10:35 AM
    Permalink

    Professional charges received Rs.14000/- Pm how to calculate tds on Professional charges U/s 194j

    Reply
    • November 6, 2013 at 12:27 PM
      Permalink

      Hi Kavitha,

      As indicated it will be 10% on the amount received. Also note, there wont be any TDS if it does not cross Rs. 30,000 in a particular financial year.

      Reply
  • December 16, 2013 at 3:26 PM
    Permalink

    if royalty (on extractraction of ordinary earth) is paid rs 20025/- then how many tds is calculated pl reply

    Reply
  • December 16, 2013 at 3:29 PM
    Permalink

    what is current tds rate on royalty (extraction of ordinary earth/mining minerals) & how it is calculated pl reply with exampales

    Reply
    • December 16, 2013 at 5:51 PM
      Permalink

      Hi Vijay,

      It will be at 10% of the payment amount under section 194-J of the Act. But there will be no TDS if such payment of royalty to a resident does not exceed Rs. 30,000 during the financial year.

      Reply
      • December 21, 2013 at 4:07 PM
        Permalink

        thank u for reply
        that means such payment morethan 30000 then tds pay
        but if person paying royalty like 8000 then 8000 then 10000 then 4000 as per requirment of soil in tonne (brass)
        then what to do
        how to deduct tax
        pl reply & give ur contact no my email id

        Reply
        • December 21, 2013 at 6:16 PM
          Permalink

          Hi Vijay,

          If you have an estimation that total payment may cross Rs. 30,000 for the year then you can deduct TDS on every payment or you may deduct at once on the final payment which shows that total payment is going to cross Rs. 30,000.

          Reply
          • December 22, 2013 at 5:57 PM
            Permalink

            thank u for reply
            but if there is no any estimation then
            we can deduct tds amount is 8000

            then there is no problem na

          • December 22, 2013 at 5:58 PM
            Permalink

            can deduct tds on rs 8000

  • December 25, 2013 at 2:57 PM
    Permalink

    Whether PAN is required to submit Form 15H.
    Please advise.

    Reply
  • January 27, 2014 at 1:13 PM
    Permalink

    Dear sir,
    when a contractor having individual PAN number as well as for Enterprise/Company PAN number and participated in a tender with Company PAN number but he is the sole proprietor of the Enterprise/ Company, can we accept his individual PAN number for the purpose of deduction of TDS from RA bills as the contractor has submitted his individual PAN number after allotment of the work for consideration. And moreover as an individual he is exempted from payment of Income Tax as he belongs to a Scheduled Tribe.

    Reply
    • January 28, 2014 at 9:27 AM
      Permalink

      Hi Sudhir,

      If your all the transactions (specifically banking) have happened to Individual’s account then TDS should be deducted based on Individual PAN else it should be as per company PAN.

      Reply
  • October 17, 2014 at 11:21 AM
    Permalink

    TDS on 194 j contractor limit rs. 30000/- is exampt or not

    Reply
    • October 17, 2014 at 8:56 PM
      Permalink

      Hi Ravi,

      It doesn’t say exempted technically. In case as a deductor if you are making a payment upto Rs. 30,000 in a particular financial year then no TDS will be deducted u/s 194J.

      Here you indicated something regarding “contractors”. in such case TDS is covered u/s 194C, but the logic and threshold limit remain same as explained above.

      Reply
  • December 6, 2014 at 4:30 PM
    Permalink

    Dear sir,
    This is to inform you that we are receiving some contract bills on monthly basis from different contractors but some of bills value is not crossed more than Rs.30,000.Even though we are not aware of that when the bill amount will be crossed more than Rs.30,000/- for this financial year.Kindly advice on what basis we have deduct the TDS .

    Yours Faithfully,
    Venkat

    Reply
    • December 15, 2014 at 8:23 AM
      Permalink

      Hi Venkat,

      In such case you can inform contractor that, you might not deduct any tax as of now, but may do it during final payments towards end of the financial year incase annual bill amount crosses specified limit.

      Please note, you need to ensure, final bill amount should be higher than the required TDS to be deducted, else you end up paying penalties if TDS is paid lesser basis complete year’s payment amount. Hope you understood.

      Reply
  • August 18, 2015 at 8:16 PM
    Permalink

    I AM A INSTRUCTOR IN GOVT. ITI COLLEGE ON CONTRACT BASIS WITH 18000/- PM SALARY.I AM IN LABOUR RESOURCES DEPARTMENT IN BIHAR. BUT THE DEPARTMENT IS DEDUCTING TDS IN IT @ 10%. Are they correct?

    Reply
    • August 18, 2015 at 9:26 PM
      Permalink

      Hi Afroz,

      Your employer must be treating you as a professional (I assume), so in that case they are deducting straight 10% from the payable amount which could be u/s 194J. Under this provision any payments are made to you for a particular financial year is more than Rs. 30,000 then deductor has to levy 10% tax on each payment made to you. If this is the case, then they are right.

      But you should look at your overall income for the financial year, then you should ensure you pay deficit tax by way of advance tax, or file IT return on time to claim refund if excess tax has been deducted.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

css.php
Read previous post:
How to check your AO Code, Income Tax Ward/Circle PAN name with PAN number

IT department has made it so easy that just a click you will be able to check your PAN Jurisdiction...

Close