Section 194F- TDS on Repurchase of Units by Mutual Fund or Unit Trust of India (UTI)

  1. Deductor- The person(Individual/HUF) making investments in Equity Linked Savings Scheme shall make deduction as per Sec 80CCB.
  2. Deductee- UTI or respective Mutual Fund
  3. Time of Deduction- At the time of payment.
  4. Rate of TDS- 20%
∼Authored by – CA Anushka Saraogi

Section 194E- TDS on Payments to Non-Resident Sportsmen or Sports Association

Section 194EE- TDS on Payments in respect of Deposit under NSS

  1. Deductor- Any person responsible for making payment of any amount for the amount standing in NPS covered under Sec 80CCA and accrued interest.
  2. Deductee- Person who has deposited in NPS and is covered under Sec 80CCA
  3. Time of Deduction- At the time of payment.
  4. Rate of TDS- 10%
  5. When no TDS is deducted:
  • For aggregate payments up to Rs. 2,500 in a FY.
  • Where the payment is made to the heirs of the deceased Assessee (depositor)
  • If a declaration is submitted under section 197A by the recipient to the payer, then no tax is deductible in a few cases.
∼Authored by – CA Anushka Saraogi

Section 193- TDS on Interest on Securities

Section 194E- TDS on Payments to Non-Resident Sportsmen or Sports Association

  1. Deductor- Any person responsible for making payment
  2. Deductee/Payee-
  • Non – resident foreign citizen sportsman (including an athlete)
  • Non – resident sports association or institution
  • Non- resident foreign citizen entertainer
  1. Time of Deduction- At the time of payment or credit, whichever is earlier.
  2. Nature of Income-

(a) Sportsman/Athlete- Income from-

  • Participation in India in any game (other than card game or gambling, etc.); or
  • Advertisement; or
  • Contribution of articles relating to any game or sport in India in newspapers, magazines or journals.

(b) Sports Association or Institution- Income from any amount guaranteed to be paid or                payable in relation of any game (other than card game, etc.) or sport played in India.

(c) Foreign Citizen Entertainer- Income from his performance in India

  1. Rate of TDS- 20% (Plus Surcharge and Health & Education Cess @ 4%.
  2. Note- No deductions shall be allowed in computing the income referred above.
∼Authored by – CA Anushka Saraogi

Section 194IC – TDS on consideration paid under a Joint Development Agreement

Section 193- TDS on Interest on Securities

      No Comments on Section 193- TDS on Interest on Securities

TDS shall be deducted on interest paid on securities by the interest payer.

  1. Time of Deduction- TDS to be deducted at the time of credit or payment, whichever is earlier.
  2. Deductee- The interest receiver needs to be a Resident
  3. TDS Rate- TDS at a flat rate of 10% shall be applicable.

If PAN is not furnished, then tax to be deducted at a higher rate

  1. Meaning of Interest on Securities-

a. Interest on any security of Central Government or State Government

b. Interest on debentures or

c. Interest on other securities for money issued by or on behalf of a local authority or a company or a corporation established by a Central, State or Provincial Act.

5. Cases when TDS shall not be deducted-

a. Interest payable to Insurance companies

b. Interest paid by widely held company (where interest amount is not more than Rs. 5,000) subject to certain conditions

c. Any interest payable on a dematerialized security recognized by a stock exchange.

d. Any interest payable on Central Govt securities or State Govt securities.

e. Interest paid or credited on 8% saving (Taxable) Bonds 2003 issued by the Central Government (where interest amount is not more than Rs. 10,000).

f. Where a self-declaration under Form No. 15G/15H is furnished by a particular person.

g. Any payment made to New Pension System Trust

h. No deduction of tax from specified payment to notified institutions, association, or body, etc.

i. No TDS shall be deducted at source from the payments of the nature specified under section 10(23DA) received by any securitization trust.

j. Certain entities whose income is unconditionally exempt under section 10

˜Authored by – CA Anushka Saraogi˜

Section 194IB-TDS on payment of Rent of Immovable Property by Certain Individuals or HUF