Income Tax Act

Official PDF pages 471–475

SOURCE PDF PAGE 471
Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
a   s c h e m e
notified by
t h e   C e n   -
tral Govern -
ment.
( iii )   Any income being inter -
est other than interest
on securities.
Specified person
[other than per -
son in Sl. No. 5
( ii ). C].
Rate : Rates in force.
_______
Threshold limit :   `   10,000.
Note 1. —In serial numbers 5( ii ) and ( iii ), where the interest income credited or paid is in
respect of—
( a )   time deposits with a banking company; or
( b )   time deposits with a co-operative society engaged in carrying on the business
of banking; or
( c )   deposits with a public company formed and registered in India with the main
object of carrying on business of long-term finance for construction or purchase
of houses in India for residential purposes and is eligible for deduction under
section 32( e ),
and the person mentioned in column C has not adopted core banking solutions, the thresh -
old limit in column D shall be computed with reference to the income credited or paid by
a branch of such person.
Note 2. —The person responsible for making the payment referred to in serial number 5( ii )
and ( iii ) of this Table, may at the time of making any deduction, increase or reduce the
amount to be deducted for the purpose of adjusting any excess or deficiency arising out of
any previous deduction or failure to deduct during the tax year.
6. Payments to contractors, fees for professional and technical services, etc.
( i )   Any sum for carrying
out any work (including
supply of labour for car -
rying out any work) in
pursuance of a contract
between the contractor
and a designated per -
son.
Any   designated
person.
Rate :   ( a ) 1%, if contractor
is   individual   or   Hindu
undivided family;
( b ) 2%, if contractor is
a person other than the
person mentioned in ( a ).
_____
Threshold limit:   [for ( a )
and ( b )]
( a )   `   30,000; for any such
sum; and
( b )   `   1,00,000 in case of
aggregate   of   such
sums.

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SOURCE PDF PAGE 472
Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
( ii )   Any sum—
( a )   for carrying out
any work (includ -
ing supply of la -
bour for carrying
out any work) in
pursuance   of   a
contract; or
( b )   by   way   of   fees
for   professional
services; or
( c )   by way of   com -
mission [not be -
i n g   i n s u r a n c e
commission   re -
ferred to in serial
number 1( i )] or
brokerage.
Any person, being
an individual or
Hindu undivided
family [other than
those required to
deduct   income-
tax as per Sl. No.
6( i ) and ( iii ) or Sl.
No. 1( ii )].
Rate:   2%
_____
Threshold limit:
Fifty lakh rupees.
( iii )   Any sum by way of—
( a )   fees   for   profes -
sional services; or
( b )   fees for technical
services; or
( c )   r e m u n e r a t i o n
or fees or com -
mission by what-
ever name called,
other than those
on which tax is
deductible under
section   392,   to
a   director   of   a
company; or
( d )   royalty; or
( e )   any sum referred
to in section
26(2)( h ).
Specified person.   Rate:   ( a ) 2% of such sum
in case of—
( i )   fees   for   technical
services (not being
a professional ser -
vices); or
( ii )   royalty   in   the   na -
ture   of   considera-
tion for sale, distri -
bution or exhibition
of cinematographic
films; or
( iii )   payee, engaged only
in the business of op -
eration of call centre;
( b ) 10% of such sum in
cases other than ( a ).
_____
Threshold limit:   ( i ) for ( a ),
( b ), ( d ) and ( e ) of Col. B:
`   50,000.
( ii ) for ( c ) of Col. B:   Nil.
Note. —In serial number 6( i ), if any sum is paid or credited for carrying out any
work specified in section 402(47)( e ), tax shall be deducted at source—

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SOURCE PDF PAGE 473
Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
( a )   on the invoice value excluding the value of material, if such value is
specified separately in the invoice; or
( b )   on the whole of the invoice value, if the value of material is not specified
separately in the invoice.
7. Dividend
Any dividend (including div -
idend on preference shares)
declared.
Any domestic
company.
Rate:   10%
_______
Threshold limit:   Nil.
Note.— The tax shall be deducted at source before making any distribution or
payment of dividend.
8. Other cases
( i )   Any   sum   under   a
life insurance policy,
including the sum
allocated as bonus
on such policy, oth -
er than the amount
not includible in the
total income under
Schedule II (Table:
Sl. No. 2).
Any person.   Rate :   2% on income
comprised in such sum.
_______
Threshold limit:
`   1,00,000.
( ii )   Any   sum   exceed -
ing fifty lakh rupees
for purchase of any
goods.
Any person, being
a buyer.
Rate:   0.1%
_____
Threshold limit:
As per Note 1.
( iii )   Total   income   of   a
specified senior citi -
zen after giving effect
to deduction allow -
able under Chapter
VIII and rebate al -
lowable under sec -
tion 156.
Specified bank.   Rate:   Rates in force.
_____
Threshold limit:
As applicable.
( iv )   Any benefit or per -
quisite, whether con -
vertible into money
or not, arising from
business or the exer -
cise of a profession of
any resident.
Specified person.   Rate:   10% of value or
aggregate of values of
such benefit or
perquisite.
_____
Threshold limit:   `   20,000.

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SOURCE PDF PAGE 474
Sl.
No.
Nature of income or sum   Payer   Rate
Threshold limit
A   B   C   D
( v )   Any sum on account
of sale of goods or
provision of services
by an e-commerce
participant, facilitat -
ed by an e-commerce
operator through its
digital or electronic
facility or platform.
Any e-commerce
operator.
Rate:   0.1% of gross
amount of such sale or
services or both.
_____
Threshold limit:   Nil.
( vi )   Any sum by way of
consideration   for
transfer of a virtual
digital asset.
Any person.   Rate:   1%
_____
Threshold limit:   Nil.
Note 1. —( a ) The deduction of tax under serial number 8( ii ) shall not apply to a transaction
on which tax is deductible or collectible under any of the provisions of the Act.
( b )   The tax shall be deducted on the sum exceeding fifty lakh rupees.
Note 2. —The provisions of serial number 8( iv ) shall also apply to any benefit or perquisite,
whether in cash or in kind or partly in cash and partly in kind, provided to a resident and
before providing such benefit or perquisite, as the case may be, the person responsible for
providing such benefit or perquisite shall ensure that tax has been deducted.
Note 3 .—In respect of serial number 8( v )—
( a )   for deduction of tax, the provisions thereof shall take precedence over any other
provisions of this Chapter;
( b )   any payment made by a purchaser of goods or recipient of services directly to
an e-commerce participant for the sale of goods or provision of services or both,
facilitated by an e-commerce operator, shall be deemed to be the amount cred -
ited or paid by the e-commerce operator to the e-commerce participant and this
amount shall be included in the gross amount of such sale or services for the
purposes of deduction of income-tax under this serial number;
( c )   e-commerce operator shall be deemed to be the person responsible for paying to
e-commerce participant;
( d )   irrespective of anything contained in this Chapter, if—
( i )   tax has been deducted on a transaction under this serial number; or
( ii )   a transaction is not liable for tax deduction as provided in section 393(4)
(Table: Sl. No. 11),
then tax shall not be deducted on such transaction under any other provision of
this Chapter;
( e )   clause   ( d )   shall   not   apply   to   any   amount   or   aggregate   of   amounts
received or receivable by an e-commerce operator for—

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SOURCE PDF PAGE 475
( i )   hosting advertisements; or
( ii )   providing any other services,
which are not in connection with the sale or services referred to in this serial
number.
Note 4.— In case of a transaction on which provisions of serial number 8( v ) are applicable along
with the provisions of serial number 8( vi ) for deduction of tax, then irrespective of anything
contained in Note 3, tax on such transaction shall be deducted only under the provisions of
serial number 8( vi ).
Note 5.— The provisions of serial number 8( iii ) shall take precedence over any other provisions
of this Chapter and tax shall be deducted under this provision.
Note 6.— For serial number 8( iv ) and ( vi ),—
( a )   where the consideration or, benefit or perquisite provided, as the case may be,—
( i )   is in exchange of another virtual digital asset where there is no part in cash,
in respect of serial number 8( iv ); or
( ii )   is wholly in kind; or
( iii )   is partly in kind and partly in cash, but such part in cash is not sufficient
to meet the liability of deduction of tax in respect of the whole of such
payment or benefit or perquisite,
the person responsible for paying or providing shall ensure that the tax required
to be deducted has been paid, before releasing such consideration or providing
such benefit or perquisite, as the case may be;
( b )   “person responsible for providing” means the person providing such benefit or
perquisite, or in case of a company, the company itself including the principal
officer thereof.
(2) Where any income or sum of the nature specified in column B of the Table
below, is credited or paid by the person specified in column D during the tax year,
to a non-resident specified in column C, the person responsible for paying such
income or sum shall deduct income-tax on the amount of such income or sum,—
( a )   at the rate specified in column E;
( b )   at the time of credit of income or sum to the account of the payee or at
the time of its payment in cash or by way of a cheque or a draft or by
any other mode, whichever is earlier; and
( c )   subject to the provisions of sub-sections (4), (8) and (9).
TABLE
FOR PAYMENTS TO NON-RESIDENT
Sl.
No.
Nature of income
or sum
Payee   Payer   Rate
A   B   C   D   E
1 .   Any   income   re -
ferred to in section
211.
( a )   A non-resi -
dent sports -
man (inclu-
ding an ath -
lete) or an
Any person.   20%