Information Related to TDS

Calculation of TDS as per A.Y.2018-19

How do I calculate TDS on my salary?

Salary for the month*12 XXXXXXXX
HRA (if any) (XXXX)
Travelling Allowance (1600 pm max) (19200)
80 C Deduction (Max to 1,50,000) (XXXXX)
80 D Deduction (Max to 25000 or 30000) (XXXX)
Other deduction (if any) (XXXX)
Net Salary Earned XXXXXX

TDS Deducted will be 5% of (Net salary earned-250000) less 2500/- deduction u/s 87A if salary is less than 5,00,000/-

If it’s more than 5,00,000/-p.a then refer slab rate.

When will we get Form 16 from company?

As per amendments last date of TDS return for last quarter is 31st May 2017 & the certificate is provided from the auditor’s office so most probably it will be sent by 10th June 2017.

How do I calculate TDS on my professional Services?

As per Section 194J

Nature of Payment Fees for professional services /Technical services/ royalty  /remuneration or fees or commission payable to director (not covered under 192)
Deductor Any person other than HUF/Individual
HUF-Individual :sales /gross receipt exceeds one crore/50 lakhs
Deductee Resident
TDS rate 10% (2% on Call centers wef 01.06.2017)
Threshold Limit 30000(no Limit for Payment to director)
Time of deduction credit or payment whichever is earlier
Other points No tds on profession services for personal purpose

Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where the person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.

What are the duties of the person deducting tax at source?

Following are the basic duties of the person who is liable to deduct tax at source.

  • He shall obtain Tax Deduction Account Number (TAN) and quote the same in all the documents pertaining to TDS.
  • He shall deduct the tax at source at the applicable rate.
  • He shall pay the tax deducted by him at source to the credit of the Government (by the due date specified in this regard*).
  • He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*).
  • He shall issue the TDS certificate to the payee in respect of tax deducted by him (by the due date specified in this regard*).

*Refer tax calendar for the due dates.

Slab Rate of Current Year i.e. AY 2018-19

Individual resident aged below 60 years (i.e. born on or after 1st April 1958)

Income Tax:Use Tax Calculator for AY 2018-19

Income Slabs   Tax Rates
i. Where the taxable income does not exceed Rs. 2,50,000/-. NIL
ii. Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 5% of the amount by which the taxable income exceeds Rs. 2,50,000/-.
Less : Tax Credit u/s 87A – 10% of taxable income uptoRs. 350,000. Maximum relief – Rs. 2500/-.
iii. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 12,500/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv. Where the taxable income exceeds Rs. 10,00,000/-. Rs. 112,500/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

10% of the Income Tax, where taxable income is more than Rs. 50 lacs and up toRs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 50 lacs by more than the amount of increase in taxable income.

Surcharge:

  • 15% of the Income Tax, where taxable income is more than Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.

Education Cess: 3% of the total of Income Tax and Surcharge.

Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years i.e. born on or after 1st April 1938 but before 1st April 1958)

Income Tax:

Income Slabs Tax Rates
i. Where the taxable income does not exceed Rs. 3,00,000/-
Less : Tax Credit u/s 87A – 10% of taxable income uptoRs. 350,000. Maximum relief – Rs. 2500/-.
NIL
ii. Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/- 5% of the amount by which the taxable income exceeds Rs. 3,00,000/-.
Less: Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
iii. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 10,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv. Where the taxable income exceeds Rs. 10,00,000/- Rs. 110,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

10% of the Income Tax, where taxable income is more than Rs. 50 lacs and upto Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 50 lacs by more than the amount of increase in taxable income.

Surcharge:

  • 15% of the Income Tax, where taxable income is more than Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.

Education Cess: 3% of the total of Income Tax and Surcharge.

Super Senior Citizen (Individual resident who is of the age of 80 years or more i.e. born before 1st April 1938)

Income Tax:

Income Slabs Tax Rates
i. Where the taxable income does not exceed Rs. 5,00,000/-. NIL
ii. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iii. Where the taxable income exceeds Rs. 10,00,000/- Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

10% of the Income Tax, where taxable income is more than Rs. 50 lacs and upto Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 50 lacs by more than the amount of increase in taxable income.

Surcharge:

  • 15% of the Income Tax, where taxable income is more than Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.

Education Cess: 3% of the total of Income Tax and Surcharge.

>> Saving & Deduction in Income Tax is only applicable for salaried person.

Section 80 Deduction Table

Section Deduction on FY 2016-17
Section 80C
  • Investment in PPF
  • Employee’s share of PF contribution
  • NSCs
  • Life Insurance Premium payment
  • Children’s Tuition Fee
  • Principal Repayment of home loan
  • Investment in SukanyaSamridhi Account
  • ULIPS
  • ELSS
  • Sum paid to purchase deferred annuity
  • Five year deposit scheme
  • Senior Citizens savings scheme
  • Subscription to notified securities/notified deposits scheme
  • Contribution to notified Pension Fund set up by Mutual Fund or UTI.
  • Subscription to Home Loan Account Scheme of the National Housing Bank
  • Subscription to deposit scheme of a public sector or company engaged in providing housing finance
  • Contribution to notified annuity Plan of LIC
  • Subscription to equity shares/ debentures of an approved eligible issue
  • Subscription to notified bonds of NABARD
Rs. 1,50,000
80CC For amount deposited in annuity plan of LIC or any other insurer for a pension from a fund referred to in Section 10(23AAB).
80CCD(1) Employee’s contribution to NPS account (maximum up to Rs 1,50,000)
80CCD(2) Employer’s contribution to NPS account Maximum up to 10% of salary
80CCD(1B) Additional contribution to NPS Rs. 50,000
80TTA(1) Interest Income from Savings account Maximum up to 10,000
80GG For rent paid when HRA is not received from employer Least of rent paid minus 10% of total income Rs. 5000/- per month 25% of total income
80E Interest on education loan Interest paid for a period of 8 years
80EE Interest on home loan for first time home owners Rs 50,000
80CCG Rajiv Gandhi Equity Scheme for investments in Equities Lower of – 50% of amount invested in equity shares or Rs 25,000
80D Medical Insurance – Self, spouse, children
Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old
Rs. 25,000

Rs. 30,000

80DD Medical treatment for handicapped dependant or payment to specified scheme for maintenance of handicapped dependant

  • Disability is 40% or more but less than 80%
  • Disability is 80% or more
Rs. 75,000

Rs. 1,25,000

80DDB Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD

  • For less than 60 years old
  • For more than 60 years old
  • For more than 80 years old
  • Lower of Rs 40,000 or the amount actually paid
  • Lower of Rs 60,000 or the amount actually paid
  • Lower of Rs 80,000 or the amount actually paid
80U Self suffering from disability:

  • Individual suffering from a physical disability (including blindness) or mental retardation.
  • Individual suffering from severe disability
Rs. 75,000

Rs. 1,25,000

80GGB Contribution by companies to political parties Amount contributed (not allowed in cash)
80GGC Contribution by individuals to political parties Amount contributed (not allowed in cash)
80RRB Deductions on Income by way of Royalty of a Patent Lower of Rs 3,00,000 or income received


Calculation of HRA Deduction (Least of Below)

  • Actual HRA received
  • Rent paid-10% of Salary
  • 50% of salary

Travelling Allowance is allowed as deduction of 1600 pm

Consequences of failure to deduct TDS or failure to deposit TDS timely

If income tax laws require you to deduct tax, it must be

  • timely deducted
  • timely deposited

TDS must be deducted at the time of making payment. Either at the time of preparing a cheque or at the time of making credit of payment.

Due Dates of Depositing TDS

Based on the type of income on which TDS is deducted, different dates of depositing TDS has been laid down in the income tax act. Usually –

  • TDS deducted during April to February must be deposited within 7 days from the end of the month in which the deduction is made.
  • TDS deducted during the month of March should be deposited on or before 30th
  • TDS deducted by a buyer on immovable property sale should be deposited within 7 days from the end of the month in which deduction is made.

Delay in Depositing TDS or Failure to Deduct TDS

If TDS has not been deducted when it was applicable, interest is levied on the amount of TDS

  • Interest @1%for every month or part of a month from the date on which it was deductible to the date on which it was actually deducted.

If TDS was deducted but not deposited timely, interest is levied on the amount of TDS

  • Interest @1.5%for every month or part of a month from the date on which it was deducted to the date on which such tax was remitted to the government for payment.

There may be a situation where although no TDS has been deducted by the payer, but the receiver has accounted for the income in his return and paid the tax due on such income. In such a case, interest will be applicable to the payer @1% on TDS amount from the date TDS was deductible to the date on which the receiver submitted his tax return. (This is only applicable where the receiver is resident in India).

When to Pay Interest on Delay

Any interest applicable must be deposited before filing quarterly TDS return

TDS Last Dates of FY 2017-18

Quarter Quarter Period Last Date of Filing
1st Quarter 1st April to 30th June 31st July, 2017
2nd Quarter 1st July to 30th September 31st Oct, 2017
3rd Quarter 1st October to 31st December 31st Jan, 2018
4th Quarter 1st January to 31st March 31st May, 2018

TCS Last Dates of  FY 2017-18

Quarter Quarter Period Last Date of Filing
1st Quarter 1st April to 30th June 15th July, 2017
2nd Quarter 1st July to 30th September 15th Oct, 2017
3rd Quarter 1st October to 31st December 15th Jan, 2018
4th Quarter 1st January to 31st March 15th May, 2018


The Penalty for failure to deduct tax at source.

Section 271C. If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay as aforesaid. This penalty is imposable by Joint Commissioner.

Prosecution for failure to deduct /deposit tax at source

Section 276B. If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B then, such person he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine. This penalty is imposable by Joint Commissioner.

Rates for tax deduction at source

[For Assessment year 2018-19]

Particulars TDS Rates (in %)
1. In the case of a person other than a company
1.1 where the person is resident in India-
Section 192: Payment of salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. 10
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; 10
b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; 10
c) any security of the Central or State Government; 10
d) interest on any other security 10
Section 194: Dividend other than the dividend as referred to in Section 115-O 10
Section 194A: Income by way of interest other than “Interest on securities” 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1
b) Others 2
Section 194D: Insurance commission 5
Section 194DA: Payment in respect of life insurance policy 1
Section 194EE: Payment in respect of deposit under National Savings scheme 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194H: Commission or brokerage 5
Section 194-I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10
Section 194-IAPayment on transfer of certain immovable property other than agricultural land 1
Section 194-IB:Payment of rent by individual or HUFnot liable to tax audit

Note: This provision is applicable from June 1, 2017

5
Section 194-IC:Payment of monetary consideration under Joint Development Agreements 10
Section 194JAny sum paid by way of

a)  Fee for professional services,

b)  Fee for technical services

c)  Royalty,

d)  Remuneration/fee/commission to a director or

e)  For not carrying out any activity in relation to any business

f)  For not sharing any know-how, patent, copyright etc.

Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.

10
Section 194LAPayment of compensation on acquisition of certain immovable property

Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013.

10
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. 10
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] 10
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 25% in case of Individual or HUF
30% in case of other person
Any Other Income 10
1.2 where the person is not resident in India-
Section 192: Payment of Salary Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to non-resident sportsmen/sports association 20
Section 194EE: Payment in respect of deposits under National Savings Scheme 10
Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders. 5
Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. 30
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. 30
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 30
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)

Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.

5
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor

Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.

5
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen 20
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen 10
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 10
d) Income by way of short-term capital gains referred to in Section 111A 15
e) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] 20
f) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) 20
g) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India 10
h) Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 10
i) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 10
j) Any other income 30
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund 10
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 10
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 20
2. In the case of a company-
2.1 where the company is a domestic company-
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; 10
b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; 10
c) any security of the Central or State Government; 10
d) interest on any other security 10
Section 194: Dividend 10
Section 194AIncome by way of interest other than “Interest on securities” 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30
Section 194BB: Income by way of winnings from horse races 30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals 1
b) Others 2
Section 194D: Insurance commission 10
Section 194DA: Payment in respect of life insurance policy 1
Section 194EE: Payment in respect of deposit under National Savings scheme 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194H: Commission or brokerage 5
Section 194-I: Rent
a) Plant & Machinery 2
b) Land or building or furniture or fitting 10
Section 194-IA:Payment on transfer of certain immovable property other than agricultural land 1
Section 194-IC:Payment of monetary consideration under Joint Development Agreements 10
Section 194JAny sum paid by way of

a)  Fee for professional services,

b)  Fee for technical services

c)  Royalty,

d)  Remuneration/fee/commission to a director or

e)  For not carrying out any activity in relation to any business

f)  For not sharing any know-how, patent, copyright etc.

Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.

10
Section 194LAPayment of compensation on acquisition of certain immovable property

Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013.

10
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. 10
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] . 10
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 10
Any Other Income 10
2.2 where the company is not a domestic company-
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30
Section 194BB: Income by way of winnings from horse races 30
Section 194E: Payment to non-resident sports association 20
Section 194G: Commission, etc., on sale of lottery tickets 5
Section 194LB: Payment of interest on infrastructure debt fund 5
Section 194LBA(2): Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders. 5
Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. 40
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. 40
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 40
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)

Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.

5
Section 194LD:Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor

Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020.

5
Section 195: Payment of any other sum
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112 10
b) Income by way of short-term capital gains referred to in Section 111A 15
c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] 20
d) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) 20
e) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India 10
f) Income by way of royalty [not being royalty of the nature referred to in point e) above C] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976 50
B. where the agreement is made after the 31st day of March, 1976 10
g) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976 50
B. where the agreement is made after the 31st day of March, 1976 10
h) Any other income 40
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund 10
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 10
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 20


[As amended by Finance Act, 2017]