NATURE OF PAYMENT

SECTION

INCOME TAX

(percent)

A.     Salary to an employee

B.    Payment to a resident other than a company

 a1 Interest on Govt. Securities (other than tax free securities)

 a2 Income by way of interest payable on any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act.

 a3 Income by way of interest on any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act., 1956 and any rules made there Under.

 b.  Dividends

 c.  Interest other than interest on securities.

 d. Winning from lotteries and crossword puzzles.

 e. Winning from horse races.

 f.  Payment to contractors.

 g.  Payment to advertising agencies.

 h  Payment to sub- contractors.

 i.  Insurance Commission.

j.  Payment in respect of deposits under National Saving Scheme etc.

k. Payments on account of repurchase of units by Mutual Fund or Unit Trust of India.

l.  Rent

m. Fees for professional services or technical services

 n. Income in respect of units.

 o. Payment against compulsory acquisition of capital asset.

p.      Payment of compensation on acquisition of certain immovable property.

q.      Any other income.

C.    Payment to a non-resident other than a company.[See Note-1]

a.      Income from foreign exchange assets and long term capital

Gains payable to an Indian Citizen [N.R.I.]

b.      Income by way of long term capital gains to any other Person [other than N.R.I.]

c.      Income of a non- resident Indian by way of dividends and Interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency.

192

193

193

193

194

194A

194B

194BB

194C

194C

194C

194D

194EE

194F

194-I

194J

194K

194L

194LA

195

*

10

10

10

10

10

30

30

2

1

1

10

20

20

15

5

NIL

10

10

20

20%[10% on only long term capital gains]

20

20

NATURE OF PAYMENT

SECTION

INCOME TAX

(percent)

d.      Income of any other person from sources as mentioned in  (c)

Above and income payable in respect of units (not being income payable to an individual), purchased in foreign currency, of the Unit Trust of India.

e.      Winnings from lotteries and crossword puzzles.

f.        Winnings from horse races

g.      Payments referred to in section 115BBA

h.      Payments in respect of National Saving Scheme

i.        Payments on account or repurchase of units by Mutual Fund/ UTI

j.         Income by way of interest/ dividends payable in respect of bonds/ shares referred to in section 115AC

k.      Commission on sale of lottery tickets.

l.         Payments to overseas financial corporations as in Section 115AB

m.    Income from units of Mutual Fund (subject to conditions)

n.      Any other income [See Note 3]

D.    Payment to a Domestic Company

a.      Dividend (not referred in section 115-O)

b.      Interest other than interest on securities

c.      Winning from lotteries and crossword puzzles

d.      Winning from horse races.

e.      Payment to contractor

f.        Payment to advertising agencies

g.      Payment to sub- contractor

h.      Payment on account of repurchase of units by Mutual Fund/ UTI

i.        Commission on sale of lottery tickets.

j.         Rent

k.      Fees for professional or technical services

l.         Income in respect of units

m.    Payment against compulsory acquisition of capital asset

Payment of compensation on acquisition of certain immovable property.

n.      Any other income

o.      Income from units of  Mutual Fund

E.     Payment to a Foreign Company,[Also See Note- 1]

a.      Dividends payable by a domestic company.

b.      Winnings from lotteries and crossword puzzles

c.      Winnings from horse races

d.      Interest payable by Government or an Indian concern on moneys borrowed in foreign currency.

196A

194

194A

194B

194BB

194C

194C

194C

194F

194G

194-I

194J

194K

194L

194LA

195

196A

20

30

30

10

20

20

10

10

10

20

30

10

20

30

30

2

1

1

20

10

20

5

NIL

10

10

20

20

NIL

30

30

20

NATURE OF PAYMENT

SECTION

INCOME TAX

(percent)

e.      Royalty payable by Government or an Indian concern, under

An agreement made by it after 31^st May,1997, in consideration for the transfer of all or any rights in respect of copy right in any book on subject referred to in the provision of Sec. 115A(1A), to an Indian concern.

f.        Royalty (other than mentioned above) payable by Government

Or an Indian concern under an approved agreement

(i)                 where agreement is made after 31^st March, 1961 but before 1^st April, 1976.

(ii)               Where agreement is made between 1.4.1976 to 31.5.1997

(iii)             Where agreement is made after 31^st May,1997 [but before 1^st June, 205]

(iv)              Where agreement is made after 1^st June, 2005.

g.      Fee for technical services payable by Government or an

Indian concern under an agreement approved by Central Government

(i)                 Where agreement is made after 29^th February, 1964 but before April 1, 1976

(ii)               Where agreement is made between 1.4.1976 to 31.5.1997

(iii)             Where agreement is made after 31^st May, 1997[but before 1^st June, 2005]

(iv)              Where agreement is made after 1^st June, 2005.

h.      Income payable in respect of units, purchased in foreign

currency , of the Unit Trust of India.

i.        Income by way of long term Capital gains[not being gains

referred to in sections 10[(33), (36) & (38)]

j.         Payment on account of repurchase of units by Mutual Fund/

UTI

k.      Income payable in respect of units of Mutual Fund[Sec.196A]

l.         Payments referred to in section 115BBA

m.    Commission on sale of lottery tickets.

n.      Payment to overseas financial corporations covered by section 115AB[Sec.196B] [See Note 2]

o.      Income by way of interest/ dividends in respect of bonds/ shares as referred in sec. 115AC[Sec.196C] [See Note 2]

p.      Income of Foreign Institutional Investor in respect of securities referred to under Sec. 115A-D(1) (a) [Sec. 196D]

q.      Any other income.

20

50

30

20

10

50

30

20

10

20

20

20

20

10

10

10

10

20

40

Rate of surcharge

Type of Assessees receiving income

Income criteria for surcharge

10%

10%

2.5%

Individual, H.U.F., A.O.P., B.O.I.

Artificial Juridicial person

Co-operative Society, Firm, Local Authority, Company

When total income exceeds Rs.8.5 lakhs

Any Income

Any Income

Rate of surcharge

Type of Assessee receiving income

Income criteria for surcharge

10%

10%

2.5%

NIL

Individual, H.U.F., A.O.P., B.O.I.

Firm, Domestic Company, Artificial Juridicial Person

Company other than domestic company

Co- operative Society, Local Authority

When total income exceeds Rs.10 lakhs

Any Income

Any Income

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