# Smart Summary of TDS Rates

## General Rules

For sections other than specifically mentioned, the rate applies on the whole amount.
No PAN → Rate becomes 20% (general rule)

## Rates by Tier

### 0.1% Rate

### 1% Rate

### 2% Rate

### 5% Rate

### 10% Rate

### 30% Rate

### Slab Rate

## TDS Deductible Starting from Limits

Worked example

### Example 1

Example: A contractor (Individual) is paid ₹2 lakhs for contract work. What is TDS rate u/s 194C?

Answer: 1% (since payee is Individual/HUF). Other contractors → 2%.

### Example 2

Example: Plant & Machinery rent of ₹5 lakhs paid. What is TDS rate u/s 194-I?

Answer: 2% on P&M (lower than 10% applicable for land/building).

⚠️ Common exam mistakes

Applying 10% for all 194J payments — FTS, non-prof, call centre, film royalty are at 2%
Using 10% for plant & machinery rent — special 2% rate applies
Forgetting to switch to 20% rate when payee has no PAN

Reference:

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