TDS Rates for Non-Residents u/s 195 of Income Tax Act, 1961

Nature of PaymentCo.Others
1.Long Term Capital Gains u/s 115ENA10%
2.Other Long Term Capital Gains (excluding u/s 10(33), 10(36) & 10 (38))20%20%
3.Short Term Capital Gains u/s. 111A15%15%
4.Investment income from Foreign Exchange AssetsNA20%
5.Interest payable on moneys borrowed or debt incurred in Foreign Currency20%20%
6.Royalty & Fees for technical services u/s. 115A
– Agreement  1st June, 1997 to 31st May, 2005
– Agreement on or after 1st June 2005
20%
10%
20%
10%
7.Winnings from Lotteries, Crossword Puzzles and Horse Races30%30%
8.Any Other Income40%30%

Surcharge & Education Cess

Type of PaymentSurchargeRateEducation Cess (3.00%)
Payment to Non-Residents (other than Cos)Upto 1crNilYes
> 1 Crore15%
 Payments to Foreign Co.Upto 1crNilYes
> 1 Crore2%
> 10 Crores5%

Interest on delay in deposit of tax after deduction

Stage of deductionUpto 30th June 2010 (Rate per month or part of the month)From 1st July 2010(Rate per month or part of the month)

From date when deductible till actual deduction

1%1%

From date of deduction till payment

1%1.5%