1. TAX DEDUCTION AT SOURCE DAY 5 SESSION 1 & 2 Slide 5.1

2. Introduction  Two broad head of levy of tax are  Direct levy and  Tax deduction at source  Deduction of tax at source is a convenient method of tax collection  is less painful to the person from whose income such tax is deducted  saves time on the part of the income-tax department Slide 5.1

3. Introduction  Tax deduction is the responsibility of the person making the payment i.e.  Employer in the case of salary paid to employee  payer of interest i.e. borrower  In the case of winnings from lottery, crossword puzzles, horse races, as the person who makes the payment  In all other cases too the payer of the income Slide 5.1

4. Incomes subject to TDS  Salary income (s.192)  Interest on securities (s.193)  Dividends (s. 194)  Interest other than interest on securities (s. 194A)  Winnings from lottery or crossword puzzles (s. 194B) Slide 5.1

5. Incomes subject to TDS  Winnings from horse races (s. 194BB)  Payments to contractors or sub-contractors (s.194C)  Insurance commission (s.194D)  Payments to non-resident sportsmen or sports associations (s.194E)  Payments in respect of deposits under national savings scheme etc. (s.194EE) Slide 5.1

6. Incomes subject to TDS  Payments in respect of repurchase of units by mutual fund or unit trust of India (s.194F)  Commission on sale of lottery tickets (s.194G)  Commission, brokerage etc. (s.194H)  Rent (s.194I)  Fees for profession-al or technical services [Sec. 194J] Slide 5.1

7. Incomes subject to TDS  Income in respect of units [Sec. 194K]  Payment to non-resident [Sec. 195]  Units held by an Off-shore Fund [Sec. 196B],  Income from foreign currency bonds [Sec. 196C]  Income of Foreign Institutional Investors from securities [Sec. 196D] Slide 5.1