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Nature of Payment Income Tax (percent) . A. Salary to an employee [sec.192] Regular Rates . B. In the case of payment to a resident other than a company: . a. interest other than interest on securities 10 b. winnings from lotteries & crossword puzzles 40 c. winnings from horse races 40 d. insurance commission 10 e. interest on debentures or securities other than a security of the Central or a State Govt. for money issued by or on behalf of a local authority or a statutory corporation or listed debentures of a company 10 f. dividends [not being dividends referred to in section 115O 20 g. rent to an individual or a Hindu undivided family 15 h. rent to a person other than an individual or a Hindu undivided family 20 i. payment in respect of deposit under National Savings Scheme, 1987 20 j. payment on account of repurchase of units by Mutual Fund or UTI [sec. 80CCB(2)] 20 k. commission on sale of lottery tickets 10 l. payment to a contractor (in the case of advertising contracts : 1per cent ) 2 m. payment to sub-contractor 1 n. fees for professional or technical services 5 o. income in respect of units of a mutual fund[Sec 10(23D)] or of UTI 15 p. any other income 20 . C. In the case of payments to a domestic company : . a. interest other than interest on securities 20 b. winnings from lotteries and crossword puzzles 40 c. winnings from horse races 40 d. commission on sale of lottery tickets 10 e. payments to a contractor(in the case of advertising contracts: 1per cent ) 2 f. payments to sub-contractor 1 g. rent 20 h. fees for professional or technical service 5 i. income in respect of units of a mutual fund [sec. 10(23D)] or of UTI 20 j. any other income 20 . D. In the case of payment to a non-resident other than a company . a. income from foreign exchange assets payable to an Indian citizen 20 b. income by way of long-term capital gains referred to in section 115E 10 c. income by way if interest payable by Govt./Indian concern on money borrowed or debt incurred by Govt. or Indian concern in foreign currency 20 d. rent to an individual or a Hindu undivided family 15 e. rent to a person other than an individual or a Hindu undivided family 20 f. winnings from lotteries and crossword puzzles 40 g. winnings from horse races 40 h. payments referred to in sec.115BBA 10 i. payments in respect of National savings scheme,1987 20 j. payments on account of repurchase of units by Mutual Fund/UTI [sec.80CCB(2) ] 20 k. income by way of interest/dividends [not being dividends referred in sec 115-O] payable in respect of bonds/shares referred to in section 115AC or by way of long-term capital gain arising from transfer of such bonds 10 l. commission on sale of lottery tickets 10 m. income in respect of units referred to in section 115AD(1)(a) payable to foreign Institutional Investor (other than capital gain ) 20 n. income by way of long-term capital gain 20 o. income payable in respect of units of a mutual fund [sec.10(23D)] or of UTI 20 p. any other income 30 . E. In the case of payments to a non-domestic company . a. winnings from lotteries and crossword puzzles 40 b. winnings from horse races 40 c. interest payable by Govt. or an Indian concern on money borrowed or debt incurred in foreign currency 20 d. royalty payable by Govt or an Indian concern in pursuance of an agreement made by it with the Govt. or the Indian concern after March 31,1976, 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 provision to sub-section (1A) of section 115A of the Act, to the Indian concern or in respect of computer software referred to in the second provision to section 115A(1A), to a person resident in India .  • Where the agreement is made before June 1,1997 30  • where the agreement is made after May 31,1997 20 e. royalty [not being royalty of the nature referred above] payable by Govt or an Indian concern in pursuance of a agreement made by it with the Govt. or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Govt. or where it relates to matter included in the industrial policy , the agreement is in accordance with that policy .  • where the agreement is made after March 31,1961 but before April 1, 1976 50  • where the agreement is made after March 31,1976 but before June 1,1997 30  • where the agreement is made after May 31,1997 20 f. fees for technical services payable by Govt. or an Indian concern in pursuance of an agreement made by it with the Govt. or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Govt. or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy .  • where the agreement is made after February29,1964 but before April 1976 50  • where the agreement is made after March 31,1976 but before June 1, 1997 30  • where the agreement is made after May 31,1997 20 g. rent 20 h. long-term capital gains 20 i. on income payable in respect of units of Mutual Fund specified under section 10(23D) or of the UTI 20 j. payments referred to in section 115BBA 10 k. commission on sale of lottery tickets 10 l. payments to overseas financial corporation covered by section 115AB or by long-term capital gains arising from transfer of such units 10 m. income by way of interest/dividend [not being dividend referred in section 115-O ] in respect of bonds/shares referred to in section 115AC or by way of long-term capital gain arising from transfer of such bonds 10 n. income (other than capital gain) in respect of units referred to in section 115AD(1)(a) payable to Foreign Institutional Investor 20 o. on any other income 48