The TDS rates vary on the type of taxpayer and the income bracket. Further, the payments where the TDS rates are applicable are salary, commission, winnings from lotteries, etc. The rate chart of TDS for FY 2021-22 AY 2022-23 | Assessment Year 2022-23 are as follows:
TDS Rate Chart For FY2021-22 | AY 2022-23
| Section | Nature of transaction | Deductee | Threshold Limit (Rs) | TDS Rate |
|---|---|---|---|---|
| 192 | Payment of salary | Resident, Non-Resident | Basic exemption limit of employee | Normal Slab Rates |
| 192A | Premature withdrawal from EPF | Resident, Non-Resident | 50,000 |
10% (if PAN is furnished). 20% (if PAN is not furnished – Budget 2023) |
| 193 | Interest on securities | Resident |
Debentures- 5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000 Other securities- No limit |
10% |
| 194 | Payment of any dividend | Resident | 5,000 | 10% |
| 194A | Interest from other than interest from securities (from deposits with banks/post office/co-operative society) | Resident |
Senior Citizens- 50,000 Others- 40,000 |
10% |
| 194A |
Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives |
Resident | 5,000 | 10% |
| 194B | Income from lottery winnings, card games, crossword puzzles, and other games of any type | Resident, Non-Resident, Foreign Company | 10,000 (aggregate) | 10% |
| 194BB | Income from horse race winnings | Resident, Non-Resident, Foreign Company | 10,000 (Aggregate) | 30% |
| 194C | Payment to contractor/sub-contractor | Resident |
Single transaction- 30,000 Aggregate transactions- 1,00,000 |
Individuals/HUFs – 1% Other than individuals/HUFs – 2% |
| 194D | Insurance commission to | Resident | ||
|
i) Individuals ii) Companies |
Resident |
15,000 15000 |
5% 10% |
|
| 194DA | Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy. | Resident | 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/sports association | Non-Resident, Foreign Company | No limit | 20% |
| 194EE | Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | Resident, Non-Resident | 2,500 | 10% |
| 194F | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | Resident, Non-Resident | No limit | 20% |
| 194G | Payments, commission, etc., on the sale of lottery tickets | Resident, Non-Resident, Foreign Company | 15,000 | 5% |
| 194H | Commission or brokerage | Resident | 15,000 | 5% |
| 194-I | Rent: | Resident | ||
| 194-I(a) Rent on plant and machinery | Resident | 2,40,000 | 2% | |
| 194-I(b) Rent on land/building/furniture/fitting | Resident | 2,40,000 | 10% | |
| 194-IA | Payment in consideration of transfer of certain immovable property other than agricultural land. | Resident | 50,00,000 | 1% |
| 194-IB | Rent payment by an individual or HUF not covered under Section 194-I | Resident | 50,000/month | 5% |
| 194-IC | Payment under Joint Development Agreements (JDA) to Individual/HUF | Resident | No limit | 10% |
| 194J | Any sum paid by way of fee for professional services | Resident | 30,000 | 10% |
| 194J | Any sum paid by way of remuneration/fee/commission to a director | Resident | 30,000 | 10% |
| 194J | Any sum paid for not carrying out any activity concerning any business; | Resident | 30,000 | 10% |
| 194J | Any sum paid for not sharing any know-how, patent, copyright, etc. | Resident | 30,000 | 10% |
| 194J | Any sum paid as a fee for technical services | Resident | 30,000 | 2% |
| 194J | Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. | Resident | 30,000 | 2% |
| 194K | Payment of any income for units of a mutual fund, for example, dividend | Resident | No limit | 10% |
| 194LA | Payment in respect of compensation on acquiring certain immovable property | Resident | 2,50,000 | 10% |
| 194LB | Payment of interest on infrastructure debt fund to Non-Resident | Non-Resident, Foreign Company | No limit | 5% |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds | Non-Resident, Foreign Company | No limit | 5% |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC | Non-Resident, Foreign Company | No limit | 4% |
| 194LD | Payment of interest on bond (rupee-denominated) to FII or a QFI | Non-Resident, Foreign Company | No limit | 5% |
| 194LBA(1) | Certain income distributed by a business trust to its unitholder | Resident | No limit | 10% |
| 194LBA(2) | Interest income of a business trust from SPV distribution to its unitholders | Non-Resident, Foreign Company | No limit | 5% |
| 194LBA(2) | Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders | Non-Resident, Foreign Company | No limit | 10% |
| 194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Non-Resident | No limit | 30% |
| 194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Foreign Company | No limit | 40% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Resident, Non-Resident | No limit | 10% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Foreign Company | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to an individual and HUF | Resident | No limit | 25% |
| 194LBC | Income from investment in securitisation fund received to domestic company | Resident | No limit | 10% |
| 194LBC | Income from investment in securitisation fund received to a foreign company | Foreign Company | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to NRI | Non-Resident | No limit | 10% |
| 194M | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | Resident | 50,00,000 | 5% |
| 194N | Cash withdrawal exceeding a certain amount | Resident, Non-Resident |
Co-operative society: 3 Crore Others: 1 crore |
2% |
| 194N | Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired | Resident, Non-Resident |
– 20 lakh to 1 crore -1 crore |
2% 5% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore |
| 194O | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. | Resident | 5,00,000 |
1% (5%, in case PAN is not furnished) |
| 194P | Payment of pension or interest to specified senior citizens of age 75 years or more | Resident | Basic exemption limit of senior citizens or super senior citizens | Normal Income Tax Slab rates |
| 194Q | Payments for the purchase of goods | Resident | 50,00,000 | 0.10% |
| 195 | Income on investments made by NRI citizen | Non-Resident | No limit | 20% |
| 195 | Income by way of LTCG referred to in section 115E in the case of NRI | Non-Resident | No limit | 10% |
| 195 | Income by way of LTCG under section 112(1)(c)(iii) | Non-Resident, Foreign Company | No limit | 10% |
| 195 | Income by way of LTCG under section 112A | Non-Resident, Foreign Company | No limit | 10% |
| 195 | Income by way of STCG under section 111A | Non-Resident, Foreign Company | No limit | 15% |
| 195 | Any other income by way of LTCG | Non-Resident, Foreign Company | No limit | 20% |
| 195 | Interest payable on money borrowed by the government or Indian concern in foreign currency | Non-Resident, Foreign Company | No limit | 20% |
| 195 | Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A | Non-Resident, Foreign Company | No limit | 10% |
| 195 |
Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy. If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976 |
Foreign Company | No limit | 50% |
| 195 |
Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976 |
Foreign Company | No limit | 10% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | Non-Resident | No limit | 10% |
| 195 |
Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976 |
Foreign Company | No limit | 50% |
| 195 |
Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered after 31st March 1976 |
Foreign Company | No limit | 10% |
| 195 | Any other income | Non-Resident | No limit | 30% |
| 195 | Any other income | Foreign Company | No limit | 40% |
| 196B | Income (including LTCG) from units of an offshore fund | Non-Resident, Foreign Company | No limit | 10% |
| 196C | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | Non-Resident, Foreign Company | No limit | 10% |
| 196D | Income (excluding dividend and capital gain) from Foreign Institutional Investors. | Non-Resident, Foreign Company | No limit | 20% |
| 206AA | TDS rate in case of Non availability of PAN | Resident, Non-Resident, Foreign Company | No limit | Rates specified above or 20%, whichever is higher |
After you have read about Rate Chart Of TDS For FY 2021-22 AY 2022-23
Also Read:
Tax Deduction at Source On Purchase Of Goods Under Section 194Q
Important points related to TDS
As per section 206AA, in case of non-furnishing of PAN/Aadhaar by deductee, TDS will be charged at normal rate or 20% (5% in case of section 194-O), whichever is higher.
In addition to the above point, as per new section 206AB, where tax is required to be deducted at source under the provisions of Chapter XVIIB, on any sum or income or amount paid, or payable or credited, other than sections 192, 192A, 194B, 194BB, 194LBC or 194N by a person to a specified person, the tax shall be deducted at the higher of the following rates.
- Twice the rate specified in the relevant provision of the Act; or
- Twice the rate or rates in force; or
- The rate of five per cent.
Also Read: Which Section Is Applicable – Section 194Q Or Section 206C(1H)?
Furthermore, provision of section 206AA (Non furnishing of PAN/Aadhaar) shall be override on the provision of section 206AB. Thereafter, deduction of tax shall take place at higher of the two rates under section 206AA and in section 206AB.
[These change will be applicable from 1st July, 2021.]
If you have any questions, then simply drop a message in the chatbox or leave a comment in the comment box. You can also drop us a message on Whatsapp, Facebook, Instagram, LinkedIn and Twitter. For more updates on tax, financial and legal matters, join our group on WhatsApp and Telegram!
Pingback: Extended Due Dates of Income Tax: AY 2021-22 | TaxHelpdesk
Pingback: TDS on Purchase of Goods under Section 194Q | TaxHelpdesk