Like every year, new TDS rates have been announced by the Income Tax Department. In addition to these TDS rates, there is an insertion of new TDS Sections namely Section 194R and 194S. Section 194R deals with TDS on providing benefits or perquisites to businesses. On the other hand, Section 194S deals with TDS on virtual digital assets like cryptocurrencies.
In this blog, we will tell about the TDS rates for the Financial Year 2022-23
Also Read: TDS Rate Chart for FY 2021-22
TDS Rates Chart (FY 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% |
| 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 | 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) |
| 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% |
| 206AB |
Income (excluding dividend and capital gain) from Foreign Institutional Investors.
Payment to non-filers, i.e. those who have not filed their income tax return in the last year Non filers do not include: – People who are not required to file their ITRs – NRs who do not have a PE in India |
Resident | No limit |
– 2 times the rate given in the Income Tax Act or Finance Act or – 5%, whichever is higher |
| 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 |
Note:
There is no change in normal income tax slabs under the old tax regime as well as the new tax regime for the FY 2022-23. Further, the surcharge and health and education cess shall be in addition to the TDS rates applicable for NRI deductees.
New TDS Provisions
Section 194194R- TDS on Providing Benefit or Perquisite to Businesses
Any person who provides perks or benefits to any resident, whether convertible into money or not, for carrying on any business or profession by such resident should deduct TDS. The person giving such benefits should deduct TDS at 10% on the value or aggregate value of such benefit
Further, it is applicable to Individuals and HUFs. And, that too when the aggregate value of the perquisite or benefit exceeds Rs. 20,000/-
Now, you may ask what was the need of inserting this Section? Well, the answer is that the insertion of Section 194R ensures that the recipient of perks or benefits does not avoid reporting such benefits as income in their ITR. Thereby, through this section, he will not be able to avoid his tax liability.
Also Read: Do I Need to File Income Tax Return?
Section 194S- TDS on Virtual Digital Assets
To trace the virtual digital assets transactions, there is an insertion of a new section namely Section 194S. The rate of TDS applicable is 1% and the deduction shall be at the time of payment of any sum as consideration for the transfer of virtual digital assets. Further, the TDS shall be deducted if the aggregate value of the transfer of the virtual digital assets is more than Rs 10,000 during the relevant financial year.
However, if any individual or HUF
– does not have income from business or profession.
– earns income from business or profession, but the income does not exceed Rs 1 crore or Rs 50 lakh, respectively.
is responsible for deducting TDS under this section if the aggregate value of the virtual digital assets exceeds Rs 50,000 during the year.
Also Read: Taxability of Capital Assets in India
In addition to the above, if the person makes payment:
– Partly in cash or kind, but the part payment made in cash is not enough to deduct TDS in respect of the whole of such transaction.
– Wholly in kind or for the exchange of another virtual digital asset (i.e. no payment in cash).
Then the person responsible for deducting TDS must ensure that tax is paid for consideration for the transfer of virtual digital assets and release the payment for such transactions.
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