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)
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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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