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TDS Rate Chart for FY 2022-23 (AY 2023-24)

Updated on :  

08 min read.

TDS stands for Tax Deducted at Source. Tax deduction at source (TDS) means collecting tax on income in the form of salary, rent, asset sales, dividends, etc., by requiring the payer to collect income tax due on such income while crediting/paying to the payee and deposit the same to the government on payee’s behalf. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.

Union Budget 2022 updates –

  • New Section 194S- A person is liable for Tax Deduction at Source (TDS) at 1% at the time of payment of the transfer of virtual digital assets.
  • Sale of immovable property under Section 194-IA- It is proposed to amend the amount on which TDS should be deducted. The person buying the property should deduct tax at 1% on the sum paid/credited or the stamp duty value of such property, whichever is higher.
  • New Section 194R- TDS at 10% should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident for carrying out any business or profession by such resident.

TDS Rates in India

The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India. Any person paying income is responsible to deduct tax at source and deposit TDS within the stipulated due date.

TDS Rate Charts for the FY 2022-23

SectionDeductee*
Nature of transactionThreshold Limit (Rs)TDS Rate
192R, NRPayment of salaryBasic exemption limit of employeeNormal Slab Rates
192AR, NRPremature withdrawal from EPF50,00010%
193RInterest on securitiesDebentures- 5,000

8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000

Other securities- No limit
10%
194RPayment of any dividend5,00010%
194ARInterest from other than interest from securities (from deposits with banks/post office/co-operative society)Senior Citizens- 50,000

Others- 40,000
10%
194ARInterest 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
5,00010%
194BR, NR, FCIncome from lottery winnings, card games, crossword puzzles, and other games of any type10,00030%
194BBR, NR, FCIncome from horse race winnings10,00030%
194CRPayment to contractor/sub-contractor:-

Individuals/HUF
Single transaction- 30,000

Aggregate transactions- 1,00,000
1%
194CRPayment to contractor/sub-contractor:-

Other than Individuals/HUF
Single transaction- 30,000

Aggregate transactions- 1,00,000
2%
194DRInsurance commission to domestic companies15,00010%
194DRInsurance commission to other than companies15,0005%
194DARIncome for the insurance pay-out, while payment of any sum in respect of a life insurance policy.1,00,0005%
194ENR, FCPayment to non-resident sportsmen/sports associationNo limit20%
194EER, NRPayment of amount standing to the credit of a person under National Savings Scheme (NSS)2,50010%
194FR, NRPayment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual FundNo limit20%
194GR, NR, FCPayments, commission, etc., on the sale of lottery tickets15,0005%
194HRCommission or brokerage15,0005%
194-IRRent on
plant and machinery
2,40,0002%
194-IRRent on
land/building/furniture/fitting
2,40,00010%
194-IARPayment in consideration of transfer of certain immovable property other than agricultural land.50,00,0001%
194-IBRRent payment by an individual or HUF not covered u/s. 194-I50,000 per month5%
194-ICRPayment under Joint Development Agreements (JDA) to Individual/HUFNo limit10
194JRAny sum paid by way of fee for professional services30,00010%
194JRAny sum paid by way of remuneration/fee/commission to a director30,00010%
194JRAny sum paid for not carrying out any activity concerning any business;30,00010%
194JRAny sum paid for not sharing any know-how, patent, copyright, etc.30,00010%
194JRAny sum paid as a fee for technical services30,0002%
194JRAny sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films30,0002%
194JRAny sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.30,0002%
194KRPayment of any income for units of a mutual fund, for example, dividendNo limit10%
194LARPayment in respect of compensation on acquiring certain immovable property2,50,00010%
194LBNR, FCPayment of interest on infrastructure debt fund to Non-ResidentNo limit5%
194LCNR, FCPayment 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 bondsNo limit5%
194LCNR, FCPayment 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 IFSCNo limit4%
194LDNR, FCPayment of interest on bond (rupee-denominated) to FII or a QFINo limit5%
194LBA(1)RCertain income distributed by a business trust to its unitholderNo limit10%
194LBA(2)NR, FCInterest income of a business trust from SPV distribution to its unitholdersNo limit5%
194LBA(2)NR, FCDividend 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 unitholdersNo limit10%
194LBA(3)NRRental income payment of assets owned by the business trust to the unitholders of such business trustNo limit30%
194LBA(3)FCRental income payment of assets owned by the business trust to the unitholders of such business trustNo limit40%
194LBBR, NRCertain income paid to a unitholder in respect of units of an investment fundNo limit10%
194LBBFCCertain income paid to a unitholder in respect of units of an investment fundNo limit40%
194LBCRIncome from investment in securitisation fund received to an individual and HUFNo limit25%
194LBCRIncome from investment in securitisation fund received to a domestic companyNo limit10%
194LBCFCIncome from investment in securitisation fund received to a foreign companyNo limit40%
194LBCNRIncome from investment in securitisation fund received to NRINo limit10%
194MRCertain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J50,00,0005%
194NR, NRCash withdrawal exceeding a certain amount1 crore2%
194NR, NRCash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired-20 lakh to 1 crore

-1 crore
2%

5%
194ORPayment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.5,00,0001%
194PRPayment of pension or interest to specified senior citizens of age 75 years or moreBasic exemption limit of senior citizens or super senior citizensNormal tax slab rates
194QRPayments for the purchase of goods50,00,0000.10%
194R
(Refer notes)
RPerquisite or benefit to a business or profession20,00010%
194S
(Refer notes)
RTDS on the transfer of virtual digital assetsSpecified Persons- 50,000

Others- 10,000
1%
195NRIncome on investments made by NRI citizenNo limit20%
195NRIncome by way of LTCG referred to in section 115E in the case of NRINo limit10%
195NR, FCIncome by way of LTCG under section 112(1)(c)(iii)No limit10%
195NR, FCIncome by way of LTCG under section 112ANo limit10%
195NR, FCIncome by way of STCG under section 111ANo limit15%
195NR, FCAny other income by way of LTCGNo limit20%
195NR, FCInterest payable on money borrowed by the government or Indian concern in foreign currencyNo limit20%
195NR, FCIncome 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 115ANo limit10%
195NRIncome from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policyNo limit10%
195FCIncome 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
No limit50%
195FCIncome 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
No limit10%
195NRIncome from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policyNo limit10%
195FCIncome 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
No limit50%
195FCIncome 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
No limit10%
195NRAny other incomeNo limit30%
195FCAny other incomeNo limit40%
196BNR, FCIncome (including LTCG) from units of an offshore fundNo limit10%
196CNR, FCIncome (including LTCG) from foreign currency bonds or GDR of an Indian companyNo limit10%
196DNR, FCIncome (excluding dividend and capital gain) from Foreign Institutional Investors.No limit20%

*”R” denotes Resident,
“FC” denotes Foreign company, and
“NR” denotes Non-Resident.

Note: 

  1. The Normal slab rates for FY 2022-23 for individuals and HUF remain unchanged in both the old and new tax regimes.
  2. Applicable surcharge and health and education cess shall be deducted in addition to the TDS rates deducted for NRI deductees.
  3. In the above TDS rate chart, the ‘Resident’ payee under the column ‘TDS deducted’ includes domestic companies.
  4. New Sections-194R and 194S (discussed below) are inserted in Budget 2022.

Union Budget 2022 New TDS Provisions

Section 194R- TDS on Providing Benefit or Perquisite to Businesses

TDS should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident for carrying out any business or profession by such resident. The person giving such benefits should deduct TDS at 10% on the value or aggregate value of such benefit given. 

Applicability- The Individuals or HUF Also, no tax should be deducted if the aggregate value of the perquisite or benefit does not exceed Rs 20,000. 

Purpose- The government has inserted this provision to ensure that the recipient of such benefits does not avoid reporting such benefits as income in their ITR. 

Tax deduction- If the benefit to be given is in-kind and cash is insufficient for TDS deduction, before releasing such payment, it is to be ensured that tax has been paid in respect of such benefit or perquisite.

Section 194S- TDS on Crypto Income

For tracing the transaction of virtual digital assets, the government has inserted a new provision of Section 194S for deduction of TDS at 1% by the persons at the time of payment of any sum as consideration for transfer of virtual digital assets. 

Threshold limit- TDS shall be deducted if the aggregate value of transfer of 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.
  • If they earn income from business or profession, but the income does not exceed Rs 1 crore or Rs 50 lakh, respectively.

Are responsible for deducting TDS under this section if the aggregate value of VDA exceeds Rs 50,000 during the year. 

Tax deduction: The government has further put clarification for TDS deduction on the payments made in kind or partly in kind.

As per the TDS provisions proposed, 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).

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.

TDS Rate Chart for the FY 2021-22

TDS Rates Applicable for the Resident of India (Other than a company)

ParticularsTDS Rate
Section 192: Payment of salary
Section 192A: Premature withdrawal from EPF
Normal Slab Rate
10%
Section 193: Interest on securities.
a)  any security of the Central or State Government;
b) any debentures or securities for money issued by any local authority or a corporation established by a Central, State or Provincial Act;
c) any debentures (listed on a recognised stock exchange) issued by a company where such debentures are ;
d) interest on any other security


10%

10%



10%


10%
Section 194: Payment of any dividend10%
Section 194A: Income in the form of interest (other than interest on securities).10%
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type30%
Section 194BB:  Income by way of horse race winnings30%
Section 194C: Payment to contractor/sub-contractor.
a)   Individuals/HUF
b)   Others

1%
2%
Section 194D: Insurance commission5%
Section 194DA: Payment of any sum in respect of a life insurance policy.w.e.f. 1st September 2019, the insurer shall deduct tax (TDS) on the income portion comprised in the insurance pay-out.5%
Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS)10%
Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets5%
Section 194H: Commission or brokerage5%
Section 194-I: Rent ona) Plant and Machinery
b) Land/building/furniture/fitting w.e.f 1st April 2019, tax deduction limit on rent is increased to Rs 2.4 lakhs p.a. from Rs 1.8 lakhs p.a.

2%
10%
Section 194-IA: Payment in consideration of transfer of certain immovable property other than agricultural land.
Section 194-IB: Rent payment by an individual or HUF not covered u/s. 194I
Section 194-IC: Payment under Joint Development Agreements (JDA) to Individual/HUF
1%


5%

10%
Section 194J: Any sum paid by way of: 
(a) Fee for professional services; 
(b) Remuneration/fee/commission to a director;
(c) For not carrying out any activity in relation to any business;
(d) For not sharing any know-how, patent, copyright etc.
(e) Fee for technical services, and
(f)  Royalty towards the sale or distribution, or exhibition of cinematographic films.
(g) Fees for technical services but payee is engaged in the business of operation of call centre


10%
10%

10%

10%

2%
2%

2%
Section 194K: Payment of any income for units of a mutual fund as per section 10(23D) or from the administrator or specified company 10%
Section 194LA: Payment in respect of compensation on acquisition of certain immovable property.10%
Section 194LBA(1): Certain income distributed by a business trust to its unitholder10%
Section 194LBB: Certain income paid in respect of units of an investment fund to a unitholder.10%
Section 194LBC: Income frominvestment in securitisation fund
(a) Individual and HUF
(b) Others


25%
30%
Section 194M: Certain payments by Individual/HUF (Limit- Rs 50 Lakhs)5%
Section 194N: Cash withdrawal exceeding a certain amount (limit- Rs 1 crore).
In case Rs 20 lakh or more is withdrawn by the person not-filing ITR for the last three years, for which the due date of filing ITR has expired, the TDS rates shall be applicable as per below slabs-
For the amount more than Rs.20 lakh but up to Rs. 1 crore, and And for the amount exceeding Rs. 1 crore 
2%



2%

5%
Section 194O: For the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.1%
Section 194P: Tax deduction by specified banks while making payments (pension or interest) to specified senior citizens or age 75 years or more.Tax on total income as per rates in force
Section 194Q: Payments to residents for the purchase of goods if the aggregate value of goods exceeds Rs 50 lakhs.(TDS is deductible on value exceeding Rs 50 lakhs)0.1%
Any Other Income10%

TDS Rates Applicable on Non Resident Indian (Other than a Company)

ParticularsTDS Rate
Section 192: Payment of salary
Section 192A: Premature withdrawal from EPF
Normal Slab Rate
10%
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type30%
Section 194BB:  Income by way of horse race winnings30%
Section 194E: Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.20%
Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS)10%
Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets5%
Section 194LB: Payment in respect of compensation on acquisition of certain immovable property.5%
Section 194LBA(2): Payment like-
-interest income received or receivable to a business trust from SPV and distribution to its unitholders.
-dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders.


5%


10%



Section 194LBA(3)- payment in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.30%
Section 194LBB: Payment of certain income by an investment fund to a unitholder.30%
Section 194LBC: Income from investment in securitisation fund30%
Section 194LC: Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds*.
*If interest is payable against long term bonds listed in recognised stock exchange in IFSC
5%






4%
Section 194LD:  Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor.5%
Section 195: Payment of any other sum to NRI:Income on investments made by NRI citizen;

Income by way of LTCG referred to in section 115E in the case of NRI;

Income by way of LTCG under section 112(1)(c)(iii);
Income by way of LTCG under section 112A;

Income by way of STCG under section 111A;
Any other income by way of LTCG;
Interest payable on money borrowed by the government or Indian concern in foreign currency;

Income from royalty payable to the Indian concern, by government or Indian concern, 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 
Income from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy;
Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy;

Any other income.

20%


10%

10%

10%

15%

20%
20%


10%






10%




10%




30%
Section 196B: Income (including LTCG) from units of an offshore fund.10%
Section 196C: Income (including LTCG) from foreign currency bonds or GDR of an Indian company10%
Section 196D: Income (excluding dividend and capital gain) from Foreign Institutional Investors.20%

TDS Rate Charts Where the Company is a Domestic Company

ParticularsTDS Rate
Section 192: Payment of salary
Section 192A: Premature withdrawal from EPF
Normal Slab Rate
10%
Section 193: Interest on securities.
a)  any security of the Central or State Government;
b) any debentures or securities for money issued by any local authority or a corporation established by a Central, State or Provincial Act;
c) any debentures (listed on a recognised stock exchange) issued by a company where such debentures are ;
d) interest on any other security


10%

10%



10%


10%
Section 194: Payment of any dividend10%
Section 194A: Income in the form of interest (other than interest on securities).10%
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type30%
Section 194BB:  Income by way of horse race winnings30%
Section 194C: Payment to contractor/sub-contractor.
a)   Individuals/HUF
b)   Others



1%
2%
Section 194D: Insurance commission10%
Section 194DA: Payment of any sum in respect of a life insurance policy.w.e.f. 1st September 2019, the insurer shall deduct tax (TDS) on the income portion comprised in the insurance pay-out.5%
Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS)10%
Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets5%
Section 194H: Commission or brokerage5%
Section 194-I: Rent ona) Plant and Machinery
b) Land/building/furniture/fitting w.e.f 1st April 2019, tax deduction limit on rent is increased to Rs 2.4 lakhs p.a. from Rs 1.8 lakhs p.a.

2%
10%
Section 194-IA: Payment in consideration of transfer of certain immovable property other than agricultural land.
Section 194-IC: Payment under Joint Development Agreements (JDA) to Individual/HUF
1%


10%
Section 194J: Any sum paid by way of: 
(a) Fee for professional services; 
(b) Remuneration/fee/commission to a director;
(c) For not carrying out any activity in relation to any business;
(d) For not sharing any know-how, patent, copyright etc.
(e) Fee for technical services, and
(f)  Royalty towards the sale or distribution, or exhibition of cinematographic films.
(g) Fees for technical services but payee is engaged in the business of operation of call centre


10%
10%

10%

10%

2%
2%

2%
Section 194K: Payment of any income for units of a mutual fund as per section 10(23D) or from the administrator or specified company 10%
Section 194LA: Payment in respect of compensation on acquisition of certain immovable property.10%
Section 194LBA(1): Certain income distributed by a business trust to its unitholder10%
Section 194LBB: Certain income paid in respect of units of an investment fund to a unitholder.10%
Section 194LBC: Income from investment in securitisation fund
10%

Section 194M: Certain payments by Individual/HUF (Limit- Rs 50 Lakhs)5%
Section 194N: Cash withdrawal exceeding a certain amount (limit- Rs 1 crore).
In case Rs 20 lakh or more is withdrawn by the person not-filing ITR for the last three years, for which the due date of filing ITR has expired, the TDS rates shall be applicable as per below slabs-
For the amount more than Rs.20 lakh but up to Rs. 1 crore, and And for the amount exceeding Rs. 1 crore 
2%








2%

5%
Section 194O: For the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.1%
Section 194Q: Payments to residents for the purchase of goods if the aggregate value of goods exceeds Rs 50 lakhs.(TDS is deductible on value exceeding Rs 50 lakhs)0.1%
Any Other Income10%

TDS Rates Where the Company is Not a Domestic Company

ParticularsTDS Rate
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type30%
Section 194BB:  Income by way of horse race winnings30%
Section 194E: Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets5%
Section 194LB: Payment in respect of compensation on acquisition of certain immovable property.5%
Section 194LBA(2): Payment such as-
-interest income received or receivable to a business trust from SPV and distribution to its unitholders.
-dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders.


5%


10%



Section 194LBA(3)- payment in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.40%
Section 194LBB: Payment of certain income by an investment fund to a unitholder.40%
Section 194LBC: Income from investment in securitisation fund40%
Section 194LC: Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds*.
*If interest is payable against long term bonds listed in recognised stock exchange in IFSC
5%




4%
Section 194LD:  Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor.5%
Section 195: Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii);
Income by way of LTCG under section 112A;
Income by way of STCG under section 111A;
Any other income by way of LTCG;
Interest payable on money borrowed by the government or Indian concern in foreign currency;
Income from royalty payable to the Indian concern, by government or Indian concern, 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 (an agreement made after 1st March 1976);
Income from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy. Where the agreement is made after-
31st March 1961 but before 1st April 1976-31st March 1976
Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy. Where agreement is made after-
29th February 1964 but before 1st April 197631st March 1976
Any other income.


10%

10%

15%

20%
20%


10%














50%
10%







50%
10%
40%
Section 196B: Income (including LTCG) from units of an offshore fund.10%
Section 196C: Income (including LTCG) from foreign currency bonds or GDR of an Indian company10%
Section 196D: Income (excluding dividend and capital gain) from Foreign Institutional Investors.20%

TDS Rates for the FY 2020-21

Reduction in TDS rates due to COVID-19

The government has provided relief in the TDS rates for the period 14.05.2020 to 31.03.2021, due to the pandemic and resultant lockdown affecting all sectors of the economy. The relief is limited to the TDS rates only and not for the rates where tax needs to be deducted or collected at a higher rate. The benefit of revision applies to only Resident Indians. Hence, Non residents cannot claim benefits of the same.

TDS Rates Applicable for Resident of India

Particulars TDS Rate (%) TDS Rates from 01.04.2020 to 13.05.2020 TDS Rates from 14.05.2020 to 31.03.2021
Section 192: Payment of salary Section 192A: Premature withdrawal from EPF Normal Slab Rate
10

Normal Slab Rate 10 Normal Slab Rate
10
Section 193: Interest on securities.
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government;
d) interest on any other security
10 10 7.5
Section 194: Dividend other than the dividend as referred to in Section 115-O 10 10 7.5
Section 194A: Income by way of interest other than “Interest on securities”
w.e.f 1st April 2018, interest up to Rs. 50,000 earned by senior citizens on:
– deposit with banks
– deposit with post offices
– fixed deposits schemes
– recurring deposit schemes
will be exempt from TDS
w.e.f 1st April 2019, TDS on the interest income from post offices and bank deposits have increased up to Rs. 40,000 from the present limit of Rs. 10,000.
10 10 7.5
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 30 30
Section 194BB: Income by way of winnings from horse races 30 30 30
Section 194C: Payment to contractor/sub-contractors.
a)   HUF/Individuals
b)   Others
 
1
2

1
2

0.75
1.5
Section 194D: Insurance commission 5 (w.e.f 01.06.2016)
(10% from 01.04.2015 to 31.05.2016
5

3.75
Section 194DA: Payment in respect of a life insurance policy 5
(w.e.f 01.09.2015)
1
(w.e.f 01.06.2016)
(2% from 01.04.2015 to 31.05.2016)
5 3.75
Section 194EE: Payment in respect of deposit under National Savings scheme 10
(w.e.f 01.06.2016)
(20% from 01.04.2015 to 31.05.2016)
10 7.5
Section 194F: Payment on account of repurchase of a unit by Mutual Fund or Unit Trust of India 20 20 15
Section 194G: Commission, etc., on the sale of lottery tickets 5
(w.e.f  01.06.2016)
(10 % from 01.04.2015 to 31.05.2016)
5 3.75
Section 194H: Commission or brokerage 5
(w.e.f  01.06.2016)
(10 % from 01.04.2015 to 31.05.2016)
5 3.75
Section 194-I: Rent on
a) Plant & Machinery
b) Land or building or furniture or fitting W.e.f 1st April 2019, TDS limit for deduction of tax on rent is increased to Rs. 2,40,000 p.a from Rs.1,80,000 p.a.

(a) 2
(b) 10

(a) 2
(b) 10

1.5
7.5
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land
Section 194 – IB: Rent payable by an individual or HUF not covered u/s. 194I (w.e.f from 01.06.2017)





Section 194 – IC:  Payment under Joint Development Agreements to Individual/HUF
(w.e.f. 01.04.2017)
1  

5 (w.e.f from 01.06.2017)
(If payment of Rent exceeds Rs. 50,000/- per month. )

10
1

5






10
0.75

3.75






7.5
Section 194J: Any sum paid by way of: 
(a)  Fee for professional services
(b)  Remuneration/fee/commission to a director ore)
(c) For not carrying out any activity in relation to any business. 
(d) For not sharing any know-how, patent, copyright etc.
(e) Fee for technical services and
(f)  Royalty towards the sale or distribution or exhibition of cinematographic films.

10




2

10




2

7.5




1.5
Section 194 K:Payment of any income in respect of
(a) units of a mutual fund as per section 10(23D); or
(b) the units from the administrator; or
(c) units from specified company
(w.e.f. 01.04.2020)
10 10 7.5
Section 194LA: Payment of compensation on acquisition of certain immovable property 10 10 7.5
Section 194LBA: Certain income distributed by a business trust to its unit holder 10 10 7.5
Section 194LBB: Certain income paid by an investment fund to its investors 10 10 7.5
Section 194 LBC:Income in respect of investment in securitization fund
(a) Individual and HUF
(b) Others


25
30


25
30


18.75
22.5
Section 194M: Certain payments by Individual/HUF (Limit – 50 Lakhs) 5 5 3.75
Section 194N:Payment of certain amount in cash (Limit 1 Crore) 2 2 2
Section 194N:Payment of certain amount in cash (first proviso of section 194N) if-
–  The amount is more than Rs.20 lakh but up to Rs. 1 crore
–  The amount exceeds Rs. 1 crore (Applicable from 01.07.2020)




2
5


2
5
Section 194O: Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020) 1 0.75
Any Other Income 10 10 10
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TDS Rates Applicable for Non-Resident of India (NRIs)

ParticularsTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.2020TDS Rates from 14.05.2020 to 31.03.2021
Section 192: Payment of Salary
Section 192A: Premature withdrawal from EPF
Normal Slab Rate 
10
Normal Slab Rate 
10
Normal Slab Rate 
10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort303030
Section 194BB: Income by way of winnings from horse races303030
Section 194E: Payment to non-resident sportsmen/sports association202020
Section 194EE: Payment in respect of deposits under National Savings Scheme10 1010
Section 194F: Payment on account of repurchase of a unit by Mutual Fund or Unit Trust of India202020
Section 194G: Commission, etc., on sale of lottery tickets55
Section 194LB: Payment of interest on infrastructure debt fund555
Section 194LBA: Income from units of business trust
– interest received or receivable from a special purpose vehicle; or
– dividend referred to in sub-section (7) of section 115-O
 5 
10

5
10

5
10
Section 194LBC: Income in respect of investment in securitization fund303030
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)555
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor555
Section 194N: Payment of a certain amount in cash (Limit 1 Crore)222
Section 194N: Payment of certain amount in cash (first proviso of section 194N)if
-–  The amount is more than Rs.20 lakh but up to Rs. 1 crore
–  The amount exceeds Rs. 1 crore (Applicable from 01.07.2020)
 25 25
Section 195: Payment of any other sum to a Non-resident       
a) Income in respect of investment made by a Non-resident Indian Citizen202020
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen101010
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 193101010
d) Income by way of short-term capital gains referred to in Section 111A151515
e) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10]202020
f) Income by way of interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC202020
g) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of a copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India101010
h) Income by way of royalty [not being royalty of nature referred to in sub-item (b)(i)(F)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy101010
i) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy101010
j) Any other income303030
Section 196A: Income in respect – of units of a Mutual Fund specified under clause (23D) of section 10; or-from the specified company referred to in the Explanation to clause (35) of section 10202020
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund101010
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)101010
Section 196D: Income of Foreign Institutional Investors from securities (not being a dividend or capital gain arising from such securities)202020

TDS Rates Applicable for a Domestic Company

Particulars TDS Rate (%) TDS Rates from 01.04.2020 to 13.05.2020 TDS Rates from 14.05.2020 to 31.03.2021
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government;
d) interest on any other security
10 10 7.5
Section 194: Dividend 10 10 7,5
Section 194A: Income by way of interest other than “Interest on securities” 10 10 7.5
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 30 30
Section 194BB: Income by way of winnings from horse races 30 30 30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals
b) Others

1
2

1
2

0.75
1.5
Section 194D: Insurance commission 10 10 10
Section 194DA: Payment in respect of the life insurance policy 5
(w.e.f 01.09.2015) 1
(  w.e.f 01.06.2016)
(2% from 01.04.2015 to 31.05.2016)
5 3.75
Section 194EE: Payment in respect of deposit under National Savings scheme 10
(w.e.f 01.06.2016)
(20% from 01.04.2015 to 31.05.2016)
10 7.5
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20 20 15
Section 194G: Commission, etc., on sale of lottery tickets 5
(w.e.f  01.06.2016)
(10 % from 01.04.2015 to 31.05.2016)
5 3.75
Section 194H: Commission or brokerage 5
(w.e.f  01.06.2016)
(10 % from 01.04.2015 to 31.05.2016)
5 3.75
Section 194-I: Rent
a) Plant & Machinery
b) Land or building or furniture or fitting

2
10

2
10

1.5
7.5
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land Section 194 – IB: Rent payable by an individual or HUF not covered u/s. 194I (w.e.f from 01.06.2017)



Section 194 – IC:  Payment under Joint Development Agreements to Individual/HUF (w.e.f. 01.04.2017)
1

5
(w.e.f from 01.06.2017)
(If payment of Rent exceeds Rs. 50,000/- per month. )

10
1


5






10
0.75

3.75







7.5
Section 194J: Any sum paid by way of
a) Fee for professional services
(b) Remuneration/fee/commission to a director
(c) For not carrying out any activity in relation to any business
(d) For not sharing any know-how, patent, copyright etc.
e) Fee for technical services and
(f)  Royalty towards the sale or distribution or exhibition of cinematographic films.

10



2

10



2

7.5



1.5
Section 194LA: Payment of Compensation on the acquisition of certain immovable property 10 10 7.5
Section 194LBA: Certain income distributed by a business trust to its unit holder 10 10 7.5
Any Other Income 10 10 7.5

TDS Rates Applicable for a company other than Domestic Company

ParticularsTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.2020TDS Rates from 14.05.2020 to 31.03.2021
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort303030
Section 194BB: Income by way of winnings from horse races303030
Section 194E: Payment to the non-resident sports association202020
Section 194G: Commission, etc., on the sale of lottery tickets555
Section 194LB: Payment of interest on infrastructure debt fund555
Section 194LBA: Certain income distributed by a business trust to its unit holder555
Section 194LBC: Income in respect of securitization of funds404040
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)555
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor555
Section 195: Payment of any other sum) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112101010
b) Income by way of short-term capital gains referred to in Section 111A151515
c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10]202020
d) Income by way of interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)202020
e) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income Tax Act, to the Indian concern or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income Tax Act, to a person resident in India101010
f) Income by way of royalty [not being royalty of nature referred to in sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—101010
A. where the agreement is made after the 31st day of March 1961 but before the 1st day of April 1976.
B. where the agreement is made after the 31st day of March 1976
50 

10
50 

10
50 

10
g) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—      
A. where the agreement is made after the 29th day of February 1964 but before the 1st day of April, 1976
B.where the agreement is made after the 31st day of March 1976
Any other income
50  

10 
40
50  

10 
40
50  

10 
40
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund101010
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)101010
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)202020

FAQs

  • What are the responsibilities of the person deducting tax at source (TDS)?

    Following are the basic responsibilities of the person who is liable to deduct TDS.

    • Obtain Tax Deduction Account Number (TAN) and mention the same in all the documents of TDS.
    • Deduct TDS at the applicable rate.
    • Deposit the tax deducted to the Government account (within the specified due dates).
    • Periodically file TDS statements, i.e., TDS return (within the specified due date).
    • Issue the TDS certificate (Form 16 or Form 16A) to the payee in respect of TDS deducted by him (within the specified due dates).
  • What to do if there is any mistake in deduction of Tax at Source(TDS)?

    Sometimes due to ignorance or otherwise, the person may deduct TDS at the rates lower than the rates prescribed in the Act. Hence, it is important that before filing the TDS return, the rate at which TDS is deducted should be verified for every transaction. If any case is found where the TDS is shortly deducted, If such a case is found then the balance tax should immediately be deposited vide a new challan.

  • Whether TDS should be deducted on payment made to the Government?

    No tax should be deducted by any person from any sum payable to-

    1. the Government, or

    2. the Reserve Bank of India (RBI), or

    3. a corporation established under a Central Act whose income is exempt from income-tax, or

    4. a Mutual Fund specified under clause (23D) of section 10, where the amount is payable to it as interest or dividend in respect of any shares/securities owned by it or in which the specified mutual funds has full beneficial interest, or any other income accruing or arising to it.

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