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TDS Rate Chart for FY 2023-24 (AY 2024-25)
Updated on: May 4th, 2023
|
52 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.
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 2023-24
| Section | Deductee* | Nature of transaction | Threshold Limit (Rs) | TDS Rate |
| 192 | R, NR | Payment of salary | Basic exemption limit of employee | Normal Slab Rates |
| 192A | R, NR | Premature withdrawal from EPF | 50,000 | 10% Budget 2023: TDS rate for EPF withdrawals without a PAN number is now 20%, from the previous maximum marginal rate |
| 193 | R | Interest on securities | Debentures- 5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000 Other securities- No limit | 10% Budget 2023: Exemption of TDS on interest from listed debentures has been removed. Therefore, tax has to be deducted on interest on such specified securities. |
| 194 | R | Payment of any dividend | 5,000 | 10% |
| 194A | R | Interest from other than interest from securities (from deposits with banks/post office/co-operative society) | Senior Citizens- 50,000 Others- 40,000 | 10% |
| 194A | R | 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 | 5,000 | 10% |
| 194B | R, NR, FC | Income from lottery winnings, card games, crossword puzzles, and other games of any type | Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 Online Gamine- Refer 194BA | 30% |
| 194BA | R, NR, FC | Income from online games | Nil | 30% |
| 194BB | R, NR, FC | Income from horse race winnings | 10,000 Aggregate winnings during a financial year not single transaction | 30% |
| 194C | R | Payment to contractor/sub-contractor:- | Single transaction- 30,000 Aggregate transactions- 1,00,000 | |
| a) Individuals/HUF | 1% | |||
| b) Other than Individuals/HU | 2% | |||
| 194D | R | Insurance commission to: | ||
| a) Domestic Companies | 15,000 | 10% | ||
| b) Other than companies | 15,000 | 5% | ||
| 194DA | R | Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy. | 1,00,000 | 5% |
| 194E | NR, FC | Payment to non-resident sportsmen/sports association | No limit | 20% *This rate shall be increased by applicable surcharge and 4% cess |
| 194EE | R, NR | Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | 2,500 | 10% |
| 194F | R, NR | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | No limit | 20% |
| 194G | R, NR, FC | Payments, commission, etc., on the sale of lottery tickets | 15,000 | 5% |
| 194H | R | Commission or brokerage | 15,000 | 5% |
| 194-I | R | Rent: | ||
| 194-I(a) Rent on plant and machinery | 2,40,000 | 2% | ||
| 194-I(b) Rent on land/building/furniture/fitting | 2,40,000 | 10% | ||
| 194-IA | R | Payment in consideration of transfer of certain immovable property other than agricultural land. | 50,00,000 | 1% |
| 194-IB | R | Rent payment by an individual or HUF not covered u/s. 194-I | 50,000 per month | 5% |
| 194-IC | R | Payment under Joint Development Agreements (JDA) to Individual/HUF | No limit | 10 |
| 194J | R | Any sum paid by way of fee for professional services | 30,000 | 10% |
| 194J | R | Any sum paid by way of remuneration/fee/commission to a director | 30,000 | 10% |
| 194J | R | Any sum paid for not carrying out any activity concerning any business; | 30,000 | 10% |
| 194J | R | Any sum paid for not sharing any know-how, patent, copyright, etc. | 30,000 | 10% |
| 194J | R | Any sum paid as a fee for technical services | 30,000 | 2% |
| 194J | R | Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films | 30,000 | 2% |
| 194J | R | Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. | 30,000 | 2% |
| 194K | R | Payment of any income for units of a mutual fund, for example, dividend | No limit | 10% |
| 194LA | R | Payment in respect of compensation on acquiring certain immovable property | 2,50,000 | 10% |
| 194LB | NR, FC | Payment of interest on infrastructure debt fund to Non-Resident | No limit | 5% *This rate shall be increased by applicable surcharge and 4% cess |
| 194LC | NR, FC | 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 | No limit | 5% |
| 194LC | NR, FC | 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 | No limit | 4% |
| 194LD | NR, FC | Payment of interest on bond (rupee-denominated) to FII or a QFI | No limit | 5% |
| 194LBA(1) | R | Certain income distributed by a business trust to its unitholder | No limit | 10% |
| 194LBA(2) | NR, FC | Interest income of a business trust from SPV distribution to its unitholders | No limit | 5% |
| 194LBA(2) | NR, FC | 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 | No limit | 10% |
| 194LBA(3) | NR | Rental income payment of assets owned by the business trust to the unitholders of such business trust | No limit | 30% |
| 194LBA(3) | FC | Rental income payment of assets owned by the business trust to the unitholders of such business trust | No limit | 40% |
| 194LBB | R, NR | Certain income paid to a unitholder in respect of units of an investment fund | No limit | 10% |
| 194LBB | FC | Certain income paid to a unitholder in respect of units of an investment fund | No limit | 40% |
| 194LBC | R | Income from investment in securitisation fund received to an individual and HUF | No limit | 25% |
| 194LBC | R | Income from investment in securitisation fund received to a domestic company | No limit | 10% |
| 194LBC | FC | Income from investment in securitisation fund received to a foreign company | No limit | 40% |
| 194LBC | NR | Income from investment in securitisation fund received to NRI | No limit | 10% |
| 194M | R | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | 50,00,000 | 5% |
| 194N | R, NR | Cash withdrawal exceeding a certain amount | Co-operative society: 3 Crore Others: 1 crore | 2% |
| 194N | R, NR | Cash 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% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore |
| 194O | R | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. | 5,00,000 | 1% 5% in case PAN is not furnished |
| 194P | R | Payment of pension or interest to specified senior citizens of age 75 years or more | Basic exemption limit of senior citizens or super senior citizens | Normal tax slab rates |
| 194Q | R | Payments for the purchase of goods | 50,00,000 | 0.10% |
| 194R (Refer notes) | R | Perquisite or benefit to a business or profession | 20,000 | 10% |
| 194S (Refer notes) | R | TDS on the transfer of virtual digital assets | Specified Persons- 50,000 Others- 10,000 | 1% |
| 195 | NR | Income on investments made by NRI citizen | No limit | 20% |
| 195 | NR | Income by way of LTCG referred to in section 115E in the case of NRI | No limit | 10% |
| 195 | NR, FC | Income by way of LTCG under section 112(1)(c)(iii) | No limit | 10% |
| 195 | NR, FC | Income by way of LTCG under section 112A | No limit | 10% |
| 195 | NR, FC | Income by way of STCG under section 111A | No limit | 15% |
| 195 | NR, FC | Any other income by way of LTCG | No limit | 20% |
| 195 | NR, FC | Interest payable on money borrowed by the government or Indian concern in foreign currency | No limit | 20% |
| 195 | NR, FC | 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 | No limit | 10% |
| 195 | NR | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy | No limit | 10% |
| 195 | FC | 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 | No limit | 50% |
| 195 | FC | 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 | No limit | 10% |
| 195 | NR | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | No limit | 10% |
| 195 | FC | 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 | No limit | 50% |
| 195 | FC | 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 | No limit | 10% |
| 195 | NR | Any other income | No limit | 30% |
| 195 | FC | Any other income | No limit | 40% |
| 196B | NR, FC | Income (including LTCG) from units of an offshore fund | No limit | 10% |
| 196C | NR, FC | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | No limit | 10% |
| 196D | NR, FC | Income (excluding dividend and capital gain) from Foreign Institutional Investors. | No limit | 20% |
| 206AB | R | Payment to non-filers, i.e. those who have not filed their income tax return in the last year Budget 2023: Non filers do not include: - People who are not required to file their ITRs - NRs who do not have a PE in India | No limit | - 2 times the rate given in the Income Tax Act or Finance Act or - 5%, whichever is higher |
| 206AA | R, NR, FC | TDS rate in case of Non availability of PAN | No limit | Rates specified above or 20%, whichever is higher |
*”R” denotes Resident,
“FC” denotes Foreign company, and
“NR” denotes Non-Resident.
Note:
- The Normal slab rates for FY 2023-24 for individuals and HUF have changed under the new tax regime.
- Applicable surcharge and health and education cess shall be deducted in addition to the TDS rates deducted for NRI deductees.
- In the above TDS rate chart, the ‘Resident’ payee under the column ‘TDS deducted’ includes domestic companies.
- All TDS amendments introduced in Budget 2023 have been included in the TDS chart above.
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)
| Particulars | TDS 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 dividend | 10% |
| 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 type | 30% |
| Section 194BB: Income by way of horse race winnings | 30% |
| Section 194C: Payment to contractor/sub-contractor. a) Individuals/HUF b) Others | 1% 2% |
| Section 194D: Insurance commission | 5% |
| 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 Fund | 20% |
| Section 194G: Payments such as commission, etc., on the sale of lottery tickets | 5% |
| Section 194H: Commission or brokerage | 5% |
| 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 unitholder | 10% |
| 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 Income | 10% |
TDS Rates Applicable on Non Resident Indian (Other than a Company)
| Particulars | TDS 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 type | 30% |
| Section 194BB: Income by way of horse race winnings | 30% |
| 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 Fund | 20% |
| Section 194G: Payments such as commission, etc., on the sale of lottery tickets | 5% |
| 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 fund | 30% |
| 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 company | 10% |
| Section 196D: Income (excluding dividend and capital gain) from Foreign Institutional Investors. | 20% |
TDS Rate Charts Where the Company is a Domestic Company
| Particulars | TDS 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 dividend | 10% |
| 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 type | 30% |
| Section 194BB: Income by way of horse race winnings | 30% |
| Section 194C: Payment to contractor/sub-contractor. a) Individuals/HUF b) Others | 1% 2% |
| Section 194D: Insurance commission | 10% |
| 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 Fund | 20% |
| Section 194G: Payments such as commission, etc., on the sale of lottery tickets | 5% |
| Section 194H: Commission or brokerage | 5% |
| 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 unitholder | 10% |
| 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 Income | 10% |
TDS Rates Where the Company is Not a Domestic Company
| Particulars | TDS Rate |
| Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type | 30% |
| Section 194BB: Income by way of horse race winnings | 30% |
| 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 tickets | 5% |
| 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 fund | 40% |
| 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 company | 10% |
| 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 |
TDS Rates Applicable for Non-Resident of India (NRIs)
| 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 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 194E: Payment to non-resident sportsmen/sports association | 20 | 20 | 20 |
| Section 194EE: Payment in respect of deposits under National Savings Scheme | 10 | 10 | 10 |
| Section 194F: Payment on account of repurchase of a unit by Mutual Fund or Unit Trust of India | 20 | 20 | 20 |
| Section 194G: Commission, etc., on sale of lottery tickets | 5 | 5 | 5 |
| Section 194LB: Payment of interest on infrastructure debt fund | 5 | 5 | 5 |
| 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 fund | 30 | 30 | 30 |
| 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) | 5 | 5 | 5 |
| 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 Investor | 5 | 5 | 5 |
| Section 194N: Payment of a 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) | – | 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 Citizen | 20 | 20 | 20 |
| b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen | 10 | 10 | 10 |
| c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 193 | 10 | 10 | 10 |
| d) Income by way of short-term capital gains referred to in Section 111A | 15 | 15 | 15 |
| 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] | 20 | 20 | 20 |
| 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 194LC | 20 | 20 | 20 |
| 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 India | 10 | 10 | 10 |
| 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 policy | 10 | 10 | 10 |
| 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 policy | 10 | 10 | 10 |
| j) Any other income | 30 | 30 | 30 |
| 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 10 | 20 | 20 | 20 |
| Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund | 10 | 10 | 10 |
| 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) | 10 | 10 | 10 |
| Section 196D: Income of Foreign Institutional Investors from securities (not being a dividend or capital gain arising from such securities) | 20 | 20 | 20 |
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
| Particulars | TDS Rate (%) | TDS Rates from 01.04.2020 to 13.05.2020 | TDS 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 sort | 30 | 30 | 30 |
| Section 194BB: Income by way of winnings from horse races | 30 | 30 | 30 |
| Section 194E: Payment to the non-resident sports association | 20 | 20 | 20 |
| Section 194G: Commission, etc., on the sale of lottery tickets | 5 | 5 | 5 |
| Section 194LB: Payment of interest on infrastructure debt fund | 5 | 5 | 5 |
| Section 194LBA: Certain income distributed by a business trust to its unit holder | 5 | 5 | 5 |
| Section 194LBC: Income in respect of securitization of funds | 40 | 40 | 40 |
| 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) | 5 | 5 | 5 |
| 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 Investor | 5 | 5 | 5 |
| 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 112 | 10 | 10 | 10 |
| b) Income by way of short-term capital gains referred to in Section 111A | 15 | 15 | 15 |
| 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] | 20 | 20 | 20 |
| 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) | 20 | 20 | 20 |
| 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 India | 10 | 10 | 10 |
| 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— | 10 | 10 | 10 |
| 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 fund | 10 | 10 | 10 |
| 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) | 10 | 10 | 10 |
| Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) | 20 | 20 | 20 |
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.
Related Guides
How to file TDS for the first time using ClearTDS
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What happens if I do not file my TDS returns on time?
How to file TDS on the Sale of Property
How to validate Certificate U/S 197 from Assessing Officer
How do I correct form details after filing?
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