Rate of Tax Deduction at Source (TDS Chart) with Threshold Limit for the Financial Year 2022-23 - Income Tax - Ready Reckoner - Income Tax

Rates of TDS for the Financial Year 2022-23 Section Particulars TDS Rates Threshold Limit [For SC Cess see note below] 192 Salary Normal Slab Rate As per normal computation of income (+ Surcharge + Health and Education Cess) see: Rate of tax 192A Payment of accumulated balance due of Employee s Provident fund scheme to employees (Premature withdrawal of EPF) 10% ₹ 50,000 -No TDS if aggregate amount is less than ₹50,000 -TDS to be deduct at MMR, if employee does not furnish PAN. 193 Interest on Specified Securities 10% ₹ 5,000 in case of Interest on securities for money issued by or on behalf of any local authority/statutory corporation, listed debentures of a company(other than demat form), any other interest on securities 193 Interest on other Securities 10% ₹ 10,000 in case of 8% Savings (Taxable) Bonds, 2003 ₹ 10,000 in case of 7.75% Savings (Taxable) Bonds, 2018 during the financial year 194 Dividends 10% ₹ 5,000 -No TDS if payment made to Individual by any mode other than cash payment is upto ₹ 5,000. -No TDS if dividend is to LIC, GIC or any other insurer provided shares are owned by them, or they have full benefical interest in such shares -No TDS if Dividend is paid/credited by SPV to Business Trust 194A Interest (Other Interest on Securities) 10% (a) ₹ 40,000/- where the payer is a banking company ( FA, 2019 ) (b) ₹ 40,000/- where the payer is a co-operative society engaged in carrying on the business of banking; ( FA, 2019 ) (c) ₹ 40,000/- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and ( FA, 2019 ) (d) ₹ 5,000/- in any other case (e) For a senior citizen, the threshold limit will be ₹ 50,000/- ( FA, 2019 ) 194B Winning from Lotteries 30% ₹ 10,000 194BB Winning for horse race 30% ₹ 10,000 194C Payment to Individuals and HUF 1% ₹ 30,000 per single contract or ₹ 1,00,000 in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA 194C Payment to other contractors 2% ₹ 30,000 per single contract or ₹ 1,00,000 in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA 194D Insurance Commission 5% ₹ 15,000, if recipient is a resident (other than a company) 10% ₹ 15,000, if recipient is a domestic company 194DA Payment of Life Insurance Policy including bonus 5% ₹ 1,00,000 -No TDS if maturity amount exempt U/s 10(10D) -TDS to be deucted at the time of payment. 194E Payment to a non-resident foreign citizen sportsman / entertainer or non -resident sports association 20% Income received by NR Sportsmen (who is not citizen of India) by way of: Participation in any game or sport in India. Advertisement Contribution of article in newspapers, magazines, journaals relating to game or sports in India 2) Income received for performing in India by NR Entertainer (who is not a citizen of India) 194EE Payment for National Saving Scheme, 1987 10% ₹ 2500 194F Payment for repurchase of units 20% - 194G Commission, remuneration or prize on sale of lottery ticket 5% ₹ 15,000 194H Commission or Brokerage (Other) 5% ₹ 15,000 194I Rent on land, building or furniture 10% ₹ 2,40,000 194I Rent on plant, machinery or equipment 2% ₹ 2,40,000 ( FA, 2019 ) 194IA Payment / credit of consideration to a resident transferor for transfer of immovable property (other than rural agricultural land) [w.e.f. 1.6.2013] 1% If value of transfer of property exceeds ₹ 50,00,000 - TDS to be deducted @1% of sum paid or credited to the resident or the stamp duty value of such property, whichever or higher 194IB Payment of rent by certain individuals or Hindu undivided family. [w.e.f. 1.6.2017] 5% ₹ 50,000 194IC Payment under specified agreement [Joint Development agreement u/s 45(5A) ] [w.e.f. 1.6.2017] 10% 194J (i)Payment for Professional Fees/Royalty (ii)Technical services /royalty (w.e.f. 01.04.20) (iii) Payment to Call Centre Operator (w.e.f.01.06.17) 10% 2% 2% -₹ 30,000 for each services -If Royalty paid for sale distribution or exhibition of cinematographic film then TDS rate will be 2%. 194J Any remuneration, Fees or Commission to a director [w.e.f. 1.7.2012] 10% - 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% ₹ 5,000 194LA Compensation to a resident on acquisition of certain immovable property other than agricultural land. (TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017) 10% ₹ 2,50,000 194LB Interest payable to non-resident by an infrastructure debt fund [Rate+ SC+HEC] 5% - 194LBA Income from units of business trust - interest received or receivable from a special purpose vehicle; Resident Non-Resident -Or, dividend referred to in sub-section (7) of section 115-O Resident Non-Resident 10% 5% 10% 10% - 194LBA Distribution of rental income by business trust/REIT to unit holders -Other than Comapany Resident Non-Resident - Company Resident Non-Resident 10% 30% 10% 40% - 194LBB Income in respect of units of investment fund -Other than Company Resident Non-Resident -Company Resident Non-Resident 10% 30% 10% 40% - 194LBC Income in respect of investment in securitization fund -Individual/HUF Resident Non-Resident -Company Resident Non-Resident-Other Person Resident Non-Resident 25% 30% 30% 40% 30% 30% 194LC Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India [Rate+ SC+HEC] 5% 194LC Income by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any International Financial Services Centre. [Rate+ SC+HEC] 5% 194LD Interest on Bonds / Government Securities payable to a foreign institution investor or a qualified foreign investor [Rate+ SC+HEC] 5% Income by way of interest shall be interest payable on or after 1/6/2013 but before 1/7/2020 in respect of investment made by the payee in a rupee denominated bond of Indian Company/Government security. 194M Certain payments by Individual/HUF 5% ₹ 50,00,000 194N Payment of certain amount in cash - Amount is more than Rs.20 lakh but up to Rs. 1 crore - Amount exceeds Rs. 1 crore (Applicable from 01.07.2020) 2% 5% According to section 194N of the Act, TDS has to be deducted if a sum or aggregate of sum withdrawn in cash by a person in a particular FY exceeds : -₹ 20 lakh (if no ITR has been filed for all the three previous AYs), or -₹ 1 crore (if ITRs have been filed for all or any one of three previous AYs). 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% of gross amount of such sales or services or both. If No PAN quoted by deductee than rate of TDS will be 5% 194P TDS in case of specified senior citizen staff pensioners Slab rate -An Individual having age of 75 years or more. -Such person has staff pension income and no other income except interest received or receivable by such person in the same specified bank (SBI) in which he/she is receiving pension income .i.e. such pensioner is not getting any type of income from any other bank. -such person has furnished a declaration in the prescribed form to bank. 194Q Purchase of Goods (w.e.f.01/07/2021, if purchases are above ₹ 50Lakhs) 0.1% of sum in excess of ₹ 50Lakhs -Any Buyer whose T/o in last year was more than ₹10 Crore will deduct TDS of Resident seller. -In case of a transaction to which both sec 206C(1H) and 194Q applies, TDS to be deducted u/s 194Q -in case of a transaction to which both ection 206C(1)/(1F)/(1G) and 194Q applies, TCS to be collected u/s 206C(1)/(1F)/(1G. -In case of transaction t which both 194) 194Q applies, TDS to be deducted u/s 194O -If PAN of payee is not available, tax will be deducted u/s 194O 194Q at the rate of 5%. 194R Perquisite or benefit to a business or profession 10% ₹20,000 - TDS should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident including Individual/HUF for carrying out any business or profession by such resident. 194S TDS on the transfer of virtual digital assets (Crypto Income) 1% -Specified Person ₹50,000 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. -others ₹10,000 195 Income of Investment made by an NRI Long-term capital gain- Under Section - 115E/112(1)(c)(iii)/112A - Any Other Gains Short-term capital gain - 111A Royalty Fees for Technical Services Interest income payable by Govt./Indian concern (other than section 194LB or 194LC Any Other Income - Other than Company - Company 20% 10% 20% 15% 10% 10% 20% 30% 40% 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% 196B Income from units to an offshore fund 10% 196C Income from foreign currency bonds or GDR of an Indian company 10% 196D Income of foreign Institutional Investors from securities (not being dividend or capital gain) 20% 1. Surcharge: 1.1 No Surcharge on TDS in case of payment is made to Resident or Domestic Company [Other than salary] 1.2 Non Resident Individual / HUF/AOP/BOI / Artificial Jurisdical Personal Add Surcharge - 10% if income paid or likely to be paid exceeds ₹ 50 Lakhs but does not exceed 1 Crores Add Surcharge - 15% if income paid or likely to be paid exceeds ₹ 1 Crores Add Surcharge - 25% if income paid or likely to be paid exceeds ₹ 2 Crores Add Surcharge - 37% if income paid or likely to be paid exceeds ₹ 5 Crores In case Dividend Capital Gain surcharge if amount exceeds 50 cr to 1 cr is 10%, and if amount of dividend and capital gain amount exceeds 1 cr is 15%. Non resident co-operative society / firm Add Surcharge - 12% in case of payment is made or likely to be made to Non Resident other than Foreign Company exceeds ₹ 1 Crore. Non Resident company Add Surcharge - 2% if the recipient is a foreign company and amount exceeds or likely to exceed ₹ 1 Crore to ₹ 10 Crore. In case of an amount more than ₹ 10 Crore, 5% 2. Cess No Cess on TDS in case of payment is made to Resident or Domestic Company [Other than Salary] Health and Education Cess - @4% of Income Tax Further Notes: 1. Self Declaration - Tax (TDS) is not deductible under section 192A , 193 , 194 , 194A , 194D , 194DA , 194-I, or 194EE or 194K if the recipient makes a declaration in Form 15G / 15H under the provisions of section 197A . But, the person seeking to furnish Form 15G / 15H must have PAN number on or after 1.4.2010. 2. Certificate from AO - Under Section 197 - A person can apply to AO and seek a certificate in Form 13 for no deduction of TDS or deduction of TDS at lower rates under sections192 , 193 , 194 , 194A , 194C , 194D , 194G , 194H [, 194-I , 194J , 194K , 194LA , 194LBB , 194LBC and 195 . 3. In case PAN of the deductee is not available than TDS rate will be charged at normal rate or 20% whichever is higher. 4. No TDS on Service Tax / GST - As per Circular 01/2014 dated 13-1-2014 , TDS is not applicable on service tax part if service tax part shown separately.