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TMI BlogWhat are the payments covered under the TDS mechanism and the rates for deduction of tax at source?X X X X Extracts X X X X X X X X Extracts X X X X ..... S rates for the financial year 20222-23 are as follows-- CATEGORY A - WHEN RECIPIENT IS RESIDENT Nature of payment TDS (SC: Nil, EC: Nil, SHEC: Nil) • Sec. 192 - Payment of salary Normal or Special Tax Rate plus surcharge and education cess Surcharge: 10% (if total income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 crore), 15% (If total income exceeds Rs. 1 crore but doesn't exceed Rs. 2 crore), 25% (If total income exceeds Rs. 2 crore but doesn't exceed Rs. 5 crore), 37% (If total income exceeds Rs. 5 crore) HEC : 4% • Sec. 192A - Payment of taxable accumulated balance of provident fund 10 • Sec. 193 - Interest on securities-- a. interest on (a) debentures/securities for money issued by or on behalf of any local a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ec. 194-I - Rent-- a. rent of plant and machinery 2 b. rent of land or building or furniture or fitting 10 • Sec. 194-IA - Payment/credit of consideration to a resident transferor for transfer of any immovable property (other than rural agricultural land) 1 • Sec. 194-IB - Payment of rent by an individual or HUF not subjected to tax audit under Section 44AB 5 • Sec. 194-IC - Payment under Joint Development Agreement to a resident individual or HUF who transfers land or building as per such agreement 10 • Sec. 194J - Fees for professional or technical services. Note: 2% if payee is engaged in the business of operation of call center 10 1. sum paid or payable towards fees for technical services 2 ii. sum pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000 Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident. 10% Section 194S - Payment on transfer of Virtual Digital Asset 1% CATEGORY B - WHEN RECIPIENT IS NON-RESIDENT OR FOREIGN COMPANY Aggregate payment or credit subject to TDS during the financial year 2020-21 → If recipient is non-resident Individual/HUF/AOP/BOI/Artificial juridical person If recipient is non-resident co-operative society/ firm If recipient is non-domestic company Rs.50 lakh or less More than Rs. 50 lakh but not more than Rs. 1 crore More than Rs. 1 crore Rs. 1 crore or less More than Rs. 1 crore Rs. 1 cror ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts under National Saving Scheme, 1987 10.4 11.44 11.96 NA NA NA NA NA • Sec. 194F - Re-purchase of units of MF or UTI 20.8 22.88 23.92 NA NA NA NA NA • Sec. 194G - Commission on sale of lottery tickets 5.2 5.72 5.98 5.2 5.824 5.2 5.304 5.46 • Sec. 194LB - Payment/credit by way of interest by infrastructure debt fund 5.2 5.72 5.98 5.2 5.824 5.2 5.302 5.46 • Sec. 194LBA(2) - Payment of the nature referred to in Section 10(23FC)(a) 5.2 5.72 5.98 5.2 5.824 5.2 5.304 5.46 • Sec. 194LBA(2) - Payment of the nature referred to in Section 10(23FC)(b) 10.4 11.44 11.96 10.4 11.65 10.4 10.61 10.92 • Sec. 194LBA(3) - Payment of the nature referred to in section 10(23FCA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ec. 194LD - Interest on a rupee denominated bond of an Indian company or Government security (from June 1, 2013) 5.2 5.72 5.98 5.2 5.824 5.2 5.304 5.46 • Sec. 195 - Payment/credit of other sum to a non-resident -- a. income of foreign exchange assets payable to an Indian citizen 20.8 22.88 23.92 NA NA NA NA NA b. income by way of long-term capital gains referred to in section 115E or section 112(1)(c)(iii) 10.4 11.44 11.96 10.4 11.648 10.4 10.608 10.92 c. income by way of long-term capital gains referred to in section 112A 10.4 11.44 11.96 10.4 11.648 10.4 10.608 10.92 d. short-term capital gains under • Sec. 111A 15.6 17.16 17.94 15.6 17.472 15.6 15.912 16.38 e. any other long-term ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital gains on transfer of such bonds) 10.4 11.44 11.96 10.4 11.648 10.4 10.608 10.92 • Sec. 196D - Payment/credit of income from securities (not being dividend, short-term or long-term capital gain) to Foreign Institutional Investors 20.8 22.88 23.92 20.8 23.296 20.8 21.216 21.84 Notes : 1. Under sections 192 tax is deductible from salary. The payer shall calculate salary taxable in the hands of recipient. The amount so determined is subject to tax deduction under sections 192. Under sections 192A, tax is deductible on taxable accumulated balance of provident fund. Under section 195, tax is deductible only if income is taxable in the hands of recipient in India. In any other case, gross payment or credit (without GS ..... X X X X Extracts X X X X X X X X Extracts X X X X
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