TDS Rates For FY 2022-23 [As amended by Finance Act, 2022]

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

Rates for tax deduction at source [As amended by Finance Act, 2022]

Section	Deductee	Nature of Payment	Threshold limit	TDS Rate
192	Resident, Non Resident	Payment of salary	Basic exemption limit of employee	Normal Slab Rates
192A	Resident, Non Resident	Premature withdrawal from EPF	50,000	10%
193	Resident	Interest on securities	Debentures 5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018 10,000	10%
194	Resident	Payment of any dividend	5000	10%
194A	Resident	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	Resident	Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society.	5000	10%
194B	All	Income from lottery winnings, card games, crossword puzzles, and other games of any type	10,000	30%
194BB	All	Income from horse race winnings	10,000	30%
194C	Resident	Payment to contractor/sub-contractor	Single transaction 30,000 Aggregate transactions 1,00,000	Individeial/HUF- 1% Others - 2%
194D	Resident	Insurance commission	15,000	Domestic Co. - 10% Other Co. - 5%
194DA	Resident	Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy.	1,00,000	5%
194E	Non Resident, Foreign co.	Payment to non-resident sportsmen/sports association	No Limit	20%
194EE	Resident, Non Resident	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	2,500	10%
194F	Resident, Non Resident	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	No Limit	20%

194G	All	Payments, commission, etc., on the sale of lottery tickets​	15,000	5%
194H	Resident	Commissio or brokerage	15,000	5%
194-I	Resident	Rent on plant and machinery Rent on land/building/furniture/fitting	2,40,000	2% 10%
194-IA	Resident	Payment in consideration of transfer of certain immovable property other than agricultural land.	50,00,000	1%
194-IB	Resident​	Rent payment by an individual or HUF not covered u/s. 194-I	50,000 per month	5%
194-IC	Resident	Payment under Joint Development Agreements (JDA) to Individual/HUF	No limit	10%
194J	Resident	​Any sum paid by way of fee for professional services Any sum paid by way of remuneration/fee/commission to a director Any sum paid for not carrying out any activity concerning any business Any sum paid for not sharing any know-how, patent, copyright, etc.	30,000	10%
		Any sum paid as a fee for technical services Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films 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	Resident	Payment of any income for units of a mutual fund, for example, dividend	No limit	10%
194LA	Resident	Payment in respect of compensation on acquiring certain immovable property	2,50,000	10%
194LB	Non Resident, Foreign co.	Payment of interest on infrastructure debt fund to Non-Resident	No limit	5%
194LC	Non Resident, Foreign co.	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	Non Resident, Foreign co.	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	Non Resident, Foreign co.	Payment of interest on bond (rupee-denominated) to FII or a QFI	No limit	5%
194LBA(1)	Resident	Certain income distributed by a business trust to its unitholder	No limit	10%
194LBA(2)	Non Resident, Foreign co.	Interest income of a business trust from SPV distribution to its unitholders	No limit	5%
194LBA(2)	Non Resident, Foreign co.	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)	Non Resident, Foreign Co.	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	Non Resident - 30% Foreign Co - 40%
194LBB	Resident, Non Resident, Foreign Co.	Certain income paid to a unitholder in respect of units of an investment fund	No limit	Resident, Non Resident - 10% Foreign Co - 40%
194LBC	Resident, Foreign Co., Non resident	Income from investment in securitisation fund.	No limit	Individual/HUF - 25% Domestic Co - 10% Foreign Co - 40% NRI - 10%

194M	Resident	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	50,00,000	5%
194N	Resident	Cash withdrawal exceeding a certain amount	20 lakh to 1 crore	2%
194N	Resident, Non Resident	Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired	1 crore	5%
194O	Resident	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%
194P	Resident	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	Resident	Payments for the purchase of goods	50,00,000	0.10%
194R	Resident	Perquisite or benefit to a business or profession	20,000	10%
194S	Resident	TDS on the transfer of virtual digital assets	Specified Persons 50,000 Others 10,000	1%
196B	Non Resident, Foreign co.	Income (including LTCG) from units of an offshore fund	No limit	10%
196C	Non Resident, Foreign co.	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	No limit	10%
196D	Non Resident, Foreign co.	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	No limit	20%

Tax Deducted at Source has to be deposited using Challan ITNS-281 on the government portal. (https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp)

The Tax Deducted at Source must be deposited to the government by the 7th of the subsequent month.

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