TDS Rate Chart FY 2022-23

Budget Updates 2023

• Removal of the limit of Rs 10,000 for TDS on winnings from online gaming
• TDS rate for EPF withdrawal reduced from 30% to 20%
• TDS must be deducted on interest payment on listed debentures.
• Penalty and prosecution for default in TDS under section 271C and section 276B
• Higher rate if the taxpayer was supposed to file IT but failed to file and aggregate TDS is more than Rs 50,000
• Higher limit of Rs 3 crore for TDS on cash withdrawal is being provided to co-operative societies.

The TDS or tax deducted at source is a compliance which is quite popular among the taxpayers. The reason is that not only is it mandatory but non-compliance leads to an interest, late fee and penalty. Even a lower deduction of TDS can bring hassles to a taxpayer. Hence, it is crucial for every taxpayer to be aware of the applicability of TDS deduction under each section along with the correct TDS rate for the financial year. 

In this article, we have provided a complete list of all the TDS sections, a description of each, its applicability, threshold limit, and TDS rate chart. 

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TDS Rates Applicable to Residents of India FY 2022-23

TDS Rate Applicable to Non-residents FY 2023-23

The following rate for TDS is applicable to a non resident person other than a company:

TDS Rate Applicable to a Domestic Company FY 2022-23

TDS Rate Applicable to a Foreign Company FY 2022-23

Description of TDS Sections

• Section 192: Payment of salary (depending on the tax regime opted by the employee)
• Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee.
• Section 193(a): Interest on securities paid on 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
• Section 193(b): Interest on securities paid on 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
• Section 193(c): Interest on securities paid on any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]
• Section 193(d): Interest on securities paid on interest on any other security
• Section 194: Income by way of dividend
• Section 194A: Income by way of interest other than “Interest on securities”
• Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort
• Section 194BB: Income by way of winnings from horse races
• Section 194C(a): Payment to contractor/sub-contractor- HUF/Individuals
• Section 194C(b): Payment to contractor/sub-contractor- Others
• Section 194D: Insurance commission
• Section 194DA: Payment in respect of life insurance policy w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out
• Section 194E: Payment to non-resident sportsmen/sports association
• Section 194EE: Payment in respect of deposit under National Savings scheme
• Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
• Section 194G: Commission, etc., on sale of lottery tickets
• Section 194H: Commission or brokerage
• Section 194-I: Rent on Plant or Machinery
• Section 194-I: Rent on Land or building or furniture or fitting
• Section 194-IA: Payment on transfer of certain immovable property other than agricultural land
• Section 194-IB: Payment of rent by individual or HUF not liable to tax audit
• Section 194-IC: Payment of monetary consideration under Joint Development Agreements
• Section 194J: Fees for professional or technical service, 
• Section 194J: amount paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films
• Section 194K: Income in respect of units payable to resident person
• Section 194LA: Payment of compensation on acquisition of certain immovable property
• Section 194LB: Payment of interest on infrastructure debt fund
• Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.
• Section. 194LBA(2): Payment of the nature referred to in Section 10(23FC)(a)
• Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b)
• Section 194LBA(3): Payment of the nature referred to in section 10(23FCA) by business trust to unit holders
• Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].
• Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115 TCA)
• 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)
• Section 194LC: Interest is payable in respect of Long- term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC
• 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
• Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Tax shall be deducted under Section 194M with effect from 1/09/2019 when  aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.
• Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office
• Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office
• Section 194-O: Payment or credit of amount by the e-commerce operator to e- commerce participant
• Section 195: Income from Investment 
  • Section 195 Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen
  • Section 195 Income by way of long-term capital gains referred to in sub-clause (iii) of clause
  • Section 195 Income by way of long-term capital gains as referred to in Section 112A
  • Section 195 Income by way of short-term capital gains referred to in Section 111A
  • Section 195 Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A
  • Section 195 Income by way of interest payable by Government or an Indian concern on moneys 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)
  • Section 195 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. Such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) 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
  • Section 195 Income by way of royalty [not being royalty of the nature referred to point h) above] 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
  • Section 195 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
• Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund
• 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)
• Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)

READING RESOURCES

• What is section 195?
• What is section 194c?
• How to file TDS returns?
• TDS payment due dates FY 20-21
• TDS on Salary FY 20-21
• TDS rates on rental income
• Form 13 for TDS Deduction
• Capital Gain Bonds
• TDS on Rent

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