TDS Rate Chart for FY 2022-23 (AY 2023-24)

Updated on: Jul 26th, 2022

7 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.

Union Budget 2022 updates –

New Section 194S- A person is liable for Tax Deduction at Source (TDS) at 1% at the time of payment of the transfer of virtual digital assets.
Sale of immovable property under Section 194-IA- It is proposed to amend the amount on which TDS should be deducted. The person buying the property should deduct tax at 1% on the sum paid/credited or the stamp duty value of such property, whichever is higher.
New Section 194R- TDS at 10% 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.

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 2022-23

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%
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%
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	10,000	30%
194BB	R, NR, FC	Income from horse race winnings	10,000	30%
194C	R	Payment to contractor/sub-contractor:- Individuals/HUF	Single transaction- 30,000 Aggregate transactions- 1,00,000	1%
194C	R	Payment to contractor/sub-contractor:- Other than Individuals/HUF	Single transaction- 30,000 Aggregate transactions- 1,00,000	2%
194D	R	Insurance commission to domestic companies	15,000	10%
194D	R	Insurance commission to 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%
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 on plant and machinery	2,40,000	2%
194-I	R	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%
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	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%
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%
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%

*”R” denotes Resident,
“FC” denotes Foreign company, and
“NR” denotes Non-Resident.

Note:

The Normal slab rates for FY 2022-23 for individuals and HUF remain unchanged in both the old and new tax regimes.
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.
New Sections-194R and 194S (discussed below) are inserted in Budget 2022.

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%