TDS rate chart for financial year 2022-23

TDS rates for Financial Year 2022-23 

Sec	Nature of payment	Ceiling Limit	Rate	Point to be noted
192	Salary	Basic Exemption	Slab	# At the slab rates as applicable for the F.Y. in which the payment is made.
192A	Accumulated balance under EPF Act, 1952	< 50000	10.00%	# Deduction at the time of payment.
193	Interest on securities	-	10.00%	# Deduction at the time of payment or credit; Exceptions for TDS deduction: - # Specified Bonds; # Securities of CG/SG, however in case of 8% Savings Bonds, 2003 and 7.75% Savings Bonds no TDS if such interest is up to Rs. 10,000; # Interest on debentures of a public company payable to individual/HUF if do not exceed Rs. 5,000 and paid by account payee cheque.
194	Dividends	<= 5000	10.00%	# Deduction at the time of payment; # No deduction if the shareholder is an individual and amount <= 5,000; # Such dividend is paid by any mode other than cash.
194A	Interest other than interest on securities	<=40,000 <=5,000	10.00%	# Deduction at the time of payment or credit; # Where the payee is a senior citizen then limit is Rs. 50,000; # Now large co-operative societies whose turnover exceeds Rs. 50 Cr. during the previous financial year are also liable to deduct TDS on interest paid to its members. # Limit is Rs. 5,000/- where the payer is other than banking co, co-operative bank or post office.
194B	Winning from lottery etc	<=10,000	30.00%	# Deduction at the time of payment.
194BB	Winning from horse race	<=10,000	30.00%	# Deduction at the time of payment.
194C	Payment to contractors or sub-contractors	<=30,000 <=1,00,000	1.00% 2.00%	# Deduction at the time of payment or credit; # No TDS where the contractor is engaged in the business of plying, hiring or leasing goods carriage and owns 10 or less goods carriage; # 1% where payment made to individual/HUF, 2% where payment made to any other person. # Limit is 30,000 for single payment and 1,00,000 for aggregate payment made during the financial year.
194D	Insurance Commission	<=15,000	5.00% 10.00%	# Deduction at the time of payment or credit; # TDS rate shall be 10% where amount paid to domestic company.
194DA	Life insurance policy	<1,00,000	5.00%	# Deduction at the time of payment; # TDS applicable where the provisions of section 10(10D) are inapplicable; # TDS to be deducted on the income comprised therein i.e., after deducing the amount of premium paid by the assessee from the total sum received.
194EE	Amount paid from NSC account referred u/s 80CCA (2)	<2,500	10.00%	# Deduction at the time of payment;
194F	Repurchase of units referred u/s 80CCB (2)	-	20.00%	# Deduction at the time of payment;
194G	Commission etc on sale of lottery tickets	<=15,000	5.00%	# Deduction at the time of payment or credit;
194H	Commission or Brokerage	<=15,000	5.00%	# Deduction at the time of payment or credit; # Commission or Brokerage includes payment received for acting on behalf of another person for services rendered or service in the course of buying or selling goods or asset or article, not being securities.
194I	Rent	<=2,40,000	2.00% 10.00%	# Deduction at the time of payment or credit; # 2% for Plant or machinery or equipment whereas 10% for land or building or furniture.
194IA	Transfer of Immovable Property other than agriculture land	<50,00,000	1.00%	# Deduction at the time of payment or credit; # Transferee could be resident or non-resident but transferor should be resident; # Consideration shall include all charges which are incidental to transfer; # Compulsory acquisition covered u/s 194LA and not under this section. # TDS shall be deducted on the amount of consideration or stamp duty value, whichever is higher. # No deduction shall be made where consideration for transfer and stamp duty value of such property, both are less than 50,00,000.
194IB	Rent paid by individual & HUF (Not covered under tax audit)	<=50,000 p.m.	5.00%	# Deduction at the time of payment or credit of rent for the last month of the previous year or last month of tenancy.
194IC	Payment under specified agreement referred u/s 45(5A)	-	10.00%	# Deduction at the time of payment or credit; # Section 194IA will not be attracted in this case; # Payment to be made to a resident not being consideration in kind.
194J	Fee for Professional or Technical services	<=30,000	2.00% 10.00%	# Deduction at the time of payment or credit; # For technical services TDS rate is 2%; # Royalty in the nature of sale, distribution or exhibition of cinematographic film is liable for TDS @ 2%. # Deduction shall be made @2% where payee is engaged only in the business of operation of call centre.
194K	Income in respect of units of mutual funds	<=5,000	10.00%	# Deduction at the time of payment. # Applicable if person responsible for paying to a resident any income to a unitholder other than income in the nature of capital gain.
194LA	Compensation for compulsory acquisition	<=2,50,000	10.00%	# Deduction at the time of payment.
194LBA	Certain income from units of a business trust	-	10.00%	# Deduction at the time of payment or credit.
194LBB	Certain income in respect of units of investment fund	-	10.00%	# Deduction at the time of payment or credit.
194LBC	Income in respect of investment in securitization trust	-	25.00% 30.00%	# Deduction at the time of payment or credit; # In case of individual/HUF 25%, any other person 30%.
194M	Payment of certain sums by certain individuals or HUF not covered under tax audit	<=50,00,000	5.00%	# Deduction at the time of payment or credit; # Where they are not covered by section 194C, 194H or 194J. # Individual or HUF responsible for paying any sum to any resident for carrying out any work (including supply of labour) by way of commission or brokerage or fee for professional services.
194N	Cash withdrawal	<=1,00,00,000	2.00%	# Deduction at the time of payment; # TDS will be deducted by bank, post office, co-operative society if cash is withdrawn in excess of Rs. one Crore; # w.e.f. 01-07-2020 TDS will be deducted on cash withdrawal above Rs. 20 lakhs if assessee has not filed its ITR for all three previous financial years.
194O	TDS on payment to E Commerce participant	-	-	# If payment made to individual or HUF for sale of goods or services and amount does not exceed Rs. 5,00,000 then no TDS but if payment made to any other person, then TDS will be deducted @ 1% without any threshold limit; # Applicable w.e.f. 01-10-2020.
194P	TDS in case of specified senior citizens	-	-	# In case of a specified senior citizen, the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force.
194Q	TDS in case of certain purchase of goods	-	-	# Any person being a buyer responsible for paying any sum to a seller, for purchase of goods the aggregate value of which exceeds Rs. 50 lakhs in any previous year, shall deduct TDS @ 0.10% of sum exceeding 50 lakhs. # Buyer means a person whose gross turnover exceeds Rs. 10 Cr. during the preceding financial year # This section shall not apply where tax is deductible under this Act, or tax is collectible under the provisions of section 206C other than 206C(1H).
194R	TDS on benefit or perquisite in respect of business or profession	<=20,000	10.00%	# Any person responsible for providing to a resident, any benefit or perquisite, whether in cash or kind, arising from business or profession shall deduct TDS @ 10% where values of such benefit or aggregate value of such benefit exceeds Rs. 20,000. # Provisions of this section shall not apply to an Individual or HUF whose turnover does not exceed 1 Cr. In business or 50 Lacs in profession.
194S	Payment on transfer of virtual digital asset	<=10,000	1.00%	w.e.f. 01-07-2022 # Any person responsible for paying to any resident any sim by way of consideration for transfer of a virtual digital asset, shall at the time of payment or credit, whichever is earlier deduct income tax @1% where value or aggregate value of such consideration exceeds Rs. 10,000.

Applicability of Tax deduction under section 194A, 194C, 194H, 194I and 194J for individuals or HUF has been changed. Now if their business turnover is more than Rs. 1 Cr. In the previous financial year or their professional receipts exceeds Rs. 50 lakhs in the previous financial year they are required to deduct TDS even if they have opted section 44AD/44ADA in the previous financial year.

Where tax has to be deducted u/s 192A, 194, 194C, 194DA, 194E, 194EE, 194F, 194G, 194H, 194I, 194IA, 194IB, 194IC, 194J 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD, 194K, 194M, 194N, 194O, 196A, 196B, 196C, 196D and tax collected u/s 206C the deduction/collection shall be made at the rates specified in those sections and shall be increased by a surcharge.

Section 206AB

Where tax is required to be deducted on income paid or payable to a specified person other than section 192, 192A, 194B, 194BB, 194LBC, 194N, 194M, 194IA or 194IB the tax shall be deducted at higher of the following:

- at twice of the rate specified under the chapter of TDS; or

- at twice the rate or rates in force; or

- at the rate of five per cent. 

Specified person means a person who has not filed the returns of income for assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired and aggregate of tax deducted or collected at source in his case is Rs. 50,000 or more in the said previous year.