TDS Rate Chart – FY 2021-22 — AY 2022-23
TDS Rate chart for FY 2021-22 --- AY 2022-23
POINTS RELATED TO TDS:
TDS to be deducted at the ‘time of payment’ or ‘crediting the A/c of Payee in the books’; whichever is earlier in all the cases except
Salary (Sec 192),
Employee Provident Fund Payment (Sec 192A),
Winnings (Sec 194B & 194BB),
Maturity of Life Insurance Policy (Sec 194DA),
Compensation on compulsory acquisition of property (Sec 194LA) and
Cash Withdrawal in excess of 1 Crore (Sec 194N).
In these cases, TDS to be deducted at the ‘time of Payment’.
All the TDS rates are fixed. But if payment made to Non-Resident/ Foreign Co or Payment of salary, surcharge and Health and Education Cess shall be considered.
The provision of Section 203A containing the requirement of obtaining Tax Deduction Account Number (TAN) shall not apply to the person required to deduct TDS U/s 194IA, 194IB and 194M. (TDS Return in form 26QB, 26QC & 26QD).
As per Section 206AA, if the payee does not furnish PAN to the payer, The TDS rate shall be the Rate as per respective section OR at 20%; Whichever is higher. For section 194-O and 194-Q rate is 5% instead of 20%.
Section | Nature of Payment | Payer | Payee | Threshold | TDS Rate | Remarks |
192 | Salary | Any Person | Employee | Taxable Income liable to Tax | Slab Rate as opted by employee* | *Option on the employee to choose New or Old Tax Regime.
Employer shall consider details of Other Income and Deductions if furnished by employee and shall not consider any loss except Loss under the head Income from House Property. |
192A | Payment of accumulated balance of provident fund | Any Person | Employee | 50,000 | 10% | – |
193 | Interest on securities | Any Person | Any Resident Person | Different limits* | 10%* | *Limits and rate differ as per securities.
No TDS if interest paid to LIC, GIC, Insurer, on Government securities or DMAT securities. |
194 | Dividend | Domestic Company | Resident Person | 5,000 | 10% | No TDS if dividend paid by any mode other than cash up to Rs. 5,000 in P.Y. |
194A | Interest other than Interest on securities | Bank/ Co-op Bank/ Post office | Resident Senior citizen | 50,000 | 10% | No TDS to be deducted when interest paid to any Bank/ LIC/ UTI/ Insurer or Interest paid by firm to it’s partners.
*In case the payer is Individual/ HUF, TDS is required to be deducted only if last year Turnover of business is >1 crore or of profession the Gross Receipt is >50 lakhs. |
Other Resident | 40,000 | 10% | ||||
Any Person* (Other than Bank /Post Office /Banking Co-Society) | Resident Person | 5,000 | 10% | |||
194B | Winnings from lotteries, crossword puzzles, card games and other games of any sort | Any Person | Any Person | 10,000 | 30% | If winning is in kind then organizer will release winning only after ensuring that tax is paid to government. |
194BB | Winnings from horse races | Any Person | Any Person | 10,000 | 30% | – |
194C | Payment to contractor/sub-contractor | Any Person* | Individuals/ HUF | Single Transaction- 30,000 and Aggregate of Transactions- 1,00,000 | 1% | *In case the payer is Individual/ HUF/AOP/BOI, TDS is required to be deducted only if last year Turnover of business is >1 crore or of profession the Gross Receipt is >50 lakhs. |
Others | 2% | |||||
194D | Insurance commission
| Insurance Company | Individuals | 15,000
| 5% | The payee should be a resident agent. |
Companies | 10% | |||||
194DA | Payment in respect of life insurance policy- ‘Maturity Proceeds’ | Any Person | Any Resident Person | 1,00,000 | 5% | -No TDS if amount is exempted U/s 10(10D) -TDS to be deducted only on income portion. i.e. maturity proceeds less premium paid. |
194E | Payment to Non-Resident (NR) sportsmen/sports association | Any Person | NR sportsmen/ Entertainer or NR sports association | No Limit | 20% + H&E cess + Surcharge | Payment is made to NR for participation in any game in India, advertisement, performance or contribution of any article in newspaper, etc. |
194EE | Payment in respect of deposit under National Savings scheme | Any Person | Individual/HUF | 2,500 | 10% | No TDS if payment made to heir of the assessee. Payment relating to amount U/s 80CCA. |
194F | Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India | Any Person | Individual/HUF | No Limit | 20% | Payment relating to amount U/s 80CCB |
194G | Commission on sale of lottery tickets | Any Person | Any Person | 15,000 | 5% | – |
194H | Commission or brokerage | Any Person* | Any Resident Person | 15,000 | 5% | *In case the payer is Individual/ HUF, TDS is required to be deducted only if last year Turnover of business is >1 crore or of profession the Gross Receipt is >50 lakhs. |
194-I | Rent: | Any Person* | Any Resident Person | 2,40,000
(Limit applied to each co-owner) |
| *In case the payer is Individual/ HUF, TDS is required to be deducted only if last year Turnover of business is >1 crore or of profession the Gross Receipt is >50 lakhs. |
194-I(a) Plant & Machinery | 2% | |||||
194-I(b) Land or building or furniture or fitting | 10% | |||||
194-IA | Payment on transfer of immovable property other than rural agricultural land | Any Person | Any Resident Person | 50 Lakh | 1% | Limit of Rs. 50 lakhs is of sale consideration and not Stamp Duty Value. |
194-IB | Payment of rent on immovable property | Individual/ HUF (other than covered U/s 194I) | Any Resident Person | 50,000 per month or part of the month | 5% | Where tax is deducted as per 206AA, such deduction shall not exceed the amount of rent payable for the last month of the FY or the last month of tenancy (if property vacated during the year). |
194-IC | Payment of monetary consideration under Joint Development Agreements | Any Person | Any Resident Person | No Limit | 10% | TDS on consideration under specified agreement U/s 45(5A). No TDS if consideration is in Kind. |
194J | Fees for professional or technical services: | Any Person* | Any Resident Person |
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| *In case the payer is Individual/ HUF, TDS is required to be deducted only if last year Turnover of business is >1 crore or of profession the Gross Receipt is >50 lakhs.
**Royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films.
Limit of Rs. 30,000 p.a. is separately for Technical service, royalty, professional fees and non-compete fees.
No TDS U/s 194J by an Individual/HUF, if the payment of ‘Professional Services’ is made for their personal purpose. |
i) sum paid or payable towards fees for Technical Services or Royalty** | 30,000 | 2% | ||||
ii) Any Professional Service or Non-Compete fees (U/s 28(va)) | 30,000 | 10% | ||||
iii) Director Fees (Other than salary) | No Limit | 10% | ||||
194K | Income in respect of units payable to resident person | Any Person (UTI/ MF) | Resident Person | 5,000 | 10% | – |
194LA | Payment of compensation on acquisition of certain immovable property | Any Person | Any Resident Person | 2,50,000 | 10% | No TDS if compulsory acquisition of rural agriculture land. |
194LB | Income by way of interest from infrastructure debt fund | Infrastructure Debt Fund | Non-Resident or Foreign Company | No Limit | 5% + H&E Cess+ surcharge | Infrastructure debt fund referred in section 10(47). |
194LBA (1) | Certain income from units of business trust (Nature of Income as per Clause 23FC and 23FCA of Section 10) | Business Trust | Resident Unit Holder | No Limit | 10% | *Clause 23FC- distributing, any interest received or receivable by it from a SPV.
**Clause 23FCA- Income received from renting or leasing or letting out any real estate asset owned directly by it. |
NR or Foreign co. Unit Holder* | 5% | |||||
NR or Foreign co. Unit Holder** | Rates in force | |||||
194LBB | Income in respect of units of investment fund | Investment Fund | Resident Unit Holder | No Limit | 10% | TDS on any income to a unit holder other than income which is exempt under Section 10(23FBB) |
NR or Foreign co. Unit Holder | Rates in force | |||||
194LBC | Income in respect of investment in securitization trust | Securitization Trust | Individual/HUF | No Limit | 25% | - |
Other Resident | 30% | |||||
NR or Foreign Co. | Rates in force | |||||
194M | Payment of commission (not being insurance commission U/s 194D), brokerage, contractual fee, professional fee | Individual/HUF
(Not covered U/s 194C, 194H, or 194J)* | Any Resident Person | 50 Lakh (sum or aggregate of sum paid/ credited) | 5% | * Individual/ HUF, having Turnover of business up to 1 crore or of profession the Gross Receipt is up to 50 lakhs in the preceding financial year.
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194N | Payment of certain amount in cash
(Cash withdrawal >1 crore/ 20 lakhs) | Banks, Co. op Bank or Post Office
(Withdrawal from one or more account maintained by the recipient) | Any Person (other than covered below) | 1 Crore | 2% | *Any person who has not filed ITR for 3 Previous Years immediately preceding the Previous Year in which cash is withdrawn, and the due date for filing ITR U/s 139(1) has expired. |
Any person who has not filed ITR for 3 P.Y.* | 20 lakh (up to 1 Cr) | 2% | ||||
1 Crore | 5% | |||||
194-O | Payment or credit of amount by the E-commerce operator | Any Person
(E-commerce Operator) | Resident Person
(E-commerce participant) | 5 Lakh
(Gross Sale/ Service/ both) | 1%
(TDS deducted on Gross amount) | No TDS if All the conditions are satisfied: 1. E-Com Participant is Individual/HUF. 2. Gross amount of sale/ service/ both in FY is up to 5 lakhs. 3. E-Com participant has furnished his PAN/ Aadhaar Number to E-Com operator.
For this purpose, any payment by a purchaser of goods/service directly to an E-com participant, facilitated by E-com operator shall be included in gross amount. |
194Q | Purchase of goods
(Finance Act 2021- applicable w.e.f. 01.07.2021) | Any Person
(Buyer whose T/o in last year exceeds 10 crore) | Any Resident Person
(Seller of Goods) | 50 Lakh
(Value of Goods) | 0.10% | No TDS on a transaction, if tax is deductible under any provision of the act or tax is collectible U/s 206C except 206C (1H). |
195 | Payment of any other sum to a Non-resident | Any Person | Non-Resident or Foreign Company | No Limit | DTAA Rate or Rate in Force# + Cess + Surcharge | #Rate in force-
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206AB | TDS on non-filers of ITR at higher rates
(Finance Act 2021-Applicable w.e.f. 01.07.2021) | Any Person | Specified Person^ | No Limit
(Deductible on any sum or income or amount paid/ payable/ credited) | Higher of: -Twice the rate in relevant provision;
- Twice the rate in force;
-5% | ^Any person who has not filed ITR for 2 Previous Years immediately preceding the Previous Year in which tax to be deducted, and the due date for filing ITR U/s 139(1) has expired AND aggregate TDS and TCS in each of these 2 Previous year is Rs. 50,000 or more.
Section 206AB not applicable in case of TDS U/s 192, 192A, 194B, 194BB, 194LBC or 194N. |
194P | TDS on Senior Citizen above 75 Years
(Finance Act 2021) | Specified Banks*
| Specified senior citizen** | Basic Exemption Limit and deduction | Rates in force | *Specified Bank mean a Banking company specified by CG in official gazette.
**Senior citizen who is of the age of 75 year or more in the PY and has only Pension Income and Interest Income received from bank account maintained in the specified bank where pension is received and furnished a declaration to the bank.
- Bank will compute the taxable income after giving effect to deduction allowed under chapter VI-A and Rebate U/s 87A.
- Relaxation for senior citizen from filing ITR, if Tax is deducted U/s 194P. The provision U/s 139 shall not apply to such specified senior citizen for the relevant AY. |