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written by Sourish | June 8, 2021

TDS Rate Charts for FY 2022-23 (AY 2023-2024)

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Table of Content


Tax Deducted at Source is referred to as TDS. The term "tax deduction at source" (TDS) refers to the practice of collecting tax on income received in the form of wages, rent, sales of assets, dividends, etc., by requiring the payer to withhold the income tax owed while crediting or paying the payee and deposit that money with the government on the payee's behalf. The TDS rate chart, which summarises all of the Income Tax Act's TDS provisions, can be seen below. The Income Tax Department releases a new TDS rate chart annually under the Income Tax Act 1961. The rate charts reflect the amount of TDS to be deducted in the given scenario. But before moving to the rate table, we need to understand what TDS is.

Did you know?

Non-deduction of Tax at Source is only possible if your income falls below the minimum income tax slab. In such cases, you have to declare your income through the for 15G/15H and provide it to the deductor. Form 15G is for individuals, and 15H is for senior citizens.

What is TDS?

The tax, which is deducted at source, also known as TDS, is the tax deducted when a payor makes payments like the salary of the employees, fees for professional services, house rent, etc., by the payor itself. It is a type of direct tax introduced under the Income Tax Act to collect tax at the source itself. Generally, every person has to pay income tax according to their tax slabs. With the help of TDS, the government ensures that tax is collected beforehand for every payment you make. 

The payor deducts TDS from the payee's income as a credit to the Central government. The recipient receives the final amount after deductions are made. 

They will add the deducted TDS to their gross income. This deducted TDS is adjusted against the final tax filing and can then credit this TDS amount that has been already paid on their behalf by the payor. 

The percentage of TDS to be deducted by the payor is decided by the Income Tax department and released annually. 

Also Read: All About Income Tax and Tds Password Format With Examples

TDS Rate Table for FY 2022-2023

Section

Nature of Deductee

Nature of Payment

Threshold value 

TDS Rate

192

Resident and Non-resident 

Salary Income

Basic income tax exemption limits 

Normal tax Slab Rate 

192A 

Resident and Non-resident 

Payment of Pre matured EPF which is taxable on the employee

₹50,000

10%

193

Resident

 Debentures on behalf of any local government authority established by an act in the law

₹5,000

10% 

193

Resident 

Interest on any security issued by Central or State Governments i.e. 8% Taxable savings made on Bonds, 2003 and 7.75% Taxable savings made on Bonds, 2018

₹10,000

10%

193 

Resident 

Interests earned on securities and debentures

₹5,000 

10%

194 

Resident

Income by payment of dividend

₹5,000

10% 

194A

Resident 

Income by interest other than “Interest on securities”

Senior citizens  - ₹50,000

 

Others - ₹40,000

10%

194B

Resident and Non-resident

Income by winning money through lotteries, and other game events.

₹10,000

30%

194BB 

Resident and 

Non-resident

Income made by betting  on horse races and similar events 

₹10,000

30%

194C

Resident 

 Payment made to a contractor or sub-contractor

Single transaction - ₹30,000

 

Aggregate Transaction - ₹1,00,000

For, 

HUF/Individual - 1%

 

Others - 2% 

194D

Resident 

Income through insurance commission to domestic companies or individuals

₹15,000

Individual - 5%

 

Domestic company - 10%

194DA

Resident

Income through payments in the form of a life insurance policy

₹1,00,000

5%

194E

Non-resident and Foreign Companies

Payments made to non-resident sports personalities/organisations

No Limit

20%

194EE

Resident and Non-resident

Payments made in deposits covered under the NSS (The National savings scheme)

₹2,500

10%

194F

Resident and Non-resident

Payment made for the repurchase of the unit issued by Unit Trust of India (UTI) or a Mutual Fund

No Limit

20%

194G

Resident, Non-resident, and Foreign Companies

Payments made or commission earned or other expenses by selling lottery tickets

₹15,000

5%

194H

Resident 

Income through brokerage or commission 

₹15,000

5%

194-I 

Resident 

Income from Rent on 

  1. Industrial Plants and equipment 

 

  1. Land/Building/Furniture/Fitting

₹2,40,000

For,

a. 2%

 

b. 10%

194-IA

Resident 

Payments made on the trading of land other than agricultural property 

₹50,00,000

1%

194-IB

Resident 

Payment of rent by an individual or HUF which is not covered under Tax audit

₹50,000 every month 

5%

194-IC

Resident 

Payment made for monetary purposes covered under the joint development agreements 

No Limit

10%

194J 

Resident

Fees paid for enjoying professional or technical courses or services:

a. Sum paid or yet to be paid for technical services

b. Fees paid or to be paid as royalty in the consideration for sale, distribution, or exhibition of films and movies

c. Any other fees 

₹30,000

For,

a. 2%

 

b. 2%

 

c. 10%

194K

Resident

Income in respect of units payable to a resident person

No Limit 

10%

194LA

Resident 

Payment of compensation on acquisition of certain immovable property

₹2,50,000

10%

194LB

Non-resident and Foreign Companies 

Payment of interest on infrastructure debt fund to Non-Resident

No Limit

5%

194LC

Non-resident and foreign companies

Payment of interest issued by an Indian Company or a business trust in due of money borrowed in terms of foreign currency through an  agreement or by issuing long-term bonds (including long-term infrastructure bonds) or Rupee Denominated Bonds

No Limit 

4%* or 5%

 

* - In case, if the bonds are listed in IFSC at recognized stock exchanges

194LD 

Non-resident and Foreign Companies

Payment of interest based on rupee-denominated bonds of an Indian Company or Government Securities to a Foreign investing institution or a foreign investor

No Limit

5%

194LBA(1)

Resident 

Income from any kind of interest received or yet to receive by an employee of a company or a unit holder of the company from an SPV or from renting a house or land owned by him 

No Limit 

10% 

194LBA(2)

Non-resident and Foreign Companies

For, 

a. Payment of interest on SPV distributions by the shareholders of the company.

 

b. Payment of dividend income from SPV holding the entire shares except for the government-held shares 

No Limit 

For, 

 

a. 5%

 

b. 10%

194LBA(3)

Non-resident and Foreign Companies 

For,

a. Income from payments of assets owned by the business to the unitholders

 

b.  Income earned from renting land or any real-estate property owned by the company's unitholders.

No Limit 

For, 

a. 30%

 

b. 40%

194LBB

Resident, Non-resident and Foreign Companies 

 Income from an investment fund other than those which are exempted under Section 10(23FBB)]

No Limit 

For, 

Individual - 10%

 

Companies - 40%

194LBC

Resident, Non-resident and Foreign Companies

Income made from investments made in specific funds mentioned in the explanation of Section (115TCA)]

No Limit

For,

a. Individuals or HUF - 25%

 

b. Individuals, not residents of India - 30% 

 

c. Domestic Companies - 10%

 

d. Foreign Companies - 40%

194M

Resident  

Payment made for commission (not any kind of insurance commission), brokerage, contractual fee, the professional fee to a resident person by an Individual or a HUF who is not covered qualified to deduct TDS  under the sections 194C, 194H, and 194J of the Income Tax Act

₹50,00,000

5%

194N

Resident and Non-resident

Withdrawing cash that exceeds the threshold amount 

₹1,00,00,000

2%

194N

Resident and Non-resident

Cash withdrawn by a person who did not file ITR for the past three years and the current ITR filling date has expired 

a. Exceeds 20 Lakhs

 

b. Exceeds 1 crore

For,

a. 2%

 

b. 5%

194-O

Resident 

Income through payment of an amount from an e-commerce person through their platforms 

₹5,00,000

1%

194P

Resident 

Deductions made by the bank in case of senior citizens equal to the age of 75 or more 

Basic exemption on the limit of senior citizens or super senior citizens

Normal Tax slab rates

194Q

Resident

Amount spent on purchasing goods and commodities less than the threshold value 

₹50,00,000

0.1%

194R

Resident

Deductions made in tax in the situation of any kind of profit or benefit 

₹20,000

10%

194S

Resident

Income spend on moving the virtual and digital assets 

Specified Person- ₹50,000

 

Others - ₹10,000

1%

195 

Non-resident 

Income made by NRI through investment in India 

No Limit

20%

195

Non-resident

Income made by an NRI through long-term investments mentioned in section 115E

No Limit

10%

195

Non-resident and Foreign Companies

Income made by  investing in long-term capital according to section 112 (1) (c) (iii)

No Limit

10%

195 

Non-resident and Foreign Companies

Income made by gains through investment in LTCs mentioned in the section 112A

No Limit 

10%

195 

Non-resident and Foreign Companies 

Any other money made through investing in LTC (long-te capital) 

No Limit

20%

195

Non-resident and Foreign Companies

Income made by short-term capital gains 

No Limit

15%

195

Non-resident and Foreign Companies 

Income made on the interest to be paid by the Government or an Indian authority on a loss or a debt on the Government or the respective authority in terms of  foreign currency

No Limit

20%

195 

Non-resident and Foreign Companies

Income made by the royalty which is to be paid by the Government or an Indian Authority info copyright purposes in a subject as mentioned in the provisions of  Section 115A (1A) of the Income Tax Act, to any kind of computer software related purposes mentioned in the provisions of section 115A

No Limit

10%

195

Non-resident and Foreign Companies

Income made on the amount payable  by the Government or an Authority to compensate an agreement made according to the industrial policies 

No Limit

10%

195

Foreign Companies

Income made on the amount payable  by the Government or an Authority to compensate an agreement made according to the industrial policies

a. the agreement is prepared between 31st March 1961 and 1st April 1976

 

b. The agreement is made after the 31st of March 1976

No Limit

For, 

 

a. 50%


 

b. 10%

195

Non-resident

Income made on technical fees to be paid by the Indian Government or an Indian authority on the agreements made on issues related to the industrial policies

No Limit 

10%

195

Non-resident and Foreign Companies

Any other Income

No Limit

For

a. NRI individuals -

30%

 

b. Foreign Companies - 40%

196B

Non-resident and Foreign Companies

Income from long-term capital units or transfer of these units in offshore funds

No Limit

10%

196C

Non-resident and Foreign Companies

Income made from bonds including the long-term capital prepared in terms of a foreign currency or GDR of a domestic company 

No Limit

10%

196D

Non-resident and Foreign Companies

Income from foreign investors from foreign institutes 

No Limits

20%

In the above table,

1. Resident - Residents of India

2. Non-resident - NRIs or people who don't belong to the Indian Territory

2. Foreign Companies - Companies based outside of India

4. Domestic companies - Companies based in India

Also Read: Income Tax in India: Basics, Slabs and E-filing Process 2022

Conclusion:

We hope that this article has helped you understand the TDS deduction percentages that are determined by the Income Tax Department and updated every year. The TDS rate charts are updated for every financial year and the changes are made by the Income Tax Department. The TDS deducted can then be claimed after filing the ITR at the end of the financial year. Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: How many types of TDS certificates are present?

Ans:

Primarily, there are two types of TDS certificates, namely Form 16 and Form 16A.  Form 16 applies to TDS deductions on salary income and Form 16A applies to TDS deductions other than income salary, for example, the bank deducts TDS on the interest income from fixed deposits. Other than these Form 16B and Form 16C are also present but they are not relevant here. 

Q: What is a TDS certificate?

Ans:

TDS certificates are the certificates issued by the deductor at the time of TDS deduction from the income of the recipient.

Q: What will be the rates of TDS if I don't have a PAN card linked to my TDS account?

Ans:

According to Section 206AA of the Income Tax Act,  if you do not have a PAN card linked to your account, the deductor should deduct TDS at higher rates determined by the Income Tax Department under the provisions of the Income Tax Act.

Q: What is the responsibility of the person deducting TDS?

Ans:

The person calculating TDS deduction is responsible for a few things -

  • Deduct the TDS at the correct rates
  • File TDS returns in the given due time
  • Issue the TDS certificate to the recipient in the given period.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.