TDS RATE CHART FOR FY 2022-23 / AY 2023-24 – UPDATED

AUTHOR :EDITOR

https://taxguru.in/income-tax/tds-rate-chart-fy-2021-22-ay-2022-23-updated.html

Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24

The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to
pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central
Government. Various TDS rates on various incomes have been prescribed under the Income-tax Act. This
write up covers all such rates.

Rates for tax deduction at source*

[For Assessment year 2023-24]

Particulars TDS Rates (in %)

1. In the case of a person other than a company

1.1 where the person is resident in India-

Section 192: Payment of salary Normal Slab Rate

Section 192A: Payment of accumulated balance of provident fund

10
which is taxable in the hands of an employee.
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of
any local authority or a corporation established by a Central, State 10
or Provincial Act;
b) any debentures issued by a company where such debentures are
listed on a recognised stock exchange in accordance with the
10
Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any
rules made thereunder;
c) any security of the Central or State Government;

[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving 10

(Taxable) Bonds, 2018]
d) interest on any other security 10

Section 194: Income by way of dividend 10

Section 194A: Income by way of interest other than “Interest on

10
securities”

Section 194B: Income by way of winnings from lotteries,

30
crossword puzzles, card games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

Section 194C: Payment to contractor/sub-contractor

a) HUF/Individuals 1

b) Others 2

Section 194D: Insurance commission 5

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 5
comprised in insurance pay-out
Section 194EE: Payment in respect of deposit under National
10
Savings scheme

Section 194F: Payment on account of repurchase of unit by

20
Mutual Fund or Unit Trust of India

Section 194G: Commission, etc., on sale of lottery tickets 5

Section 194H: Commission or brokerage 5

Section 194-I: Rent

a) Plant & Machinery 2

b) Land or building or furniture or fitting 10

Section 194-IA: Payment on transfer of certain immovable
1
property other than agricultural land

Section 194-IB: Payment of rent by individual or HUF not liable

5
to tax audit

Section 194-IC: Payment of monetary consideration under Joint

10
Development Agreements
Section 194J: Fees for professional or technical services:

i) sum paid or payable towards fees for technical services

ii) sum paid or payable towards royalty in the nature of 2

consideration for sale, distribution or exhibition of
cinematographic films; 2

iii) Any other sum 10

Note: With effect from June 1, 2017 the rate of TDS would be 2%
in case of payee engaged in business of operation of call center.

Section 194K: Income in respect of units payable to resident

10
person

Section 194LA: Payment of compensation on acquisition of

10
certain immovable property
Section 194LBA(1): Business trust shall deduct tax while
distributing, any interest received or receivable by it from a SPV
10
or any income received from renting or leasing or letting out any
real estate asset owned directly by it, to its unit holders.
Section 194LBB: Investment fund paying an income to a unit
holder [other than income which is exempt under Section 10
10(23FBB)]

Section 194LBC: Income in respect of investment made in a 25 in case of Individual or HUF

securitisation trust (specified in Explanation of section 115TCA) 30 in case of other person

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.
5
Tax shall be deducted und0er 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:

i) in excess of Rs. 1 crore

ii) in excess of Rs. 20 lakhs*

* for those persons who have not filed return of income (ITR) for
three previous years immediately preceding the previous year in 2
which cash is withdrawn, and the due date for filing ITR
under section 139(1) has expired. The deduction of tax under this 2/5
situation shall be at the rate of:

a) 2% from the amount withdrawn in cash if the aggregate of the

amount of withdrawal exceeds Rs. 20 lakhs during the previous
year; or

b) 5% from the amount withdrawn in cash if the aggregate of the

amount of withdrawal exceeds Rs. 1 crore during the previous
year.

Section 194-O: Payment or credit of amount by the e-commerce

1
operator to e-commerce participant

Section 194P: Deduction of tax by specified bank in case of

Tax on total income as per rate in force
senior citizen having age of 75 or more
Section 194Q: Payment for purchase of goods of the aggregate
value exceeding Rs. 50 lakhs
0.1
Note: TDS is deductible on sum exceeding Rs. 50 lakhs

Section 194R: Deduction of tax in case any benefit or perquisite

is provided and aggregate value of such benefit/perquisite exceeds
Rs. 20,000
10
Note: Benefit or perquisite should be arising from business or the
exercise of a profession by such resident.
Section 194S: Payment on transfer of Virtual Digital Asset

Note: No tax shall be deducted under this provision in the

following circumstance:

If the consideration is payable by any person (other than a

specified person) and its aggregate value does not exceed
Rs. 10,000 during the financial year.
if the consideration is payable by a specified person and its
aggregate value does not exceed Rs. 50,000 during the
financial year.
1
Specified person means:

(a) An individual or a HUF, whose total sales, gross receipts or

turnover does not exceed Rs. 1 crore in case of business or Rs. 50
lakhs in case of a profession, during the financial year
immediately preceding the financial year in which virtual digital
asset is transferred;

(b) An individual or a HUF who does not have any income under
the head profits and gains of business or profession.

Any Other Income 10

1.2 where the person is not resident in India*-

Section 192: Payment of Salary Normal Slab Rate

Section 192A: Payment of accumulated balance of provident fund

10
which is taxable in the hands of an employee.

Section 194B: Income by way of winnings from lotteries,

30
crossword puzzles, card games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

Section 194E: Payment to non-resident sportsmen/sports

20
association

Section 194EE: Payment in respect of deposits under National

10
Savings Scheme

Section 194F:Payment on account of repurchase of unit by

20
Mutual Fund or Unit Trust of India
Section 194G: Commission, etc., on sale of lottery tickets 5

Section 194LB: Payment of interest on infrastructure debt fund 5

Sec. 194LBA(2): Payment of the nature referred to in Section

5
10(23FC)(a)

Section 194LBA(2): Payment of the nature referred to in Section

10
10(23FC)(b)

Section 194LBA(3): Payment of the nature referred to in section

30
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 30
10(23FBB)].
Section 194LBC: Income in respect of investment made in a
30
securitisation trust (specified in Explanation of section115TCA)

5 or 4*
Section 194LC: Payment of interest by an Indian Company or a
business trust in respect of money borrowed in foreign currency * In case where interest is payable in respect of
under a loan agreement or by way of issue of long-term bonds Long-term Bond or Rupee Denominated Bond
(including long-term infrastructure 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 5
Institutional Investor or a Qualified Foreign Investor
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian
20
Citizen

b) Income by way of long-term capital gains referred to in Section

10
115E in case of a Non-resident Indian Citizen

c) Income by way of long-term capital gains referred to in sub-

10
clause (iii) of clause (c) of sub-Section (1) of Section 112

d) Income by way of long-term capital gains as referred to

10
in Section 112A

e) Income by way of short-term capital gains referred to in Section

15
111A
f) Any other income by way of long-term capital gains [not being
long-term capital gains referred to in 20
clauses 10(33), 10(36) and 112A
g) Income by way of interest payable by Government or an Indian
concern on moneys borrowed or debt incurred by Government or
20
the Indian concern in foreign currency (not being income by way
of interest referred to in Section 194LB or Section 194LC)
h) 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 where 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
10
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
i) 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
10
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
j) 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
10
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

k) Any other income 30

Section 196B: Income from units (including long-term capital

10
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 10
such bonds or GDR)
Section 196D: Income of foreign Institutional Investors from
securities (not being dividend or capital gain arising from such
securities)
20
Note: Tax shall be deducted at the rate provided under DTAA if
same is lower than the existing TDS rate of 20%.

2. In the case of a company-

2.1 where the company is a domestic company-
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of
any local authority or a corporation established by a Central, State 10
or Provincial Act;
b) any debentures issued by a company where such debentures are
listed on a recognised stock exchange in accordance with the
10
Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any
rules made thereunder;
c) any security of the Central or State Government;

[i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving 10

(Taxable) Bonds, 2018]

d) interest on any other security 10

Section 194: Dividend 10

Section 194A: Income by way of interest other than “Interest on

10
securities”

Section 194B: Income by way of winnings from lotteries,

30
crossword puzzles, card games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

Section 194C: Payment to contractor/sub-contractor

a) HUF/Individuals 1

b) Others 2

Section 194D: Insurance commission 10

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 5
comprised in insurance pay-out
Section 194EE: Payment in respect of deposit under National
10
Savings scheme

Section 194F: Payment on account of repurchase of unit by

20
Mutual Fund or Unit Trust of India

Section 194G: Commission, etc., on sale of lottery tickets 5

Section 194H: Commission or brokerage 5

Section 194-I: Rent

a) Plant & Machinery 2

b) Land or building or furniture or fitting 10

Section 194-IA:Payment on transfer of certain immovable

1
property other than agricultural land

Section 194-IC:Payment of monetary consideration under Joint

10
Development Agreements
Section 194J: Fees for professional or technical services:

iv) sum paid or payable towards fees for technical services

v) sum paid or payable towards royalty in the nature of 2

consideration for sale, distribution or exhibition of
cinematographic films; 2

vi) Any other sum 10

Note: With effect from June 1, 2017 the rate of TDS would be 2%
in case of payee engaged in business of operation of call center.

Section 194K : Income in respect of units payable to resident

10
person

Section 194LA: Payment of compensation on acquisition of

10
certain immovable property
Section 194LBA(1): Business trust shall deduct tax while
distributing, any interest received or receivable by it from a SPV
10
or any income received from renting or leasing or letting out any
real estate asset owned directly by it, to its unit holders.
Section 194LBB: Investment fund paying an income to a unit
holder [other than income which is exempt under Section 10
10(23FBB)] .
Section 194LBC: Income in respect of investment made in a
10
securitisation trust (specified in Explanation of section115TCA)
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.
5%
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:

iii) in excess of Rs. 1 crore

iv) in excess of Rs. 20 lakhs*

* for those persons who have not filed return of income (ITR) for
three previous years immediately preceding the previous year in 2
which cash is withdrawn, and the due date for filing ITR
under section 139(1) has expired. The deduction of tax under this 2/5
situation shall be at the rate of:

a) 2% from the amount withdrawn in cash if the aggregate of the

amount of withdrawal exceeds Rs. 20 lakhs but not exceeding Rs.
1 crore during the previous year; or

b) 5% from the amount withdrawn in cash if the aggregate of the

amount of withdrawal exceeds Rs. 1 crore during the previous
year.

Section 194-O: Payment or credit of amount by the e-commerce

1
operator to e-commerce participant

Section 194P: Deduction of tax by specified bank in case of

Tax on total income as per rate in force
senior citizen having age of 75 or more
Section 194Q: Payment to resident for purchase of goods of the
aggregate value exceeding Rs. 50 lakhs
0.1
Note: TDS is deductible on sum exceeding Rs. 50 lakhs

Section 194R: Deduction of tax in case any benefit or perquisite

is provided and aggregate value of such benefit/perquisite exceeds
Rs. 20,000
10
Note: Benefit or perquisite should be arising from business or the
exercise of a profession by such resident.

Section 194S: Payment on transfer of Virtual Digital Asset

Note: No tax shall be deducted under this provision in the

following circumstance:

• If the consideration is payable by any person (other than a

specified person) and its aggregate value does not exceed Rs.
10,000 during the financial year.

• if the consideration is payable by a specified person and its

aggregate value does not exceed Rs. 50,000 during the financial
year. 1
Specified person means:

(a) An individual or a HUF, whose total sales, gross receipts or

turnover does not exceed Rs. 1 crore in case of business or Rs. 50
lakhs in case of a profession, during the financial year
immediately preceding the financial year in which virtual digital
asset is transferred;

(b) An individual or a HUF who does not have any income under
the head profits and gains of business or profession.

Any Other Income 10

2.2 where the company is not a domestic company*-

Section 194B: Income by way of winnings from lotteries,
30
crossword puzzles, card games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

Section 194E: Payment to non-resident sports association 20

Section 194G: Commission, etc., on sale of lottery tickets 5

Section 194LB: Payment of interest on infrastructure debt fund 5

Section 194LBA(2): – Payment of the nature referred to

5
in Section 10(23FC)(a)

Section 194LBA(2): Payment of the nature referred to in Section

10
10(23FC)(b)
Section 194LBA(3): Business trust shall deduct tax while
distributing any income received from renting or leasing or letting 40
out any real estate asset owned directly by it to its unit holders.
Section 194LBB: Investment fund paying an income to a unit
holder [other than income which is exempt under Section 40
10(23FBB)].
Section 194LBC: Income in respect of investment made in a
40
securitisation trust (specified in Explanation of section115TCA)

5 or 4*
Section 194LC: Payment of interest by an Indian Company or a
business trust in respect of money borrowed in foreign currency * In case where interest is payable in respect of
under a loan agreement or by way of issue of long-term bonds Long-term Bond or Rupee Denominated Bond
(including long-term infrastructure 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 5
Institutional Investor or a Qualified Foreign Investor
Section 195: Payment of any other sum
a) Income by way of long-term capital gains referred to in sub-
10
clause (iii) of clause (c) of sub-section (1) of Section 112

b) Income by way of long-term capital gains as referred to

10
in Section 112A

c) Income by way of short-term capital gains referred to in Section

15
111A
d) Any other income by way of long-term capital gains [not being
long-term capital gains referred to in 20
clauses 10(33) , 10(36) and 112A
e) Income by way of interest payable by Government or an Indian
concern on moneys borrowed or debt incurred by Government or
20
the Indian concern in foreign currency (not being income by way
of interest referred to in Section 194LB or Section 194LC)
f) 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 after the 31st day of March,
1976 where such royalty is in consideration for the transfer of all
or any rights (including the granting of a licence) in respect of
10
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
g) Income by way of royalty [not being royalty of the nature
referred to in point f) 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—
A. where the agreement is made after the 31st day of March, 1961
50
but before the 1st day of April, 1976

B. where the agreement is made after the 31st day of March, 1976 10

h) 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—
A. where the agreement is made after the 29th day of February,
50
1964 but before the 1st day of April, 1976

B. where the agreement is made after the 31st day of March, 1976 10

i) Any other income 40

Section 196B: Income from units (including long-term capital

10
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 10
such bonds or GDR)
Section 196D: Income of foreign Institutional Investors from
securities (not being dividend or capital gain arising from such
securities)
20
Note: Tax shall be deducted at the rate provided under DTAA if
same is lower than the existing TDS rate of 20%.
__________________________

* The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

[As amended by Finance Act, 2022]

(Republished with Amendment, Source -Income Tax Website)