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TDS (Tax Deducted at Source) means collection of taxes by the Indian government at the source of income. TDS is applicable on various income like salary, rent, dividend, asset sales etc. TDS (Tax Deducted at Source) is an important part of Income Tax compliance. TDS has to be deducted at the rates prescribed by the tax department. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.
TDS, or Tax Deducted at Source, is a taxation system in which the tax is deducted at the source of the income at the time of making the payment. The Indian government introduced it to prevent tax evasion. The TDS deducted is then submitted to the government. TDS is applicable on incomes such as rent, interest, salaries, and commission. The company or person that makes the payment after deducting TDS is called a deductor, and the company or person receiving the payment is called the deducted.
A TDS (Tax Deducted at Source) chart is a document or chart that outlines the rates at which tax is to be deducted at the source from various types of income as per the Income Tax Act. TDS chart provides information on the rates at which tax is to be deducted at source for different types of payments such as salaries, interest, rent, professional fees, etc. These rates can vary depending on the nature of the payment, the amount, and the status of the recipient (whether they are an individual, a company, etc.).
| Section | Nature of transaction | Threshold Limit (Rs) | TDS Rate |
|---|---|---|---|
| 192 | Salary | Basic exemption limit | As per applicable slab rates |
| 192A | Premature Withdrawal of EPF | 50,000 | 10% rate of TDS if PAN is provided. If EPF withdrawal is made without PAN, the applicable rate is 20%. |
| 193 | Interest on securities | 2500 | 10% In the 2023 budget, the exemption of TDS on interest from listed debentures has been removed. This means tax must now be deducted on the interest earned from these securities. |
| 194 | Dividend | 5,000 | 10% |
| 194A | Interest on deposit in a bank or post office | Senior Citizens- 50,000 Others- 40,000 |
10% for both |
| 194A | Interest from other sources except interest on securities and interest on bank deposits. | 5,000 | 10% |
| 194B | Income from lottery winnings, puzzles, crosswords, card games, etc. | 10,000 | 30% |
| 194BA | Earnings from online games | Nil | 30% |
| 194BB | Income from horse race | 10,000 | 30% |
| 194C | Payment done to subcontractor/contractor | Single transaction- 30,000 Aggregate transactions- 1,00,000 |
HUF/Individuals: 1% Others: 2% |
| 194D | Insurance commission to: | ||
| a) Individuals | 15,000 | 5% | |
| b) Companies | 15,000 | 10% | |
| 194DA | Payment made towards life insurance policy | 1,00,000 | 5% |
| 194E | Payment to non-resident sports association/ sportsmen | No specified limit | 20% The mentioned rate will be subject to an additional surcharge and a 4% cess. |
| 194EE | Payment to National Savings Scheme | 2,500 | 10% |
| 194F | Payment for the re-purchase of the unit by Mutual Fund or UTI | No specified limit | 20% |
| 194G | Commission on selling lottery tickets | 15,000 | 5% |
| 194H | Commission/brokerage | 15,000 | 5% |
| 194-I | Rent: | ||
| 194-I(a) plant and machinery | 2,40,000 | 2% | |
| 194-I(b) land/building/furniture/fitting | 2,40,000 | 10% | |
| 194-IA | Payment on transfer of immovable property except agricultural land | 50,00,000 | 1% |
| 194-IB | Rent paid by HUF/Individual who is not required to conduct tax audit | 50,000 per month | 5% |
| 194-IC | Payment under JDA, Joint Development Agreements | No specified limit | 10 |
| 194J | Fees paid for -
|
30,000 30,000 |
2% 2% |
| 194J | Fees paid for any other professional services or technical service | 30,000 | 10% |
| 194K | Earnings from units payable to a resident | No specified limit | 10% |
| 194LA | Compensation for acquiring an immovable property | 2,50,000 | 10% |
| 194LB | Interest paid to Non-resident on Infrastructure Debt Fund | No specified limit | 5% The mentioned rate will be subject to an additional surcharge and a 4% cess. |
| 194LBA(1) | Earnings received by a business trust from an SPV | No specified limit | 10% |
| 194LBB | Income of a unit holder from an investment fund. | No specified limit | 10% |
| 194LBC | Income from investment in securitization trust Individuals/HUF Others |
No specified limit | 25% 30% |
| 194M | Payment of commission except income tax commission under Section 194C, 194H, and 194J | 50,00,000 | 5% |
| 194N | Cash withdrawal exceeding a specific amount 1 crore |
1 crore | 2% |
| 194N | Cash withdrawal from multiple bank accounts during the previous year | ||
| Amount exceeding 1 crore (exceeding 20 lakhs for people not filing ITR for previous 3 years) | 1 crore | 2% | |
| Aggregate cash withdrawal exceeding 20 lakhs | 20 lakhs | 2% | |
| Aggregate cash withdrawal exceeding 1 crore | 1 crore | 5% | |
| 194O | Payment to e-commerce participant by e-commerce operator | 5,00,000 | 1% 5% in case PAN is not provided |
| 194P | TDS for senior citizens aged over 75 years | Basic exemption limit | Normal tax slab rates |
| 194Q | Purchase of goods after 1.07.2021 | 50,00,000 | 0.10% |
| 194R (Introduced in budget 2022) | TDS deducted on benefit or Perquisite to a business or profession | 20,000 | 10% |
| 194S | Payment of virtual digital assets | Specified Persons- 50,000 Others- 10,000 |
1% |
| 195 | Income on investments of NRI citizens | No specified limit | 20% |
| 195 | LTCG under section 115E in the case of NRI citizen | No specified limit | 10% |
| 195 | LTCG under section 112(1)(c)(iii) | No specified limit | 10% |
| 195 | LTCG under section 112A | No specified limit | 10% |
| 195 | STCG under section 111A | No specified limit | 15% |
| 195 | Other LTCG other then LTCG mentioned u/s 112A, 10(33), 10(36) | No specified limit | 20% |
| 195 | Interest paid on borrowings from Indian company or government in INR. | No specified limit | 20% |
| 195 | Income from royalty, paid by Indian company/government under section 115A | No specified limit | 10% |
| 195 | Earnings from royalty by government or Indian company as per an agreement according to the industrial policy. | No specified limit | 10% |
| 195 | Income from royalties payable from Indian companies or the government. Agreement should be made between 31st Mar 1961 to 1st Apr 1976 |
No specified limit | 50% |
| 195 | Earnings from royalty to be paid by government or Indian company in pursuance of an agreement on matters included in the industrial policy Agreement should be between 31st March 1976 |
No specified limit | 10% |
| 195 | Earnings from technical fees to be paid by Indian government or company in pursuance of an agreement for industrial policy | No specified limit | 10% |
| 195 | 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 specified limit | 50% |
| 195 | Earnings from technical fees to be paid by government or Indian company in accordance with an agreement on industrial policy matters. If the agreement for the payment is entered between 29th Feb 1964 and 1st Apr 1976 |
No Specified limit | 10% |
| 195 | Any other income | No specified limit | 30% |
| 195 | Any other income | No specified limit | 40% |
| 196B | LTCG and other income from units of an offshore fund | No specified limit | 10% |
| 196C | LTCG and other income from foreign currency bonds or Indian GDRs | No specified limit | 10% |
| 196D | Income (except dividend and capital gain) from FIIs | No specified limit | 20% |
| 206AB | Payment made to people not filing their ITR Latest Update:
|
No specified limit | - 2 times the rate mentioned in the Income Tax Act - 5%, whichever is higher |
| 206AA | TDS rate if PAN not available | No specified limit | Rates specified or 20%, whichever is higher |
Are you looking for TDS calculation and want to pay TDS error-free, consult with our tax experts.
If the annual rent paid is more than 2,40,000, TDS is applicable.
Any person whose total income exceeds the basic exemption limit and falls under the taxable bracket is eligible for paying TDS.
Any tax paid in excess is refunded by the Income Tax Department. Once you file your ITR and your refund gets processed, the government refunds the excess income tax.
The TDS components are TDS, surcharge, PE-Cess, and SHE Cess
Effective from July 1, 2023, the Tax Collected at Source (TCS) rate shall not exceed 20% if the collectee fails to furnish their PAN to the collector or if they are non-filers. Furthermore, concerning Tax Deducted at Source (TDS) under Section 192A for EPF withdrawals, the rate shall be fixed at 20% instead of the maximum marginal rate, even if the recipient does not provide their PAN.
For TDS:
For example, if the transaction amount is Rs. 60 lacs, the TDS would be calculated as follows:
TDS = 0.1% of (Rs. 60,00,000 - Rs. 50,00,000) = 0.1% of Rs. 10,00,000 = Rs. 1,000.
For TCS:
For example, if the sale amount is Rs. 70 lacs, the TCS would be calculated as follows:
TCS = 0.1% of (Rs. 70,00,000 - Rs. 50,00,000) = 0.1% of Rs. 20,00,000 = Rs. 2,000.
These rates and thresholds are subject to change, so it's essential to verify with the tax expert for accurate information.
