TDS Rate Chart for FY 2022-23 (AY 2023-24)
Dear reader, in this post we are going to discuss the TDS Rate Chart applicable for the Financial Year 2022-23 (AY 2023-24).
But, before we discuss TDS Rate Chart, we should know – What is TDS?, Who is responsible to deduct TDS, What are the specified payments on which TDS to be deducted?
What is TDS?
TDS stands for Tax deducted at source. TDS is required to be deducted while making specified payments prescribed under Income tax law. Thus, Any person who is making payment to any person or company is required to deduct TDS.
TDS is deducted at a prescribed rate on specified payments within the threshold limit under income tax act, 1961.
TDS involves two parties:
- Deductor / Payer (person making the payment after deducting TDS) and
- Deductee / Payee (person receiving the payment).
Who is Responsible to deduct the TDS?
It is the deductor’s responsibility to deduct the TDS after the payment of such amount in which he/she involve.
TDS is applicable on:
- Resident
- Non-resident
- Domestic company
- Other than above
Here is the table showing TDS rate list applicable on resident, domestic company, other than domestic company.
TDS Rate Applicable for Resident Individual/HUF
|
Sections | Particulars | TDS Rate | |
| 192 | Payment of salary | Normal Slab Rate | |
| 193 | Interest on securities a. Debentures/securities for money issued by a govt. authority b. Listed debentures/securities issued by a company in accordance with Securities Contracts Act, 1956 c. Any security of the Central/State Government. d. Interest on any other security. | 10% | |
| 194 | Dividend Income (except dividend income u/s 115-O) | 10% | |
| 194A | Interest income other than Interest on securities | 10% | |
| 194B | Income from winnings (lotteries, puzzles, card games etc.) | 30% | |
| 194BB | Income from winnings(Race of horses) | 30% | |
| 194C | Payment to Contractors/Sub-contractors | ||
| Individual/HUF | 2% | ||
| Others | 2% | ||
| 194D | Insurance commission (w.e.f. 01-6-2016) | 5% | |
| 194D | Insurance commission (w.e.f. 01-4-2015 to 31-5-2016) | 10% | |
| 194DA | Payment in respect of LIC (life insurance policy)(w.e.f. 01-6-2016) | 1% | |
| 194DA | Payment in respect of LIC (life insurance policy)(01-4-2015 to 31-5-2016) | 2% | |
| 194EE | Payment of Deposit under National saving scheme | 10% (w.e.f 01-6-2016) | |
| 194F | Payment on account of repurchase of a unit by UTI/ Mutual fund | 20% | |
| 194G | Percentage commission on the sale of lottery tickets | 5% | |
| 194H | Brokerage/Commission | 5% | |
| 194I | Rent ona) Plant and machineryb) Land or building or furniture or fittingw.e.f 1st April 2019, TDS is deducted on Rs 240000 p.a. instead of 180000 p.a. | a) 2%
b) 10% | |
| 194-IA | Payment on transfer of immovable property (except for agriculture land) | 1% | |
| 194-IB | Other Rental Payments paid by HUF/individual not covered u/s 194I(w.e.f. 01-6-2016) If Rent exceeds rs. 50000/- per month | 5% | |
| 194J | Any amount paid through:a. Professional services feesb.Technical services feesc. Royaltyd. Directors’ remuneration/fee/commissione. For carrying any activity other than business activityf. For not sharing of any copyright, know-how, patent etc. | 10% | |
| 194LA | Payment of compensation on acquisition of certain immovable property | 10% | |
| 194LBA | Certain income distributed by a Business Trust to its Unit holder | 10% | |
| Any other not specified above | 10% |
TDS Rate Applicable for Domestic Company
| Sections | Particulars | TDS Rate | |
| 192 | Payment of salary | Not Applicable | |
| 193 | Interest on securities a. Debentures/securities for money issued by a govt. authority b. Listed debentures/securities issued by a company in accordance with Securities Contracts Act, 1956c. Any security of the Central/State Government.d. Interest on any other security. |
10% | |
| 194 | Dividend Income | 10% | |
| 194A | Interest income other than Interest on securities | 10% | |
| 194B | Income from winnings (lotteries, puzzles, card games etc.) | 30% | |
| 194BB |
Income from winnings(Race of horses) | 30% | |
| 194C |
Payment to Contractors/Sub-contractors | HUF/Individuals –1%Others – 2% | |
| Others | Others | ||
| 194D | Insurance commission | 10% | |
| 194DA |
Payment in respect of LIC (w.e.f. 01-6-2016) | 1% | |
| 194DA | Payment in respect of LIC (life insurance policy)(01-4-2015 to 31-5-2016) | 2% | |
| 194EE | Payment of Deposit under National saving scheme | 10% (from 01-6-2016)(20% from 01-4-2015 to 31-05-2016) | |
| 194F | Payment on account of repurchase of a unit by UTI/ Mutual fund | 20% | |
| 194G |
Percentage commission on the sale of lottery tickets | 10% | |
| 194H |
Brokerage/Commission (w.e.f. 01-6-2016) | 5% | |
| 194H |
Brokerage/Commission (01-4-2015 to 31-5-2016) | 10% | |
| 194I | Rent ona) Plant and machineryb) Land or building or furniture or fittingw.e.f 1st April 2019, TDS is deducted on Rs 240000 p.a. instead of 180000 p.a. |
2% 10% | |
| 194-IA | Payment on transfer of immovable property (except for agriculture land) | 1% | |
| 194J | Any amount paid through:a. Professional services feesb.Technical services feesc. Royaltyd.Directors’ remuneration/fee/commissione.For carrying any activity other than business activityf. For not sharing of any copyright, know-how, patent etc. | 10% | |
| 194LA | Payment of compensation on acquisition of certain immovable property | 10% | |
| 194LBA |
Certain income distributed by a Business Trust to its Unit holder | 10% | |
| Any other not specified above | 10% |
TDS Rate Applicable for Company other than Domestic Company
|
Sections |
Particulars |
TDS Rate |
|
194B |
Income from winnings (lotteries, puzzles, card games etc.) |
30% |
|
194BB |
Income from winnings(Race of horses) |
30% |
|
194E |
Payment on account of repurchase of a unit by UTI/ Mutual fund |
20% |
|
194G |
Percentage commission on the sale of lottery tickets |
5% |
|
194LB |
Payment of compensation on acquisition of certain immovable property |
5% |
|
194LBA |
Certain income distributed by a Business Trust to its Unit holder |
5% |
|
194LC |
Payment of interest by an Indian Company or business trust in respect of money borrowed (foreign currency) |
5% |
|
1994LD |
Payment of interest on rupee denominated bond (of an Indian company or Govt. securities) to a foreign institutional investor |
5% |
|
195 |
Payment of any other sum a) Income derived by long-term capital gains [referred to in 112(1)(iii)] b) Income derived by short-term capital gains referred to in Section 111A c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] d) Income derived by interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) e) Income by royalty payable by Government or an Indian concern (for any right) f) Income by royalty payable by Government or an Indian concern other than referred to above g) Income by fees for technical services payable by government or an Indian concern or in behalf of any agreement Any other income |
a. 10% b. 15% c. 20% d. 20% e. 10% f. 10% g. 10% 40% (for any other income) |
|
196B |
Income from units (including long-term capital gain on transfer of such units) to an offshore fund |
10% |
|
196C |
Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) |
10% |
|
196D |
Income of foreign Institutional Investors from securities (except dividend or capital gain arising from such securities) |
20% |
Consult a Tax Expert
BIZINDIGO provides the expert guidance related to Tax, TDS. We can help you in guiding applicability of TDS, Payment of TDS and filing of TDS Return or TDS Statement as per lncome Tax Laws. We can also help you with TAN Registration.
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