AY 2022-23: TDS section, nature of payments, threshold, and applicable TDS rates

In FY 2020-21, the government has announced a package of Rs. 20 Lakhs crore in which TDS rates were revised and cut by 25%. For this, the effective dates were 14 May 2020 till 31st March 2021. Now the TDS rates for AY 2022-23 have revised, which are given here.

TDS Rates for AY 2022-23

TDS section, nature of payments, threshold, and applicable TDS Rates for AY 2022-23 are as follow-

Section of the Income Tax ActNature of PaymentTDS RatesThreshold Limit
192Salary IncomeSlab rates based on old and new tax regimeIncome Tax Slab
192AEPF- Premature Withdrawal10% (In case of no PAN @ 30%)Rs. 50,000
193Interest on Securities (except debenture)10%Rs. 10,000
193Interest on Debenture10%Rs. 5,000
194Dividend (other than listed companies)10% (No TDS on div payouts by REITs/InvITs) Rs. 5000
194AInterest other than interest
on securities by bank post/office
10%Rs. 40,000 (Rs. 50,000 for senior citizens)
Interest other than on securities by others10%Rs. 5,000
194BWinning from lotteries/puzzle/game30%Rs. 10,000
194CPayment of Contractors
and sub-contractors
1% (For Ind/HUF) and 2% for OthersRs. 1,00,000
194DInsurance Commission5% (Individuals) and 10% (Companies)Rs. 15,000
194DAPayment in respect of life
insurance policy
5%Rs. 1,00,000
194EPayment to non-resident sportsmen/sports association20%
194EEPayments in respect of
deposits under National
Savings Scheme (NSS)
10%Rs. 2,500
194FPayments on account of
re-purchase of Units by
Mutual Funds or UTI
20%
194GCommission, prize etc.,
on sale of lottery tickets
5%Rs. 15,000
194HCommission or brokerage5%Rs. 15,000
194-I(a)Rent for plant and machinery2%Rs. 2,40,000
194-I(b)Rent for land, building and furniture10%Rs. 2,40,000
194-IAPayment for acquisition
of immovable property (other than agriculture land)
1%Rs. 50 Lakhs
194-IBPayment of rent by individual or HUF5%Rs. 50,000 per month
194-ICPayment for Joint Development Agreements10%
194JFee for Professional or
Technical Services (FTS),
Royalty, etc.
2% (For FTS, certain royalties, call centre and 10% for others)Rs. 30,000
194KPayment of dividend by
Mutual Funds as per sec. 10 (23D)
10%Rs. 5,000
194 LAPayment of compensation on acquisition of immovable property10%Rs. 2,50,000
194 LBInterest from Infrastructure Bond to NRI5%
194 LDInterest on certain bonds and Govt. securities5%NA
194MPayment for contract work completed and professional work by Individual and HUF5%Rs. 50,00,000
194NCash Withdrawal during the P/Y2%Exceeds Rs. 1 Crore
194OTDS on e-commerce participants1%Rs. 5 Lakh
194QPurchase of goods (Applicable w.e.f. 01.07.2021)Rs. 50 Lakh .10% or Rs. 5% in case of no PAN of seller
TDS Rates for AY 2022-23

Also Read- Section 194Q: Applicability, non-applicability, rate, and example

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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