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

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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 Act Nature of Payment TDS Rates Threshold Limit
192 Salary Income Slab rates based on old and new tax regime Income Tax Slab
192A EPF- Premature Withdrawal 10% (In case of no PAN @ 30%) Rs. 50,000
193 Interest on Securities (except debenture) 10% Rs. 10,000
193 Interest on Debenture 10% Rs. 5,000
194 Dividend (other than listed companies) 10% (No TDS on div payouts by REITs/InvITs) Rs. 5000
194A Interest 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 others 10% Rs. 5,000
194B Winning from lotteries/puzzle/game 30% Rs. 10,000
194C Payment of Contractors
and sub-contractors
1% (For Ind/HUF) and 2% for Others Rs. 1,00,000
194D Insurance Commission 5% (Individuals) and 10% (Companies) Rs. 15,000
194DA Payment in respect of life
insurance policy
5% Rs. 1,00,000
194E Payment to non-resident sportsmen/sports association 20%
194EE Payments in respect of
deposits under National
Savings Scheme (NSS)
10% Rs. 2,500
194F Payments on account of
re-purchase of Units by
Mutual Funds or UTI
194G Commission, prize etc.,
on sale of lottery tickets
5% Rs. 15,000
194H Commission or brokerage 5% Rs. 15,000
194-I(a) Rent for plant and machinery 2% Rs. 2,40,000
194-I(b) Rent for land, building and furniture 10% Rs. 2,40,000
194-IA Payment for acquisition
of immovable property (other than agriculture land)
1% Rs. 50 Lakhs
194-IB Payment of rent by individual or HUF 5% Rs. 50,000 per month
194-IC Payment for Joint Development Agreements 10%
194J Fee for Professional or
Technical Services (FTS),
Royalty, etc.
2% (For FTS, certain royalties, call centre and 10% for others) Rs. 30,000
194K Payment of dividend by
Mutual Funds as per sec. 10 (23D)
10% Rs. 5,000
194 LA Payment of compensation on acquisition of immovable property 10% Rs. 2,50,000
194 LB Interest from Infrastructure Bond to NRI 5%
194 LD Interest on certain bonds and Govt. securities 5% NA
194M Payment for contract work completed and professional work by Individual and HUF 5% Rs. 50,00,000
194N Cash Withdrawal during the P/Y 2% Exceeds Rs. 1 Crore
194O TDS on e-commerce participants 1% Rs. 5 Lakh
194Q Purchase 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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