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 | 20% | — |
| 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 |
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)