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TDS Rates For FY 2022-23 – Everything You Need To Know
Like every year, new TDS rates have been announced by the Income Tax Department. In addition to these TDS rates, there is an insertion of new TDS Sections namely Section 194R and 194S. Section 194R deals with TDS on providing benefits or perquisites to businesses.
On the other hand, Section 194S deals with TDS on virtual digital assets like cryptocurrencies. In this article, we shall discuss about the TDS rates for the Financial Year 2022-23
TDS Rates Chart (FY 2022-23)
Section | Nature of transaction | Deductee | Threshold Limit (Rs) | TDS Rate |
192 | Payment of salary | Resident, Non Resident | Basic exemption limit of employee | Normal Slab Rates |
192A | Premature withdrawal from EPF | Resident, Non Resident | 50,000 | 10% |
193 | Interest on securities | Resident |
| 10% |
194 | Payment of any dividend | Resident | 5,000 | 10% |
194A | Interest from other than interest from securities (from deposits with banks/post office/co-operative society) | Resident |
| 10% |
194A | Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives
| Resident | 5,000 | 10% |
194B | Income from lottery winnings, card games, crossword puzzles, and other games of any type | Resident, Non Resident, Foreign Company | 10,000 | 30% |
194BB | Income from horse race winnings | Resident, Non Resident, Foreign Company | 10,000 | 30% |
194C |
| Resident |
| 1% |
194D | Insurance commission to domestic companies | Resident | 15,000 | 10% |
194D | Insurance commission to other than companies | Resident | 15,000 | 5% |
194DA | Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy. | Resident | 1,00,000 | 5% |
194E | Payment to non-resident sportsmen/sports association | Non Resident, Foreign Company | No limit | 20% |
194EE
| Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | Resident, Non Resident | 2,500 | 10% |
194F | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | Resident, Non Resident
| No limit
| 20%
|
194G | Payments, commission, etc., on the sale of lottery tickets | Resident, Non Resident, Foreign Company | 15,000 | 5% |
194H
| Commission or brokerage | Resident
| 15,000 | 5%
|
194-I
| Rent on plant & machinery
| Resident
| 2,40,000
| 2% |
194-I
| Rent on | Resident
| 2,40,000 | 10% |
194-IA
| Payment in consideration of transfer of certain immovable property other than agricultural land. | Resident
| 50,00,000 | 1% |
194-IB
| Rent payment by an individual or HUF not covered u/s. 194-I | Resident
| 50,000 per month | 5% |
194-IC
| Payment under Joint Development Agreements (JDA) to Individual/HUF
| Resident
| No limit | 10%
|
194J
| Any sum paid by way of fee for professional services | Resident
| 30,000 | 10%
|
194J | Any sum paid by way of remuneration/fee/commission to a director | Resident
| 30,000 | 10%
|
194J | Any sum paid for not carrying out any activity concerning any business; | Resident | 30,000 | 10%
|
194J | Any sum paid for not sharing any know-how, patent, copyright, etc. | Resident | 30,000 | 10% |
194J | Any sum paid as a fee for technical services | Resident | 30,000 | 2% |
194J | Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films | Resident
| 30,000 | 2%
|
194J | Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. | Resident | 30,000 | 2%
|
194K | Payment of any income for units of a mutual fund, for example, dividend | Resident | No limit | 10% |
194LA | Payment in respect of compensation on acquiring certain immovable property | Resident | 2,50,000 | 10% |
194LB | Payment of interest on infrastructure debt fund to Non-Resident | Non Resident, Foreign Company | No limit | 5% |
194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds | Non Resident, Foreign Company | No limit | 5% |
194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC | Non Resident, Foreign Company | No limit | 4% |
194LD | Payment of interest on bond (rupee-denominated) to FII or a QFI | Non Resident, Foreign Company | No limit | 5% |
194LBA(1) | Certain income distributed by a business trust to its unitholder | Resident | No limit | 10% |
194LBA(2) | Interest income of a business trust from SPV distribution to its unitholders | Non Resident, Foreign Company | No limit | 5% |
194LBA(2) | Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders | Non Resident, Foreign Company | No limit | 10% |
194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Non Resident | No limit | 30% |
194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Foreign Company | No limit | 40% |
194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Resident, Non Resident | No limit | 10% |
194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Foreign Company | No limit | 40% |
194LBC | Income from investment in securitisation fund received to an individual and HUF | Resident | No limit | 25% |
194LBC | Income from investment in securitisation fund received to a domestic company | Resident | No limit | 10% |
194LBC | Income from investment in securitisation fund received to a foreign company | Foreign Company | No limit | 40% |
194LBC | Income from investment in securitisation fund received to NRI | Non-Resident | No limit | 10% |
194M | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | Resident | 50,00,00,000 | 5% |
194N | Cash withdrawal exceeding a certain amount | Resident, Non Resident | 1 crore | 2% |
194N | Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired | Resident, Non Resident |
|
|
194O | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform | Resident | 5,00,000 | 1% |
194P | Payment of pension or interest to specified senior citizens of age 75 years or more | Resident | Basic exemption limit of senior citizens or super senior citizens | Normal Slab Rates |
194Q | Payments for the purchase of goods | Resident | 50,00,000 | 0.10% |
194R | Perquisite or benefit to a business or profession | Resident | 20,000 | 10% |
194S
| TDS on the transfer of virtual digital assets1 | Resident |
| 1% |
195 | Income on investments made by NRI citizen | Non-Resident | No limit | 20% |
195 | Income by way of LTCG referred to in Section 115EE in case of NRI | Non Resident
| No limit
| 10%
|
195 | Income by way of LTCG under section 112(1)(c)(iii) | Non Reident, Foreign Company
| No limit
| 10%
|
195
| Income by way of LTCG under Section 112A | Non Reident, Foreign Company
| No limit
| 10%
|
195 | Income by way of LTCG under Section 111A | Non Reident, Foreign Company
| No limit
| 15% |
195 | Any other income by way of LTCG | Non Reident, Foreign Company
| No limit
| 20% |
195 | Interest payable on money borrowed by the government or Indian concern in foreign currency | Non Reident, Foreign Company
| No limit
| 20% |
195 | Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A | Non Reident, Foreign Company
| No limit
| 10% |
195 | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy | Non Resident | No limit
| 10% |
195 | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976 | Foreign Company | No limit
| 50% |
195 | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976 | Foreign Company | No limit | 10% |
195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | Non Resident | No 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 | Foreign Company | No limit
| 50% |
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 after 31st March 1976 | Foreign Company | No limit
| 10% |
195 | Any other income | Non Resident | No limit
| 30% |
195 | Any other income | Foreign Company | No limit
| 40% |
196B | Income (including LTCG) from units of an offshore fund | Non Reident, Foreign Company
| No limit
| 10% |
196C | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | Non Reident, Foreign Company
| No limit
| 10% |
196D | Income (excluding dividend and capital gain) from Foreign Institutional Investors. | Non Reident, Foreign Company
| No limit
| 20% |
Note:
There is no change in normal income tax slabs under the old tax regime as well as the new tax regime for the FY 2022-23. Further, the surcharge and health and education cess shall be in addition to the TDS rates applicable for NRI deductees.
New TDS Provisions: Section 194R- TDS On Providing Benefit Or Perquisite To Businesses
Any person who provides perks or benefits to any resident, whether convertible into money or not, for carrying on any business or profession by such resident should deduct TDS. The person giving such benefits should deduct TDS at 10% on the value or aggregate value of such benefit
Further, it is applicable to Individuals and HUFs. And, that too when the aggregate value of the perquisite or benefit exceeds Rs. 20,000/-
Now, you may ask what was the need of inserting this Section? Well, the answer is that the insertion of Section 194R ensures that the recipient of perks or benefits does not avoid reporting such benefits as income in their ITR. Thereby, through this section, he will not be able to avoid his tax liability.
Section 194S- TDS On Virtual Digital Assets
To trace the virtual digital assets transactions, there is an insertion of a new section namely Section 194S. The rate of TDS applicable is 1% and the deduction shall be at the time of payment of any sum as consideration for the transfer of virtual digital assets. Further, the TDS shall be deducted if the aggregate value of the transfer of the virtual digital assets is more than Rs 10,000 during the relevant financial year.
However, if any individual or HUF
- does not have income from business or profession
- earns income from business or profession, but the income does not exceed Rs 1 crore or Rs 50 lakh, respectively
is responsible for deducting TDS under this section if the aggregate value of the virtual digital assets exceeds Rs 50,000 during the year.Â
In addition to the above, Â if the person makes payment:
- Partly in cash or kind, but the part payment made in cash is not enough to deduct TDS in respect of the whole of such transaction
- Wholly in kind or for the exchange of another virtual digital asset (i.e. no payment in cash)
Then the person responsible for deducting TDS must ensure that tax is paid for consideration for the transfer of virtual digital assets and release the payment for such transactions.