Tax Deducted at source (TDS) is required to be deducted at the time of making payment. Self assessment tax is paid after the end of financial year, while advance tax is paid during the financial year. TDS is deducted when income is accrued or received by the assesse and adjusted with the income tax liability at the time of filing the Income Tax Return. The TDS rate chart applicable for FY 2021-22 (AY 2022-23) is as follows-
Read Also: TDS Rate Chart for FY 2022-23/AY 2023-24 – Income Tax
TDS rate chart applicable for FY 2021-22 (AY 2022-23)
| Section | Nature of Payment | Threshold | TDS Rate |
| 192 | Salary | Taxable Income liable to Tax | Normal Slab Rate (or) New Tax Regime Slab Rate as opted by employee |
| 192A | Payment of accumulated balance of provident fund which is taxable in the hands of an employee. | 50,000 | 10% |
| 193 | Interest on securities | 2,500 | 10% |
| 194 | Dividend | 5,000 | 10% |
| 194A | Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit (Interest other than “Interest on securities” ) | ||
| a) Senior Citizen | 50,000 | 10% | |
| b) Others | 40,000 | 10% | |
| 194A | Interest other than “Interest on securities” (Other Than Bank Deposit/Post Office Deposit/Banking Co-Society Deposit) | 5,000 | 10% |
| 194B | Winnings from lotteries, crossword puzzles, card games and other games of any sort | 10,000 | 30% |
| 194BB | Winnings from horse races | 10,000 | 30% |
| 194C | Payment to contractor/sub-contractor: | Single Transaction: 30,000 & Aggregate of Transactions: 1,00,000 | |
| a) HUF/ Individuals | 1% | ||
| b) Others | 2% | ||
| 194D | Insurance commission | ||
| a) Individuals | 15,000 | 5% | |
| b) Companies | 15,000 | 10% | |
| 194DA | Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay-out | 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/sports association | – | 20% +Cess +Surcharge, if applicable |
| 194EE | Payment in respect of deposit under National Savings scheme | 2,500 | 10% |
| 194F | Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India | – | 20% |
| 194G | Commission on sale of lottery tickets | 15,000 | 5% |
| 194H | Commission or brokerage | 15,000 | 5% |
| 194-I | Rent: | ||
| 194-I(a) Plant & Machinery | 2,40,000 | 2% | |
| 194-I(b) Land or building or furniture or fitting | 2,40,000 | 10% | |
| 194-IA | Payment on transfer of certain immovable property other than agricultural land | 50 Lakh | 1% |
| 194-IB | Payment of rent by individual or HUF not liable to tax audit | 50,000 per month | 5% |
| 194-IC | Payment of monetary consideration under Joint Development Agreements | – | 10% |
| 194J | Fees for professional or technical services: | ||
| i) sum paid or payable towards fees for technical services | 30,000 | 2% | |
| ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; | 30,000 | 2% | |
| iii) Any other sum | 30,000 | 10% | |
| 194K | Income in respect of units payable to resident person | – | 10% |
| 194LA | Payment of compensation on acquisition of certain immovable property | 2,50,000 | 10% |
| 194LB | Payment of interest on infrastructure debt fund to Non Resident | – | 5% + Cess + Surcharge, if applicable |
| 194LBA(1) | Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | – | 10% |
| 194LBB | Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] | – | 10% |
| 194LBC | Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) | ||
| a) HUF/Individuals | – | 25% | |
| b) Others | – | 30% | |
| 194M | Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. | 50 Lakh | 5% |
| 194N | Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office: | ||
| i) in excess of Rs. 1 crore | 1 Crore | 2% | |
| ii) in excess of Rs. 20 lakhs (for those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired.) The deduction of tax under this situation shall be at the rate of: | |||
| a) On amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year; | 20 Lakh | 2% | |
| b) On amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year; | 1 Crore | 5% | |
| 194-O | Payment or credit of amount by the e-commerce operator to e-commerce participant | 5 Lakh | 1% |
| 194Q | Purchase of goods (applicable w.e.f 01.07.2021) | 50 Lakh | 0.10% |
| 195 | Payment of any other sum to a Non-resident | ||
| a) Income in respect of investment made by a Non-resident Indian Citizen | – | 20% + Cess + Surcharge, if applicable | |
| b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen | – | 10% + Cess + Surcharge, if applicable | |
| c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 | – | 10% + Cess + Surcharge, if applicable | |
| d) Income by way of long-term capital gains as referred to in Section 112A | – | 10 % + Cess + Surcharge, if applicable | |
| e) Income by way of short-term capital gains referred to in Section 111A | – | 15% + Cess + Surcharge, if applicable | |
| f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A | – | 20% + Cess + Surcharge, if applicable | |
| g) Income by way of interest payable by Government or an Indian concern on moneys 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) | – | 20% + Cess + Surcharge, if applicable | |
| h) Any other Income | – | 30% + Cess + Surcharge, if applicable |
Read Also: Claim lower/ nil TDS deduction- Form 15G, Form 15H and Form 13
TDS Rate on non filers of ITR
It is proposed to insert a new section 206AB in the Act as a special provision providing for higher rate for TDS for the non-filers of income-tax return. Proposed section 206AB of the Act would apply on any sum or income or amount paid, or payable or credited, by a person (herein referred to as deductee) to a specified person exceeds Rs 50,000. The proposed TDS rate in this section is higher of the followings rates –
- twice the rate specified in the relevant provision of the Act; or
- twice the rate or rates in force; or
- the rate of 5%
This section shall not apply where the tax is required to be deducted under sections 192, 192A, 194B, 194BB, 194LBC or 194N of the Act.
“Specified person” means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years which are immediately before the previous year in which tax is required to be deducted or collected, as the case may be. Specified person shall not include a non-resident who does not have a permanent establishment in India.
Read Also: TCS and TDS Rate Chart – Examples of how to calculate TDS for FY 2020-21
Absence of PAN
In case of absence of PAN, TDS shall be deducted at the higher of the following rates, namely:—
(i) at the rate specified in the relevant provision of this Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of 20% (5% in case of section 194-O)
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