Rates of TDS applicable for financial year 2021-22 or assessment year 2022-23

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Tax Deducted at Source, also known as TDS, is a system of taxation where the person/entity responsible for making specific payments deducts the applicable tax before the payment is credited to the receiver if it exceeds threshold limit specified in particular section.

There are various sections in Income Tax Law, which specify different TDS rates, nature of payment & its threshold limits for TDS and the same have been summarized in this article.

Section No.Nature of Payment ThresholdTDS Rate
192 Salaries As per Slab Normal Slab Rate
(or)
New Tax Regime Slab Rate as opted by employee
192A Premature withdrawal from EPF 50,000 10%
193 Interest on Securities 2,50010%
194Dividends 5,000 10%
194AInterest (Banks) 50,000(Senior Citizen)
40,000(Others)
10%
194A Interest (Others)5,000 10%
194B Winning from Lotteries 10,000 30%
194BB Winnings from Horse Race10,000 30%
194C Contractor – Single Transaction 30,0001%(Ind/HUF)
2%(Others)
194C Contractor – During the F.Y.1 Lakh1%(Individual/HUF)
2%(Others)
194C Transporter (44AE) declaration with PAN
194D Insurance Commission (15G-15H allowed) 15,0005%(Individual)
10%(Company)
194DA Life insurance Policy 1 Lakh5%
194E Non-Resident Sportsmen or Sports Association20%
194EE NSS 2,500 10%
194F Repurchase Units by MFs 20%
194GCommission – Lottery 15,000 5%
194HCommission / Brokerage 15,000 5%
194I(a)Rent of Plant / Machinery / Equipment 2.40 Lakh 2%
194I(b)Rent of Land Building & Furniture2.40 Lakh 10%
194IA 

Transfer of certain immovable property other than agriculture land50 Lakh1%
194IB

Rent by Individual / HUF not liable to tax audit50,000/PM 
5%
194IC Payment of monentary consideration under Joint Development agreement 10%
194J
Fees for technical services, call center, royalty for sale etc. 30,000 2%
194J
Fee for professional service or royalty etc. 30,000 10%
194K Payment of income in respect of units payable to resident person10%
194LA Compensation on transfer of certain immovable property2.50Lakh10%
194LB Income by way of interest from infrastructure debt fund(non-resident) 5%
194LBA 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 Income in respect of investment of investment fund 10%
194LBC Income in respect of investment in securitization trust 30%(Others)
25%(Individual & HUF)
194M

Payment to commission( not being insurance commission), brokerage etc. by individual & HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. 50 Lakh5%
194N Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society1 Cr2%
194NCash withdrawal in excess of 20 Lakhs during the previous year if assessee has not furnished return for last 3 assessment years20 Lakh2%
194NCash withdrawal in excess of 1 Cr during the previous year if assessee has not furnished return for last 3 assessment years 1 Cr5%
194OTDS on e-commerce participants5 Lakh1%
194QPurchase of goods (applicable w.e.f 01.07.2021) 50 Lakh0.10%
195Payment of any other sum to a Non-resident(The rate of TDS shall be increased by applicable surcharge and Health & Education cess):-
a) Income in respect of investment made by a Non-resident Indian Citizen20%
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen10%
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 11210%
d) Income by way of long-term capital gains as referred to in Section 112A10%
e) Income by way of short-term capital gains referred to in Section 111A15%
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 112A20%
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%
h) Any other Income30%
194PTDS on Senior Citizen above 75 YearsRefer Note 1 Refer Note 1
206ABTDS on non-filers of ITR at higher rates
(applicable w.e.f 01.07.2021)
Refer Note 2 Refer Note 2

Note 1:-

A senior citizen of the age of 75 year or above is not required to file the return of income, if the
following conditions are satisfied –

  • The senior citizen is resident in India and of the age of 75 or more during the previous year,
  • He has only pension income and may also have interest income from the same bank (specified bank – to be notified by the CG) in which he is receiving his pension income,
  • He shall be required to furnish a declaration to the specified bank. The declaration shall be containing such particulars, in such form and verified in such manner, as may be prescribed.

Note 2:-

The TDS on non -filers of ITR at higher rates 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. The Resident Indian are liable to pay twice the rate specified in the relevant provision of the Act; or twice the rate or rates in force; or the rate of 5%. 

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