| Section |
Nature of Payment |
Threshold |
TDS Rate |
Remarks |
| 192 |
Salary |
Taxable Income liable to Tax |
Normal Slab Rate
(or)
New Tax Regime Slab Rate as opted by employee |
Refer Note 4 & 5 for Old & New Regime Slab Rates
OPTION TO CHOOSE BETWEEN NEW AND OLD TAX SLAB REGIME FOR SALARIED EMPLOYEES |
| 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% |
Budget 2021 Update
This amendment proposes to amend second proviso to section 194 of the Act to further provide that the provisions of section 194 i.e. TDS on dividend shall also not apply to dividend income credited or paid to a business trust by a special purpose vehicle or payment of dividend to any other person as may be notified.
This means that no TDS needs to be deducted to AIF Category III also. |
| 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% |
The rate of TDS shall be increased by applicable surcharge and Health & Education cess. |
| 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% |
The rate of TDS shall be increased by applicable surcharge and Health & Education cess. |
| 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% |
Budget 2021 Update
A new section 194Q is proposed to be inserted to provide for deduction of TDS by person responsible for paying any sum to any resident for purchase of goods @ 0.1%.
Refer Note 1 for details about this amendment |
| 195 |
Payment 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 Citizen |
– |
20% |
– |
|
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen |
– |
10% |
– |
|
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% |
– |
|
d) Income by way of long-term capital gains as referred to in Section 112A |
– |
10% |
– |
|
e) Income by way of short-term capital gains referred to in Section 111A |
– |
15% |
– |
|
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% |
– |
|
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 Income |
– |
30% |
– |
| 206AB |
TDS on non-filers of ITR at higher rates
(applicable w.e.f 01.07.2021) |
Refer Note 2 |
Refer Note 2 |
Budget 2021 Update Refer Note 2 |
| 194P |
TDS on Senior Citizen above 75 Years |
Refer Note 3 |
Refer Note 3 |
Budget 2021 Update Refer Note 3 |