TDS (Tax Deducted at Source ) rates Charts FYI 2023-2024 .pdf

Summary:

The Tax Deducted at Source (TDS) rate chart for the financial year 2023-24 provides a comprehensive guide to the tax provisions under the Income Tax Act. It covers different categories of taxpayers, including resident individuals, Hindu Undivided Families (HUF), domestic companies, non-resident Indians (NRIs), and foreign companies. The chart includes the latest updates and amendments introduced in the Union Budget 2023.

For resident individuals and HUF, TDS rates vary based on the nature of payment, such as salary, interest, dividend, rent, professional fees, and more. Notable changes include the introduction of Section 194R for TDS on providing benefits or perquisites to businesses and Section 194S for TDS on crypto income.

Responsibilities of the person deducting TDS include obtaining a Tax Deduction Account Number (TAN), deducting TDS at the applicable rate, depositing the tax to the government, filing TDS statements, and issuing TDS certificates to the payee.

Specific transactions, like the sale of immovable property and rent payments not covered under Section 194-I, have unique TDS provisions. The chart also outlines TDS rates for domestic companies and non-resident Indians/foreign companies.

The TDS rate chart serves as a crucial tool for taxpayers to ensure compliance with the dynamic regulatory landscape, and staying informed is key to avoiding penalties and interest on TDS-related matters. VirtualGGC offers expert services to assist taxpayers in managing TDS rates effectively. The chart also includes FAQs covering the basics of TDS, its working, and the key elements of the FY 2023-24 TDS rate chart.

1. TDSratesChartsFYI2023-24
IntroductiontoTDS
TDSisasystemoftaxcollectionwherethepayerdeductstaxfromthepaymentmadetothe
payeeanddepositsthedeductedtaxtothegovernment.Thedeductionamountgetscreditedto
thepayee'sincometaxliability.TDSisapplicableonvarioustypesofincome,suchassalary,
interest,commission,rent,professionalfees,andmore.TheTDSsystem'sprimarygoalsareto
makesurethegovernmentreceivesaconsistentstreamofincomeandtomaketaxcompliance
easierforcitizens.
TheTDSratechartisacomprehensiveguidethatlistsalltheTDSprovisionsundertheIncome
TaxActfordifferentcategoriesoftaxpayers,suchasresidentindividuals,HinduUndivided
Families(HUF),domesticcompanies,andnon-residentIndians(NRIs)orforeigncompanies.
ThechartalsoincludesthelatestupdatesandamendmentsintroducedintheUnionBudget
2023.
TDSRatesforResidentIndividualsandHinduUndivided
Family(HUF)
ThefollowingtableprovidestheTDSratesapplicableforresidentindividualsandHUFforthe
financialyear2023-24.

2. Sectio
n
NatureofPaymentThresholdLimit
(INR)
TDSRate
192PaymentofSalary Basicexemption
limitofemployee
NormalSlab
Rates
192APrematurewithdrawalfromEPF50,000 10%
193Interestonsecurities Variesbasedon
thetypeofsecurity
10%
194PaymentofDividend 5,000 10%
194AInterestfromdepositswithbanks,post
office,co-operativesociety,etc.
SeniorCitizens:
50,000;Others:
40,000
10%
194AInterestfromothersources(e.g.,interest
fromfriendsandrelatives)
5,000 10%
194BIncomefromlotterywinnings,cardgames,
crosswordpuzzles,etc.
10,000 30%
194BBIncomefromhorseracewinnings10,000 30%
194CPaymenttocontractor/sub-contractorSingletransaction:
30,000;Aggregate
transactions:
1,00,000
Individuals/HUF:
1%;Others:2%
194DInsurancecommission 15,000 10%
194DAPaymentinrespectofalifeinsurance
policy
1,00,000 5%
194EEPaymentofamountstandingtothecredit
ofapersonunderNationalSavings
Scheme(NSS)
2,500 10%
194FPaymentfortherepurchaseoftheunitby
UnitTrustofIndia(UTI)oraMutualFund
Nolimit 20%
194GPayments,commission,etc.,onthesale
oflotterytickets
15,000 5%
194HCommissionorbrokerage 15,000 5%

3. 194-IRenton(a)Plantandmachinery;(b)
Land/building/furniture/fitting
2,40,000 (a)2%;(b)10%
194-IAPaymentinconsiderationoftransferof
certainimmovablepropertyotherthan
agriculturalland
50,00,000 1%
194-IBRentpaymentbyanindividualorHUFnot
coveredu/s.194-I
50,000permonth5%
194-ICPaymentunderJointDevelopment
Agreements(JDA)toIndividual/HUF
Nolimit 10%
194JFeeforprofessionalservices,
remuneration/fee/commissiontoa
director,etc.
30,000 10%
194JFeefortechnicalservices,royaltytowards
thesaleordistribution,orexhibitionof
cinematographicfilms
30,000 2%
194KPaymentofanyincomeforunitsofa
mutualfund
Nolimit 10%
194LAPaymentinrespectofcompensationon
acquiringcertainimmovableproperty
2,50,000 10%
194MCertainpaymentsbyIndividual/HUFnot
liabletodeductTDSunderSection194C,
194H,and194J
50,00,000 5%
194NCashwithdrawalexceedingacertain
amount
Co-operative
society:3Crore;
Others:1crore
2%
194NCashwithdrawalincaseapersonhasnot
filedITRforthelastthreeyearsandthe
originalITRfilingduedatehasexpired
20lakhto1crore:
2%;Above1crore:
5%
194OPaymentforthesaleofgoodsorprovision
ofservicesbythee-commerceoperator
throughitsdigitalorelectronicfacilityor
platform
5,00,000 1%

4. 194PPaymentofpensionorinterestto
specifiedseniorcitizensofage75years
ormore
Basicexemption
limitofsenior
citizensorsuper
seniorcitizens
Normaltaxslab
rates
194QPaymentsforthepurchaseofgoods50,00,000 0.10%
194RPerquisiteorbenefittoabusinessor
profession
20,000 10%
194STDSonthetransferofvirtualdigital
assets
SpecifiedPersons:
50,000;Others:
10,000
1%
195IncomeoninvestmentsmadebyNRI
citizens
Nolimit 20%
TDSRatesforDomesticCompanies
ThefollowingtableprovidestheTDSratesapplicablefordomesticcompaniesforthefinancial
year2023-24.
Sectio
n
NatureofPaymentThresholdLimit
(INR)
TDSRate
193Interestonsecurities Variesbasedon
thetypeofsecurity
10%
194PaymentofDividend 5,000 10%
194AInterestfromdepositswithbanks,post
office,co-operativesociety,etc.
40,000 10%
194AInterestfromothersources(e.g.,interest
fromfriendsandrelatives)
5,000 10%

5. 194BIncomefromlotterywinnings,cardgames,
crosswordpuzzles,etc.
10,000 30%
194BBIncomefromhorseracewinnings10,000 30%
194CPaymenttocontractor/sub-contractorSingletransaction:
30,000;Aggregate
transactions:
1,00,000
Individuals/HUF:
1%;Others:2%
194DInsurancecommission 15,000 10%
194DAPaymentinrespectofalifeinsurance
policy
1,00,000 5%
194EEPaymentofamountstandingtothecredit
ofapersonunderNationalSavings
Scheme(NSS)
2,500 10%
194FPaymentfortherepurchaseoftheunitby
UnitTrustofIndia(UTI)oraMutualFund
Nolimit 20%
194GPayments,commission,etc.,onthesale
oflotterytickets
15,000 5%
194HCommissionorbrokerage 15,000 5%
194-IRenton(a)Plantandmachinery;(b)
Land/building/furniture/fitting
2,40,000 (a)2%;(b)10%
194-IAPaymentinconsiderationoftransferof
certainimmovablepropertyotherthan
agriculturalland
50,00,000 1%
194-IBRentpaymentbyanindividualorHUFnot
coveredu/s.194-I
50,000permonth5%
194-ICPaymentunderJointDevelopment
Agreements(JDA)toIndividual/HUF
Nolimit 10%
194JFeeforprofessionalservices,
remuneration/fee/commissiontoa
director,etc.
30,000 10%

6. 194JFeefortechnicalservices,royaltytowards
thesaleordistribution,orexhibitionof
cinematographicfilms
30,000 2%
194KPaymentofanyincomeforunitsofa
mutualfund
Nolimit 10%
194LAPaymentinrespectofcompensationon
acquiringcertainimmovableproperty
2,50,000 10%
194MCertainpaymentsbyIndividual/HUFnot
liabletodeductTDSunderSection194C,
194H,and194J
50,00,000 5%
194NCashwithdrawalexceedingacertain
amount
Co-operative
society:3Crore;
Others:1crore
2%
194NCashwithdrawalincaseapersonhasnot
filedITRforthelastthreeyearsandthe
originalITRfilingduedatehasexpired
20lakhto1crore:
2%;Above1crore:
5%
194OPaymentforthesaleofgoodsorprovision
ofservicesbythee-commerceoperator
throughitsdigitalorelectronicfacilityor
platform
5,00,000 1%
194PPaymentofpensionorinterestto
specifiedseniorcitizensofage75years
ormore
Basicexemption
limitofsenior
citizensorsuper
seniorcitizens
Normaltaxslab
rates
194QPaymentsforthepurchaseofgoods50,00,000 0.10%
194RPerquisiteorbenefittoabusinessor
profession
20,000 10%
194STDSonthetransferofvirtualdigital
assets
SpecifiedPersons:
50,000;Others:
10,000
1%
195IncomeoninvestmentsmadebyNRI
citizens
Nolimit 20%

7. TDSRatesforNon-ResidentIndians(NRIs)andForeign
Companies
ThefollowingtableprovidestheTDSratesapplicablefornon-residentIndians(NRIs)and
foreigncompaniesforthefinancialyear2023-24.
Sectio
n
NatureofPaymentThreshold
Limit(INR)
TDSRate
192PaymentofSalary Basic
exemption
limitof
employee
NormalSlabRates
192APrematurewithdrawalfromEPF50,000 10%
194BIncomebywayofwinningsfromlotteries,
crosswordpuzzles,cardgamesand
othergamesofanysort
10,000 30%
194BBIncomebywayofwinningsfromhorse
races
10,000 30%
194EPaymenttonon-residentsportsman
(includinganathlete)oranentertainer
(notacitizenofIndia)ornon-resident
sportsassociation
Nolimit20%
194GPayments,commission,etc.,onthesale
oflotterytickets
15,000 5%
194LBPaymentofinterestoninfrastructure
debtfund
Nolimit5%
194LB
A
IncomefromunitsofabusinesstrustNolimit5%(interestincome);
10%(dividendincome)
194LB
C
Incomeinrespectofinvestmentin
securitizationfund
Nolimit30%(forNRIs);40%(for
foreigncompanies)

8. 194LCPaymentofinterestbyanIndian
Companyorabusinesstrustinrespect
ofmoneyborrowedinforeigncurrency
underaloanagreementorbywayof
issueoflong-termbonds(including
long-terminfrastructurebond)
Nolimit5%
194LDPaymentofinterestonrupee
denominatedbondofanIndian
CompanyorGovernmentsecuritiestoa
ForeignInstitutionalInvestorora
QualifiedForeignInvestor
Nolimit5%
195Paymentofanyothersumtoa
Non-resident
Nolimit20%(investment
income);10%(long-term
capitalgains);15%
(short-termcapital
gains);30%(other
income)
UnionBudget2023:NewTDSProvisions
TheUnionBudget2023introducedseveralnewprovisionsandamendmentstotheTDSrates
andrules.Someofthekeychangesareasfollows:
Section194R:TDSonProvidingBenefitorPerquisitetoBusinesses
Anewsection,194R,hasbeenintroducedtoensurethatrecipientsofbenefitsorperquisitesdo
notavoidreportingsuchbenefitsasincomeintheirIncomeTaxReturn(ITR).Underthis
provision,TDSmustbedeductedat10%onthevalueoraggregatevalueofbenefitsor
perquisitesprovidedtoanyresidentforcarryingoutanybusinessorprofession.Thethreshold
limitforTDSdeductionunderthissectionisINR20,000.
Section194S:TDSonCryptoIncome

9. Toensuretheproperreportingandtaxationofvirtualdigitalassets,thegovernmenthas
introducedanewprovision,Section194S.Underthisprovision,TDSmustbedeductedat1%
bythepersonsmakingpaymentofanysumasconsiderationforthetransferofvirtualdigital
assets.ThethresholdlimitforTDSdeductionunderthissectionisINR10,000formost
taxpayers,andINR50,000forspecifiedpersons.
TDSRateChartforFY2021-22
TheTDSratechartforthefinancialyear2021-22isprovidedintherespectivesectionsfor
residentindividualsandHUF,domesticcompanies,andnon-residentIndians(NRIs)andforeign
companiesmentionedearlierinthisarticle.
TDSRateChartforFY2020-21
InlightoftheCOVID-19pandemicanditsimpactontheeconomy,thegovernmentprovided
reliefinTDSratesfortheperiodbetween14.05.2020and31.03.2021.Thereliefwaslimitedto
TDSratesforresidenttaxpayersanddidnotapplytonon-residenttaxpayers.TheTDSrate
chartforthefinancialyear2020-21isprovidedintherespectivesectionsforresidentindividuals
andHUF,domesticcompanies,andnon-residentIndians(NRIs)andforeigncompanies
mentionedearlierinthisarticle.
ResponsibilitiesofthePersonDeductingTDS
●ObtainingaTaxDeductionAccountNumber(TAN)andmentioningitinallTDS-related
documents.
●DeductingTDSattheapplicablerateanddepositingthetaxdeductedtothegovernment
accountwithinthestipulatedduedates.
●FilingTDSstatements(TDSreturn)periodicallywithinthespecifiedduedates.

10. ●IssuingTDScertificates(Form16orForm16A)tothepayeefortheTDSdeductedby
thedeductorwithinthespecifiedduedates.
TDSonSpecificTransactions
WhileTDSisapplicabletoawiderangeofincomesources,somespecifictransactionsmay
haveuniqueTDSprovisions.Forexample,TDSonthesaleofimmovableproperty(Section
194-IA)requiresthebuyertodeductTDSat1%ifthetransactionvalueexceedsINR50,00,000.
Similarly,TDSonrentpaymentbyanindividualorHUFnotcoveredunderSection194-I
(Section194-IB)requiresthepayertodeductTDSat5%iftherentpaymentexceedsINR
50,000permonth.
Conclusion
Navigatingthefinanciallandscapeofthefinancialyear2023-24requiresakeenunderstanding
oftheTDSratechart.ThisessentialtoolempowerstaxpayerstograspthediverseTDSrates
applicabletovariousincomesources.Adheringtotheseratesandprovisionsoutlinedinthe
IncomeTaxActispivotalforcomplianceandavoidingpenaltiesorinterestonTDS-related
matters.StayingabreastofthelatestamendmentsandupdatesinTDSrates,oftenintroduced
intheUnionBudgetandothergovernmentnotifications,iscrucial.Asavaluableresource,
VirtualGGCoffersexpertservicesinmanagingTDSrates,ensuringseamlesscomplianceand
assistancefortaxpayersinadheringtothedynamicregulatorylandscape.Stayinformedand
compliantwithVirtualGGC'ssupport,makingTDSmanagementahassle-freeexperience.
FAQ’s
WhatisTDS,andhowdoesitwork?
TDS(TaxDeductedatSource)isasystemoftaxcollectionwherethepayerdeductstaxfrom
thepaymentmadetothepayeeanddepositsthedeductedtaxtothegovernment.The

11. deductionamountiscreditedtothepayee'sincometaxliability.TDSisapplicableonvarious
typesofincome,suchassalary,interest,commission,rent,professionalfees,andmore.
WhatdoestheTDSratechartforFY2023-24include?
TheTDSratechartforFY2023-24isacomprehensiveguidethatlistsalltheTDSprovisions
undertheIncomeTaxActfordifferentcategoriesoftaxpayers,includingresidentindividuals,
HinduUndividedFamilies(HUF),domesticcompanies,andnon-residentIndians(NRIs)or
foreigncompanies.ItalsoincludesthelatestupdatesandamendmentsintroducedintheUnion
Budget2023.
WhataretheTDSratesforresidentindividualsandHUFinFY2023-24?
TheTDSratesforresidentindividualsandHUFcovervariouspaymentssuchassalary,interest,
dividend,rent,professionalfees,andmore.Ratesvarybasedonthenatureofpayment,
thresholdlimits,andotherfactors.
ArethereanynewTDSprovisionsintroducedinUnionBudget2023?
Yes,theUnionBudget2023introducednewprovisionsandamendmentstotheTDSratesand
rules.Notably,Section194RwasintroducedforTDSonprovidingbenefitsorperquisitesto
businesses,andSection194SwasintroducedforTDSoncryptoincome.
WhatisthethresholdlimitforTDSunderSection194Rforprovidingbenefitsor
perquisitestobusinesses?
UnderSection194R,TDSmustbedeductedat10%onthevalueoraggregatevalueofbenefits
orperquisitesprovidedtoanyresidentforcarryingoutanybusinessorprofession,witha
thresholdlimitofINR20,000.
IsthereaTDSprovisionforthetransferofvirtualdigitalassets?
Yes,Section194SintroducedinUnionBudget2023mandatesTDSat1%onthetransferof
virtualdigitalassets,withathresholdlimitofINR10,000formosttaxpayersandINR50,000for
specifiedpersons.
WhataretheresponsibilitiesofthepersondeductingTDS?
ThepersondeductingTDSisresponsibleforobtainingaTaxDeductionAccountNumber(TAN),
deductingTDSattheapplicablerate,depositingthedeductedtaxtothegovernmentwithindue
dates,filingTDSstatementsperiodically,andissuingTDScertificatestothepayee.
HowcantaxpayersstayupdatedonTDSprovisionsandrates?

12. TaxpayerscanstayupdatedwiththelatestamendmentsandupdatesinTDSratesand
provisionsbyreferringtotheTDSratechartforthefinancialyear,keepingtrackofUnion
Budgetannouncements,andreviewinggovernmentnotificationsrelatedtoincometax.