TDS Rates

Particulars

TDS Rates (in %)

1. In the case of a person other than a company

1.1 where the person is resident in India-

Section 392: Payment of salary

Normal Slab Rate

Section 392(7): Payment of accumulated balance of provident fund which is taxable in the hands of an employee.

10

Section 393(1) [Table S. No. 5(i)]: Interest on securities

a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

10

b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

10

c) any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security]

10

d) interest on any other security

10

Section 393(1) [Table S. No. 7]: Income by way of dividend

10

Section 393(1) [Table S. No. 5(ii) & (iii)]: Income by way of interest other than "Interest on securities"

10

Section 393(3) [Table S. No. 1]: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort, or from gambling or betting of any form or nature whatsoever.

30

Section 393(3) [Table S. No. 2]: Income by way of winnings from any online game

30

Section 393(3) [Table S. No. 3]: Income by way of winnings from horse races

30

Section 393(1) [Table S. No. 6(i)]: Payment to contractor/sub-contractor

a) HUF/Individuals

1

b) Others

2

Section 393(1) [Table S. No. 1(i)]: Insurance commission

5

Section 393(1) [Table S. No. 8(i)]: Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay-out

2

Section 393(3) [Table S. No. 6]: Payment in respect of deposit under National Savings scheme

10

Section 393(3) [Table S. No. 4]: Commission, etc., on sale of lottery tickets

2

Section 393(1) [Table S. No. 1(ii)]: Commission or brokerage

2

Section 393(1) [Table S. No. 2(ii)]: Rent

a) Plant & Machinery

2

b) Land or building or furniture or fitting

10

Section 393(1) [Table S. No. 3(i)]: Payment on transfer of certain immovable property other than agricultural land

1

Section 393(1) [Table S. No. 2(i)]: Payment of rent by individual or HUF not liable to tax audit

2

Section 393(1) [Table S. No. 3(ii)]: Payment of monetary consideration under Joint Development Agreements

10

Section 393(1) [Table S. No. 6(iii)]: Fees for professional or technical services: i) sum paid or payable towards fees for technical services ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; iii) Any other sum Note: The rate of TDS would be 2% in case of payee engaged in business of operation of call center.

2/10

Section 393(1) [Table S. No. 4(i)]: Income in respect of units payable to resident person

10

Section 393(1) [Table S. No. 3(iii)]: Payment of compensation on acquisition of certain immovable property

10

Section 393(1) [Table S. No. 4(ii)]: 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

Section 393(1) [Table S. No. 4(iii)]: Investment fund paying an income to a unit holder [other than income which is exempt under Schedule V (Table S. No. 2)]

10

Section 393(1) [Table S. No. 4(iv)]: Income in respect of investment made in a securitisation trust (specified in section 221)

10

Section 393(1) [Table S. No. 6(ii)]: 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 393(1) [Table S. No. 6(i)], 393(1) [Table S. No. 1(ii)], or 393(1) [Table S. No. 6(iii)]. Tax shall be deducted under this section when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.

2

Section 393(3) [Table S. No. 5]: Cash withdrawal during the tax 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. The threshold limit of Rs. 1 crore is increased to Rs. 3 crores if the withdrawal of cash is made by co-operative society.

2

Section 393(1) [Table S. No. 8(v)]: Payment or credit of amount by the e-commerce operator to e-commerce participant

Section 393(1) [Table S. No. 8(iii)]: Deduction of tax by specified bank in case of senior citizen having age of 75 or more

Tax on total income as per rate in force

Section 393(1) [Table S. No. 8(ii)]: Payment for purchase of goods of the aggregate value exceeding Rs. 50 lakhs Note: TDS is deductible on sum exceeding Rs. 50 lakhs

0.1

Section 393(1) [Table S. No. 8(iv)]: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000 Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident.

10

Section 393(1) [Table S. No. 8(vi)]: Payment on transfer of Virtual Digital Asset Note: No tax shall be deducted under this provision in the following circumstance: • If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year. • if the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.

1

Section 393(3) [Table S. No. 7]: Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm. Note: (1) No deduction if aggregate of such sum paid/payable does not exceed Rs. 20,000 during the financial year.

10

1.2 where the person is not resident in India*-

Section 392: Payment of Salary

Normal Slab Rate

Section 392(7): Payment of accumulated balance of provident fund which is taxable in the hands of an employee.

10

Section 393(3) [Table S. No. 1]: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.

30

Section 393(1) [Table S. No. 2]: Income by way of winnings from any online game

30

Section 393(1) [Table S. No. 3]: Income by way of winnings from horse races

30

Section 393(2) [Table S. No. 1]: Payment to non-resident sportsmen/sports association

20

Section 393(3) [Table S. No. 6]: Payment in respect of deposits under National Savings Scheme

10

Section 393(3) [Table S. No. 4]: Commission, etc., on sale of lottery tickets

2

Section 393(2) [Table S. No. 5]: Payment of interest on infrastructure debt fund

5

Sec. 393(2) [Table S. No. 6]: Payment of the nature referred to in Schedule V [Table S. No. 3](a)

5

Section 393(2) [Table S. No. 6]: Payment of the nature referred to in Schedule V [Table S. No. 3](b)

10

Section 393(2) [Table S. No. 7]: Payment of the nature referred to in Schedule V [Table S. No. 4] by business trust to unit holders

30

Section 393(2) [Table S. No. 8]: Investment fund paying an income to a unit holder [other than income which is exempt under Schedule V (Table S. No. 2)].

30

393(1) [Table S. No. 4(iv)]: Income in respect of investment made in a securitisation trust (specified in Explanation of section 221)

10

Section 393(2) [Table S. No. 2, 3 & 4]: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)

5 or 4* or 9** * In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC ** Where money borrowed from a source outside India by issuing a long-term bond or rupee-denominated bond on or after 01-04-2023, which is listed only on a recognised stock exchange located in an IFSC

Section 393(3) [Table S. No. 5]: Cash withdrawal during the tax 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 in excess of Rs. 1 crore (3 crore in respect of co-operative society)

2

Section 393(3) [Table S. No. 7]: Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm.

10

Note:

(1) No deduction if the aggregate of such sum paid/payable does not exceed Rs. 20,000 during the financial year.

Section 393(2) [Table S. No. 17]: Payment of any other sum to a Non-resident

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 214 in case of a Non-resident Indian Citizen, in respect of a transfer which takes place:

12.5

c) Income by way of long-term capital gains referred to in Section 197(4), in respect of transfer which takes place:

12.5

d) Income by way of long-term capital gains as referred to in Section 198 exceeding Rs. 1,25,000 in respect of transfer which takes place:

12.5

e) Income by way of short-term capital gains referred to in Section 196 in respect of transfer which takes place:

20

f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in Schedule II (Table S. No. 14 or 17)], in respect of transfer which takes place:

12.5

g) Income by way of dividend from a unit in International Financial Services Centre

10

h) Income by way of dividend [Other than (g)]

20

i) 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 393(2) (Table S. No. 2 to 4) or Section 393(2) (Table S. No. 5)]

20

j) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

20

k) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

20

l) Any other income

30

Section 393(2) [Table S. No. 10]: Income in respect of units of non-resident

20

Section 393(2) [Table S. No. 11]: Income from units referred to in section 208(1) [Table S. No. 1]

10

Section 393(2) [Table S. No. 12]: Long-term capital gain on transfer of units referred to in section 208, in respect of transfer which takes place:

12.5

Section 393(2) [Table S. No. 13]: Income by way of interest or dividends in respect of bonds or GDR referred to in section 209

10

Section 393(2) [Table S. No. 14]: Long-term capital gain arising from transfer of bonds or GDR referred to in section 209, in respect of transfer which takes place:

12.5

Section 393(2) [Table S. No. 15]: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.

20

Section 393(2) [Table S. No. 16]: Income in respect of securities referred to in section 210(1) [Table S. No. 1] payable to specified fund [referred to in Note 1(g) of Schedule VI] Note: Since recipient of income is a specified fund, surcharge & health and education cess shall be nil.

10

2. In the case of a company-

2.1 where the company is a domestic company-

Section 393(1) [Table S. No. 5(i)]: Interest on securities

a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

10

b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

10

c) any security of the Central or State Government; [i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security]

10

d) interest on any other security

10

Section 393(1) [Table S. No. 7]: Dividend

10

Section 393(1) [Table S. No. 5(ii) & (iii)]: Income by way of interest other than "Interest on securities"

10

Section 393(3) [Table S. No. 1]: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.

30

Section 393(3) [Table S. No. 2]: Income by way of winnings from any online game

30

Section 393(3) [Table S. No. 3]: Income by way of winnings from horse races

30

Section 393(1) [Table S. No. 6(i)]: Payment to contractor/sub-contractor

a) HUF/Individuals

1

b) Others

2

Section 393(1) [Table S. No. 1(i)]: Insurance commission

10

Section 393(1) [Table S. No. 8(i)]: Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay-out

2

Section 393(3) [Table S. No. 6]: Payment in respect of deposit under National Savings scheme

10

Section 393(3) [Table S. No. 4]: Commission, etc., on sale of lottery tickets

2

Section 393(1) [Table S. No. 1(ii)]: Commission or brokerage

2

Section 393(1) [Table S. No. 2(ii)]: Rent

a) Plant & Machinery

2

b) Land or building or furniture or fitting

10

Section 393(1) [Table S. No. 3(i)]:Payment on transfer of certain immovable property other than agricultural land

1

Section 393(1) [Table S. No. 3(ii)]:Payment of monetary consideration under Joint Development Agreements

10

Section 393(1) [Table S. No. 6(iii)]: Fees for professional or technical services: i) sum paid or payable towards fees for technical services ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; iii) Any other sum Note: The rate of TDS would be 2% in case of payee engaged in business of operation of call center.

2/10

Section 393(1) [Table S. No. 4(i)]: Income in respect of units payable to resident person

10

Section 393(1) [Table S. No. 3(iii)]: Payment of compensation on acquisition of certain immovable property

10

Section 393(1) [Table S. No. 4(ii)]: 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

Section 393(1) [Table S. No. 4(iii)]: Investment fund paying an income to a unit holder [other than income which is exempt under Schedule V (Table S. No. 2)] .

10

Section 393(1) [Table S. No. 4(iv)]: Income in respect of investment made in a securitisation trust (specified in section 221)

10

Section 393(1) [Table S. No. 6(ii)]: 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 393(1) [Table S. No. 6(i)], 393(1) [Table S. No. 1(ii)], or 393(1) [Table S. No. 6(ii)]. Tax shall be deducted under this section when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.

2

Section 393(3) [Table S. No. 5]: Cash withdrawal during the tax 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: in excess of Rs. 1 crore (3 crore for co-operative society)

2

Section 393(1) [Table S. No. 8(v)]: Payment or credit of amount by the e-commerce operator to e-commerce participant

0.1

Section 393(1) [Table S. No. 8(iii)]: Deduction of tax by specified bank in case of senior citizen having age of 75 or more

Tax on total income as per rate in force

Section 393(1) [Table S. No. 8(ii)]: Payment to resident for purchase of goods of the aggregate value exceeding Rs. 50 lakhs Note: TDS is deductible on sum exceeding Rs. 50 lakhs

0.1

Section 393(1) [Table S. No. 8(iv)]: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000 Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident.

10

Section 393(1) [Table S. No. 8(vi)]: Payment on transfer of Virtual Digital Asset Note: No tax shall be deducted under this provision in the following circumstance: • If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year. • if the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.

1

2.2 where the company is not a domestic company*-

Section 393(3) [Table S. No. 1]: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.

30

Section 393(3) [Table S. No. 2]: Income by way of winnings from any online game

30

Section 393(3) [Table S. No. 3]: Income by way of winnings from horse races

30

Section 393(2) [Table S. No. 1]: Payment to non-resident sports association

20

Section 393(3) [Table S. No. 4]: Commission, etc., on sale of lottery tickets

2

Section 393(2) [Table S. No. 5]: Payment of interest on infrastructure debt fund

5

Section 393(2) [Table S. No. 6]: - Payment of the nature referred to in Schedule V [Table S. No. 3](a)

5

Section 393(2) [Table S. No. 6]: Payment of the nature referred to in Schedule V [Table S. No. 3](b)

10

Section 393(2) [Table S. No. 17]: Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders.

35

Section 393(2) [Table S. No. 8]: Investment fund paying an income to a unit holder [other than income which is exempt under Schedule V (Table S. No. 2)].

35

Section 393(2) [Table S. No. 9]: Income in respect of investment made in a securitisation trust (specified in section 221)

35

Section 393(2) [Table S. No. 2, 3 & 4]: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)

5 or 4* or 9** * In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC ** Where money borrowed from a source outside India by issuing a long-term bond or rupee-denominated bond on or after 01-04-2023, which is listed only on a recognised stock exchange located in an IFSC;

Section 393(2) [Table S. No. 17]: Payment of any other sum

a) Income by way of long-term capital gains referred to in section 197(4) in respect of transfer which takes place:

12.5

b) Income by way of long-term capital gains as referred to in Section 198 exceeding Rs. 1,25,000

12.5

c) Income by way of short-term capital gains referred to in Section 196

20

d) Any other income by way of long-term capital gains [not being long-term capital gains referred to in Schedule II (Table S. No. 14 or 17)]

12.5

e) Income by way of dividend from a unit in International Financial Services Centre

10

f) Income by way of dividend [Other than (e)]

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 393(2) [Table S. No. 2 to 4]or Section 393(2) [Table S. No. 5])

20

h) Income by way of royalty [not being royalty of the nature referred to in point f) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

-

A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

50

B. where the agreement is made after the 31st day of March, 1976

20

i) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

-

A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976

50

B. where the agreement is made after the 31st day of March, 1976

20

j) Any other income

35

Section 393(2) [Table S. No. 10]: Income in respect of units of non-resident

20

Section 393(2) [Table S. No. 11]: Income from units referred to in section 208(1) [Table S. No. 1]

10

Section 393(2) [Table S. No. 12]: Long-term capital gain on transfer of units referred to in section 208

12.5

Section 393(2) [Table S. No. 13]: Income by way of interest or dividends in respect of bonds or GDR referred to in section 209

10

Section 393(2) [Table S. No. 14]: Long-term capital gain arising from transfer of bonds or GDR referred to in section 209

12.5

Section 393(2) [Table S. No. 15]: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)

20

Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.

Section 393(2) [Table S. No. 16]: Income in respect of securities referred to in section 210(1) Table S. No. 1] payable to specified fund [referred to in Note 1(g) of Schedule VI]

10

Note: Since recipient of income is a specified fund, surcharge & health and education cess shall be nil.

Particulars

TDS Rates (in %)

1. In the case of a person other than a company

1.1 where the person is resident in India-

Section 392: Payment of salary

Normal Slab Rate

Section 392(7): Payment of accumulated balance of provident fund which is taxable in the hands of an employee.

10