Know about the TDS rates for FY 2022-23 easily explained

Know about the TDS Rates for FY 2022-23 Easily Explained

Like every year, new TDS rates have been announced by the Income Tax Department. In addition to these TDS rates, there is an insertion of new TDS Sections namely Section 194R and 194S. Section 194R deals with TDS on providing benefits or perquisites to businesses. On the other hand, Section 194S deals with TDS on virtual digital assets like cryptocurrencies.

In this blog, we will tell about the TDS rates for the Financial Year 2022-23

Also Read: TDS Rate Chart for FY 2021-22

TDS Rates Chart (FY 2022-23)

Section

Nature of transaction

Deductee

Threshold Limit (Rs)

TDS Rate

192

Payment of salary

Resident, Non Resident

Basic exemption limit of employee

Normal Slab Rates

192A

Premature withdrawal from EPF

Resident, Non Resident

50,000

10%

193

Interest on securities

Resident

  • Debentures- 5,000

  • 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000

  • Other securities- No limit

10%

194

Payment of any dividend

Resident

5,000

10%

194A

Interest from other than interest from securities (from deposits with banks/post office/co-operative society)

Resident

  • Senior Citizens- 50,000

  • Others- 40,000

10%

194A

Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives

Resident

5,000

10%

194B

Income from lottery winnings, card games, crossword puzzles, and other games of any type

Resident, Non Resident, Foreign Company

10,000

30%

194BB

Income from horse race winnings

Resident, Non Resident, Foreign Company

10,000

30%

194C

  • Payment to contractor/sub-contractor

  • Individuals /HUF

Resident

  • Single transaction- 30,000

  • Aggregate transactions- 1,00,000

1%

194D

Insurance commission to domestic companies

Resident

15,000

10%

194D

Insurance commission to other than companies

Resident

15,000

5%

194DA

Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy.

Resident

1,00,000

5%

194E

Payment to non-resident sportsmen/sports association

Non Resident, Foreign Company

No limit

20%

194EE

Payment of amount standing to the credit of a person under National Savings Scheme (NSS)

Resident, Non Resident

2,500

10%

194F

Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund

Resident, Non Resident

No limit

20%

194G

Payments, commission, etc., on the sale of lottery tickets

Resident, Non Resident, Foreign Company

15,000

5%

194H

Commission or brokerage

Resident

15,000

5%

194-I

Rent on plant & machinery

Resident

2,40,000

2%

194-I

Rent on
land/building/furniture/fitting

Resident

2,40,000

10%

194-IA

Payment in consideration of transfer of certain immovable property other than agricultural land.

Resident

50,00,000

1%

194-IB

Rent payment by an individual or HUF not covered u/s. 194-I

Resident

50,000 per month

5%

194-IC

Payment under Joint Development Agreements (JDA) to Individual/HUF

Resident

No limit

10%

194J

Any sum paid by way of fee for professional services

Resident


30,000

10%

194J

Any sum paid by way of remuneration/fee/commission to a director

Resident

30,000

10%

194J

Any sum paid for not carrying out any activity concerning any business;

Resident

30,000

10%

194J

Any sum paid for not sharing any know-how, patent, copyright, etc.

Resident

30,000

10%

194J

Any sum paid as a fee for technical services

Resident

30,000

2%

194J

Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films

Resident

30,000

2%

194J

Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.

Resident

30,000

2%

194K

Payment of any income for units of a mutual fund, for example, dividend

Resident

No limit

10%

194LA

Payment in respect of compensation on acquiring certain immovable property

Resident

2,50,000

10%

194LB

Payment of interest on infrastructure debt fund to Non-Resident

Non Resident, Foreign Company

No limit

5%

194LC

Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds

Non Resident, Foreign Company

No limit

5%

194LC

Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC

Non Resident, Foreign Company

No limit

4%

194LD

Payment of interest on bond (rupee-denominated) to FII or a QFI

Non Resident, Foreign Company

No limit

5%

194LBA(1)

Certain income distributed by a business trust to its unitholder

Resident

No limit

10%

194LBA(2)

Interest income of a business trust from SPV distribution to its unitholders

Non Resident, Foreign Company

No limit

5%

194LBA(2)

Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders

Non Resident, Foreign Company

No limit

10%

194LBA(3)

Rental income payment of assets owned by the business trust to the unitholders of such business trust

Non Resident

No limit

30%

194LBA(3)

Rental income payment of assets owned by the business trust to the unitholders of such business trust

Foreign Company

No limit

40%

194LBB

Certain income paid to a unitholder in respect of units of an investment fund

Resident, Non Resident

No limit

10%

194LBB

Certain income paid to a unitholder in respect of units of an investment fund

Foreign Company

No limit

40%

194LBC

Income from investment in securitisation fund received to an individual and HUF

Resident

No limit

25%

194LBC

Income from investment in securitisation fund received to a domestic company

Resident

No limit

10%

194LBC

Income from investment in securitisation fund received to a foreign company

Foreign Company

No limit

40%

194LBC

Income from investment in securitisation fund received to NRI

Non-Resident

No limit

10%

194M

Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J

Resident

50,00,00,000

5%

194N

Cash withdrawal exceeding a certain amount

Resident, Non Resident

1 crore

2%

194N

Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired

Resident, Non Resident

  • 20 lakh to 1 crore

  • 1 crore

  • 2%

  • 5%

194O

Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform

Resident

5,00,000

1%

194P

Payment of pension or interest to specified senior citizens of age 75 years or more

Resident

Basic exemption limit of senior citizens or super senior citizens

Normal Slab Rates

194Q

Payments for the purchase of goods

Resident

50,00,000

0.10%

194R

Perquisite or benefit to a business or profession

Resident

20,000

10%

194S

TDS on the transfer of virtual digital assets1

Resident

  • Specified persons – Rs. 50,000

  • Others – Rs. 10,000

1%

195

Income on investments made by NRI citizen

Non-Resident

No limit

20%

195

Income by way of LTCG referred to in Section 115EE in case of NRI

Non Resident

No limit

10%

195

Income by way of LTCG under section 112(1)(c)(iii)

Non Reident, Foreign Company

No limit

10%

195

Income by way of LTCG under Section 112A

Non Reident, Foreign Company

No limit

10%

195

Income by way of LTCG under Section 111A

Non Reident, Foreign Company

No limit

15%

195

Any other income by way of LTCG

Non Reident, Foreign Company

No limit

20%

195

Interest payable on money borrowed by the government or Indian concern in foreign currency

Non Reident, Foreign Company

No limit

20%

195

Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A

Non Reident, Foreign Company

No limit

10%

195

Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy

Non Resident

No limit

10%

195

Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy



If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976

Foreign Company

No limit

50%

195

Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy

If the agreement for such royalty payment is entered after 31st March 1976

Foreign Company

No limit

10%

195

Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy

Non Resident

No limit

10%

195

Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy

If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976

Foreign Company

No limit

50%

195

Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy

If the agreement for such payment is entered after 31st March 1976

Foreign Company

No limit

10%

195

Any other income

Non Resident

No limit

30%

195

Any other income

Foreign Company

No limit

40%

196B

Income (including LTCG) from units of an offshore fund

Non Reident, Foreign Company

No limit

10%

196C

Income (including LTCG) from foreign currency bonds or GDR of an Indian company

Non Reident, Foreign Company

No limit

10%

196D

Income (excluding dividend and capital gain) from Foreign Institutional Investors.

Non Reident, Foreign Company

No limit

20%

Note:
There is no change in normal income tax slabs under the old tax regime as well as the new tax regime for the FY 2022-23. Further, the surcharge and health and education cess shall be in addition to the TDS rates applicable for NRI deductees.

Also Read: Income Tax Slabs under Old and New Tax Regime

New TDS Provisions

Section 194194R- TDS on Providing Benefit or Perquisite to Businesses

Any person who provides perks or benefits to any resident, whether convertible into money or not, for carrying on any business or profession by such resident should deduct TDS. The person giving such benefits should deduct TDS at 10% on the value or aggregate value of such benefit

Further, it is applicable to Individuals and HUFs. And, that too when the aggregate value of the perquisite or benefit exceeds Rs. 20,000/-

Now, you may ask what was the need of inserting this Section? Well, the answer is that the insertion of Section 194R ensures that the recipient of perks or benefits does not avoid reporting such benefits as income in their ITR. Thereby, through this section, he will not be able to avoid his tax liability.

Also Read: Do I Need to File Income Tax Return?

Section 194S- TDS on Virtual Digital Assets

To trace the virtual digital assets transactions, there is an insertion of a new section namely Section 194S. The rate of TDS applicable is 1% and the deduction shall be at the time of payment of any sum as consideration for the transfer of virtual digital assets. Further, the TDS shall be deducted if the aggregate value of the transfer of the virtual digital assets is more than Rs 10,000 during the relevant financial year. 

However, if any individual or HUF
– does not have income from business or profession.
– earns income from business or profession, but the income does not exceed Rs 1 crore or Rs 50 lakh, respectively.

is responsible for deducting TDS under this section if the aggregate value of the virtual digital assets exceeds Rs 50,000 during the year. 

Also Read: Taxability of Capital Assets in India

In addition to the above,  if the person makes payment:
– Partly in cash or kind, but the part payment made in cash is not enough to deduct TDS in respect of the whole of such transaction.
– Wholly in kind or for the exchange of another virtual digital asset (i.e. no payment in cash).

Then the person responsible for deducting TDS must ensure that tax is paid for consideration for the transfer of virtual digital assets and release the payment for such transactions.

In case you have any doubts, then please leave a message below in the comment box or DM us on Whatsapp, Facebook, Instagram, LinkedIn and Twitter. Join our Telegram group for more information on tax, financial, and legal matters!

Disclaimer: Viewpoints of the author his or her own, and TaxHelpdesk is not responsible for anything!

Leave a Comment

Your email address will not be published.