TDS stands for Tax Deducted at Source. The following tables list the various TDS rates applicable to resident and non-resident Indians as well as domestic and international companies in India. Any person paying income is responsible to deduct tax at the source and needs to deposit this tax within the time stipulated.
Commonly used TDS Provisions:
| Section | Nature of Payment for Particular Transactions | Threshold | Individual/HUF | Others | 15G-15H |
| Rs. | TDS Rate (%) | TDS Rate (%) | Allowed | ||
| 192 | Salaries (Annexure-I) | – | *As per Income tax Slabs | – | NO |
| 193 | Interest on Securities | 5000 | 10 | 10 | YES |
| 194A | Interest to other than Resident Senior Citizen | 40000 | 10 | 10 | YES |
| 194A | Interest to Resident Senior Citizen | 50000 | 10 | 10 | YES |
| 194C | Contractor-Single Transaction | 30000 | 1 | 2 | NO |
| 194C | Contractor – Aggregated Transaction during the F.Y. | 100000 | 1 | 2 | NO |
| 194C | Transporter declaration with PAN | – | – | – | NO |
| 194H | Commission / Brokerage | 15000 | 5 | 5 | NO |
| 194I | Rent of Land and Building – F&F | 240000 | 10 | 10 | YES |
| 194I | Rent of Plant / Machinery / Equipment | 240000 | 2 | 2 | YES |
| 194IA | Transfer of certain immovable property other than agriculture land | 5000000 | 1 | 1 | NO |
| 194JB | Professional Services Fees | 30000 | 10 | 10 | NO |
| 194JA | Technical Services Fees (wef 01.04.2020) | 30000 | 2 | 2 | NO |
| 194JA | Payment to Call Centre Operator | 30000 | 2 | 2 | NO |
| 194 | Dividend-Resident (Any mode of Payment) wef 01.04.2020 | 5000 | 10 | 10 | YES |
TDS Rates for F.Y.2021-22
| Section | Nature of Payment for Particular Transactions | Threshold | Individual/HUF | Others | 15G-15H |
| (Rs.) | TDS Rate (%) | TDS Rate (%) | Allowed | ||
| 195 | Dividend-Non-Resident (Any mode of Payment) wef 01.04.2020 | – | 20 | 20 | NO |
| 195 | Non-resident Payments (Interest or other sum) | – | 30 +Surcharge +Cess or DTAA Rates whichever is lower | 30 +Surcharge +Cess or DTAA Rates whichever is lower | NO |
| 194N | Cash Withdrawal exceeding specified limit wef 01.07.2020 and last three A.Y. Income tax return filed | 1 Crore | 2 | 2 | NO |
| 194NF | Cash Withdrawal exceeding specified limit wef 01.07.2020 and last three A.Y. Income tax return not filed | 20 lakh but less than 1 crore | 2 | 2 | NO |
| 194NF | Cash Withdrawal exceeding specified limit wef 01.07.2020 and last three A.Y. Income tax return not filed | 1 Crore | 5 | 5 | NO |
| 194O | E-commerce operatorfor sale of goods or services wef 01.10.2020 | – | 1 | 1 | NO |
| 194M | Payment made u/s 194C,194J,194H and TDS not deducted as person not liable for tax audit | 50 lakh | 5 | 5 | NO |
Other TDS Provisions:
| Section | Nature of Payment | Threshold | Individual/HUF | Others | 15G-15H |
| Rs. | TDS Rate (%) | TDS Rate (%) | Allowed | ||
| 192A | Premature withdrawal from EPF | 50000 | 10 | – | YES |
| 194B | Winning from Lotteries | 10000 | 30 | 30 | NO |
| 194BB | Winnings from Horse Race | 10000 | 30 | 30 | NO |
| 194D | Insurance Commission | 15000 | 5 | 10 | YES |
| 194DA | Life insurance Policy | 100000 | 5 | 5 | YES |
| 194E | Non-Resident Sportsmen or Sports Association | – | 20 | 20 | NO |
| 194EE | NSS | 2500 | 10 | 10 | YES |
| 194F | Repurchase Units by MFs | – | 20 | 20 | NO |
| 194G | Commission – Lottery | 15000 | 5 | 5 | NO |
| 194IB | Rent by Individual / HUF (wef 01.06.2017) | 50000/PM | 5 | – | NO |
| 194LA | Compensation on transfer of certain immovable property other than agricultural land | 250000 | 10 | 10 | NO |
Notes:
- No TDS on Goods & Service Tax: As per circular no. 23/2017 dated 19.07.2017 of CBEC, TDS is not applicable on Goods and Service Tax (GST) where GST is shown separately.
- No Surcharge, Health & Education Cess is not deductible on payments made to residents, other than salary
- TDS at higher rate: If a person fails to furnish PAN to the Bank whose receipts are subject to TDS, then, the TDS is to be deducted at higher of the following rates:
- The rates in force or
- 20%