TDS (Tax Deducted at Source) is a tax collection mechanism in India where the person making payment (the deductor) deducts a certain percentage of tax from the payment and deposits it with the government.
TDS is applicable to various types of payments such as salaries, interest, rent, commission, professional fees, etc. The rate of TDS varies depending on the type of payment and the status of the recipient.
TDS Rate Chart for FY 2023-24
| Section | Nature of Payment | Threshold Limit (Rs) | TDS Rate (%) |
| 192 | Payment of salary | Basic exemption limit | Normal Slab Rate |
| 192A | Premature EPF withdrawal | 50,000 | 10% , Without a PAN number is now 20% |
| 193 | Interest on securities | 10,000 | 10% |
| 194 | Payment of any dividend | 5,000 | 10% |
| 194A | Interest other than "Interest on securities" | 40,000 50,000 (For senior citizens) | 10% |
| 194A | Interest other than "Interest on securities" u/s 193 | 5,000 | 10% |
| 194B | Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort | 10,000 | 30% |
| 194BA | Income from online games | NA | 30% |
| 194BB | Income from horse races | 10,000 | 30% |
| 194C | Payment to contractor/sub-contractor (HUF/Individuals) | Single contractor payment 30,000 Aggregate contractor payment 1,00,000 | 1% |
| 194C | Payment to contractor/sub-contractor (Others) | Single contractor payment 30,000 Aggregate contractor payment 1,00,000 | 2% |
| 194D | Insurance commission (Domestic Companies) | 15,000 | 10% |
| Insurance commission (Other than companies) | 15,000 | 5% | |
| 194DA | Payment in respect of life insurance policy | 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/sports association | NA | 20% |
| 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 | NA | 20% |
| 194G | Commission, etc., on sale of lottery tickets | 15,000 | 5% |
| 194H | Commission or brokerage | 15,000 | 5% |
| 194-I | Rent - Plant & Machinery | 2,40,000 | 2% |
| 194-I | Rent - Land or building or furniture or fitting | 2,40,000 | 10% |
| 194-IA | Payment for transfer of immovable property other than agricultural land | 50,00,000 | 1% |
| 194-IB | Payment of rent by individual or HUF not liable to tax audit | 50,000 | 5% |
| 194-IC | Payment that are made under Joint Development Agreement (JDA) to Individual/HUF | NA | 10% |
| 194J | Fees for professional or technical services | ||
| 194J | Amount paid towards fees for technical services | 30,000 | 2% |
| 194J | Amount paid as royalty for sale/distribution/exhibition of cinematographic films | 30,000 | 2% |
| 194J | Amount paid by way of fee for professional services | 30,000 | 10% |
| 194K | Income in respect of units payable to resident person, example- dividends | NA | 10% |
| 194LA | Payment of compensation on acquisition of certain immovable property | 2,50,000 | 10% |
| 194LB | Payment of interest on infrastructure bonds to Non-Resident Indians | NA | 5% |
| 194LC | 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 | NA | 5% or 4% |
| 194LD | Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | NA | 5% |
| 194LBA(1) | Certain income distributed by a business trust among its unit holder | NA | 10% |
| 194LBB | Investment fund paying an income to a unit holder | NA | 10% , Foreign Company 40% |
| 194LBC | Income in respect of investment made in a securitisation trust | NA | Individual or HUF - 25% , Domestic Company or NRI - 10% , Foreign Company - 40% |
| 194M | Payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | 50,00,000 | 5% |
| 194N | Cash withdrawal exceeding a certain amount | Co-operative society - 3 Crore , Others - 1 crore | 2% |
| 194N | Cash withdrawal for those persons who have not filed ITR for three previous years immediately preceding the previous year | if exceeds Rs. 20 / if exceeds Rs. 1 crore | 2% / 5% |
| 194O | Payment by the e-commerce operator to e-commerce participant | 5,00,000 | 1% , Without PAN 5% |
| 194P | Deduction of tax by specified bank in case of senior citizen having age of 75 or more | Basic exemption limit | Normal tax slab rates |
| 194R | Perquisite or benefit to a business or profession | 20,000 | 10% |
| 194S | Payment on transfer of Virtual Digital Asset | Specified Persons- 50,000 , Others- 10,000 | 1% |
| 195 | Income in respect of investment made by a Non-resident Indian Citizen | NA | 20% |
| 195 | Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen | NA | 10% |
| 195 | Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 | NA | 10% |
| 195 | Income by way of long-term capital gains as referred to in Section 112A | NA | 10% |
| 195 | Income by way of short-term capital gains referred to in Section 111A | NA | 15% |
| 195 | Any other income by way of long-term capital gains | NA | 20% |
| 196B | Income from units (including long-term capital gain on transfer of such units) to an offshore fund | NA | 10% |
| 196C | Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) | NA | 10% |
| 196D | Income of foreign Institutional Investors from securities | NA | 20% |
TDS Payment Due Dates
TDS payment due dates and filing deadlines for the financial year 2023-24:
|
Month of deduction |
Due dates for depositing TDS |
TDS Return Due Date |
|
Apr-23 |
07-May-23 |
31-Jul-23 |
|
Jul-23 |
07-Aug-23 |
31-Oct-23 |
|
Oct-23 |
07-Nov-23 |
31-Jan-24 |
|
Jan-24 |
07-Feb-24 |
31-May-24 |
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