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Sec 393(1) SI.No.2 of Income Tax Act 2025

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This query is : Resolved

Sandhya Garg (Querist)

12 February 2026 I would like to clarify whether, as per section 393(1) SI.No.2 of Income Tax Act 2025, in case the payer is an Individual or HUF, TDS is required to be deducted at 2% irrespective of the nature or classification of the asset. Further, in cases where the payer is other than an Individual or HUF, whether the applicable TDS rate should be determined based on the classification of the asset.

Please reply, welcome your response.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

12 February 2026 No, 2% is not applicable irrespective of asset classification merely because payer is Individual/HUF. The asset must fall within the scope of Section 393(1), Sl. No. 2.

For payers other than Individual/HUF, the applicable TDS rate is determined based on the relevant asset classification under the section.

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