Quick Summary
RATES OF TDS APPLICABLE FOR FINANCIAL YEAR 2021-22 FOR ASSESSMENT YEAR 2022-23
| Section | Nature of Payment | Threshold Limit for deduction tax | Rate of TDS applicable for the period or Basic Cut off (Individual /Company and others New Rate %) | Summary | |||
| Individual | Company | Other | If No Pan or Invalid PAN (Rate) | ||||
| 192 | Salary | As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22] | Slab Rates | Slab Rates | - | 30 | Option to choose between new and old tax slab regime for salaried employees |
| 192-A | Premature withdrawal from Employee Provident Fund (Payment of accumulated balance of provident fund which is taxable in the hands of an employee) | Rs 50000.00 | 10 | NA | NA | 20 | TDS provisions u/s 192A will be applicable when withdrawal of accumulated balance in Recognized Providend Fund is to be included in the total income 10% in case of Resident and 10.40% in case of Non- Resident |
| 193 | Interest on securities | Rs 2500.00 | 10 | 10 | - | 20 | Threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on 7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000. |
| 194 | Dividend other than the dividend as referred to in Section 115-O | Rs. 5000.00 | 10 | 10 | - | 20 | This amendment proposes to amend second proviso to section 194 of the Act to further provide that the provisions of section 194 i.e. TDS on dividend shall also not apply to dividend income credited or paid to a business trust by a special purpose vehicle or payment of dividend to any other person as may be notified. This means that no TDS needs to be deducted to AIF Category III also. |
| 194-A | Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks | · Senior Citizen Rs. 50000.00 · Others Rs. 40000.00 | 10 | - | - | 20 | |
| 194-B | Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort | Rs. 10000.00 | 30 | 30 | 30 | · 30% in case of Resident Indians and Domestic Companies · 31.2% in case of Non Resident and Foreign Companies | |
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FAQ :
For salary, the TDS is applicable as per slab rates, and there were no changes introduced for FY 2021-22. Employees have the option to choose between the new and old tax slab regimes.
TDS provisions under Section 192A are applicable when the withdrawal of accumulated balance from a Recognised Provident Fund is taxable and exceeds Rs 50,000.00. The TDS rate is 10% for residents and 10.40% for non-residents.
For interest on securities, the threshold limit for deduction is Rs 2,500.00, with a TDS rate of 10% applicable for both individuals and companies. A higher rate of 20% applies if no PAN is provided.
TDS on dividend income under Section 194 is not applicable to dividends credited or paid to a business trust by a special purpose vehicle, or payments to other entities as may be notified. This includes dividend income for AIF Category III.
For interest earned from time deposits, recurring deposits, and deposits in Co-op Banks, the threshold limit for senior citizens is Rs 50,000.00, and for others, it is Rs 40,000.00. The TDS rate is 10%.
Income from winnings from lotteries, crossword puzzles, card games, and other games of any sort has a threshold limit of Rs 10,000.00. The TDS rate is 30% for resident Indians and domestic companies, and 31.2% for non-residents and foreign companies.
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