TDS rate chart for FY 2022-23, TDS rate chart, TDS rates for AY 2023-24, Ebizfiling

TDS Rate chart for the FY 2022-23 (AY 2023-24)

Financial Year 2022-23- TDS Rate Chart (AY 2023-24)

When Finance Minister Nirmala Sitharaman announced budget 2022, there was no changes made in the TDS rates for FY 2022-23 hence the old rates without giving the effect of Covid reduction of 25% shall be applicable for FY 2022-23. That means, the TDS rate chart for FY 2022-23 (AY 2023-24) remains the same as it was in the financial year 2021-22.

 

However, there are the addition of certain sections as per the update in Union Budget 2022:

  • For the transfer of virtual digital assets, a person is liable for a 1% Tax Deduction at Source (TDS) at the moment of payment under new section 194S.

  • It is suggested to change the amount on which TDS should be deducted when selling immovable property under Section 194-IA. The individual purchasing the property shall deduct 1 percent of the amount paid/credited, or the stamp duty value of the property, whichever is greater.

What is TDS?

The TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at the source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

TDS Rate Chart For Financial Year 2022-23 and Assessment Year 2023-24

Section of the Income-tax Act  

Nature of Payment  

Rate of TDS

Remarks

192

Salary Payment

Normal slab rates

Basic exemption limit for an employees

192A

Premature Withdrawal from EPF

10%

 –

193

Interest on Securities

10%

194

Dividend

10%

As per Budget 2021- No TDS needs to be deducted to AIF Category III.

194A

Interest other than interest on securities

10%

194B

Winnings from lotteries, crossword puzzles, card games and other games

30%

 –

194BB

Income earned from winning in horse races

30%

 –

194C

Payment of Contractors and sub-contractors

1% (individual/HUF)  2% (others)

194D

Insurance Commission

5%  (Individual)

10% (Companies)

194DA

Payment in respect of life insurance policy

5%

194E

Payment to non-resident sportsmen/sports association

20%

The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

194EE

Payments in respect of deposits under National Savings Scheme

10%

194F

Payments on account of re-purchase of Units by Mutual Funds or UTI

20%

194G

Commission, prize etc., on sale of lottery tickets

5%

194H

Commission or brokerage

5%

194-I(a)

Rent for plant and machinery

2%

194-I(b)

Rent for immovable property

10%

194-IA

Payment for acquisition of immovable property  other than agriculture land

1%

194-IB

Payment of rent by individual or HUF

5%

194-IC

Payment for Joint Development Agreements

10%

194J

Fee for Professional or Technical Services (FTS), Royalty, etc.

2% (FTS, certain royalties, call center)  10% (others)

194K

Payment of dividends by Mutual Funds

10%

194LA

Payment of Compensation on acquisition of immovable property

10%

194LBA(1)

Payment of income by Business trust

10%

194LBB(i)

Payment of income by Investment fund

10%

194LBC(1)

Income by securitization trust

25% (Individual/HUF)

30% (Others)

194M

Payment to the commission, brokerage, etc. by individuals and HUF

5%

194N

Cash withdrawal during the previous year from one or more accounts maintained by a person with a banking company, cooperative society engaged in the business of banking or a post office

2% / 5%

194-O

TDS on e-commerce participants

1%

194Q

Purchase of goods (applicable w.e.f 01.07.2021)

0.10%

A new section 194Q is proposed to be inserted to provide for deduction of TDS by person responsible for paying any sum to any resident for purchase of goods @ 0.1%.

194S

Transfer of Virtual Digital Assets

1%

 –

195

Payment of any other sum to a Non-resident

 

 –

The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

195

(a) Investment made by a Non-resident Indian Citizen

20%

195

(b) Long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen

10%

195

(c) Long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112

10%

195

(d) Long-term capital gains as referred to in Section 112A

10%

195

(e) Short-term capital gains referred to in Section 111A

15%

 

(f) Any other income by way of long-term capital gains

20%

 

(g) Income by way of interest payable by the Government or an Indian concern on money borrowed or debt incurred by the Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)

20%

 

(h)  Income by way of royalty payable by the Government or an Indian concern

10%

 

(i) Income by way of royalty

10%

 

 

(j) Income by way of fees for technical services payable by the Government or an Indian concern

10%

 

 

(k)Any other Income

30%

 

196B

Income from units from an offshore fund

10%

 

196C

Income from foreign currency bonds or GDR of an Indian company

10%

 

196D

Income of foreign Institutional Investors from securities

20%

 

 Conclusion

Many times it happens that a person may deduct TDS at rates lower or higher than those set forth in the Act due to ignorance or other circumstances. As a result, it is important to verify the rate at which TDS is deducted for each transaction before filing the TDS Return.

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2 thoughts on “TDS Rate chart for the FY 2022-23 (AY 2023-24)

  1. Whether we have to deduct TDS U/s 194Q for the suppliers for whom we deducted TDS on purchase in PY 2021-22 without considering limit of Rs.50Lakhs for this FY 2022-23.ie, From the first bill itself to deduct TDS in FY 2022-23 or to Consider limit of Rs.50Lakhs for this FY…

    PLEASE CONFIRM

    • Phone: 7022628486
    1. Hi Kiran,

      The TDS limit criteria for under any section is financial year wise only, so 50 lakh limit is to be considered.

      I hope this helps. In case of more queries, you may get in touch with Ebizfiling on +91964320329. Or Mail us at info@ebizfiling.com.

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