TAX DEDUCTED AT SOURCE (TDS) [CA Final May 24]

Sec 192 Average rate of tax Deducted at the time of payment Sec 194H 5% Limit :- Sec 194LD 5% (SC + CESS) Interest on:-
Salary (Slab) Commission or Payer : any person No TDS if aggregate amount ≤ 15000 Interest to FII or • Rupee denominated bonds
Sec 192A 10% Deducted at the time of Payment brokerage (other than Indv./HUF QFI Payer : Any person • Govt. securities
Payment of (If no PAN = MMR) No TDS if: (limit) whose TO/GR is up to No TDS If: Payee : FII/QFI • Municipal Debt securities
Accumulated • amount < 50000 in a year 1cr/ 50 lacs) • Commission or brokerage on professional Refer Sec115A – NR taxation
balance to • Service ≥ 5 years Payee : Resident person services Sec 194M 5% Limit :-
employee Sec 194I 10% - Land, building, Limit :- Payment of No TDS if aggregate amount in FY ≤ 50 Lacs
Sec 193 10% No TDS if interest: Rent furniture or No TDS if aggregate for all assets in a FY ≤ certain sums by Payer : Individual /HUF
Interest on • Payable on govt. securities fitting 240000 (in case of co ownership 240000 limit inv./HUF not covered u/s
securities Payer : any person • Payable on DMAT securities 2% - P&M, applied for each owners separately) (contract, Prof 194C/H/J
Payee : Resident • Payable to business trust by SPV equipment fees, comm./ Payee : Resident
person • Paid to LIC,GIC, or other insurers brokerage)
Sec194 10% Deducted at the time of Payment Payer : any person Sec 194N If Limit is 1 Crore -2% Limits :-
Dividend Payer : Indian Co. No TDS if: (limit) (other than Indv./HUF Withdrawing • Paying any sums > 1 Crore
Payee : Resident • Aggregate dividend < Rs 5000 p.a and paid whose TO/GR is up to cash If limit is 20 Lacs • In case of no filers of ROI for preceding 3
shareholder in other than cash mode 1cr/ 50 lacs) • 20 Lac to 1 Crore - 2% FY the limit is sum > 20 Lacs
• Paid to LIC,GIC, or other insurers or Payee : Resident person (If payee is co- • Above 1 Crore – 5% • Govt. securities
• Business trust (SPV TO BT) Sec 194IA 1% of (higher of Limit :- operative
Sec 194A 10% No TDS if Purchase of consideration or SDV) No TDS if consideration or SDV < 500000 society limit will Payer : Banks, co-op not applicable if payment made to : Govt,
Interest other • Interest paid by Bank/cooperative immovable (does not apply if 194LA applies) be 3 Crore ) banks, post office banks, co-op banks, post office, or person
than Interest on Payer : any person bank/post office ≤ 40000 p.a (senior citizen property other Payer : any person [FA -2023] Payee : Any person notified by CG
securities (other than Indv./HUF – 50000 p.a) than rural Payee : Resident Consideration includes all charges incidental Sec 194O 1% on Gross amount of No TDS if:-
agricultural land person to transfer such as – membership fee, • ECP is individual/ HUF; and
whose TO/GR is up to • Interest paid by others ≤ 5000 p.a Payment by E- sale
maintenance fee, parking fees etc commerce • Gross amount in FY < 5 Lacs; and
1cr/ 50 lacs) • Paid by Firm to a partner
Sec 194IB 5% Deducted at the time of credit or payment of operators (ECO) If no PAN furnished - 5% • ECP has furnished PAN/Aadhar to ECO
Payee : Resident person • Paid by CG under income tax Act
Renting of last month rent of PY or last month of to E- commerce
• Paid to LIC, other insurers, UTI, or any
Immovable Payer : individual or HUF tenancy, whichever is earlier participants Payer : ECO
banks
properties (not covered u/s 194I) (But deduction not to exceed Rent for last (ECP) Payee : ECP
Sec 194B 30% Deducted at the time of Payment
Payee : Resident month) Sec 194P Rates in Force Specified senior citizen means:-
Winning from • No TDS if Aggr. Amount ≤ 10000 for FY
lottery or Payer : Any person • If winning in Kind , the winnings will be Income of • Resident Individual aged ≥ 75 years; and
If no PAN furnished TDS - Limit :-
crossword Payee : Any person released only after ensuring that TDS is Specified Senior Payer : Specified Banks • Having pension income & no other income
20% Sec 206AA No TDS if rent ≤ 50000 p.m Citizen Payee : Specified senior
puzzles paid to the govt. (except interest income from same bank);
Sec 194IC 10% TDS only on the cash consideration (not on citizen
Sec 194BA 30% on net winnings on Deducted at the time of: and
Payment under kind)
Winning from his user account • Withdrawal from user account (net • Furnished declaration to the specified
Joint Payer : any person
Online Games winnings withdrawal) :and bank
development Payee : Resident If payment to NR – Sec 195 applies
[FA -2023] Payer : Any Person • At the end of FY (Balance amount) (such person is not required to file ROI u/s
agreement person
Payee : Any person If winning in Kind , the winnings will be 139)
Sec 194J 2% - FPS, call centre, Limits :-
released only after TDS is paid to the govt. Sec 194Q 0.1% of excess of 50 Lacs Limit :-
Fees for royalty on sale - Professional fees ≤ 30000
Sec 194BB 30% No TDS if Aggregate Amount ≤ 10000 for FY Payment for Aggregate amount in a year ≤ 50 Lacs
professional and or distribution - Technical fees For each
Winning from Payer : Any person purchase of If no PAN furnished - 5%
technical of films - Royalty category of
horse race Payee : Any person goods No TDS u/s 194Q if:-
services 10% - Others - Non-compete fees payments
Sec 194C Individual/HUF – 1% Limits :- Payer : Resident buyer • TDS already deducted under other sec
Sitting fees to DIR – No Limit
Payment to Others – 2% • Single payment ≤ 30000 whose T/O of preceding (194O)
Payer : any person
contractors • Aggregate during FY ≤ 100000 PY > 10 Crore • TCS already collected u/s 206C(1H)
(other than Indv./HUF No tds if:-
Payer : any person Payee : Resident Seller • In case 194Q & 206C(1H) both applies –
(once exceeded 1 lac, TDS deducted on total whose TO/GR is up to • Payment by Indv./HUF for personal
(other than Indv. /HUF amount) 1cr/ 50 lacs) apply sec 194Q,
purpose
whose TO/GR is up to No TDS if :- Payee : Resident person • 194Q is applicable on advance amount
1cr/ 50 lacs) • Payment made by indv/HUF exclusively for Sec 194K 10% Limit :- • In the year of incorporation 194Q does not
Payee : Resident person personal purpose Income in • No TDS if aggregate amount in FY ≤ 5000 apply Bcoz PY turnover is NIL
Sec 194D 5% Limit :- respect of units Payer : any person No TDS if income is in the nature of capital Sec194R 10% of value of benefit Limit:-
Insurance Payer : any person No TDS if aggregate amount ≤ 15000 Payee : Resident gain Benefits or (FMV) Aggregate amount in FY ≤ 20000
commission Payee : Resident Sec 194LA 10% Deducted at the time of Payment perquisites in • If gift is in kind, payer has to ensure that
Sec 194DA 5% On (maturity amount Deducted at the time of Payment Compensation Limit :- money or in kind Payer : any person TDS has been deducted & paid to govt.
Maturity – premium) on compulsory Payer : any person No TDS if aggregate amount ≤ 250000 w.r.t business or (other than Indv./HUF • 194R NA on loan waiver /settlement by
proceeds of Life No TDS if acquisition of Payee : Resident person (does not apply if 194LA applies) profession whose TO/GR is up to banks
insurance policy Payer : any person • maturity amount in FY < 100000 immovable Prop No TDS on rural agricultural Land 1cr/ 50 lacs) • 194R NA on sale discount, cash discount or
Payee : Resident • exempt under sec 10(10D) Payee : Resident person rebates between seller and buyer
Sec 194 LB 5% (SC + CESS) Refer Sec115A – NR taxation
Sec 194E 20% (SC + CESS) • No limit Interest on • 194R NA on Bonus and right issues
Payment to NR • Sportsmen/ entertainer - NR + non citizen infrastructure Payer : IDF Sec 194S 1% of consideration Limits:-
sportsmen, • Umpire and referee not covered here Debt fund Payee : NR/FC Transfer of • Amount ≤ 10000 for
sports assoc., • Refer Sec 115BBA Sec 194LC 5% (SC + CESS) Refer Sec115A – NR taxation virtual digital Payer : Buyer ✓ Individual/HUF whose T/O ≤ 1 crore or
entertainer Interest on assets Payee : Seller GR ≤ 50 Lacs
Sec 194G 5% Limit :- Foreign currency Payer : Indian co/ BT (Sec 206AA not applicable) • Amount ≤ 50000 for
Commission on Payer : Any person No TDS if amount ≤ 15000 Borrowings Payee : NR/FC ✓ Assessee other than individual /HUF
sale of lottery Payee : Any person made by Indian ✓ Individual/HUF whose T/O > 1 crore or
tickets co./ bus. trust GR > 50 Lacs

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