All about Tax Deducted at Source (TDS)- Rates of TDS, TDS Challan, Return & Due Dates, Interest, Penalty etc.
Rates of TDS applicable for Financial Year 2022-23 or Assessment Year 2023-24:
| Nature of Payment | Exemption | Individual /Company and others New Rate %) | If No Pan or Invalid PAN (Rate %) |
| 192 – Salaries | Slab Rate | Slab Rates | 30% |
| 192A- Premature withdrawal from Employee Provident Fund | 50,000 | Individual: 10% Company: NA | 20% |
| 193 – Interest on securities | 2,500 | Individual: 10% Company: 10%` | 20% |
| 194 – Dividend other than the dividend as referred to in Section 115-O | 5,000 | Individual: 10% Company: 10% | 20% |
| 194A – Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks | 40,000 (for individual) 50000 (for Senior Citizens) | Individual: 10% | 20% |
| 194B – Winning from Lotteries | 10,000 | Individual: 30% Company: 30% | 30% |
| 194BB – Winnings from Horse Race | 10,000 | Individual: 30% Company: 30% | 30% |
| 194C- Payment to Contractor – Single Transaction | 30,000 | Individual: 1% Company: 2% | 20% |
| 194C-Payment to Contractor – Aggregate During the Financial year | 1,00,000 | Individual: 1% Company: 2% | 20% |
| 194C- Contract – Transporter not covered under 44AE | 30,000 / 75,000 | Individual: 1% Company: 2% | 20% |
| 194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN | – | – | 20% |
| 194D – Insurance Commission | 15,000 | Individual: 5% Company: 5% | 20% |
| 194DA Payment in respect of life insurance policy | 1,00,000 | Individual: 5% Company: 5% | 20% |
| 194E – Payment to Non-Resident Sportsmen or Sports Association | – | Individual: 20% Company: 20% | 20% |
| 194EE – Payments out of deposits under National Savings Scheme | 2,500 | Individual: 10% Company: 10% | 20% |
| 194F – Repurchase Units by MFs | – | Individual: 20% Company: 20% | 20% |
| 194G – Commission – Lottery | 15,000 | Individual: 5% Company: 5% | 20% |
| 194H – Commission / Brokerage (Note 3) | 15,000 | Individual: 5% Company: 5% | 20% |
| 194I – Rent – Land and Building – furniture – fittings | 2,40,000 | Individual: 10% Company: 10% | 20% |
| 194I – Rent – Plant / Machinery / equipment | 2,40,000 | Individual: 2% Company: 2% | 20% |
| 194IA -Transfer of certain immovable property other than agricultural land [TDS is to be deducted at the rate of one percent of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher (Budget 2022)] | 50,00,000 | Individual: 1% Company: 1% | 20% |
| 194IB – Rent – Land or building or both | 50,000 per month | Individual: 5% | 20% |
| 194IC – Payment of Monetary consideration under Joint development agreement | – | Individual: 10% Company: 10% | 20% |
| 194J – Professional Fees for technical services (w.e.f. from 1.4.2020) | 30,000 | Individual: 2% Company: 2% | 20% |
| 194J – Professional Fees in all other cases | 30,000 | Individual: 10% Company: 10% | 20% |
| 194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company | – | Individual: 10% Company: 10% | 20% |
| 194LA – TDS on compensation for compulsory acquisition of immovable Property | 2,50,000 | Individual: 10% Company: 10% | 20% |
| 194 LBA (1)- Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | – | Individual: 10% Company: 10% | 20% |
| 194LB – Income by way of interest from infrastructure debt fund (non-resident) | – | Individual: 5% Company: 5% | 20% |
| 194LBB – Income in respect of investment in Securitisation trust. | – | Individual: 10% Company: 30% | 30% |
| 194LBC- Income in respect of investment made in a securitisation trust | – | Individual: 25% Company: 30% | 30% |
| 194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India | – | Individual: 5% Company: 5% | 20% |
| 194LD – Interest on certain bonds and govt. Securities | – | Individual: 5% Company: 5% | 20% |
| 194M – Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. | 50,00,000 | Individual: 5% Company: 5% | 20% |
| 194N – Cash withdrawal in excess of Rs. 20 Lakh during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. | 20,00,000 | Individual: 2% Company: 2% | 20% |
| 194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. | 1,00,00,000 | Individual: 2% Company: 2% | 20% |
| 194O – Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. | – | Individual: 1% Company: 1% | 20% |
| 194P- TDS by specified bank to specified senior citizen | – | Rates applicable to particular slab of income including applicable Surcharge and Health & Education Cess | – |
| 194Q- Purchase of goods | 50,00,000 | 0.10% | – |
| 194R- Deduction of tax on benefit of perquisite in respect of business or profession (Budget 2022) | Resident Indiviual: 20,000 | 10% | – |
| 194S- Transfer of a virtual digital asset (Budget 2022) | Resident Individual & HUF: 50,000 Others: 10,000 | 1% | – |
| 195- Payment of any sum to Non resident | – | – | Higher of Rate in force or Double Taxation Avoidance Act rate |
| 196B – Income from units | – | Individual: 10% Company: 10% | 20% |
| 196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) | – | Individual: 10% Company: 10% | 20% |
| 196D – Income of FIIs from securities | – | Individual: 20% Company: 20% | 20% |
Due date of TDS Deposit for Financial Year 2022-23
| S. No. | Particulars | Due Date |
| 1 | Tax Deposited without Challan | Same Day |
| 2 | Tax Deposited with Challan | 7th of next month |
| 3 | Tax on perquisites opted to be deposited by the employer | 7th of next month |
| 4 | Tax Deductible in March | 30th April of next year |
TDS/TCS Return Filing Due Dates of Financial Year 2022-23
| Quarter | Quarter Period | TDS Return Due Date |
| 1st Quarter | 1st April to 30th June | 31st July |
| 2nd Quarter | 1st July to 30th September | 31st Oct |
| 3rd Quarter | 1st October to 31st December | 31st Jan |
| 4th Quarter | 1st January to 31st March | 31st May |
ISSUANCE OF TDS CERTIFICATE
Time-Limit for Issue of TDS Certificate Form 16/Form 16A Form 16A should be issued within 15 days from the due date for furnishing the statement of tax deducted at the source.
| Quarter | Quarter Period | TDS Return Due Date | FORM 16 A Due Date |
| 1st Quarter | 1st April to 30th June | 31st July | 15th Aug |
| 2nd Quarter | 1st July to 30th September | 31st Oct | 15th Nov |
| 3rd Quarter | 1st October to 31st December | 31st Jan | 15th Feb |
| 4th Quarter | 1st January to 31st March | 31st May | 15th June |
Interest on late payment of TDS
| SECTION | NATURE OF DEFAULT | INTEREST SUBJECT TO TDS/TCS AMOUNT | PERIOD FOR WHICH INTEREST IS TO BE PAID |
| 201A | Non deduction of tax at source, either in whole or in part | 1% per month | From the date on which tax deductable to the date on which tax is actually deducted |
| After deduction of tax, non payment of tax either in whole or in part | 1.5% per month | From the date of deduction to the date of payment |
Penalty for late filing of TDS Return
Penalty (Sec 234E): Deductor will be liable to pay way of fee Rs. 200 per day till the failure to pay TDS continues. However, penalty should not exceed the total amount of TDS deducted for which statement was required to be filed. Penalty (Sec 271H): Assessing officer may direct a person who fails to file the statement of TDS within due date to pay penalty minimum of Rs.10,000 which may extended to Rs.1,00,000