SUMMARY OF TDS & TCS
Section Nature of payment Payer Payee Threshold limit Rate of Time of deduction
TDS
192 Salary Any person Employee (Resident Basic Slab Rates At the time of
or Non-Resident) Exemption limit payment
192-A Premature withdrawal from Any person Employee (Resident Less than 10% or At the time of
provident Fund account or Non-Resident) 50,000 MMR(Note-1) payment
193 Interest on securities Any company Any person 5,000 (Note-2) 10% Payment or credit
(Resident) whichever is earlier
194 TDS on dividend Domestic company Any person 5000 (Only to 10% At the time of
(Resident) individual) payment
194-A Interest other Than interest on Any person other Any person 40,000, 10% Payment or credit
securities than individual (Resident) 50,000(senior whichever is earlier
and HUF who are citizens),
not subjected to 5000
tax audit (HIJAC) (Note-3)
194-B Winnings from lotteries or Any person Any person 10,000 30% At the time of
crossword puzzles etc payment
194-BB Winnings from horse races Any person Any person 10,000 30% At the time of
payment
194-C TDS on contracts including works Any person other Any person Single contract- Payee: Payment or credit
contract than individual (Resident) 30000, For Individual or whichever is earlier
and HUF who are Multiple HUF- 1%
contracts-
not subjected to Others-2%
Aggregate 1 LAC
tax audit (HIJAC)
194-D TDS on Insurance Commission Any person Any person 15,000 5% Payment or credit
(Resident) whichever is earlier
194-DA TDS on maturity of life insurance Any person Any person Less than 5% At the time of
policy (Resident) 1,00,000(Note-4) payment
194-E Payments made to Non-resident Any person Non-residential sports NA 20.8% At the time of
sports person, sports association, person, payment or credit
Non-resident Entertainer. whichever is earlier
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sports association,
Non-resident
Entertainer
194-G Commission on sale of lottery Any person Any person 15,000 5% Payment or credit
tickets whichever is earlier
194H TDS on commission and brokerage Any person other Any person 15,000 5% Payment or credit
than individual (Resident) whichever is earlier
and HUF who are
not subjected to
tax audit
(HIJAC).
194-I TDS on rent Any person other Any person 2,40,000 Plant and Payment or credit
than individual (Resident) machinery - whichever is earlier
and HUF who are 2%,
not subjected to Another
tax audit (HIJAC) cases-10%
194-IA Transfer of immovable property Any person Any person Less than 1% (TAN not Payment or credit
(other than Rural agricultural land) (Resident) 50,00,000 required) whichever is earlier
(Consideration
or SDV)
194-IB Rent of Immovable property Individual or HUF Any person 50,000 per 5% (TAN Payment or credit of
not covered U/s (Resident) month not last month rent
194-I required) whichever is earlier
194-IC Consideration For Joint Any person Any person NA 10% Payment or credit
Development Agreement (Resident) whichever is earlier
194-J Fee for technical, Professional Any person other Any person 30,000 10% & 2 % Payment or credit
services, remuneration to directors, than individual (Resident) (separate limit (Note-5,6) whichever is earlier
royalty, non-compete fee. and HUF who are for each
not subjected to payment)
tax audit (HIJAC)
194-K TDS on income from units Any person Any person 5,000 10% Payment or credit
(Resident) whichever is earlier
194-LA Compensation for compulsory Any person Any person 2,50,000 10% At the time of
acquisition of immovable property (Resident) payment
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194-M Payments covered u/s 194-C, 194-H, Individual or HUF Any person 50,00,000 5% (TAN Payment or credit
194-J other than those (Resident) not whichever is earlier
covered u/s 194- required)
C, 194-H, 194-J
194-N TDS on cash withdrawals from bank Bank, Co- Any person 20,00,000 or 2% or 5% At the time of
Operative bank, 1 crore (Note-7) payment
Post office
194-O TDS on E-commerce Transactions Any person being Any person For Individual 1% Payment or credit
an E-Commerce (Resident) or HUF - whichever is earlier
operator. 5,00,000
Others -No
Limit
194-P TDS by bank in case of senior Specified Bank Resident individual Basic Slab Rates Payment or credit
citizen of age 75 years or exemption limit whichever is earlier
more
194-Q Purchase of goods more than 50 Any person whose Any person 50,00,0000 0.1% on sum Payment or credit
lacs in a previous year last year turnover (Resident) in excess of whichever is earlier.
more than 10 50 lacs
Crores.
194-R Any benefit or perquisite arising Any person other Any person 20,000 10% Payment or credit
due to business or profession than individual whichever is earlier.
and HUF who are
not subjected to
tax audit (HIJAC)
194-S TDS on virtual digital assets Any Person Any Person 10,000 10% Payment or credit
50,000 whichever is earlier.
(Individual or
HUF for whom
tax audit not
applicable).
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In the following cases TDS Should be deducted only at the time of payment:
1. Section-192: TDS on salary.
2. Section-192A: TDS On Premature withdrawal from provident fund.
3. Section-194: TDS on dividend.
4. Section-194DA: TDS maturity proceeds of life insurance policy.
5. Section-194B: TDS on Winnings from lotteries, Card games, crossword puzzles.
6. Section-194BB: TDS on Winnings from horse races.
7. Section-194LA: TDS on compensation for compulsory acquisition of immovable properties.
8. Section-194N: TDS on cash withdrawn form bank.
Notes:
1. If Payee does not furnish PAN, Then TDS should be deducted at MMR (Maximum Marginal Rate) i.e 42.74%.
2. Interest on debentures issued by public company to individual and HUF, no TDS is applicable if Interest amount is up to 5,000 and
paid by account payee cheque.
3. If interest is paid by banks, cooperative banks, post offices, then thresh hold limit of 40,000 is applicable, 50,000 in case of
senior citizens and for all remaining cases threshold limit is 5,000.
4. No TDS u/s 194-DA is maturity amount is exempted u/s 10(10D).
5. Separate threshold limit of 30,000 is applicable for Fee for technical services, Fee for professional services, and Royalty and
Non-compete fee. However, for remuneration to directors no threshold limit is applicable.
6. In the following cases TDS Rate of 2% is applicable instead of 10%
a. Payment to any call centre.
b. Fee for technical services not being professional services.
c. Royalty paid for distribution or exhibition of cinematographic films.
7. TDS on cash withdrawn from bank:
a. If payee does not file return of income for last 3 years then threshold limit of 20,00,000 will be applicable and TDS rate
is 2% on amount in excess of 20,00,000 up to one crore and TDS rate of 5% is applicable on amount in excess one crore.
b. If Payee furnishes ROI for lase three years then thresh hold limit of one crore is applicable and TDS rate 5% on amount in
excess of 1 crore will applicable.
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TAX COLLECTED AT SOURCE
Section Nature of transaction Rate Payer Payee
206C(1) ✓ Sale of tendu leaves 5 Any person other than Any person other than
✓ Sale of timber & other forest produces 2.5 individual and HUF, who ✓ Buyer who buys such
✓ Alcoholic liquor for human consumption 1 are not required for tax goods for personnel
✓ Scrap 1 audit u/s 44AB. consumption.
✓ Minerals being coal, lignite, iron ore 1 ✓ Public sector company.
✓ Central government,
✓ State government etc.
206(1C) Leasing or licencing or transfer of any right or interest 2 Any person other than Any person other than
in any. individual and HUF, who public sector company.
✓ Parking lot are not required for tax
✓ Toll plaza audit u/s 44AB.
✓ Mine or quarry.
For the purpose of business.
206C(1F) Sale of motor vehicle of value exceeding 10 lacs. 1 Any person other than Any person other than
individual and HUF, who public sector company.
are not required for tax
audit u/s 44AB.
206(1G) Foreign remittance of money more than 7 lacs. 5% on amount more Authorised dealer No TCS if buyer is
than 5lacs deducted TDS under any
Sale of overseas tour package program 5 Seller of overseas tour section.
package program
206(1H) Sale of goods other than covered above 0.1% of Any person whose Any person other than
consideration more turnover is more than 10 ✓ Central government
than 50 lacs crores. ✓ State government
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