Taxation
Here are TDS Rates for 2022-2023
4 min read
•
Nov 30, 2022
Table of contents
TDS, or Tax Deducted at Source, is a tax applicable to salaries, asset sales, rent, dividends, commissions, etc. The payer collects TDS on applicable incomes before paying/crediting it to the receiver or payee and deposits the tax to the tax department before the due date. TDS is managed by the Central Board for Direct Taxes (CBTD).
As TDS is collected directly from the source of income, it helps the Income Tax (IT) Department minimise tax evasion. But what are the latest TDS rates for FY 2022-2023? Let's take a look-
TDS Rates for 2022-2023 (AY 2023-2024)
In India, TDS applies to Resident Indians, NRIs, Domestic Companies, and Other Organisations. Here is the TDS rates chart for these categories-
TDS Rates for Resident Indians
| Income Tax Section | Type of Income | TDS Rates for FY 2022-2023 (AY 2023-2024) |
| 192 | Salary Received | As per the income tax slab rate – New or Old Tax Regime as chosen by an employee |
| 192A | Employee Provident Fund (EPF) - Premature withdrawal | 10% |
| 193 | Interest On Securities - - Government Securities - Government Debentures - Corporate securities or bonds - Other debt securities | |
| 194 | Dividend Income | |
| 194A | Interest earnings above INR 40,000 (general citizens) and INR 50,000 (senior citizens) from term deposits in a financial year | |
| 194EE | Income from National Savings Scheme (NSS) deposits | 10% |
| 194K | Income from-
| |
| 194LA | Compensation against the sale of specific immovable property | |
| 194LBB | Specific income earned by an investor | |
| 194BB | Earnings from horse race gambling | 30% |
| 194DA | Income from Insurance Payouts | 5% |
| 194G | Commission from lottery tickets | |
| 194H | Brokerage Commission | |
| 194-IB | Rent from individual or HUF apart from rent covered under Section 194-I | |
| 194M | Earnings from individuals and HUFs (up to INR 50 lakhs) | |
| 194F | Yields from the repurchase of units from a mutual fund or Unit Trust of India | 20% |
| 194-I | Rent from-
| 10% 10% 2% |
| 194-IA | Sale of immovable property except for agricultural land (up to INR 50 lakhs) | 1% |
| 194J | Payments received for-
| 2% 2% 10% |
| 194LBC | Earnings from securitisation funds by HUFs and individuals | 25% |
| 194N | Income in cash-
| 2% 5% |
NRI TDS Rates
The TDS FY 22-23 for NRIs is as follows-
| Section | Type of Income | TDS Rates for FY 2022-2023 (AY 2023-2024) |
| 192A | EPF withdrawal | 10% |
| 196A | Income from Mutual Fund units under Section 10 Clause 23D | 20% |
| 196D | Earnings from securities by Foreign Institutional Investors, apart from capital gains or dividend income | |
| 194E | Income by non-resident individuals or sports organisations | |
| 194F | Yields from the repurchase of units from a mutual fund or Unit Trust of India | |
| 194LB | Interest earnings from infrastructure debt funds | 5% |
| 194LC | Interest income from a loan or long-term bonds in foreign denomination | |
| 194LD | Interest generated by a Foreign Institutional Investor or Qualified Foreign Investor from INR-denominated corporate bonds of an Indian organisation or government securities | |
| 194LBC | Income from the securitisation fund | 30% |
| 195 | Long-Term Capital Gains (LTCG) -Section 115E Short-Term Capital Gains (STCG)- Section 111A LTCG under Section 193 Sub-Section 1 Clause C Sub-Cause iii LTCG not mentioned in Clauses 33, 36, and 38 of Section 10 Interest income from debt instruments by the government or an Indian Company in foreign currency | 10% 15% 10% 20% 20% |
TDS Rates for Domestic Companies
Here are the TDS rates applicable to domestic companies-
| Income Tax Section | Type of Income | TDS Rates for FY 2022-2023 (AY 2023-2024) |
| 193 | Interest earned from securities | 10% |
| 194 | Dividend earnings | |
| 194D | Insurance commission | |
| 194EE | NSS Deposits earnings | |
| 194LBA | Income earned from units of a business trust | |
| 194DA | Yields against Insurance | 5% |
| 194H | Any commission received from the brokerage | |
| 194F | Income from the repurchase of mutual funds or UTI units | 20% |
TDS Rates for Other Organisations
The TDS rates for organisations other than domestic companies for FY 22-23 are as follows-
| Income Tax Section | Type of Income | TDS Rates for FY 2022-2023 (AY 2023-2024) |
| 194E | Income by a foreign sports association | 20% |
| 194LB | Interest income from an infrastructure debt fund | 5% |
| 194LBA | Income received from units of a business trust | |
| 194LD | Income earned by a Qualified Foreign Investor or Foreign Institutional Investor from INR-denominated bond investment |
Key Takeaways:
Whether you earn interest from a Savings Account or FD or generate returns from other investments, you can be liable to pay TDS on the income. Thus, it is essential for everyone to know the TDS meaning and the latest TDS rates.
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Disclaimer
“This blog has been prepared to provide the readers with general information and basic understanding. The Income tax definitions and rules keep on changing, so it is suggested that the readers cross-check all the facts and contents of the material. Before taking any decisions, please consult your tax advisors.”
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