TDS- SECTIONS

Posted by CA Pankaj Kumar Vats
On 4 Jan 2023

We have highlighted the Generally Used TDS Sections, and must check details

SECTION NATURE RATE THRESHOLD/LIMIT WHERE WE CAN FIND IT IN PROFIT AND LOSS A/C  
192 SALARY 0-2.5 LAKH-NIL 2.5-5 LAKH-5% 5-10 LAKH-20%   MORE THAN 10 LAKH-30% BELOW 60 YEARS=2.5 LAKH     SENIOR CITIZENS BETWEEN 60 YEARS AND BELOW 80 YEAR=3 LAKH     SUPER SENIOR CITIZEN ABOVE 80 YEAR=5 LAKH REMUNERATION/ /STIPEND/SALARY/WAGES      
193 INTEREST ON SECURITIES 10% 2,500   INTEREST    
194 DIVIDENDS 10% 5,000   DIVIDENEDS      
194-A INTEREST OTHER THAN “INTEREST ON SECURITIES” 10% 50,000 INTEREST
194-C PAYMENT ON CONTRACTORS HUF/INDIVIDUALS=1% OTHER=2% 30,000 Advertisement

Job Work

Any Contractual Work
 
Freight Forwarding

Logistics Services

Outsourcing Services


194-I RENT-
PLANT/MACHINERY/EQUIPMENT
2% OR 10%   2,40,000 RENT


LEASE  
         
194-J FEES FOR PROFESSIONAL OR TECHNICAL SERVICES     PROFESSIONAL FEES /CONSULTANCY FEES
  1)SUM PAID OR PAYABLE TOWARDS FEES FOR TECHNICAL SERVICES 2% 30,000 FEES FOR TECHNICAL SERVICES
  2)SUM PAID OF PAYABLE TOWARDS ROYALTY IN THE NATURE OF CONSIDERATION FOR SALE, DISTRIBUTION OR EXHIBITION OF CINEMATOGRAPHI FILMS 2% 30,000  
  3) ANY OTHER SUM 10% 30,000  
194-M PAYMENT OF COMMISSION (NOT BEING INSURANCE 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. 5% 50,00,000 -COMMISSION -BROKERAGE -CONTRACTUAL  EXPENSES -PROFESSIONAL FEE
194-O PAYMENT OR CREDIT OF AMOUNT BY THE E-COMMERCE OPERATOR TO E-COMMERCE PARTICIPANT 1% 5,00,000  
            PURCHASE OF GOODS 0.10% 50,00,000 -PURCHASE -GOODS -INVENTORY   -PRODUCTS -WARES -CONSUMPTION OF STORES AND SPARE PARTS
194-R TDS ON BENEFIT OR PERQUISITE OF A BUSINESS OR PROFESSION 10% 20,000 Refer the article for more details at
https://www.vatspk.com/tds-on-prerequisites-or-benefits-in-business-sec-194-r/
 
194-S TDS ON PAYMENT FOR VIRTUAL DIGITAL ASSETS 1% “SPECIFIED PERSON” PAYER-50,000

OTHER PAYERS-10,000
SECURITY TOKENS/
CRYPTO ASSETS/
DIGITAL ASSETS/ DIGITAL CURRENCY
194-K INCOME IN RESPECT OF UNITS PAYABLE TO RESIDENT PERSON 10% 5,000 DIVIDEND/CAPITAL GAIN ON UNITS
194-IB PAYMENT OF RENT BY INDIVIDUAL OR HUF NOT LIABLE TO TAX AUDIT 5% 50,000 PER MONTH RENT/LEASE/SUB-LEASE/TENANCY  
194-H COMMISSION OR BROKERAGE 5% 15,000 COMMISSION/ BROKERAGE    
195 PAYMENT OF ANY OTHER SUM TO A NON-RESIDENT RATES GIVEN UNDER THE FINANCE ACT ARE TO BE INCREASED BY THE APPLICABLE SURCHARGE AND EDUCATION CESS OF 4%       THERE IS NO THRESHOLD LIMIT Payments Outside India
Need to Check DTAA for this as well
194- N TDS on Cash Witdhrawal WITHDRAWALS IN EXCESS OF 1 CRORE THAN DEDUCTTION AT THE RATE 2%   Provided that all the ITR for last three Financial Years are filed regularly 1 CRORE  
    2%

If there is inconsistency in Filing of ITR for Last Three Financial Year
20 LAKH  
    5%

If there is inconsistency in Filing of ITR for Last Three Financial Year CRORE IN CASH THAN THE RATE IS 5%   WITHOUT FILED ITR OR HAS NOT FILED ITR
1 CRORE  
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