New TDS & TCS Provisions - Summary

Vijender Aggarwal TDS Provisions & TCS Provisions - Summary 1
TDS PROVISIONS – SUMMARY {PY 2021-22; AY 2022-23}

Threshold Time of
Section Description Payment BY Payment TO Rate of TDS No TDS in Certain Cases
Limit Deduction
192 Salary Any employer Any employee Tax is to be deducted at the slab At the time of
(Resident as rates applicable to the estimated payment
well as NR) income of the employee.
192A Premature Taxable Trustees of Any person Rs 50,000 10% At the time of If premature withdrawals from EPF are
Withdrawals From Employees’ (TDS On Exact payment not taxable, no tax is required to be
Employees’ PF Provident Fund Rs 50,000 Also) deducted.
193 Interest On Any person Any resident Rs 5,000 10% At the time of • Interest on listed securities held in
Securities (ie issuer of credit or payment, dematerialized form;
securities) whichever is • Interest payable by CG/SG on
earlier securities issued by them;
• Interest paid to LIC, GIC or any other
insurer in respect of securities owned
by such insurers.
194 Dividend Principal Officer Any resident • Rs 5,000 where 10% Before making any -
(Including Dividend of a domestic shareholder dividend is paid distribution or
On Preference company to an individual payment of
Shares) shareholder by dividend
any mode other
than cash
• No threshold in
other cases
194A Interest Other • Any person Any • Rs 40,000 where 10% At the time of • Interest paid by a PF to its partners;
Than Interest other than resident interest is paid credit or payment, • Interest paid by a cooperative society
On Securities individual/HUF by banks & post whichever is to its members;
offices earlier
• Individual/HUF • Interest paid by government on
(Rs 50,000
only if turnover refunds under income tax, wealth tax,
where payment is
for preceding etc;
made by banks &
FY exceeds
post offices to • Interest on Zero Coupon Bond;
Rs 1 Cr in case
senior citizens) • Interest paid to banks, LIC or other
of business and
Rs 50L in case • Rs 5,000 in other notified financial organizations.
of profession cases
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194B Winnings From Person paying Any person Rs 10,000 30% At the time of
Lottery, Puzzles, income by way of payment
Card Games, etc such winnings
194BB Winnings From Book-maker or a Any person Rs 10,000 30% At the time of
Horse Races person holding payment
license for horse
racing or for
arranging for
wagering or
betting in any
race course
194C Payments To • Any person Any • Rs 30,000 in case • 1% in case At the time of • Any sum credited/paid to a contractor
Contractors other than resident of single contract payment is credit or payment, in transport business, who owns ten or
individual/HUF contractor • Rs 1,00,000 in made to whichever is less goods carriages at any time during
individual/HUF earlier the PY if the transporter furnishes a
• Individual/HUF case of aggregate
declaration to that effect along with
only if turnover of contracts • 2% in all other
during one FY cases his PAN.
for preceding
FY exceeds • Any sum credited/paid by
Rs 1 Cr in case individual/HUF exclusively for
of business and personal purposes.
Rs 50L in case
of profession
194D Insurance Any insurance Any Rs 15,000 5% At the time of

Commission company resident credit or payment,
whichever is
earlier
194DA Maturity Proceeds Any life insurance Any Rs 1,00,000 5% of Net At the time of No TDS is required to be deducted if the
Of Life Insurance company resident (TDS On Exact Amount payment maturity proceeds are exempt u/s
Policy Rs 1,00,000 Also) {Amount Received 10(10D):
(-) Amount Paid} • Death of the insured
• In cases other than death, where the
annual premium is within the limit of
10%/15%/20%, as the case maybe.
194E Payments To Any person • NR Athlete/ No Threshold 20% At the time of Payment being received should be of the
NR Sportsman, Sportsman/ Limit (+) credit or payment, following nature:
NR Entertainers, Entertainer Surcharge, if whichever is • Income from participation in any
etc if not a applicable earlier game or sport in India
Citizen of (+) • Income from advertisements
India 4% H&EC
• Income from contributing any sports
• NR Sports related articles in any Indian
Association newspaper, magazine or journal
194EE Payments Of Any person Individual or Rs 2,500 10% At the time of No TDS shall be deducted where the
Deposit Under HUF (TDS On Exact payment payment is made to the legal heirs of the
National Savings Rs 2,500 Also) assessee irrespective of the amount.
Scheme (NSS)
194G Commission On Any person Any person Rs 15,000 5% At the time of

Sale Of Lottery responsible for stocking, credit or payment,
Tickets paying any distributing, whichever is
commission, purchasing or earlier
remuneration or selling lottery
prize (by whatever tickets
name called) on
lottery tickets
194H Commission Or • Any person Any Rs 15,000 5% At the time of

Brokerage other than resident credit or payment,
individual/HUF whichever is
earlier
• Individual/HUF
only if turnover
for preceding
FY exceeds
Rs 1 Cr in case
of business and
Rs 50L in case
of profession
194I Rent • Any person Any Rs 2,40,000 • 2% in case of At the time of
other than resident P&M credit or payment,
individual/HUF whichever is
• 10% in case of
earlier
• Individual/HUF L&B, F&F, etc
only if turnover
for preceding
FY exceeds
Rs 1 Cr in case
of business and
Rs 50L in case
of profession
194IA Payment On Any person, being Resident Rs 50,00,000 1% At the time of Payment for transfer of rural
Transfer Of a transferee of transferor (Limit of Rs 50L credit or payment, agricultural land is not subject to TDS
Certain Immovable certain immovable applicable for each whichever is u/s 194IA.
Property Other property property separately) earlier
Than Rural (TDS On Exact
Agricultural Land Rs 50L Also)
194IB – Rent Paid By Individual/HUF • Payment To: Any resident • Tenant occupies the property till the end of the relevant PY:
Whose Turnover For Preceding FY • Threshold Limit: Rs 50,000 per month or TDS at the time of credit or payment of rent pertaining to the last month
Doesn’t Exceed Rs 1 Cr In Case Of of PY, whichever is earlier
part of a month
Business & Rs 50L In Case Of
Profession • Rate of TDS: 5% • Tenant vacates the property during the relevant PY:
TDS at the time of credit or payment of rent pertaining to the last month
of tenancy, whichever is earlier
194IC Payment Under Specified Any person responsible Any No Threshold 10% At the time of
Agreement Referred u/s for paying any sum under resident Limit credit or payment,
45(5A) specified agreement as whichever is earlier
referred to u/s 45(5A)
194J • Professional Services Fees • Any person other than Any • Rs 30,000 • 2% for following payments: At the time of Any sum
individual/HUF resident individually for ➢ Payments to call centres; credit or payment, credited/paid by
• Technical Services Fees
each category ➢ FTS; and whichever is earlier individual/HUF
• Royalty • Individual/HUF only if
of payment ➢ Royalty for sale, exclusively for
turnover for preceding
• Non-Compete Fees distribution or exhibition personal
FY exceeds Rs 1 Cr in • However,
of cinematographic films. purposes
• Remuneration To case of business and threshold limit
Non-Employee Directors Rs 50L in case of for payment to • 10% for all other payments
profession non-employee
directors is Nil
194K Income On Units Any person Any Rs 5,000 10% At the time of No TDS shall be deducted if
From Mutual Fund responsible for resident credit or the income is in the nature of
paying any income payment, capital gains.
in respect of whichever is
units of a mutual earlier
fund
194LA Compensation For Any person Any Rs 2,50,000 10% At the time of Compensation on compulsory
Acquisition Of (Generally CG/SG resident payment acquisition of rural agricultural
Certain Immovable or any other land is not subject to TDS u/ s
Property similar agency) 194LA.
194M • Contract Individual/HUF Any Rs 50,00,000 5% At the time Where an individual/HUF is

Payments (194C) not liable to resident ofcredit or liable to deduct TDS u/s
deduct tax u/s payment, 194C/194H/194J, Section 194M
• Commission
194C, 194H or whichever is shall not apply.
Except Insurance
Commission 194J earlier
(194H)
• Fee For
Professional
Services (194J)
194N Cash Withdrawals • Banking Any person 1 crore • General Rate: 2% of amount in At the time Section 194N is not applicable
Company maintaining excess of Rs 1 crore of cash where payment is made to
• Cooperative an account withdrawal certain recipients like:
• If recipient has not filed ROI for
with the
Bank all the three immediately preceding • Government;
specified
• Post Office FYs for which time limit u/s 139(1) • Banking Company;
payers
has expired, the threshold limit
• Cooperative Society engaged
shall stand modified to Rs 20L
in carrying on the business
instead of Rs 1 crore. Further, the
of banking;
rates of TDS shall be as follows:
➢ 2% of the sum, where the • Post Office;
aggregate of amounts being paid • Banking Correspondents and
in cash exceeds Rs 20L but White Label ATM Operators,
doesn’t exceed Rs 1 crore. who are involved in the
➢ 5% of the sum, where the handling of substantial
aggregate of amounts being paid amounts of cash as a part of
in cash exceeds Rs 1 crore their business operation, etc.
194O TDS On E-Commerce E-Commerce Participant • Where the e-commerce 1% of gross At the time
Payments By Operator, who participant is an individual/HUF amount of sale of credit or
E-Commerce facilitates sale of and such individual/HUF has of goods or payment,
Operator To goods or provision furnished PAN/Aadhar Number provision of whichever
E-Commerce of services of an to the e-commerce operator, services or both is earlier
E-Commerce threshold limit with respect to Note: In case
Participants
Participant gross amount of sales/service of failure to
through digital or or both in a FY shall be Rs 5L. furnish PAN,
electronic facility maximum TDS
or platform • No threshold in other cases
shall be 5%.
194P TDS By A Notified specified Specified senior citizen Basic exemption limit Rates in force Nothing Specified senior citizen not
Specified bank (Rs 3L/Rs 5L) specified required to file ITR where
{Resident (+) Age ≥ 75 years
Bank In Case (+) Earning only pension {ie, total income after giving effect under the tax has been deducted in
Of Specified relevant respect of his income u/s
income and interest income to the deductions allowable under
Senior Citizen section 194P
from any account Chapter VI-A should exceed the
On Pension maintained with the same basic exemption limit. Further, in
Income (Along specified bank in which case the individual is entitled to
With Interest pension income is received rebate u/s 87A from tax payable,
On Bank (+) Prescribed declaration then the same should be given
Account) furnished to the specified effect to}
bank}
194Q TDS On A buyer Any resident seller Rs 50,00,000 0.1% of value At the time No TDS u/s 194Q in respect
Payments responsible for of purchase of of credit or of a transaction on which:
Made For paying any sum for goods in excess payment,
• Tax is deductible under any
Purchase Of purchase of goods of Rs 50L whichever of the provisions of the
Goods provided his is earlier
Income Tax Act; or
business turnover Note: In case
{Applicable for the preceding of failure to • Tax is collectible under the
wef 1st July FY exceeds furnish PAN, provisions of Section 206C,
2021} Rs 10 crores maximum TDS other than Section 206C(1H).
shall be 5%.
Note: Where in respect of a
transaction, both Section
206C(1H) and Section 194Q
applies, tax is required to be
deducted u/s 194Q.
195 Payments Any person • Any NR Nil Rates as given At the time No TDS if the sum paid is
Other Than under the of credit or not taxable in the hands of
• Foreign Companies
Salary Income Tax payment, NR/Foreign Company
Act, 1961 whichever
is earlier
Note 1: No deduction of tax shall be made by any person from any sums payable to:
➢ Government;
➢ Reserve Bank of India;
➢ Corporation established by or under a Central Act, which is exempt from income tax on its income; or
➢ Mutual fund specified u/s 10(23D).
Note 2 (Section 206AA): Section 206AA requires furnishing of PAN by the deductee to the deductor, failing which the deductor has to deduct tax at the higher of
the following rates:
➢ Relevant rate as specified under the relevant provision of the Income Tax Act, 1961; or
➢ 20% (5% in case of Section 194O and Section 194Q).
Note 3 (Section 206AB): Section 206AB provides that for amounts paid/payable to a ‘specified person’, TDS shall be deducted at higher of the following rates:
➢ Twice the rate prescribed under the relevant provisions of the Income Tax Act/Finance Act; or
➢ 5%.
However, Section 206AB is not applicable where tax is deductible u/s 192, 192A, 194B, 194BB or 194N.
Meaning of ‘Specified Person’: A person who has not filed his income tax returns for both of the two assessment years relevant to the two previous years immediately
prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income u/s 139(1) has expired, and the aggregate of tax
deducted at source and tax collected at source in his case is Rs 50,000 or more in each of these two previous years. However, ‘specified person’ does not include a
non-resident who does not have a permanent establishment in India.
Note 4: Where the provisions of Section 206AA are also applicable to the ‘specified person’, in addition to the provisions of Section 206AB, then tax is required to be
deducted at higher of the two rates provided u/s 206AA & 206AB.
TCS PROVISIONS – SUMMARY {PY 2021-22; AY 2022-23}

Description Of Time of
Section Collector Collectee Threshold Limit Rate of TCS Additional Points
Transaction Collection
206C(1) Sale Of Following Goods: Any person Any person No threshold limit for any of the goods. Rates At the time • TCS provisions not to apply where a
• Alcoholic Liquor For of TCS shall be as follows: of debit or resident buyer purchases these goods
Human Consumption • Alcoholic liquor for human consumption – 1% receipt, for the purposes of manufacturing,
whichever is processing or producing articles/things
• Tendu Leaves • Tendu leaves - 5% earlier or for the purposes of generation of
• Timber (Obtained • Timber (obtained under a forest lease or by power (and not for trading purposes)
Under A Forest Lease any other mode) (+) Any other forest produce and issues a declaration to this effect.
Or By Any Other not being timber or tendu leaves – 2.5% • TCS provisions not to apply where a
Mode)
• Scrap (+) Minerals (being coal, lignite or iron buyer purchases these goods in a retail
• Any Other Forest ore) – 1% transaction for personal consumption.
Produce Not Being
Timber Or Tendu • Individuals/HUF to collect TCS only if
Leaves their turnover for the preceding FY
exceeds Rs 1 crore in case of business
• Scrap and Rs 50 lakhs in case of profession.
• Minerals (Being Coal,
Lignite Or Iron Ore)
206C(1C) Lease/License Of Any person Any person No Threshold Limit 2% At the time
Parking Lot, Toll Plaza & (Other of debit or
Mine/Quarry than a receipt,
public whichever is
sector earlier
company)
206C(1F) Sale Of Motor Vehicles Any person Any person Rs 10,00,000 1% At the time • TCS not to apply in case of sale of
(End- (Payment can be made of receipt motor vehicle by the manufacturer to
Customer) by any mode) the distributor/showroom-owner.
• Where the buyer is a local authority or
a public-sector company engaged in the
business of carrying passengers, TCS
provisions shall not apply.
• Individuals/HUF to collect TCS only if
their turnover for the preceding FY
exceeds Rs 1 crore in case of business
and Rs 50 lakhs in case of profession.
206C(1G) Overseas Tour Seller of an Buyer of an No Threshold Limit 5% At the time TCS provisions not to apply if the buyer
Programme Package overseas overseas of debit or of overseas package is liable to deduct
tour tour receipt, TDS under any other provision of the
programme programme whichever is Income Tax Act and the buyer has
package package earlier deducted such tax.
206C(1G) Overseas Remittance Authorised Buyer of • No TCS if the aggregate amount remitted by
At the time • TCS is not required to be collected by
Under The Liberalised Dealer of foreign a buyer in a FY doesn’t exceed Rs 7L
of debit or the authorized dealer on an amount in
Remittance Scheme Of foreign exchange receipt, respect of which the sum has been
• TCS @ 5% on the amount in excess of Rs 7L
RBI exchange remitting whichever is collected by the seller.
if the aggregate amount remitted by a buyer
authorised foreign earlier
in a FY exceeds Rs 7L • TCS provisions not to apply if the buyer
by RBI exchange
of foreign exchange is liable to deduct
under • TCS @ 0.5% on the amount in excess of
outside
TDS under any other provision of the
FEMA Rs 7L where the amount being remitted is a
India
Income Tax Act and the buyer has
loan obtained from any financial institution for
deducted such tax.
the purpose of pursuing any education and the
aggregate of such amount remitted by the
buyer in a FY exceeds Rs 7L
206C(1H) Sale Of Goods Of Value Any person Any person Rs 50,00,000 0.1% on the amount in At the time TCS provisions not to apply if the buyer
Exceeding Rs 50 Lakhs whose excess of Rs 50 lakhs of receipt is liable to deduct TDS under any
business provision of the Income Tax Act on the
Note: In case of failure
turnover to furnish PAN/Aadhar
goods purchased by him from the seller
during the and the buyer has deducted such TDS.
Number, maximum TCS
preceding
shall be 1%.
FY exceeds
Rs 10 cr
Note 1: TCS provisions shall not apply where the above-mentioned goods/facilities are procured by Central Government, State Government, Embassy, High Commission,
legation, commission, consulate and the trade representation of a foreign State.
Note 2 (Section 206CC): Where the Collectee fails to furnish his PAN or Aadhar Number to the Collector, tax shall be collected at higher of the following two rates:
➢ Twice the rate specified under the Income Tax Act, 1961; or
➢ 5% {1% in case of Section 206C(1H)}.
Provisions of Section 206CC does not apply to a non-resident who does not have a permanent establishment in India.
Note 3 (Section 206CCA): Section 206CCA provides that where the Collectee is a ‘specified person’, tax shall be collected at higher of the following two rates:
➢ Twice the rate specified under the Income Tax Act, 1961; or
➢ 5%.
Meaning of ‘Specified Person’: A person who has not filed his income tax returns for both of the two assessment years relevant to the two previous years immediately
prior to the previous year in which tax is required to be collected, for which the time limit of filing return of income u/s 139(1) has expired, and the aggregate of tax
deducted at source and tax collected at source in his case is Rs 50,000 or more in each of these two previous years. However, ‘specified person’ does not include a non-
resident who does not have a permanent establishment in India.
Note 4: If the provisions of Section 206CC are also applicable to the ‘specified person’, in addition to the provisions of Section 206CCA, then tax is required to be
collected at higher of the two rates provided u/s 206CC and 206CCA.

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Vijender Aggarwal TDS Provisions & TCS Provisions - Summary 1

TDS PROVISIONS – SUMMARY {PY 2021-22; AY 2022-23}

194D Insurance Any insurance Any Rs 15,000 5% At the time of

194G Commission On Any person Any person Rs 15,000 5% At the time of

194H Commission Or • Any person Any Rs 15,000 5% At the time of

194M • Contract Individual/HUF Any Rs 50,00,000 5% At the time Where an individual/HUF is

TCS PROVISIONS – SUMMARY {PY 2021-22; AY 2022-23}

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New TDS &amp; TCS Provisions - Summary

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Vijender Aggarwal TDS Provisions & TCS Provisions - Summary 1

TDS PROVISIONS – SUMMARY {PY 2021-22; AY 2022-23}

194D Insurance Any insurance Any Rs 15,000 5% At the time of

194G Commission On Any person Any person Rs 15,000 5% At the time of

194H Commission Or • Any person Any Rs 15,000 5% At the time of

194M • Contract Individual/HUF Any Rs 50,00,000 5% At the time Where an individual/HUF is

TCS PROVISIONS – SUMMARY {PY 2021-22; AY 2022-23}

You might also like

New TDS & TCS Provisions - Summary

New TDS & TCS Provisions - Summary