Rates under TDS
Sec Nature Threshold Rate Relevant Points
192 Salary (Both) Basic Exemption Limit Avg Rate Deductor: Employer. Rate: Average rate of income-tax computed on the
basis of rates in force. New Point: Employer must seek intimation regarding
new tax regime (u/s 115BAC). If not intimated, default regime applies. Non-
monetary perquisites: Employer can pay tax u/s 192(1A).
192A EPF Withdrawal (Pre-mature) (Both) < Rs. 50,000 (Aggregate) 10% Applicable if Rule 8 of Part A of 4th Schedule is not applicable (i.e., < 5
years service). If PAN not furnished: 20% applies.
193 Interest on Securities (Resident) > Rs. 10,000 10% W.e.f 01.10.2024: Exemption removed for Floating Rate Savings Bonds,
2020. Exemption: Gold Bonds, National Defence Bonds.
194 Dividend (Resident) > Rs. 10,000 10% Deductor: Principal Officer of Domestic Company. No TDS on dividend paid
to LIC, GIC, Business Trust (SPV).
194A Interest other than on Securities > Rs. 50,000 / 50,000 (SC) / 10,000 10% CBS: Tax is deducted on constructive credit/payment. Exemption: Interest
(Resident) paid to banks, LIC, UTI, partners by firm.
194B Winnings from Lottery/Games (Both) > Rs. 10,000 30% If winning is in kind, tax must be paid before release. Not applicable to
online games (194BA).
194BA Winnings from Online Games (Both) Net Winnings 30% Tax on net winnings at withdrawal/year-end.
194BB Winnings from Horse Races (Both) > Rs. 10,000 30% Deductor: Bookmaker or licensee.
194C Contractors (Resident) > Rs. 30,000 single / 1,00,000 aggregate 1% / 2% Transport operator owning ≤10 goods carriages exempt.
194D Insurance Commission (Resident) > Rs. 20,000 10% / 2% —
194DA Life Insurance Policy Maturity < Rs. 1,00,000 (Exempt) 2% Tax on income portion only.
(Resident)
194EE NSS Deposits (Resident) < Rs. 2,500 10% Payment to heirs: No TDS.
194G Commission on Lottery Tickets (Both) > Rs. 20,000 2% —
194H Commission or Brokerage (Resident) > Rs. 20,000 2% Not applicable to insurance commission.
194-I Rent (Resident) > Rs. 50,000 p.m. 2% / 10% No TDS on GST if shown separately.
194-IA Transfer of Immovable Property < Rs. 50 Lakhs 1% TAN not required.
194-IB Rent by Ind/HUF (Resident) > Rs. 50,000 p.m. 2% TAN not required.
194-IC Joint Development Agreement N/A 10% —
194J Professional / Technical Fees < Rs. 50,000 2% / 10% Director remuneration: no threshold.
194K Mutual Fund Units (Resident) > Rs. 10,000 10% Dividend only.
194LA Compulsory Acquisition < Rs. 5,00,000 10% Exempt under RFCTLARR Act.
194M Contract/Comm/Prof Fee by Ind/HUF > Rs. 50,00,000 2% TAN not required.
194N Cash Withdrawal (Both) > Rs. 1 Crore 2% Higher rates for non-filers.
194-O E-commerce Operator (Resident) > Rs. 5 Lakhs 0.10% For no PAN: 5%.
194P Specified Senior Citizen (Resident) N/A Rates in force Age ≥75 years.
194Q Purchase of Goods (Resident) > Rs. 50 Lakhs 0.10% Buyer turnover > Rs. 10 Cr.
194R Benefit/Perquisite < Rs. 20,000 10% No TDS on discounts.
194S Virtual Digital Asset (VDA) > Rs. 50,000 / 10,000 1% Specified person rules.
Rates under TCS
Sub-section Nature of Goods / Transaction Rate Relevant Points
206C(1) Alcoholic liquor for human 1% Collected at debit or
consumption receipt.
206C(1) Tendu leaves 5%
206C(1) Timber / Forest produce 2%
206C(1) Scrap 1% Waste/scrap from
manufacture.
206C(1) Minerals (Coal, lignite, iron ore) 1%
206C(1F) Motor Vehicle (> Rs. 10 Lakhs) 1% Not applicable to
manufacturer to
dealer.
206C(1G) LRS – Education (Loan u/s 80E) Nil
206C(1G) LRS – Education/Medical 5% On amount > Rs. 10
Lakhs.
206C(1G) LRS – Other Purposes 20% Threshold combined.
206C(1G) Overseas Tour Package 5% / 20% Independent
threshold of Rs. 10
Lakhs.
Special Rates
Nature of Default Applicable Rate
No PAN furnished (206AA) Higher of Rate in Act, Rates in force, or
20% (5% for 194-O,194Q)
Non-Filers of Return (206AB) Higher of 2x rate or 5%
No PAN for TCS (206CC) Higher of 2x rate or 5% (1% for
206C(1H))
Non-Filers for TCS (206CCA) Higher of 2x rate or 5%
Time Limits
Activity Time Limit Form No.
Deposit of TDS/TCS 7th of next month (March: 30th April) Challan 281
Deposit – Govt Office Same day —
Deposit (194-IA/IB/M) 30 days from end of month 26QB / 26QC / 26QD
Quarterly Statement (TDS) Q1–Q3: 31st next month; Q4: 31st May 24Q / 26Q / 27Q
Quarterly Statement (TCS) Q1–Q3: 15th next month; Q4: 15th May 27EQ
Correction Statement 6 years from end of FY —
Penalties
Provision Details
Interest u/s 201(1A) 1% p.m. if tax not deducted; 1.5% p.m.
if deducted but not paid
Fee u/s 234E Rs. 200 per day (max: TDS amount)
Penalty u/s 271H Rs. 10,000 to Rs. 1,00,000