Appendices
Appendices
Appendix 1
TDS rates on payments made to non-residents and foreign companies:
| Nature of payment | Rate of tax* |
|---|---|
| a) TDS on interest on infrastructure debt fund, on foreign currency loans (under a loan agreement or by way of issue of long term bonds), on rupee denominated bonds of any Indian company or government security | 5% |
| b) TDS on long term infrastructure bonds issued between 1st July 2012 to 1st October 2014 | 4% |
| c) TDS on interest other than (a) and (b) | 20% |
| d) TDS on long-term capital gains on specified assets | 10% |
| e) TDS on long-term capital gains other than (d) | 20% |
| f) TDS on short-term capital gains on listed shares and units of equity-oriented mutual funds | 15% |
| g) TDS on dividend income | 20% |
| h) TDS on short-term capital gains other than (f) and (g) | 40% |
| i) Royalty and fees for technical services | 10% |
| * The rate of TDS shall be increased by applicable surcharge and Health and education cess @ 4%. |
Appendix 2
TDS rates on some of the common payments made to residents:
| Nature of payment | Rate of TDS in case of payment to | Threshold limit for aggregate payment p.a | |
|---|---|---|---|
| Individual or HUF | Others, including corporate assessees | ||
| TDS on salaries paid | According to the slab rates applicable to respective employees | NA | |
| TDS on dividend | 10% | 10% | INR 5,000 |
| TDS on dividend received from business trust if SPV has opted for beneficial tax regime | 10% | 10% | |
| TDS on income from mutual funds | 10% | 10% | INR 5,000 |
| TDS on interest on securities | 10% | 10% | INR 10,000 |
| TDS on deemed dividends | 30% | 30% | NA |
| TDS on interest other than ‘Interest on Securities’ | |||
| - By banks, co-operative societies, post offices | 10% | 10% | INR 40,000 |
| - By others | 10% | 10% | INR 5,000 |
| TDS on winnings from lottery or crossword puzzle | 30% | 30% | INR 10,000 |
| TDS on winnings from horse races | 30% | 30% | INR 10,000* |
| TDS on payments to contractors | 1% | 2% | INR 30,000 for a single transaction and INR 100,000 for the year |
| - Paid by individual/HUF not liable to a tax audit | 5%# | 5%# | INR 5,000,000 |
| TDS on payment of insurance commission | 5%# | 5%# | INR 15,000 |
| TDS on commission or brokerage | 5%# | 5%# | INR 15,000 |
| TDS on rent | |||
| - Land, building, furniture and fittings | 10% | 10% | INR 240,000 |
| - Plant and machinery, equipment | 2% | 2% | INR 240,000 |
| - TDS on rent (Paid by individual or HUF not covered above) | 5% | 5% | INR 600,000 (INR 50,000 p.m.) |
| TDS on transfer of immovable property other than agricultural land (Consideration to include incidental and amenities charges) | 1% | 1% | INR 5,000,000 |
| TDS on transfer of immovable property by an individual or HUF under a redevelopment agreement | 10% | 10% | N/A |
| TDS by an e-commerce operator while making payments to an e-commerce participant for sale of goods or providing services or both | 1% | 1% | INR 500,000 for individuals and HUFs, provided that such individual/HUF furnishes PAN/Aadhar to the e-commerce operator |
| TDS on technical services and TDS on royalty for consideration for sale, distribution or exhibition of cinematographic films | 2% | 2% | INR 30,000 |
| TDS on fees for professional or technical services, royalty and non-compete fees | 10% | 10% | INR 30,000 |
| - Paid by individual/HUF not liable to a tax audit | 5%# | 5%# | INR 5,000,000 |
| TDS on income from business of operation of call centers | 2% | 2% | INR 30,000 |
| TDS on remuneration/commission paid to director, other than salary | 10% | 10% | NA |
| TDS on payment of compensation on compulsory acquisition of immovable property other than agricultural land | 10% | 10% | INR 250,000 |
| TDS on cash withdrawal from bank accounts# | 2% | 2% | INR 2,500,000 to INR 10,000,000 Exceeding INR 10,000,000 |
| 5% | 5% | ||
| TDS on purchase of goods | 0.1% | 0.1% | INR 50,00,000 |
| TDS on benefit/perquisite# | 10% | 10% | INR 20,000 |
| Payment on transfer of virtual digital asset# | 1% | 1% | INR 50,000 when payment is made by specified person and INR 10,000 when payment is made by a person other than specified person |
These amendments are applicable with effect from 1 April 2022
# These amendments are introduced by The Finance Act, 2022 applicable with effect from 1 July 2022
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