Latest TDS Rate Chart and TCS Rate Chart

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Zainab Hawa

Form 24Q
Form 26Q
Form 27Q
TDS Rates
Last updated on April 7th, 2023

The concept of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) was introduced with the aim to collect tax from the very source of income. Finance Minister confirms TDS Rates and TCS rates applicable for the coming Financial year in every Budget. Let’s take a look at the latest TCS & TDS Rate chart.

TDS for Resident Individuals and Businesses

As per the TDS concept, a person (deductor) who is liable to make a payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income, tax has been deducted at source, would be entitled to get the credit of the amount so deducted on the basis of Form 26AS or the certificate issued by the deductor.

The TDS Payments can be divided into 3 sections as TDS on:

  1. Salary Payments
  2. Non-Salary Payments.
  3. Applicable to Non-Residents

TDS on Salary Payments

As per Section 192 of the Income-tax Act, the employer needs to deduct TDS on salary payments. Employer/Deductor needs to deposit TDS deducted on salary before the 7th of the next month (30th April for the month of March). The employer has to file TDS Return in FORM 24Q.

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TDS on Non-Salary Payments

TDS on payments other than Salary depends upon the nature of Payment. Some common payments which feature the TDS system of taxation include commission, FD interest, rent, etc. TDS on different payments and their applicable rates are notified by the Income Tax Act, of 1961. For payments other than salary deductor has to file TDS Return Form 26Q.

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Latest TDS Rate Chart

Given below are the TDS rates for Individuals and Businesses:

SectionNature of PaymentThreshold Limit (INR)TDS Rate Chart
192SalaryBasic exemption limit of employeeNormal Slab Rates for FY 2023-24 (AY 2024-25)
192APremature Withdrawal from EPF50,00010% in case of availability of PAN
20% in case of unavailability of PAN
193Interest on Securities2,50010%
194Payment of Dividend5,00010%
194AInterest from deposits with banks/post office/co-operative society)(a) Senior Citizen- 50,000
(b) Others- 40,000
194AInterest other than “Interest on Securities” (Other than Interest from deposits with banks/post office/co-operative society)5,00010%
194BWinning from lotteries, cross-word, puzzles, card games, etc.10,00030%
194BAWinnings from online gamesNo Limit30%
194BBWinning from Horse Race10,00030%
194CPayment to Contractor
(a)Individuals/HUFs- 1%
(b)others- 2%
194DInsurance Commission15,000(a) Individuals- 5%
(b) Companies- 10%
194DAPayment in respect of life insurance policy1,00,0005%
194EPayment to Non-resident sportsmen or associationNo limit20% + Cess
194EEPayment in respect of deposit under the National Saving Scheme250010%
194FPayments on account of re-purchase of units by Mutual fund or UTINo limit20%
194GCommission, prize, etc. on sale of tickets15,0005%
194HCommission or Brokerage15,0005%
194-I(a)Rent for Plant & Machinery2,40,0002%
194-I(b)Rent for Immovable Property (Land/building or Furniture/fitting)2,40,00010%
194-IAPayment for acquisition of Immovable property50,00,0001% (TDS is to be deducted at the rate of 1% of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher.)
194-IBPayment of Rent by individual/HUF not liable for audit50,000 per month5%
194-ICPayment for monetary consideration under Joint Development AgreementNo limit10%
194JFee for Professional or Technical Services (FTS), Royalty, etc.30,0002% ( Fees for technical services, certain Royalties, call center) 10%- Others
194KPayment of Dividends by Mutual funds5,00010%
194LAPayment of compensation on acquisition of Immovable property2,50,00010%
194LBInterest from Infrastructure Bond to NRINo limit5%
194LBBPayment of income by Investment fundNo limit10%
194LBCIncome by Securitization fundNo limit(a) Individuals/HUFs- 25%
(b) Others- 30%
194MPayment of Commission, Brokerage, or Fees for Professional Service by Individual or HUF( other than covered u/s 194C, 194H,194J)50,00,0005%
194NCash withdrawal exceeding a certain limit(a) 1 crore2%
(b) Exceeding Rs. 20 lakhs (for those who have not filed an income tax return (ITR) for the last three years prior to withdrawing cash, and the tax due date has expired under section 139(1).) Under this situation, the tax must be deducted at the following rate:<20 lakh- 2%
<3 crore (co-operative society)- 5%
194-OTDS on payment by an E-commerce operator5 lakh1% in case of availability of PAN
5% in case of unavailability of PAN
194QPayment for the purchase of goods50 lakh0.1%
194RPerquisites or benefit to a business or profession20,00010%
194STDS on the transfer of Virtually Digital AssetSpecified Persons- 50,000
Others- 10,000
206AATDS in case of unavailability of PAN(as per the respective section)Higher of the following:
(a) at the rate or rate in force or
(b) @20%
206ABTDS in case of non-filers of ITRHigher of the following:
(a) 5%
(b) twice the rate or rate in force
(c) twice the rate specified in the relevant section
[provided that the person is a Non-resident and not having any permanent establishment in India, a person is not liable to file ITR and is not notified by the authorities to do so]

TDS on payments to Non-Resident

Tds u/s 195 is deducted on payments to be made to Non-Resident. There is no threshold limit under section 195 of the Income Tax Act, hence TDS will be deducted from the entire income/amount. TDS shall be deducted at the time of making payment. Form 27Q is required to be submitted on a quarterly basis on or before the due date on payments other than salary made to NRI. 

TDS Rate Chart for NRI

SectionNature of PaymentThreshold Limit (INR)TDS Rate Chart
195Payment of any other sum to a Non-Resident Indian (NRI)
(a) Income in case of investment made by an NRI20%
(b) LTCG income as referred to in Section 115E, Section 112A & sub-clause (iii) of clause (c) of sub-Section (1) of Section 112.10%
(c) STCG income as referred to in Section 111A15%
(d) Income by way of interest payable by the Government or an Indian concern on funds borrowed or debt incurred by the Government or the Indian concern in foreign currency (other than income by way of interest under Section 194LB or Section 194LC20%
(e) any other income30%
TDS Caculator
Is your payment liable for tds? Calculate your TDS liability, rate and due date.
TDS Caculator
Is your payment liable for tds? Calculate your TDS liability, rate and due date.

Major TDS Amendments in Budget 2023

Section 194BA – Introduction of TDS on Winnings from Online Games

To cover the gaming business under the Income Tax Act, a separate section, i.e., 194BA has been introduced in the Union Budget 2023. This section will be applicable from 1st July 2023.

TDS on winnings is deducted at 30% and further, the deduction threshold cap of INR 10,000 has been removed. The payer will be responsible to file a quarterly return of TDS in Form 26Q within the due date.

Section 194N – Enhanced Limit for Co-operative Society

In case of cash withdrawals from a co-operative society, the limit is proposed to be at INR 3 crores instead of INR 1 crore w.e.f from 1st April 2023.

The goal of this proposed amendment is to relieve co-operative societies from the burden of their frequent cash transactions with farmers and low-income individuals.

Section 192A- Relaxation in case of unavailability of PAN

In the past, if the individual did not provide the PAN number while withdrawing EPF (within 5 years), the TDS rate applicable was 30%. However, w.e.f from 1st April 2023, the rate is now reduced to 20%.

TCS Rate Chart

Tax Collected at Source (TCS) is an income tax, collected by the seller of specified goods, from the buyer. TCS is a concept where a person selling specific items is liable to collect tax from a buyer at a prescribed rate and deposit the same with the Government.

TCS Rate Chart

Given below are the latest TCS rates:

SectionCollection CodeNature of PaymentThreshold (INR)TCS rates
206CAAlcoholic Liquor for Human ConsumptionNA1%
BTimber obtained under a forest leaseNA2.5%
CTimber obtained by any mode other than under a forest leaseNA2.5%
DAny other forest produce not being timber or tendu leavesNA2.5%
F, GGrant of a license, lease, etc of the Parking lot and Toll Plaza respectivelyNA2%
HGrant of Mining and QuarryingNA2%
ITendu LeavesNA5%
JMinerals, being coal or lignite, or iron oreNA1%
KSale of Bullion > 2 lakh1%
LSale of the motor vehicle whether payment is received by cheque or by any other mode> 10 lakh1%
MSale in cash of any other goods except bullion & Jewelry > 2 lakh1%
NProviding of any service (other than Ch-XVII-B)> 2 lakh1%
OTCS for sale of overseas tour program packageNA20%
PTCS on remittance under LRS for an educational loan taken from a financial institution as mentioned in Section 80ENA0.5%
QForeign remittance under LRS-7 lakh in case of remittances for education and medical purpose
-No limit in the case of other foreign remittance
-5% in case of education and medical remittance
-20 %in case of other foreign remittances
RTCS on sale of goodsNA0.1% (1% in case of non-availability of PAN/Aadhar)

Major TCS Amendments in Budget 2023

Section 206C (1G) Enhanced TCS rate on certain Foreign Remittances

In the past, the TCS rate on foreign remittances was 5%. Budget 2023 proposed to increase the TCS rate to 20% (w.e.f 1st July 2023) in case of all the remittances under LRS and overseas tour packages. However, the TCS rate for educational and medical purposes in excess of INR 7 lakh continues to be at 5%.


What is 194C TDS rate – TDS on contractors?

As per the provisions of 194C TDS rate, the payer is required to deduct TDS at 1 % in case of individuals and 2% in case of HUFs. Furthermore, the threshold limit for a single transaction is INR 30,000 and the aggregate Transaction is INR 1,00,000.

At what rate the payer will deduct tax if I do not furnish my PAN?

As per section 206AA​, if you do not furnish your PAN to the payer (i.e., deductor), then the deductor shall deduct tax from whichever is the higher of the following, i.e, at the rate of 20%, or the rates specified in the relevant provision of the act or rates in force or the prescribed in the Finance Act.

How can I know the quantum of TDS deducted?

You can ask the payer to furnish you with a TDS certificate in respect of the tax deducted. Furthermore, you can also check Form 26AS​ from your e-filing account on Income Tax Portal or use the “View Your Tax Credit” facility available at

What is 194Q TDS rate – TDS on Payment for the purchase of goods?

As per the provisions of 194Q TDS rate of 0.1% is applicable on purchase of any goods of value exceeding INR 50 lakhs.

What is 194H TDS rate – Commission or Brokerage

As per the provisions of 194H TDS rate is 5% in case the overall payable amount of commission or brokerage exceeds INR 15,000.

Got Questions? Ask Away!

  1. Hey @ViraajAhuja47

    TDS and TCS both come under Income Tax.

    TDS: Tax Deducted at Source

    TDS is a taxation method, where a person making a payment of specific nature is liable to deduct tax and deposit it with the government.

    The rate at which TDS is deducted and paid is based on the specified based on nature of the payment.

    The person making the payment is required to make deduct and deposit the TDS.

    TCS: Tax Collected at Source

    TCS is collected by the seller from the buyer at the time of sale made. Sellers selling any specified item are liable to collect tax at a predefined rate from the buyer the time of making a sale. This TCS collected has to be deposited by the seller with the government.

    Hope this helps!