TDS Rate Chart FY 2022-23 (AY 2023-24)
Author: Editorial Team | in, Updated on: April 05, 2025 | Category:
Overview : The Financial Year 2022-23 introduced two significant additions to the TDS framework: Section 194R for business benefits/perquisites (10% rate) and Section 194S for virtual digital asset transfers (1% rate), both effective from July 1, 2022. These provisions expanded the tax net to emerging transaction types while maintaining the existing framework of differential rates for technical services (2%) versus professional services (10%).
Understanding TDS and Its Importance for Indian Taxpayers
Tax Deducted at Source (TDS) is a crucial mechanism in India's tax collection system, where taxes are deducted directly from the source of income generation. When payments such as salaries, professional fees, rent, interest, or commissions are made, the payer (the deductor) deducts a specified percentage as tax and deposits it with the government. This approach ensures a steady flow of tax revenue throughout the year and enhances overall compliance.
For the Financial Year 2022-23 (Assessment Year 2023-24), understanding the applicable TDS provisions is essential for both individuals and businesses to maintain compliance with Indian tax regulations. This comprehensive guide covers all TDS rates effective from April 1, 2022, including the introduction of new provisions during the year.
Simplified TDS Rate Chart for FY 2022-23
| Section | Nature of Payment (Simplified) | Rate (%) | Threshold Limit (₹) |
|---|---|---|---|
| 192 | Slab Rate | Basic Exemption Limit | |
| 194A | Interest (Bank/Post Office/Co-op Soc) | 10% | ₹50K (Sr. Cit) / ₹40K (Others) (Annual) |
| 194A | Interest (Others) | 10% | ₹5,000 (Annual) |
| 194C | Contractor Payments | 1% (Ind/HUF), 2% (Others) | Single > ₹30K; Agg. > ₹1L (Annual) |
| 194H | Commission/Brokerage | 5% | ₹15,000 (Annual) |
| 194-I | Rent (Land/Building/Furniture) | 10% | ₹2,40,000 (Annual) |
| 194-I | Rent (Plant & Machinery) | 2% | ₹2,40,000 (Annual) |
| 194-IB | Rent by Ind/HUF (Not under Tax Audit) | 5% | ₹50,000 per month |
| 194J | Professional Fees / Director Fees etc. | 10% | ₹30,000 (Annual, excl. Director fees) |
| 194J | Technical Fees / Royalty (Sale)/ Call Centre | 2% | ₹30,000 (Annual) |
| 194M | Certain Payments by Ind/HUF | 5% | ₹50 Lakhs (Annual) |
| 194Q | Purchase of Goods | 0.1% (on amount > 50L) | Agg. Purchase > ₹50L (Annual) |
| 194R | Business Benefit/Perquisite (from 01-Jul-22) | 10% | ₹20,000 (Annual Aggregate Value) |
| 194S | Virtual Digital Asset Transfer (from 01-Jul-22) | 1% | ₹50K (Specified) / ₹10K (Others) (Annual) |
Comprehensive TDS Rate Chart: FY 2022-23 (Assessment Year 2023-24)
For a detailed understanding of all applicable TDS provisions, the comprehensive chart below outlines all rates and threshold limits under various sections of the Income Tax Act, including the new provisions effective during FY 2022-23:
| Section | Nature of Payment (Simplified) | Rate (%) | Threshold Limit (₹) |
|---|---|---|---|
| 192 | Salary Payments | Applicable Income Tax Slab Rate | Basic Exemption Limit |
| 192A | Premature EPF Withdrawal (if service is less than 5 years) | 10% | 50,000 |
| 193 | Interest on Securities | 10% | 10,000 (General) / 5,000 (Certain Debentures) |
| 194 | Dividend (other than dividend under Section 115-O) | 10% | 5,000 (Annual Aggregate) |
| 194A | Interest (Other than Interest on Securities) | 10% | 50K (Sr.Cit-Bank)/40K (Oth-Bank)/5K (Other) |
| 194B | Winnings from Lotteries, Crossword Puzzles, Gambling etc. | 30% | 10,000 (Annual Aggregate) |
| 194BB | Winnings from Horse Races | 30% | 10,000 (Annual Aggregate) |
| 194C | Payment to Contractors / Sub-contractors | 1% (Ind/HUF Payee), 2% (Other Payees) | Single: 30,000; Annual Aggregate: 1,00,000 |
| 194D | Insurance Commission | 5% (Other Payees), 10% (Co. Payees) | 15,000 (Annual Aggregate) |
| 194DA | Payment regarding Life Insurance Policy (Not exempt u/s 10(10D)) | 5% (on the taxable income component) | Aggregate Payment during the year is 1,00,000 or more |
| 194G | Commission, etc., on Sale of Lottery Tickets | 5% | 15,000 (Annual Aggregate) |
| 194H | Commission or Brokerage (other than Insurance Commission) | 5% | 15,000 (Annual Aggregate) |
| 194-I | Rent of Plant & Machinery | 2% | 2,40,000 (Annual Aggregate) |
| 194-I | Rent of Land, Building, Furniture or Fittings | 10% | 2,40,000 (Annual Aggregate) |
| 194-IA | Payment on Transfer of Immovable Property (other than Agricultural Land) | 1% (on Consideration or SDV higher) | 50 Lakhs or more |
| 194-IB | Rent by Individual/HUF (not liable to tax audit) | 5% | 50,000 per month |
| 194J | Fees - Professional / Royalty / Non-Compete / Director | 10% | 30,000 (per category/year, excl. Director fees) |
| 194J | Fees - Technical / Royalty (Sale, Distr. of film) / Call Centre | 2% | 30,000 (per category/year) |
| 194K | Income from Units of Mutual Fund/Specified Undertaking/Company | 10% | 5,000 (Annual Aggregate) |
| 194LA | Compensation on Acquisition of Immovable Property | 10% | 2,50,000 (Annual Aggregate) |
| 194LBB | Income from Investment in Securitisation Trust | 25% (Ind./HUF), 30% (Others) | No Threshold |
| 194M | Contract/Commission/Prof. Fees paid by specified Ind./HUF | 5% | 50 Lakhs (Annual Aggregate) |
| 194N | Cash Withdrawal from Bank/Post Office/Co-op Society | 2% (or 5% if ITR non-filer & >1 Cr) | >1 Cr (Gen) / >3 Cr (Co-op) / >20L (No ITR) (Ann.) |
| 194-O | Payment by E-commerce Operator to Participant | 1% (Gross Amount) | 5 Lakhs (Annual Agg. for Ind/HUF with PAN) |
| 194P | TDS by Bank for Specified Senior Citizens (75+) | Applicable Income Tax Slab Rate | Conditions Apply (Not Threshold Based) |
| 194Q | TDS on Purchase of Goods by specified Buyer | 0.1% (on purchase > 50L) | Buyer Turnover > 10 Cr & Purchase ≥ 50 Lakhs Ann. |
| 194R | Benefit/Perquisite in Business/Prof. (from 01-Jul-22) | 10% | 20,000 (Annual Aggregate Value) |
| 194S | Transfer of Virtual Digital Asset (VDA) (from 01-Jul-22) | 1% (Consideration) | Specified Payer: 50,000 / Others: 10,000 (Ann.) |
| 206C(1H) | TCS on Sale of Goods | 0.1% (on amount > 50L) | Seller Turnover > 10 Cr & Sale ≥ 50 Lakhs Ann. |
Notable TDS Provisions for FY 2022-23
- Section 194R: Business Benefits and Perquisites (from July 1, 2022) : The Finance Act 2022 introduced Section 194R, requiring a 10% TDS on benefits or perquisites exceeding ₹20,000 in a financial year arising from business or profession. This provision was designed to capture non-monetary benefits such as free samples, promotional items, travel incentives, and other perquisites that were previously not explicitly covered under the TDS provisions.
- Section 194S: Virtual Digital Assets (from July 1, 2022) : Another major introduction in FY 2022-23 was Section 194S, which imposed a 1% TDS on the transfer of Virtual Digital Assets (VDAs) such as cryptocurrencies and non-fungible tokens (NFTs). This provision was introduced to bring transparency and tracking to the rapidly growing digital asset ecosystem.
- Section 194Q: Purchase of Goods (Continued from FY 2021-22) : FY 2022-23 was the first full financial year of implementation for Section 194Q, which requires specified buyers with turnover exceeding ₹10 crore to deduct TDS at 0.1% on purchases exceeding ₹50 lakhs annually. This provision works in conjunction with Section 206C(1H) (TCS on sale of goods) to ensure tax compliance in high-value goods transactions.
- Dual Rate Structure under Section 194J : The differential rate structure under Section 194J continued in FY 2022-23, with a lower 2% TDS rate for technical services, royalties for the sale, distribution or exhibition of cinematographic films & call centre services. All other categories covered under Section 194J (professional services, director fees, non-compete fees) remained subject to the standard 10% TDS rate. This distinction acknowledges the competitive nature and typically lower margins in technical service industries.
Conclusion
The financial year 2022-23 saw a significant expansion of India's TDS framework, particularly with the addition of provisions covering digital assets and business perquisites. Setindiabiz offers expert compliance solutions tailored to these new requirements, ensuring accurate calculations and timely compliance while protecting your business from penalties and optimising your tax position.
Disclaimer : This information is based on the Income Tax Act 1961 and incorporates changes introduced in the Finance Act 2022. While we strive for accuracy, tax laws are complex and subject to interpretation. We recommend consulting with a tax professional for advice specific to your situation.
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Author Bio
Editorial Team | in
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.