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TDS Chart b. 194 C - Contract Payment + Work Payment 7) Sections where TDS can be ded. for personal purpose
Sec Threshold c. 194 H - Other commission OR Brokerage
Purpose (More than) Rate
Who will
Time #HIM
tion deduct
(per payer per payee p.a)
d. 194 I - Rent payment (Lease/ Sublease) a. 194H → other commission or brokerage
194 J - 5 purpose
192 Salary payment Taxable income Tax payable (Monthly TDS) Employer Payment
Payment
e. b. 194 I : Income by way of Rent [lease, sublease
192A
Payment of Taxable EPF
At least 50K 10% P.F dept.
(Accumulated bal.) (If no pan → MMR = 42.744 % )
Insurance Payment
f. M - Work, Professional fees, Commission tenancy]
194DA Taxable maturity of LIP At least 1L 5% comp.
194EE Maturity of NSC At least 2500 10% Post office Payment c. 194M → Work, Professional fees & Commission
194F 80 CCB Mutual Fund No Limit 20%
Mutual Fund
Comp.
Payment
3) However. Every Person other than Ind./HUF can deduct TDS in d. So, if covered 194C & 194J and payment for personal
Accrual or Receipt
all other sections purpose then for personal purpose; TDS to be ded. in 194M
193 Int. on Security No Limit 10% Payer
if eligible
basis
(w.e is earlier)
Accrual or Receipt
194A Interest on other than securities 50k/ 40k/ 5k 10%  Person basis
(w.e is earlier)
i) TDS deducted even if for personal purpose
Accrual or Receipt
**5000 Domestic
194 Dividend on Securities
(No TH. If paid in cash)
10% comp. only
basis
(w.e is earlier) 4) Other than  (Ind/HUF whose t/o does not exceed
Accrual or Receipt
Mutual fund
194K Dividend on mutual fund 5000 10% issuer
basis
(w.e is earlier) ₹1Cr/ 50L in the preceding year)
20.8%
Accrual or Receipt
194E Payment to Non-residence No Limit
(20% + 4% H&E cess)
payer basis
(w.e is earlier) a. 1194M - Work, professional fees, commission
194B Casual Income 10K 30% Payer Payment 94IB - Rent other than 194CI
194BB Horse races 10K 30% Payer Payment
Accrual or Receipt
30K(Single) / 1% (IND or HUF) / 2% (Other)
194C Contract Payment + Work Payment  Person basis

5) Even if threshold limit is crossed, but making payment

1L (Aggregate) [rates as per payee]
(w.e is earlier)

to more than 1 person → then not liable to deduct TDS

Accrual or Receipt
Insurance
194D Insurance Commission 15K 5% Comp.
basis
(w.e is earlier)

becuz limit is per person per payee

Accrual or Receipt
Lottery
194G Lottery Ticket commission 15K 5% Comp.
basis
(w.e is earlier)
Accrual or Receipt
194H Other commission OR Brokerage 15K 5%  Person basis
(No TDS for dealing in securities) (w.e is earlier)

Accrual or Receipt
194I Rent payment (Lease/ Sublease) 2.40L 2% (P&M) / 10% (L&B)  Person basis
(Includes Advance rent but excludes refundable deposit) (Together for P&L and Building)
(w.e is earlier)
5%
Rent other than Last month of the
194IB 50k per month [If no PAN → then @ 20% but
(not covered in 194I).  F.Y OR tenancy
Restricted to last month rent]
1% of actual Accrual or Receipt
Purchase of Immovable Property basis
194IA At least 50L value Buyer
(Except rural agri. Land) (w.e is earlier)
[Ignore stamp duty]
Bank/Post Payment
194N Cash withdrawal *1Cr 2 % on excess of Rs 1Cr
office
Specified Redevelopment Accrual or Receipt

10% basis
6) Summary
194 IC agreement No Limit Builder
(w.e is earlier)
(Payment by builder in cash)
10% Payment
194LA Compulsory Acquisition 2.50L (No TDS if p’ment as per right to payer
fair compensation )
30k Payment
5 purpose (30K limit – separately for
194J (No threshold limit for director, if paid
each category)
10% / 2%  Person
anything other than salary)

Work, Professional fees,

Commission, brokerage 50L 5% Other than
Accrual or Receipt
basis
194M
(Those which are not covered in  (w.e is earlier)
194C & 194J are covered here)

1%
Accrual or Receipt
Payment by E-commerce basis
Ecommerce
194O operator to E-commerce 5L (If TDS deductible in this sec, (w.e is earlier)
then no TDS in any other section, operator
participant
it withstands all other sections
Resident person having age at Specified Payment
194P least 75 yrs with only pension & Taxable income Tax payable Banking
interest income Committee
Benefit or perquisites in respect Before releasing
10% (on amt from 1/7/22
194R of business or profession (Tony 20K  Person benefit
but limit from 1/4/22)
TV to Jetya.)

 Note:
1) TDS will be deducted on the entire amt, if the said amt
is more than the THRESHOLD LIMIT
 Sec. 194M
1) This sec is applicable even for  Person; but only
2)  Person → Every Person other than Ind./HUF + Individual/
for deducting TDS for personal purposes
HUF whose turnover exceeds 1 cr (Busi.)/ 50L (Prof.) in preceding
P.Y can only deduct TDS in the below sections (ACHIJ)
a. 194 A - Interest on other than securities

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TDS 4] Section 194 : TDS for Dividend from domestic co. 2) “Entertainment programme of TV” is covered under “Card
1) TDS N.A. If div paid to LIC, GIC, subsidiary of GIC game & other game.”
1] Section 192 : Ded. of TDS from salaries (applied to NR also)
3) No TDS on betting & gambling → Govt. भूल गयी
5] Sec 194 A:TDS for Int. other than Int. on Securities
1) If employee has 2 employer → employee will select any
one employer, who will deduct TDS Threshold
Limit 7] Sec. 194C : Payment to Contractor / Sub contractor for any
2) Steps for deducting TDS: work eg. repairs (Incl. labour supply for carrying work)
Bank/ P.O Other
a) Step 1 → Find = Salary - Loss on H.P + other
positive Income – Ded. u/c VI-A 1)
Resident
Other 5k
S.C TDS rates on the basis of payee
b) Step 2 → Tax on step 1 Payee (Contractor) Rate
50K 40K
1) Ind. / HUF 1%
c) Step 3 → TDS on salary = Step 2 (Tax payable) – TDS 2) other 2%
already ded. on other income  Note: 3) Contractor / sub-contractor in NIL.
1) If CBS is adopted (where int. is calculated daily or monthly) transport (with PAN) & less than 10
trucks in the year → Presumptive
d)
Step 3
Step 4 → Monthly TDS = No.of months a. Limit of 40k/50k is not branch wise taxation follower

2] Sec. 192A: Payment of Taxable EPF (accumulated balance) to 2) Meaning of Work

employee. 1) No TDS if int. is paid to.. a) Advertising
b) Broadcasting/ Telecasting
1) TDS to be ded. only if the EPF is taxable c) Catering
a) If exempt → NO TDS
d) Transportation (Carriage) of goods &
Passenger by any mode except Railway
2) EPF is exempt →
e) Mfg. or supplying a product as per
a) When employee has discharged/ rendered
continuous service of at least 5 Yrs specification of customer
b) Not rendered due to unavoidable reason
i) By using raw-material supplied by customer
 Note: or his associates → Work
1) No TDS ii) By using raw-material supplied by 3rd party
a) on Saving Bank a/c Interest → Not a work
3] Ded’ of TDS from Int. on Security
b) on Int. on advance tax paid by CG
c) on payment of partner’s remuneration, interest,
1) Sec. 193 is N.A. for following (No TDS for int. on security)
a) No TDS
share of profit
i) If Deb. issued by CG./Public Comp. 3)
ii) If securities owned by LIC / GIC, Armed forces, PF.
iii) If Int. is payable on Power finance Corp., Indian 6] Sec. 194B: Winning from lotteries or crossword puzzle or card
railway finance corp. & Gold Bonds.
game & other game.
b) 10% TDS if int. amt exceeds Rs. 10k in case of 8% / 7.75%
Taxable saving bonds 2003; 1) Where winning price is in kind, then payer before
releasing winning price shall ensure for the payment of
TDS

a) He may collect amt. from winner & pay TDS to govt

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4) 10] Sec. 194 I : Income by way of Rent [lease, sublease tenancy] 2) Rates of TDS

1) TDS to be ded. irrespective whether the payee is owner

or not
2) Note:
a) Hotel on regular basis (Banquet i.e hall taken on rent
every time for party) → Rent → TDS to be ded.
b) Hotel room rent → Non regular → No rent & hence
No TDS
8] Sec. 194DA: TDS on taxable maturity of LIP 3) Note:
c) No TDS on GST component (If charged separately)

1) TDS to be deducted on Maturity Amt, after deducting a) Limit of 30000 is per payee per category.
insurance premiums Paid till date i) That means ‘30k’ limit is separate for each
a) AMT = Maturity – Premium paid till date category
11] Sec. 194IB: Rent not covered in 194I

2) Note: b) Professional service incl. sport activity. [Sport

1) Rent to be deducted in the Last month of the F.Y or tenancy
a) Step 1 →Taxable or exempt based on sum assured.
2) Tds to be ded. from the last month rent for all months person, trainer, referee coach, event manager
(Premium paid is more than 10/15/20% of sum assured
together & Hence TDS amt should not exceed the last month ,umpire, , etc.]
→ maturity amt taxable)
rent

b) Step 2 → If taxable then see whether the maturity

14] Summary
Amt is At least 1L

c) Step 3 → If yes then Find out amount for TDS = 12] Sec. 194 IA : Purchase of Immovable prop.
Maturity value - LIC premium upto date 1) Owner should be resident
2) Prop. may or may not be in India.
3) Amt will include all charges in nature of club membership
9] Sec. 194E : NR sportsman or sport association (Ref : 115BBA) fees, car parking fees, electricity and water facility,
/LLP
advance fees etc.

13] Sec. 194 J : Profession or technical fees

1)

15] Section 194N: TDS on cash withdrawal (excess of 1cr → 2%)

1) However, If a Person withdrawing cash has not

furnished ROI for last 3 PY, Then TDS to be ded. if the
cash withdrawn is

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a) More than 20 L to 1 cr → 2% and 18] Sec-194R: Deduction of tax on benefit or perquisites in 2) Tax on NTI + Surcharge or Special Surcharge (if
b) Above 1 cr → 5%. respect of business or profession (Eg. Tony TV giving benefits to Jethalal since applicable) + 4%
he sold the max. tv’s as a dealer)
3) Final tax payable (rounded off)
2) This section not applicable if cash withdrawn by: 4)
a) Government, bank, Post office, NBFC
b) ATM operator
c) Trader/ agent registered in APMC (Agriculture
Produce Marketing Committee)

16] Sec. 194M (Work, Professional fees, commission, brokerage)  Note:

1) This sec is applicable even for  Person, only for 1) Principal Loan waiver by bank is a business benefit u/s
deducting TDS for personal purposes if satisfies the 28 however deduction of TDS on such benefit will be
criteria of this sec. hardship to banks hence no TDS on such waiver. (Eg. Bank had to
received 800cr from Vijay; they knew that they won’t be able to recover that much. So, they decided to waive of 700cr &
told him to pay 100cr. 700cr is the benefit to Malya Ltd. But not required to deduct TDS)

17] Section 194P: Deduction of TDS by specified bank in case of a 2) Valuation of benefit:
senior citizen a. If such things purchased → then Purchase price.
b. if manufactured → then price charged to its
1) Conditions → customer. (GST not to be included in valuation)
a) At least 75 yrs
b) Have only Pension income credited in the bank & 3) Social media influencer is given some product to make
Int. income (SB/FD int. if any) from that same video/audio for marketing.
bank where pension is credited a. If such product is returned to company → then
no TDS
2) In this case, if such person furnishes declaration to the b. If such product is not returned → then yes TDS
bank, then bank will deduct TDS equal to tax payable by
4) If any depreciable asset is given as benefit and TDS is
such person and such person will not be required to file
also deducted → then recipient can take the benefit of
ROI
depreciation U/s 32
a. (Actual cost for depre. = Amount on which TDS
deducted)

5) Though TDS applicable from 1.7.22 (i.e TDS % should be applied on

amt after 1/7/22) but limit computation to be done on amt

from 1.4.22.

19] Working (Steps)

1) Total income – Deductions = Net total income
a) Split the casual income & slab rate income in
TOTAL INCOME in rough so that no ded against
special rate income)

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TCS 3] Section 206C(1G): time of credit in books or payment whichever is

1) Every authorized dealer of RBI, while collecting money earlier.
for remitting outside India under Liberalised remittance
1] Sec. 206C → Every specified seller shall collect TCS for
scheme of RBI will collect TCS (Other than tour package) e) For Calculating Threshold of Rs. 50 Lakhs;
specified goods from specified buyer as per the rates of buyer. purchases from 1/4/21 should be considered
mentioned below in addition to the bill amount a) @5% on amt in excess of 7L 1) However, TDS to be deducted on
purchase done after 1.7.21 only.
1) Specified seller means: b) @0.5% on amt in excess of 7L if such amt is for
a) All person (Excluding Ind/HUF/AOP/BOI)
the purpose of repayment of education loan taken
b) + Ind/HUF whose turnover in preceding yr is more
from any financial institution abroad. 5] TCS U/s Section 206C(1H):
than 1 cr (B) /50L. (P)
1) This section is applicable from 1.4.21
2) An overseas tour operator will collect TCS @5% from
2) buyer who purchases foreign tour package.(No threshold) 2) A Seller will collect TCS of Resident buyer while selling
Goods Rates goods to him during the year
3) Time of TCS
1. Alcoholic liquor for human consumption (#MASI)
a) debit in BOA or receipt w.e. earlier. 3) Conditions
2. Indian made liquor (for generic medicines)
3. Scrap a) Total sales to resident buyer should be more than
4. Mineral (Coal, lignite, ore) 4) No TCS if buyer is CG, SG, LA, High commission 50L during the year
1%
5) No TCS if buyer is NR & does not have Permanent b) Total turnover of seller is more than 10Cr in the
5. For parking lot, toll plaza, mining by one person to 2% establishment in India last preceding year
another for business (Eg. A gave coal mine on lease to B)
c) No TCS, if TDS is deducted u/s 194Q or any other
6. Timber 2.5% section. (i.e this sec is last resort, कही और कट रहा है तो वहााँ
7. Forest produce
काटें गे, but अगर कही नहीीं कट रहा है , then here if eligible)
8. Tendu leaves 5%
i) No TCS on export.
4] Newly inserted Section for TDS 194Q w. e. from 1.7.21
1) Specified buyer means: 1) A buyer will deduct TDS of resident seller while d) TCS @ 0.1% to be ded. on amt in excess of Rs. 50
a) Every buyer other than purchasing goods during the year
Lakhs (single or aggregate) at the time of receipt
i) Govt., embassy, etc. i) If no PAN/Aadhaar given then → 1%
ii) Public comp. 2) Conditions:
iii) Buyer in retail sale for personal consumption a) Total purchases from the resident seller. is more
e) Eligible buyer = Any buyer except Govt, Local
(retailer bought for personal consumption) than Rs.50 Lakhs during the P.Y.
authority

2) Time of collection b) Total Turnover of buyer is more than Rs. 10 Cr. in

 Note:
a) Accrual (at time of debit in books) or receipt whichever is immediately preceding PY
1) If both buyer & seller are eligible to deduct TDS, then
earlier.
TDS will withstand
c) No other TDS or TCS applicable on the said
2] Section 206C(1F) : transaction other than 206C(1H). (On such 2) No TCS if buyer is purchasing for personal transaction

1) Seller on sale of motor vehicle above Rs. 10 Lakh shall transaction, TDS सिर्फ इिी section में ded. होगा –

collect TCS @1%. at time of receipt. withstanding sec. except 206C1H)

2) Buyer →
a) This section apply only for retail user (Final
d) TDS to be deducted @ 0.1% on amount of purchase
consumer) and not to dealer or distributor.
in excess of Rs. 50 Lakhs (single or aggregate). at

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6] Section 206CC:
1) If no PAN provided then TCS rates higher of
a) Twice rates of TCS and
b) 5% (1% in case of 206C(1H)

7] TCS rates
1) Rates
a) 206C → 1%/2%/2.5%/5%
b) 206(1F) → 1%
c) 206(1G) → 5% on amt in excess of ₹7L
i) 0.5% on amt in excess of ₹7L for repayment
of education loan taken from Financial
institute abroad
ii) 5% for foreign package from foreign tour
operation
d) 194Q → TDS @ 0.1% on amount of purchase in
excess of Rs. 50 Lakhs → Accrual or payment w.e
is earlier
e) 206C(1H) → TDS @ 0.1% on amount of purchase in
excess of Rs. 50 Lakhs → Only at the time of
receipt (पैिा समलेगा तभी तो काटे गा ना – Seller है , जेब िे
तो वैिे भी नहीीं भरे गा वो)
2) Entire TCS chapter →
a) TCS can be collected on Receipt or Accrual (w.e is
earlier)
i) Except → 206C(1F) & 206C(1H) → always on
Receipt basis

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