TDS provisons
TDS provisons
SNO Sec Type Limit Payer Payee Rate Time of Deduction (N/A & others) Additional Information & Edge Cases
1 192 Salary Basic exemption limit / Tax based on Slab Rate Any Person / Employer Employee (Resident/NR) Average rate of income-tax / Slab Rate At the time of payment
  • TDS is required only at the time of payment.
  • If the employee opts out of default 115BAC taxation and submits a declaration, deduct under normal rates; otherwise use 115BAC by default.
  • Consider other income, deductions, and TDS/TCS when the employee furnishes evidence. Losses other than house property losses are ignored.
  • Employer-borne tax on non-monetary perquisites is not deducted from salary, is disallowed to the employer u/s 40(a)(v), is exempt for the employee u/s 10(10CC), and is treated as TDS credit.
  • Employee may furnish previous employer salary and TDS details to the current employer.
  • Partner salary is not covered u/s 192; from April 1, 2025, it falls u/s 194T if over ₹20,000.
  • Direct tips to waiters are not salary and do not require TDS, even if routed through employer credit-card billing (ITC Ltd, 2016 SC).
2 192A Accumulated balance/Premature withdrawal of PF ≥ ₹50,000 EPF Scheme Trustees / Any Person Employee (Resident/NR) 10% At the time of payment
  • TDS is deducted only at the time of payment.
  • No TDS is required if the aggregate payment is less than ₹50,000.
3 193 Interest on Securities > ₹10,000 in a F.Y. Any Person Resident Person 10% At the time of credit or payment, whichever is earlier
  • No TDS if aggregate interest in the F.Y. is up to ₹10,000.
  • No TDS for payments to LIC, GIC, or insurers; 7-Year NSC (IV-Issue); Sec 54EC bonds of Power Finance or Indian Railway Finance; or to a business trust by an SPV.
  • Government securities are exempt except taxable 8%, 7.75%, or floating-rate bonds where interest exceeds ₹10,000.
4 194 Dividend > ₹10,000 in a F.Y. Domestic Company / Principal Officer Resident Person 10% Before making payment / at the time of payment
  • TDS is deducted only at the time of payment.
  • No TDS if paid to an individual by non-cash mode up to ₹10,000.
  • No TDS if paid to LIC/GIC having beneficial interest, by an SPV to a business trust, or by an IFSC aircraft-leasing unit to another identical IFSC unit.
  • Applies to deemed dividend u/s 2(22)(a) to (f).
5 194A Interest other than Securities > ₹1,00,000 (Senior citizen from bank/co op bank/post office)
> ₹50,000 (others than Senior citizen from bank/co op bank/post office)
> ₹10,000 (other cases) 		Any Person (excluding Ind/HUF unless prior year T/O > ₹1 Cr or G/R > ₹50 Lakhs) Resident Person 10% At the time of credit or payment, whichever is earlier
  • No TDS on savings bank interest, firm-to-partner interest, income-tax refund interest, zero coupon bonds, or payments to banks, LIC, UTI, and specified corporations. NBFCs are not exempt.
  • Time deposits are exempt up to ₹50,000, or ₹1,00,000 for senior citizens; other cases are exempt up to ₹10,000.
  • Co-operative society payments to members/other societies are exempt unless prior year turnover exceeds ₹50 crores and interest exceeds ₹50,000, or ₹1,00,000 for seniors.
  • Interest on deposits with a primary agricultural credit society or a primary credit society or a co-operative land mortgage bank or a co-operative land development bank
  • MACT compensation interest is exempt up to ₹50,000. Mahila Samman Savings Certificate interest is exempt.
  • For CBS software, TDS is triggered on actual credit to the depositor, not macro provision accounts; thresholds are checked bank-wise.
  • For deceased depositors, minor-child interest is reported against the child's PAN. In CGAS accounts, pre-death interest uses the depositor's PAN and post-death interest uses the legal heir's PAN.
  • Disputed court deposits do not attract TDS until ownership is decided.
6 194B Winnings from lottery, crossword puzzles, card games > ₹10,000 in a F.Y. (single transaction) Any Person Any Person 30% At the time of payment
  • TDS is deducted only at the time of payment.
  • No TDS if the single-transaction winning is up to ₹10,000.
  • If the prize is in kind, or cash is insufficient, the payer must ensure tax is paid to the Government before releasing the prize.
7 194BB Winnings from horse race > ₹10,000 in single transaction Any Person (Bookmaker / Licensee) Any Person 30% At the time of payment
  • TDS is deducted only at the time of payment.
  • No TDS if the single-transaction winning is up to ₹10,000.
  • Bookmakers deduct tax at 30% on winnings before set-off of losses.
  • If the prize is in kind, or cash is insufficient, the payer must ensure tax is paid to the Government before releasing the prize.
8 194BA Winnings from Online Games On net winnings (No threshold, but concession if withdrawal ≤ ₹100 in a month under conditions) Any Person Any Person 30% At withdrawal and at the end of the F.Y.
  • TDS is deducted at withdrawal and at the end of the F.Y.
  • Net Winning = (A+D) - (B+C+E), where A = withdrawals, D = closing balance, B = non-taxable deposits, C = opening balance, and E = previously taxed winnings.
  • Multiple accounts of one user are aggregated. Transfers between user accounts are not deposits or withdrawals. Borrowed money deposited is a non-taxable deposit.
  • Prizes in kind are treated as equivalent monetary deposit and simultaneous withdrawal; the prize is withheld until tax payment is ensured.
  • Bonuses are ignored unless recharacterized and allowed to be withdrawn.
  • No TDS for net winnings below ₹100 per month if the shortfall is deducted later or at year-end and the deductor assumes liability if the account balance is insufficient.
9 194C Contracts & sub-contracts > ₹30,000 (single) or > ₹1,00,000 (aggregate in a F.Y.) Specified entities / Any Person (Ind/HUF requires prior year T/O > ₹1 Cr or G/R > ₹50 Lakhs) Resident Person 1% for Ind/HUF, 2% for others At credit or payment, whichever is earlier
  • No TDS if a single contract is up to ₹30,000 or aggregate contracts in the P.Y. are up to ₹1,00,000. No TDS for personal-purpose contracts of Ind/HUF.
  • "Work" includes advertising, broadcasting, carriage except railways, catering, and job work with client materials; it excludes manufacturing with open-market materials and payments covered by 194J.
  • Transporters are exempt if they own 10 or fewer vehicles and furnish PAN.
  • For job work, TDS applies only on processing value if material cost is separately shown; otherwise on total value.
  • Client to ad agency is covered by 194C; ad agency to TV channel as principal-to-principal is not.
  • Cold storage and airport landing/parking charges are covered by 194C. Broadcaster copyright acquisition is 194C, but mere telecast-right acquisition is not.
  • Gas sale with transport included is not subject to TDS; transport by a third party is covered by 194C.
10 194D Insurance Commission > ₹20,000 in a F.Y. Any Person Resident Person 2% (10% if payee is a domestic company) At credit or payment, whichever is earlier
  • No TDS if commission is up to ₹20,000 in the F.Y.
  • Common commission/brokerage exclusions include BSNL/MTNL payments to PCO franchises and security underwriting/brokerage.
  • Stamp-vendor discount and telecom distributor margin on prepaid kits are treated as principal-to-principal and do not attract TDS.
  • Prasar Bharati retained amounts and airline primary/supplementary commissions are treated as commission and attract TDS.
11 194DA Maturity of Life Insurance Policy ≥ ₹1,00,000 in a F.Y. Any Person Resident Person 2% on the income component At the time of payment
  • TDS is deducted at the time of payment.
  • No TDS if the payment is below ₹1,00,000 or exempt u/s 10(10D).
  • TDS applies only on the income component, meaning maturity amount minus premium.
12 194E Payment to NR Sports person / Association / Entertainer None mentioned Any Person NR Sports person, Association, or Entertainer 20.8% (20% + 4% HEC) At the time of payment
  • Covers income of a non-resident non-citizen sportsperson from participation, advertisements, and article contributions.
  • Covers guarantee income of non-resident sports associations and performance income of non-resident entertainers.
13 194G Commission on sale of lottery tickets > ₹20,000 in a F.Y. Any Person Any Person 2% At credit or payment, whichever is earlier
  • No TDS if commission is up to ₹20,000 in the F.Y.
  • Common commission/brokerage exclusions include BSNL/MTNL payments to PCO franchises and security underwriting/brokerage.
  • Stamp-vendor discount and telecom distributor margin on prepaid kits are treated as principal-to-principal and do not attract TDS.
  • Prasar Bharati retained amounts and airline primary/supplementary commissions are treated as commission and attract TDS.
14 194H Commission and Brokerage > ₹20,000 in a F.Y. Any Person (excluding Ind/HUF unless prior year T/O limits apply) Resident Person 2% At credit or payment, whichever is earlier
  • No TDS if commission/brokerage is up to ₹20,000 in the F.Y.
  • No TDS on BSNL/MTNL payments to PCO franchises or on security underwriting/brokerage.
  • Stamp-vendor discount and telecom distributor margin on prepaid kits are treated as principal-to-principal and do not attract TDS.
  • Prasar Bharati retained amounts and airline primary/supplementary commissions are treated as commission and attract TDS.
15 194-I Rent > ₹50,000 to a person per month or part of the month Any Person (excluding Ind/HUF unless prior year T/O limits apply) Resident Person 2% for Plant/Machinery/Equipment; 10% for Land/Building/Furniture At credit or payment, whichever is earlier
  • No TDS if rent is up to ₹50,000 per month.
  • Rent includes non-refundable deposits, arrears, advance rent, and warehousing charges; the payee need not be the owner.
  • Refundable deposits, lumpsum lease premium/upfront charges for long-term rights, passenger service fees, and IFSC aircraft/ship leases are excluded.
  • Mobile towers are treated as plant and machinery and attract 2% TDS.
  • Dumper hiring is treated as sub-contract u/s 194C, not rent u/s 194-I.
  • Co-owner thresholds are checked individually.
16 194-IA Transfer of Immovable property (except rural agricultural land) ≥ ₹50,00,000 (Consideration or SDV) Any Person / Transferee (Buyer) Resident Person / Transferor (Seller) 1% of consideration or SDV, whichever is higher At credit or payment, whichever is earlier
  • Applies if consideration or stamp duty value is ₹50,00,000 or more.
  • Consideration is aggregated across all transferees and all transferors.
  • Consideration includes club membership fees, car parking, electricity, maintenance, and advance fees.
  • Form 26QD is required.
17 194-IB Rent of Immovable property by certain individuals > ₹50,000 per month or part of a month Individual / HUF (not covered u/s 194-I) Resident Person 2% In the last month of the P.Y. or tenancy
  • No TDS if rent is up to ₹50,000 per month.
  • TDS is deducted at credit or payment of the last month of the year or tenancy.
  • If PAN is not furnished, TDS is 20%, capped at the amount of the last month's rent.
  • Form 26QC is required.
18 194-IC Consideration under Joint Development Agreement (JDA) No specified threshold Any Person Resident Person 10% At credit or payment, whichever is earlier
  • Applies only to cash or money consideration under a joint development agreement covered by u/s 45(5A).
19 194J Fees for Professional/Technical Services, Royalty, Directors Remuneration > ₹50,000 in a F.Y. for each category (No limit for Director's fees) Any Person (excluding Ind/HUF unless prior year T/O limits apply) Resident Person 2% for call center, technical services, or certain film royalties; 10% in other cases At credit or payment, whichever is earlier
  • The ₹50,000 annual limit applies separately for professional services, technical services, royalty, and non-compete fees. No limit applies for director fees.
  • Ind/HUF personal-purpose professional services are exempt.
  • Ind/HUF crossing turnover limits deduct only for professional or technical services, not royalty or non-compete fees.
  • Sports personnel such as umpires, commentators, and anchors fall under professional services.
  • Software is royalty; subsequent transfers without modification are exempt if TDS was already deducted u/s 194J or 195.
  • TPA hospital settlement payments are covered by 194J.
  • Stock exchange BOLT charges are a facility, not technical services, and do not attract TDS.
20 194K Income from UTI or Mutual Fund Units > ₹10,000 in a F.Y. Any Person / MF Administrator Resident Person 10% At credit or payment, whichever is earlier
  • No TDS if payment is up to ₹10,000 in a P.Y.
  • No separate supplementary rule was provided in the additional-information extract for this section.
21 194LA Compensation on compulsory acquisition of Immovable Property > ₹5,00,000 in a F.Y. Any Person Resident Person 10% At the time of payment
  • TDS is deducted at the time of payment.
  • No TDS if compensation is up to ₹5,00,000.
  • Does not apply to urban or rural agricultural land.
22 194M Payments to Contractors, Commission, Brokerage, FPS > ₹50,00,000 in a F.Y. Individual/HUF (not liable to deduct TDS u/s 194C, 194H, 194J) Resident Person 2% At credit or payment, whichever is earlier
  • No TDS if aggregate payment is up to ₹50,00,000.
  • Covers personal contracts and Ind/HUF payers not covered by 194C, 194H, or 194J turnover criteria.
  • Payer is not required to obtain TAN; tax is deposited online through Form 26QA,26QB,26QC,26QD.
23 194N Cash withdrawal from Bank, Co-op. Bank, Post Office > ₹1 Crore in a P.Y. (> ₹3 Crore if payee is a co-op society; > ₹20 Lakhs if non-filer) Bank, Co-op. Bank, or Post Office Any Person 2% (5% if withdrawal > ₹1 Crore and payee is a non-filer for 3 preceding P.Y.s) At the time of payment
  • TDS is deducted at the time of payment.
  • Threshold is withdrawal exceeding ₹1 crore, or ₹3 crore for a co-operative society.
  • For non-filers of the past 3 years, TDS is 2% over ₹20 lakhs and 5% over ₹1 crore.
  • Exemptions include withdrawals by Government , banks & Correspondent, post offices & Correspondent, white-label ATM operators, CRAs, APMC commission agents, and FFMCs.
24 194-O E-Commerce transactions (Sale of Goods/Service) > ₹5 Lakhs in a F.Y. for Individual/HUF participants E-Commerce Operator E-Commerce Participant (Resident) 0.1% on gross amount (5% if PAN not furnished) At credit or payment, whichever is earlier
  • Ind/HUF e-commerce participants are exempt up to ₹5 lakhs if PAN/Aadhaar is furnished.
  • Direct payments to the seller are deemed to be through the e-commerce operator.
  • Overrides other TDS sections unless the payment is for non-sale services such as advertisements. Covers goods as well as professional/technical services.
  • Payment gateways need not deduct if the operator has already deducted.
  • Insurance aggregator deducts in the first year; insurance company deducts on commission in later years.
  • E-auction platforms are exempt if they only provide price discovery and payment happens outside the portal.
  • For ONDC multiple operators, seller-side ECO complies if making final payment; buyer-side ECO complies if seller-side ECO is the actual seller.
  • Convenience, logistics, and delivery fees are included. Seller discount reduces gross amount; ECO discount does not.
25 194P TDS on Senior Citizen Pension Basic exemption limit Specified Bank Resident Individual (age 75+) Slab Rate / Rates in force N/A (Bank computes tax liability)
  • Applies when the resident individual is 75 or older, receives pension and interest from the same specified bank, and submits Form 12BBA.
  • The bank computes total income after Chapter VI-A deductions and 87A rebate, then applies slab rates.
  • The assessee is exempt from filing ROI once the specified bank deducts tax under this mechanism.
26 194Q Purchase of Goods > ₹50 Lakhs in a P.Y. Any Person (Buyer) with prior P.Y. business T/O > ₹10 Crores Resident Person (Seller) 0.1% of sum exceeding ₹50 Lakhs At credit or payment, whichever is earlier
  • Applies on the sum exceeding ₹50 lakhs. Rate is 5% if PAN is not furnished.
  • First year of business incorporation is exempt because there is no prior-year turnover. Non-business turnover is excluded for turnover checks.
  • Subordinate to other TDS provisions and TCS u/s 206C(1), 206C(1F), and 206C(1G), but takes priority over 194-O.
  • Exemptions include recognised stock, commodity, and power exchanges; non-resident buyer without PE; seller whose entire income is exempt; and Government departments selling goods. PSUs/Authorities are covered.
  • Indirect taxes are excluded if separately invoiced, but included for advance payments.
  • Purchase returns are adjusted against future purchases.
27 194R Any benefit or perquisite from business/profession > ₹20,000 in a F.Y. Any Person (excluding Ind/HUF unless prior year T/O limits apply) Resident Person 10% Before providing the benefit/perquisite
  • No TDS if benefits/perquisites are up to ₹20,000 in the F.Y. If the benefit is in kind, the provider must ensure tax is paid.
  • Applies regardless of whether the recipient is taxable. Covers capital assets, free samples, incentives, trips, and event tickets.
  • Excludes sales discounts, cash discounts, rebates, bonus shares, right shares, pure-agent reimbursements, loan waivers by banks/NBFCs, and embassies.
  • Conferences are exempt if for product launch, discussion, training, or account reconciliation. Leisure, family members, or overstay are taxable, except one day before/after.
  • Out-of-pocket reimbursements are covered unless invoiced directly to the client or TDS was already deducted on total gross consideration.
  • For group activities, the provider can opt to disallow the expense instead of tracking TDS for each participant.
  • Value benefits at purchase price, manufacturing price, or FMV excluding GST. If a business asset is received, depreciation can be claimed on FMV.
28 194S Transfer of Virtual Digital Asset (VDA) ≤ ₹50,000 for specified person / > ₹10,000 for others in a F.Y. Any Person Resident Person 1% At credit or payment, whichever is earlier
  • No specific additional rule was provided in the supplementary extract for this section.
  • Apply the general rules in the main row, including deduction at credit or payment, whichever is earlier.
29 194T Salary, remuneration, commission, bonus or interest to a partner > ₹20,000 during the F.Y. Firm (Including LLP) Partner 10% At credit or payment, whichever is earlier
  • Limit applies per payee.
  • Covers salary, remuneration, commission, bonus, or interest paid by a firm, including LLP, to a partner.
  • Partner salary is not covered u/s 192; from April 1, 2025, this section applies if the payment exceeds ₹20,000.

Supplementary Rules Not Included as Main Rows

Section 195 - Non-Residents

  • Applies to all payers, whether resident or non-resident, regardless of PE or business connection in India.
  • Demurrage charges covered by Sec 172 are exempt.
  • Overseas agents acting strictly outside India are exempt.

Section 206C(1F) - TCS on Motor Vehicles/Goods

  • Applies to retail sale exceeding ₹10 lakhs, not manufacturer-to-dealer sale.
  • The ₹10 lakh threshold is checked per individual purchase, not in aggregate.
  • Exemptions include public sector companies carrying passengers, Government, embassies, and local authorities.
  • Notified goods include wrist watches, art pieces, collectibles, yachts/helicopters, sunglasses, bags, shoes, sports kits, home theatres, and polo/race horses.

Section 206C(1G) - TCS on LRS & OTPP

  • LRS applies above ₹10 lakhs, using a combined F.Y. threshold for all purposes.
  • OTPP applies with no basic exemption for the first 5% tier.
  • OTPP requires multi-element packages; flight-only or hotel-only bookings are excluded.
  • Exemptions include deductees already subject to TDS, Government, embassies, non-resident visitors, and remittances funded through Sec 80E education loans.
  • Payments through overseas credit cards while abroad are currently excluded from LRS.

Miscellaneous / Case Law Directives

  • Sec 196 exempts Government, RBI, statutory corporations, and mutual funds.
  • GST on services is excluded from TDS if shown separately on the invoice.
  • DTAA beneficial rates override the punitive 20% rate under Sec 206AA even when PAN is missing (Air India Ltd SC).
  • TDS credit cannot be denied to the deductee merely because the deductor failed to deposit it; recovery lies against the deductor (BDR Finvest Delhi HC).
  • Interest for late deduction u/s 201(1A) is automatic and mandatory, with no need to prove willful default or absence of bona fide dispute.