Stox N Tax

Complete Guide to All TDS Sections Under the Income-tax Act, 1961 (With Rates & Easy Explanation)

TDS (Tax Deducted at Source) is a system where tax is collected at the time of income generation.
This article covers every TDS section applicable in India, including all common and rare sections, along with rates, thresholds, and simple explanations.

What is TDS?

TDS (Tax Deducted at Source) is a system where tax is collected at the time of income generation.
This article covers every TDS section applicable in India, including all common and rare sections, along with rates, thresholds, and simple explanations.

What is TDS?

TDS (Tax Deducted at Source) is a system where tax is collected at the time of income generation.
This article covers every TDS section applicable in India, including all common and rare sections, along with rates, thresholds, and simple explanations.

What is TDS?

TDS ensures tax is deducted at the source of income and deposited with the government. It helps prevent tax evasion and ensures regular revenue collection.

TDS SECTIONS – COMPLETE LIST (A–Z)

Below are all TDS sections classified category-wise for easier understanding.

1) Salary & Pension Related TDS

Section 192 – Salary

  • Rate: As per income tax slab of employee
  • Threshold: Basic exemption limit
  • Notes: Employer deducts monthly based on estimated annual income.

Section 192A – Premature withdrawal from EPF

  • Rate: 10%
  • Threshold: TDS if withdrawal > ₹50,000
  • Applies when working < 5 years.

2) Interest & Dividend Related TDS

194A – Interest other than securities

  • Rate: 10%
  • Threshold:
    • Banks: ₹40,000 (₹50,000 for senior citizens)
    • Others: ₹5,000

193 – Interest on securities

  • Rate: 10%
  • Threshold: ₹10,000 (for listed securities exempt)

194 – Dividends

  • Rate: 10%
  • Threshold: ₹5,000 (from one company)

3) TDS on House Property & Immovable Property

194-IA – Sale of immovable property

  • Rate: 1%
  • Threshold: ₹50 lakh sale value
  • Buyer deducts TDS from seller.

194-IB – Rent paid by individuals/HUF (non-audit)

  • Rate: 5%
  • Threshold: Monthly rent > ₹50,000
  • Form 194-IB/Challan 26QC.

194-IC – Joint development agreement payment

  • Rate: 10%
  • Builder deducts TDS on monetary consideration to landowner.

4) TDS on Contracts, Services & Professional Payments

194C – Contractor payments (works, job work, labour)

  • Rate:
    • Individuals/HUF: 1%
    • Others: 2%
  • Threshold:
    • Single payment > ₹30,000
    • Annual > ₹1,00,000

194J – Professional/Technical fees

  • Rate:
    • Professional services + royalty: 10%
    • Technical services, director fees: 2%
  • Threshold: ₹30,000 per year (per payee)

194H – Commission & brokerage

  • Rate: 5%
  • Threshold: ₹15,000

194D – Insurance commission

  • Rate: 5%
  • Threshold: ₹15,000

194DA – LIC policy maturity (non-exempt)

  • Rate: 5% (on taxable portion)
  • Threshold: ₹1,00,000

194G – Lottery ticket commission

  • Rate: 5%
  • Threshold: ₹15,000

5) TDS on Rent, Royalty, etc.

194I – Rent (machines/building/land)

  • Rate:
    • Plant/machinery: 2%
    • Land/building/furniture: 10%
  • Threshold: ₹2,40,000 per year

194J – Royalty

  • Included in 194J above (10% rate).

6) TDS on Payments to Non-Residents (NRI)

195 – Payment to non-resident (NRI & Foreign Co.)

  • Rate: As per nature of income:
    • Interest: 20%
    • Royalty: 10%
    • Technical services: 10%
    • Capital gains: 10%/15%/20%
  • No threshold
  • DTAA benefit available.

194E – Non-resident sportsmen, performers

  • Rate: 20%
  • No threshold

196A – Income from mutual fund units to NRI

  • Rate: 20%

196B – Income from offshore funds

  • Rate: 10%

196C – Income from GDRs

  • Rate: 10%

196D – Income of FII from securities

  • Rate: 20%

7) TDS on Winnings, Games, Lotteries

194B – Winnings from lottery/game shows

  • Rate: 30%
  • Threshold: > ₹10,000

194BB – Horse race winnings

  • Rate: 30%
  • Threshold: > ₹10,000

194BA – Online gaming winnings (new)

  • Rate: 30%
  • Threshold: No threshold – on net winnings.

8) TDS on Property Compensation & Compensation Payments

194LA – Compensation for compulsory acquisition of property

  • Rate: 10%
  • Threshold: ₹2,50,000

194L – Compensation for acquisition of immovable asset

  • Rate: 10%

9) TDS on Bank & Financial Transactions

194N – Cash withdrawals

  • Rate:
    • 2% on cash > ₹1 crore
    • 5% if no ITR filed (last 3 years)

194LBC – Income from securitisation trust

  • Rate: 25% (Individual/HUF)
  • 30% (others)

10) TDS on E-commerce, Payments & Digital Platforms

194-O – E-commerce operators

  • Rate: 1%
  • Threshold: ₹5 lakh (for individuals/HUF without GST)

194Q – Purchase of goods

  • Rate: 0.1%
  • Threshold: Purchases > ₹50 lakh from a seller
  • Buyer deducts TDS.

206C(1H) – TCS on sale of goods (Not TDS but related)

  • Rate: 0.1%
  • Threshold: Sales > ₹50 lakh

11) TDS on Business Trusts, AOPs, Investment Funds

194LBA – Business trust income distribution

  • Rate:
    • Interest: 10%
    • Rent: 10%
    • Dividend: 10%

194LBB – AIF (Alternative Investment Fund) income

  • Rate: 10%

194LBC – Securitisation trust

  • Rate: 25%/30%

12) TDS on Startup & ESOP-related Payments

192(1C) – ESOP perquisite TDS deferment

  • Applies to eligible startups
  • TDS deferred up to 48 months.

13) TDS on Mutual Fund & Investment Income

194K – Income from mutual fund units

  • Rate: 10%
  • Threshold: ₹5,000
  • Dividend only (capital gain exempt)

14) TDS on Pension Funds, REITs, Special Entities

196 – Certain entities exempt from TDS

Payments to govt, RBI, corporations are exempt.

15) TDS Where No PAN is Provided

206AA – Higher TDS for no PAN

  • Rate: Higher of:
    • 20%
    • Rate in force
    • Rate in this Act

QUICK SUMMARY TABLE (ALL TDS SECTIONS)

(You can paste this table directly in your website)

CategorySectionDescriptionRate
Salary192Salary incomeSlab
EPF192APF withdrawal10%
Securities Interest193Interest on securities10%
Dividend194Dividend10%
Interest194ABank/other interest10%
Lottery/Games194BWinnings30%
Horse race194BBWinnings30%
Insurance commission194DInsurance commission5%
Lottery ticket agents194GCommission5%
Property purchase194-IAProperty > 50L1%
Rent (individual)194-IBRent > ₹50,000/month5%
JDA consideration194-ICJDA payment10%
Contractor194CContract/works1%/2%
Commission194HCommission/Brokerage5%
Rent194IBuilding/machinery rent10%/2%
Professional fees194JProfessional/Tech fee10%/2%
Mutual fund income194KMF dividends10%
Compensation194LCompensation10%
Land acquisition194LACompulsory acquisition10%
E-commerce194OE-commerce TDS1%
Purchase of goods194QPurchase > 50L0.1%
NRI payments195NR incomeVarious
REIT/InvIT194LBADistributions10%
AIF194LBBAIF income10%
Securitisation194LBCTrust income25%/30%
Online gaming194BANet winnings30%
Cash withdrawal194NCash > 1 crore2%/5%
No PAN206AAHigher TDS20%

FULL LIST OF ALL TDS SECTIONS (A–Z)

The following sections are explained in detail below:

Salary & Employees

✔ 192 – Salary
✔ 192A – EPF Withdrawal

Interest & Dividend

✔ 193 – Interest on securities
✔ 194 – Dividend
✔ 194A – Interest other than securities
✔ 194K – Income from Mutual Funds/Units

Winnings

✔ 194B – Lottery winnings
✔ 194BB – Horse race winnings

Contracts, Rent, Professional Services

✔ 194C – Contractors
✔ 194D – Insurance commission
✔ 194DA – Life insurance payout
✔ 194H – Commission/Brokerage
✔ 194I – Rent
✔ 194J – Professional/Technical Fees
✔ 194M – Large payments by individuals
✔ 194R – Benefits/Perquisites

Property Transactions

✔ 194IA – Property purchase
✔ 194IB – High-value rent (Individuals)
✔ 194IC – Joint Development Agreement

Compensation & Acquisition

✔ 194L – Compensation for compulsory acquisition
✔ 194LA – Compensation for immovable property other than agricultural land

Business Trusts & Funds

✔ 194LBA – Business trust distributions
✔ 194LBB – Investment fund income
✔ 194LBC – Income from securitisation trusts

E-Commerce & Goods Purchase

✔ 194O – E-commerce
✔ 194Q – Purchase of goods

Cash Withdrawal

✔ 194N – Cash withdrawal

Payments to Non-Residents (NRI/Foreign)

✔ 195 – Payments to non-residents
✔ 196A – Units of mutual funds to NRI
✔ 196B – Income from offshore funds
✔ 196C – GDR income to non-residents
✔ 196D – Income to Foreign Institutional Investors

Higher TDS for Non-Filers/PAN Not Furnished

✔ 206AA – No PAN
✔ 206AB – Non-filers

Conclusion

This article covers every TDS section of the Income-tax Act—common and rare—making it a single complete reference guide for students, taxpayers, professionals, and businesses.

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