Section 393 — Tax to be deducted at source
Old Act equivalent: Sections 194A, 194C, 194H, 194I, 194J, 194N, 194Q, 194R, 194S, and all other 194-series of IT Act 1961 (consolidated) Sub-part: B.—Deduction and collection at source
Statutory Text
Sub-section (1) — Payments to Resident
- (1) Where any income or sum of the nature specified in column B of the Table below, is credited or paid or distributed by the person specified in column C during the tax year, to a resident, the person responsible for paying such income or sum shall deduct income-tax,—
(a) on the entire amount of such income or sum, where the amount or aggregate of amounts exceeds the threshold limit specified in column D, or on sum as per Note 1 for serial number 8(ii), as the case may be;
(b) at the rate specified in column D;
(c) at the time of credit of such income or sum to the account of the payee or at the time of its payment in cash or by way of a cheque or a draft or by any other mode, whichever is earlier; and
(d) subject to the provisions of sub-sections (4), (5), (6), (8) and (9).
Tables
TABLE 1 — FOR PAYMENTS TO RESIDENT [Sub-section (1)]
| Sl. No. | Nature of income or sum (B) | Payer (C) | Rate / Threshold limit (D) |
|---|---|---|---|
| 1. Commission or brokerage | |||
| 1(i) | Insurance commission — any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including continuance, renewal or revival of insurance policies) | Any person | Rate: Rates in force; Threshold: Rs. 20,000 |
| 1(ii) | Commission (not being insurance commission referred to in 1(i)) or brokerage | Specified person | Rate: 2%; Threshold: Rs. 20,000 |
| 2. Rent | |||
| 2(i) | Any income by way of rent | Person other than specified person | Rate: 2%; Threshold: Rs. 50,000 for a month or part of a month |
| 2(ii) | Any income by way of rent | Specified person | Rate: (a) 2% for machinery/plant/equipment; (b) 10% for land/building (including factory building)/land appurtenant/furniture/fittings; Threshold: Rs. 50,000 for a month or part of a month |
| Note 1: In 2(i), tax deducted at time of (a) credit of rent to payee’s account, or (b) payment, whichever earlier, for the last month of the tax year or last month of tenancy. | |||
| 3. Payment on transfer of certain immovable property other than agricultural land | |||
| 3(i) | Consideration for transfer of any immovable property (other than agricultural land) | Person [other than those under 3(iii)] | Rate: 1% of (a) consideration for transfer, or (b) stamp duty value, whichever is higher; Threshold: Rs. 50 lakh (as per Note 3) |
| 3(ii) | Consideration (not in kind) under agreement referred to in section 67(14) [JDA] | Any person | Rate: 10%; Threshold: Nil |
| 3(iii) | Compensation or enhanced compensation/consideration on compulsory acquisition of immovable property (other than agricultural land) | Any person | Rate: 10%; Threshold: Rs. 5,00,000 |
| Note 1: Consideration = aggregate of amounts paid by all transferees to all transferors for threshold purposes. | |||
| Note 2: Where both 3(i) and 3(ii) apply, tax under 3(ii) only. | |||
| Note 3: Tax deducted under 3(i) where consideration or stamp duty value is Rs. 50 lakh or more. | |||
| 4. Income from capital market | |||
| 4(i) | Income in respect of units of Mutual Fund (Schedule VII Table Sl. No. 20 or 21), units from Administrator of specified undertaking, or units from specified company | Any person | Rate: 10%; Threshold: Rs. 10,000 |
| 4(ii) | Distributed income referred to in section 223 (Schedule V Table Sl. Nos. 3 and 4) payable to unitholder of Business Trust | Any Business Trust | Rate: 10%; Threshold: Nil |
| 4(iii) | Income (other than exempt portion under Schedule V Table Sl. No. 2) in respect of units of investment fund under section 224, payable to unitholder | Any Investment fund (s. 224) | Rate: 10%; Threshold: Nil |
| 4(iv) | Income in respect of investment in securitisation trust under section 221 | Any securitisation trust (s. 221) | Rate: 10%; Threshold: Nil |
| 5. Interest income | |||
| 5(i) | Interest on securities | Any person | Rate: Rates in force; Threshold: Rs. 10,000 |
| 5(ii) | Interest other than interest on securities | Banking company; co-operative society (banking); post office (notified scheme) | Rate: Rates in force; Threshold: (a) Rs. 1,00,000 for senior citizen; (b) Rs. 50,000 for others |
| 5(iii) | Interest other than interest on securities | Specified person [other than those in 5(ii)] | Rate: Rates in force; Threshold: Rs. 10,000 |
| Note 1: For 5(ii) and 5(iii), where interest is on time deposits with banking company/co-operative society or deposits with housing finance company eligible under s. 32(e), and payer has not adopted core banking solutions, threshold computed per branch. | |||
| Note 2: Payer may adjust excess/deficiency in deductions during the tax year. | |||
| 6. Payments to contractors, professional/technical fees, etc. | |||
| 6(i) | Sum for carrying out work (including supply of labour) per contract between contractor and designated person | Any designated person | Rate: (a) 1% if contractor is individual/HUF; (b) 2% if other person; Threshold: (a) Rs. 30,000 per sum, and (b) Rs. 1,00,000 aggregate |
| 6(ii) | Sum for work per contract, or fees for professional services, or commission/brokerage (not insurance) | Individual or HUF [other than those under 6(i), 6(iii), or 1(ii)] | Rate: 2%; Threshold: Rs. 50 lakh |
| 6(iii) | Fees for professional services; fees for technical services; remuneration/fees/commission to director (other than salary under s. 392); royalty; any sum under s. 26(2)(h) | Specified person | Rate: (a) 2% for technical services (not professional), royalty for cinematographic films, or call centre operations; (b) 10% in other cases; Threshold: (i) for (a),(b),(d),(e) of Col. B: Rs. 50,000; (ii) for director remuneration (c): Nil |
| Note: In 6(i), for work specified in s. 402(47)(e), tax deducted on (a) invoice value excluding material if separately specified, or (b) whole invoice value if not. | |||
| 7. Dividend | |||
| 7 | Any dividend (including preference shares dividend) declared | Any domestic company | Rate: 10%; Threshold: Nil |
| Note: Tax deducted before distribution or payment of dividend. | |||
| 8. Other cases | |||
| 8(i) | Sum under life insurance policy including bonus (other than exempt amount under Schedule II Table Sl. No. 2) | Any person | Rate: 2% on income comprised in such sum; Threshold: Rs. 1,00,000 |
| 8(ii) | Sum exceeding Rs. 50 lakh for purchase of any goods | Any person, being a buyer | Rate: 0.1%; Threshold: As per Note 1 |
| 8(iii) | Total income of specified senior citizen after deductions (Chapter VIII) and rebate (s. 156) | Specified bank | Rate: Rates in force; Threshold: As applicable |
| 8(iv) | Benefit or perquisite (cash or kind) arising from business/profession of any resident | Specified person | Rate: 10% of value or aggregate of values; Threshold: Rs. 20,000 |
| 8(v) | Sum on account of sale of goods or provision of services by e-commerce participant, facilitated by e-commerce operator | Any e-commerce operator | Rate: 0.1% of gross amount; Threshold: Nil |
| 8(vi) | Consideration for transfer of virtual digital asset | Any person | Rate: 1%; Threshold: Nil |
| Note 1: (a) TDS under 8(ii) does not apply where tax deductible/collectible under other provisions; (b) Tax deducted on sum exceeding Rs. 50 lakh. | |||
| Note 2: 8(iv) applies to benefits/perquisites in cash or kind; payer must ensure tax deducted before providing. | |||
| Note 3: For 8(v): (a) takes precedence over other TDS provisions; (b) direct payments by purchaser deemed paid by e-commerce operator; (c) operator deemed person responsible; (d) if TDS under 8(v) or no TDS under s. 393(4) Table Sl. No. 11, no other TDS; (e) clause (d) does not apply to hosting advertisements or other non-connected services. | |||
| Note 4: Where both 8(v) and 8(vi) apply, tax deducted only under 8(vi). | |||
| Note 5: 8(iii) takes precedence over all other TDS provisions. | |||
| Note 6: For 8(iv) and 8(vi): where consideration/benefit is wholly in kind or partly in kind with insufficient cash, person responsible must ensure tax paid before releasing consideration/benefit. “Person responsible for providing” means the person providing benefit or, in case of company, the company itself including principal officer. |
Sub-section (2) — Payments to Non-Resident
(2) Where any income or sum of the nature specified in column B of the Table below, is credited or paid by the person specified in column D during the tax year, to a non-resident specified in column C, the person responsible for paying such income or sum shall deduct income-tax on the amount of such income or sum,—
(a) at the rate specified in column E;
(b) at the time of credit of income or sum to the account of the payee or at the time of its payment in cash or by way of a cheque or a draft or by any other mode, whichever is earlier; and
(c) subject to the provisions of sub-sections (4), (8) and (9).
TABLE 2 — FOR PAYMENTS TO NON-RESIDENT [Sub-section (2)]
| Sl. No. | Nature of income or sum (B) | Payee (C) | Payer (D) | Rate (E) |
|---|---|---|---|---|
| 1 | Income referred to in s. 211 (sportsman/entertainer) | (a) NR sportsman/athlete/entertainer (not citizen of India); or (b) NR sports association/institution | Any person | 20% |
| 2 | Interest on foreign currency borrowing — under loan/long-term infrastructure bond (1 Jul 2012 – 30 Jun 2023) or long-term bond (1 Oct 2014 – 30 Jun 2023), approved by CG | NR (not company) or foreign company | Indian company or business trust | 5% |
| 3 | Interest on rupee denominated bond issued before 1 Jul 2023 | NR (not company) or foreign company | Indian company or business trust | 5% |
| 4 | Interest on long-term bond or rupee denominated bond listed only on IFSC stock exchange | NR (not company) or foreign company | Indian company or business trust | (a) 4% (issued 1 Apr 2020 – 30 Jun 2023); (b) 9% (issued on/after 1 Jul 2023) |
| 5 | Interest income | NR (not company) or foreign company | Infrastructure debt fund (Schedule VII Table Sl. No. 46) | 5% |
| 6 | Distributed income under s. 223 (Schedule V Table Sl. No. 3) | NR unitholder (not company) or foreign company | Any business trust | (a) 5% for Sch V Sl. No. 3.B(a); (b) 10% for Sch V Sl. No. 3.B(b) |
| 7 | Distributed income under s. 223 (Schedule V Table Sl. No. 4) | NR unitholder (not company) or foreign company | Any business trust | Rates in force |
| 8 | Income (other than exempt under Sch V Sl. No. 2) in respect of units of investment fund (s. 224) | NR unitholder (not company) or foreign company | Any investment fund (s. 224) | Rates in force |
| 9 | Income in respect of investment in securitisation trust (s. 221) | NR investor (not company) or foreign company | Any securitisation trust (s. 221) | Rates in force |
| 10 | Income in respect of units of Mutual Fund (Sch VII Sl. No. 20/21) or units from specified company | NR (not company) or foreign company | Any person | As per Note 2 |
| 11 | Income in respect of units referred to in s. 208 | Any offshore fund | Any person | 10% |
| 12 | Long-term capital gains from transfer of units (s. 208) | Any offshore fund | Any person | 12.5% |
| 13 | Interest or dividends on bonds or GDRs (s. 209) | Any non-resident | Any person | 10% |
| 14 | Long-term capital gains from transfer of bonds/GDRs (s. 209) | Any non-resident | Any person | 12.5% |
| 15 | Income from securities (s. 210(1) Table Sl. No. 1) | Any Foreign Institutional Investor | Any person | As per Note 2 |
| 16 | Income from securities (s. 210(1) Table Sl. No. 1) | Specified fund (Sch VI Note 1(g)) | Any person | 10% |
| 17 | Interest (other than Sl. Nos. 2-5) or any other sum chargeable under this Act (not being salary) | NR (not company) or foreign company | Any person | Rates in force |
Note 1: For Sl. Nos. 2, 3, 4 — interest limited to amount calculated at CG-approved rate.
Note 2: For Sl. Nos. 10 and 15 — rate is (a) 20%; or (b) rate per DTAA under s. 159(1)/(2) if lower, with certificate under s. 159(8).
Note 3: For Sl. No. 17 — (a) if interest paid by Government/PSU bank/public financial institution, TDS only at time of payment; (b) obligation extends to all persons resident or non-resident regardless of presence in India.
Sub-section (3) — Payments to Any Person
(3) Where any income or sum of the nature specified in column B of the Table below, is credited or paid by the person specified in column C during the tax year, to any person, the person responsible for making payment of such income or sum, shall deduct income-tax—
(a) on the entire amount of such income or sum, where the amount or aggregate of amounts exceed the threshold limit specified in column D, or on net winnings as per Note 1 of the Table;
(b) at the rate specified in column D;
(c) at the time of payment thereof in cash or by way of a cheque or a draft or by any other mode, or as specified therein; and
(d) subject to the provisions of sub-sections (4), (5), (6), (8) and (9).
TABLE 3 — FOR PAYMENTS TO ANY PERSON [Sub-section (3)]
| Sl. No. | Nature of income or sum (B) | Payer (C) | Rate / Threshold (D) |
|---|---|---|---|
| 1 | Winnings (other than online games) from lottery, crossword puzzle, card game, other game, gambling or betting | Any person | Rate: Rates in force; Threshold: Rs. 10,000 per single transaction |
| 2 | Winnings from online game | Any person | Rate: Rates in force; Threshold: As per Note 1 |
| 3 | Winnings from horse race | Bookmaker or licensed person | Rate: Rates in force; Threshold: Rs. 10,000 per single transaction |
| 4 | Income to person stocking/distributing/purchasing/selling lottery tickets, by way of commission/remuneration/prize | Any person | Rate: 2%; Threshold: Rs. 20,000 |
| 5 | Sum paid in cash from accounts (cash withdrawal) | Banking company; co-operative society (banking); post office | Rate: 2%; Threshold: (a) Rs. 3 crore for co-operative society; (b) Rs. 1 crore for others |
| 6 | Amount referred to in s. 80CCA(2)(a) of IT Act 1961 | Any person | Rate: 10%; Threshold: Rs. 2,500 |
| 7 | Salary, remuneration, commission, bonus or interest to partner of firm (including capital account credit) | Any person, being a firm | Rate: 10%; Threshold: Rs. 20,000 |
Note 1: For Sl. No. 2 — tax deducted (a) on net winnings in user account at end of tax year; (b) if withdrawal during year, at time of withdrawal on net winnings comprised therein and on remaining net winnings at year-end. Net winnings computed as prescribed.
Note 2: For Sl. Nos. 1 and 2 — where winnings wholly in kind or partly in kind with insufficient cash, person responsible must ensure tax paid before releasing winnings.
Note 3: For Sl. No. 4 — tax deducted at time of credit or payment, whichever earlier.
Sub-section (4) — No Deduction at Source (Exemptions Table)
(4) The deduction of tax at source shall not be made under the provisions referred to in column B of the Table below, in respect of the income or sum along with the conditions, specified in column C:
TABLE 4 — FOR NO DEDUCTION AT SOURCE [Sub-section (4)]
| Sl. No. | Provisions (B) | Condition for no deduction (C) |
|---|---|---|
| 1 | Commission/brokerage — s. 393(1) Table Sl. No. 1(ii) | Commission/brokerage payable by BSNL or MTNL to public call office franchisees |
| 2 | Rent — s. 393(1) Table Sl. No. 2(ii) | Rent to business trust (REIT) for real estate asset owned directly by trust (Sch V Table Sl. No. 4) |
| 3 | Compulsory acquisition — s. 393(1) Table Sl. No. 3(iii) | Award/agreement exempt under s. 96 of RFCTLARR Act, 2013 |
| 4 | Units — s. 393(1) Table Sl. No. 4(i) | Income is in the nature of capital gain |
| 5 | Business trust units — s. 393(1) Table Sl. No. 4(ii) | Income under Sch V Sl. No. 3.B(b), if SPV has not exercised option under s. 200 |
| 6 | Interest on securities — s. 393(1) Table Sl. No. 5(i) | (a) Interest on: (i) National Development Bonds; (ii) notified debentures; (iii) CG/SG securities other than 8% Savings Bonds 2003, 7.75% Savings Bonds 2018, Floating Rate Savings Bonds 2020 (Taxable), or other notified securities; (b) Interest payable to: (i) LIC; (ii) GIC/four companies; (iii) any other insurer; (iv) business trust in respect of SPV securities (Sch V Table Sl. No. 3) |
| 7 | Interest (other than securities) — s. 393(1) Table Sl. No. 5(ii)/(iii) | (a) Payable to: (i) banking company or co-operative bank; (ii) financial corporation under Central/State Act; (iii) LIC; (iv) UTI; (v) insurance company/co-operative society; (vi) notified institutions (before 1 Apr 2020); (b) (i) Co-operative society (non-bank) to member; (ii) co-op to co-op; (iii) primary agricultural/credit society or land mortgage/development bank deposits; (iv) co-op society (non-time deposits before 1 Jul 1995) — except where co-op’s turnover exceeds Rs. 50 crore AND interest exceeds threshold; (c) (i) CG interest under tax Acts; (ii) notified CG deposit schemes; (iii) banking company (non-time deposits before 1 Jul 1995); (iv) Motor Accident Claims Tribunal — to individual, or to others if aggregate interest does not exceed Rs. 50,000 during tax year; (v) zero coupon bond interest from infrastructure/PSU/scheduled bank; (vi) interest under Sch V Table Sl. No. 3; (vii) firm to partner |
| 8 | Contractors — s. 393(1) Table Sl. No. 6(i) | (a) Goods carriage — contractor owns 10 or less goods carriages + declaration with PAN + prescribed particulars filed; (b) personal payments by individual/HUF |
| 9 | Professional/technical fees — s. 393(1) Table Sl. No. 6(iii) | Personal payments by individual/HUF |
| 10 | Dividend — s. 393(1) Table Sl. No. 7 | Payable to: (a) LIC; (b) GIC/four companies; (c) any insurer; (d) business trust (SPV under Sch V Note 2); (e) notified persons; (f) individual shareholder if (I) paid by mode other than cash AND (II) amount does not exceed Rs. 10,000 |
| 11 | E-commerce — s. 393(1) Table Sl. No. 8(v) | E-commerce participant being (a) individual or HUF, AND (b) gross sales/services Rs. 5 lakh or less, AND (c) PAN or Aadhaar furnished |
| 12 | VDA — s. 393(1) Table Sl. No. 8(vi) | Value or aggregate value does not exceed: (a) Rs. 50,000 by individual/HUF with turnover up to Rs. 1 crore (business) or Rs. 50 lakh (profession) or no business income; (b) Rs. 10,000 by any other person |
| 13 | NR business trust — s. 393(2) Table Sl. No. 6 | Income under Sch V Sl. No. 3.B(b), SPV not exercised option under s. 200 |
| 14 | NR investment fund — s. 393(2) Table Sl. No. 8 | Income not chargeable to tax under this Act |
| 15 | NR units (UTI) — s. 393(2) Table Sl. No. 10 | Payable to NR Indian or NR HUF, subject to prescribed conditions |
| 16 | FII securities — s. 393(2) Table Sl. No. 15 | Capital gains from transfer of securities under s. 210 |
| 17 | Specified fund securities — s. 393(2) Table Sl. No. 16 | Income exempt per Sch VI Table Sl. Nos. 1-4 |
| 18 | Cash withdrawal — s. 393(3) Table Sl. No. 5 | Payment to: (a) Government; (b) banking company/co-op/post office; (c) business correspondent of bank; (d) white label ATM operator |
| 19 | NSS deposits — s. 393(3) Table Sl. No. 6 | Payment to heirs of assessee |
Sub-section (5) — Universal Exemption from TDS
(5) Irrespective of anything contained in this Chapter, the tax shall not be deducted by any person from any amount payable to—
(a) the Government; or
(b) the Reserve Bank of India; or
(c) a corporation established by or under a Central Act which is, under any law in force, exempt from income-tax on its income; or
(d) a Mutual fund as specified at Schedule VII (Table: Sl. No. 20 or 21), where such amount is payable to it by way of— (A) interest; or (B) dividend in respect of any securities or shares owned by it or in which it has full beneficial interest; or (C) any other income accruing or arising to it.
Sub-section (6) — Declaration for No Deduction at Source (Form 15G/15H equivalent)
(6)(a) The deduction of tax shall not be made under provisions referred to in column C of the Table below, in the case of a person as specified in column B, if such person furnishes to the person responsible for paying any income or sum of the nature referred to in such provisions, a written declaration in duplicate in such form and manner as may be prescribed that the tax on such person’s estimated total income of the tax year in which such income or sum is to be included in computing his total income shall be nil.
TABLE 5 — DECLARATION FOR NO DEDUCTION AT SOURCE [Sub-section (6)]
| Sl. No. | Person (B) | Provisions for TDS (C) |
|---|---|---|
| 1 | Individual being a resident | (a) PF accumulated balance — s. 392(7); (b) Insurance commission — s. 393(1) Table Sl. No. 1(i); (c) Rent — s. 393(1) Table Sl. No. 2(ii); (d) Units income — s. 393(1) Table Sl. No. 4(i); (e) Interest — s. 393(1) Table Sl. Nos. 5(i), (ii), (iii); (f) Life insurance — s. 393(1) Table Sl. No. 8(i); (g) Dividend — s. 393(1) Table Sl. No. 7 |
| 2 | Any person not being a company or firm or individual covered in Sl. No. 1 | Sl. No. 1.C(a) to (f) [excludes dividend] |
Note: This sub-section does not apply to a person (other than resident individual aged 60+ during tax year) if aggregate amounts under column C exceed the maximum amount not chargeable to tax.
Following clause (b) shall be inserted after clause (a) of sub-section (6) by the Finance Act, 2026, w.e.f. 1-4-2027:
(b) The declaration referred in clause (a) may also be furnished electronically to a depository, where— (i) the income is from units, interest on securities or dividends (s. 393(1) Table 4(i), 5(i) or 7); (ii) such units or securities are held with such depository; and (iii) such securities are listed on a recognised stock exchange, in accordance with prescribed procedure and manner.
Sub-section (7)
(7) The person responsible for paying any income or sum of the nature referred to in sub-section (6) shall deliver or cause to be delivered, such declaration referred therein, received from the person, as specified in column B of the Table in sub-section (6) or the depository, to the prescribed income-tax authority, on or before the seventh day of the month immediately following the end of each quarter in which declaration is furnished to him as per sub-section (6).
Sub-section (8)
(8) Irrespective of anything contained in sub-section (6), the deduction of tax shall not be made from the interest paid by an Offshore Banking Unit on borrowing from or deposit made on or after 1st April, 2005, by a non-resident or a person not ordinarily resident in India.
Sub-section (9)
(9) Irrespective of anything contained in this Chapter, the deduction of tax shall not be made from any payment to a person for, or on behalf of, the New Pension System Trust referred to in Schedule VII (Table: Sl. No. 41).
Sub-section (10) — Grossing Up
(10) In a case other than that referred to in section 392(2)(a), where under an agreement or an arrangement, if the tax chargeable on any income of the recipient referred to in this Chapter is to be borne by the payer, then, for the purposes of deduction of tax, the income shall be increased to an amount which after deduction of tax as per provisions of this Chapter becomes equal to the net amount payable under such agreement or arrangement.
Sub-section (11) — Suspense Account deemed credit
(11) The credit of any income or sum to any account, whether called “suspense account” or by any other name, in the books of account of the person liable to pay such income or sum, shall be deemed to be the credit of such income or sum to the account of the payee and the provisions of this Chapter shall apply accordingly.
Provisos
None.
Explanations
None.
Key Structure
- Applies to: Every person responsible for paying specified income or sums to residents (sub-section 1), non-residents (sub-section 2), and any person (sub-section 3).
- Conditions: Credit or payment of income/sum of specified nature; exceeding threshold limits where applicable; at the earlier of credit or payment (for sub-sections 1 and 2), or at time of payment (sub-section 3).
- Time limits: At the time of credit or payment, whichever earlier (sub-sections 1, 2); at time of payment (sub-section 3). Declaration under sub-section (6) to be forwarded by 7th of month following end of quarter.
- Monetary limits: See individual Table entries above. Key thresholds: interest Rs. 10,000/50,000/1,00,000; rent Rs. 50,000/month; contract Rs. 30,000 single/Rs. 1,00,000 aggregate; immovable property Rs. 50 lakh; goods purchase Rs. 50 lakh; VDA Rs. 10,000/50,000; cash withdrawal Rs. 1 crore/3 crore; life insurance Rs. 1,00,000.
- Exceptions: Sub-section (4) table lists 19 exemption categories; sub-section (5) exempts Government, RBI, exempt corporations, Mutual Funds; sub-section (6) allows nil deduction declarations; sub-sections (8)-(9) exempt OBU deposits and NPS Trust.
Cross-References
- s392 — salary TDS (carved out from this section).
- s394 — TCS provisions.
- s395 — lower/nil deduction certificates.
- s397 — TAN, PAN, returns, statements.
- s398 — consequences of non-deduction.
- s400 — CG power to relax TDS.
- s402 — definitions (specified person, designated person, buyer, rent, work, etc.).
- s67 — capital gains charging (referenced in Table 1 Sl. No. 3(ii) for JDA).
Amendment Notes
- Finance Act, 2026 amendments noted: Sl. No. 3(i) substitution; sub-section (6)(b) electronic declaration to depository (w.e.f. 1-4-2027); sub-section (7) quarterly delivery substituted for monthly; s. 397(1)(c) re-substituted.
- TCS rates for alcoholic liquor, tendu leaves, scrap, minerals, LRS education/medical, overseas tour revised by Finance Act, 2026.
Practical Notes
- This section consolidates ALL old 194-series TDS provisions into a single section with three structured tables — the most significant structural change in the new Act for TDS compliance.
- Practitioners should cross-reference the “specified person” and “designated person” definitions in section 402 to determine applicability.
- The Rs. 50 lakh threshold for individual/HUF under Sl. No. 6(ii) represents a significant coverage expansion — even non-audit individuals/HUFs must deduct TDS on large contractor/professional payments.
- [Verification Pending] — Table formatting extracted from multi-column PDF layout. Some rate/threshold entries may need verification against the original tabular format in the gazette.
Related Rules (IT Rules 2026)
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- Rule 209 — Application by payee for certificate authorising r…
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- Rule 211 — Declaration by person claiming receipt of certain …
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- Rule 215 — Certificate of tax deducted or collected at source…
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Related Circulars
- Circular 13/2021
- Circular 3/2022
- Circular 5/2021
- Circular 715/1995