Navigate TDS rates and compliances for FY 2023-24 onwards. Learn about TDS payment due dates, late fees, interest, penalty, prosecution, and applicable rates for various transactions. Stay informed to ensure seamless compliance.

Article explains provisions related to TDS Payment & Return Due Date, TDS Late Fees  under section 234E,TDS Interest under Section 201, TDS Penalty under Section 271H, TDS Prosecution under Section 276B and TDS Rate (As Applicable from 01-04-2023 onwards).

TDS Payment & Return Due Date

Liability for the M/o TDS Payment Due Date TDS Return Due Date
April 7th May 31st July
May 7th June
June 7th July
July 7th August 31st October
August 7th September
September 7th October
October 7th November 31st January
November 7th December
December 7th January
January 7th February 31st May
February 7th March
March 7th March (Govt case)
March 30th April (Others)

TDS Late Fees 

Section: 234E Late Fees: Rs. 200 Per day
Provision: The deductor of TDS shall be liable to pay this for every day of delay
But maximum amount of TDS ((Date of filing of return – Due Date of return)*200)

TDS Interest

Section: 201(1A)(i) Interest: @1%
Provision: If TDS is not fully/partly deducted, then Interest is to be paid
From “Date on which tax is deductible to the date on which tax is actually deducted.”
Section: 201(1A)(ii) Interest: @1.5%
Provision: If TDS is fully/partly deducted, but not paid to GoI, then Interest shall be paid From the “Date on which tax is deducted to the date on which tax is deposited.”

TDS Penalty

Section: 271H Penalty: Rs 10000/- to Rs 100000/-
Provision: AO may direct a person who fails to file the TDS/TCS return within the due date or file the incorrect return.

TDS Prosecution

Section: 276B Rigorous imprisonment: 3 Months to 7 Years + Fine
If a person fails to pay TDS to GoI as required under the provisions of Chapter XVII-B.

TDS Rate (As Applicable from 01-04-2023 onwards)

Section Nature of transaction Threshold Limit (Rs) TDS Rate
192 Payment of salary Basic exemption limit for employee Normal Slab Rates
192A Premature withdrawal from EPF 50,000 10% or 20%, if doesn’t have a PAN
193 Interest on securities Debentures- 5,000 10%
8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000
Other securities- No limit
194 Payment of any dividend 5000 10%
194A Interest from other than interest from securities (from deposits with banks/post office/co-operative society) Senior Citizens- 50,000 10%
Others- 40,000
Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society.     For e.g., interest from friends and relatives 5000
194B Income from lottery winnings, card games, crossword puzzles, and other games of any type 10000 (Aggregate winnings during a financial year) 30%
194BA Income from online games Nil 30%
194BB Income from horse race winnings 10000 (Aggregate winnings during a financial year) 30%
194C Payment to contractor/sub-contractor:- Single transaction- 30,000, Aggregate transactions- 1,00,000
a) Individuals/HUF 1%
b) Other than Individuals/HU 2%
194D Insurance commission to:
a) Domestic Companies 15000 10%
b) Other than companies 15000 5%
194DA Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy. 1,00,000 5%
194E Payment to non-resident sportsmen/sports association No limit 20%, *This rate shall be increased by applicable surcharge and 4% cess
194EE Payment of amount standing to the credit of a person under the National Savings Scheme (NSS) 2500 10%
194F Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund No limit 20%
194G Payments, commission, etc., on the sale of lottery tickets 15000 5%
194H Commission or brokerage 15000 5%
194-I Rent by Individual/HUF liable to Tax Audit
194-I(a) Rent on plant and machinery 2,40,000 2%
194-I(b) Rent on land/building/furniture/fitting 10%
194-IA Payment in consideration of transfer of certain immovable property other than agricultural land. 50,00,000 1%
194-IB Rent payment by an individual or HUF is not liable to tax audit 50,000 per month 5%
194-IC Payment under Joint Development Agreements (JDA) to Individual/HUF No limit 10%
194J Any sum paid by way of fee for professional services 30000 10%
Any sum paid by way of remuneration/fee/commission to a director 30000 10%
Any sum paid for not carrying out any activity concerning any business; 30000 10%
Any sum paid for not sharing any know-how, patent, copyright, etc. 30000 10%
Any sum paid as a fee for technical services 30000 2%
Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films 30000 2%
Any sum is paid as fees for technical services, but the payee is engaged in the business of operation of the call centre. 30000 2%
194K Payment of any income for units of a mutual fund, for example, dividend No limit 10%
194LA Payment in respect of compensation on acquiring certain immovable property 2,50,000 10%
194LB Payment of interest on infrastructure debt fund to Non-Resident No limit 5%, *This rate shall be increased by applicable surcharge and 4% cess
194LB(1) Distribution by business trust to its units holders income like Interest, rental income, received from SPV No limit 10%
194LBA(2) Interest income of a business trust from SPV distribution to its unitholders No limit 5%
194LBA(2) Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders No limit 10%
194LBA(3) Rental income payment of assets owned by the business trust to the unitholders of such business trust No limit 30%
194LBA(3) Rental income payment of assets owned by the business trust to the unitholders of such business trust No limit 40%
194LBB Certain income paid to a unitholder in respect of units of an investment fund No limit 10%
194LBB Certain income paid to a unitholder in respect of units of an investment fund No limit 40%
194LBC Income from investment in securitisation fund received to an individual and HUF No limit 25%
Income from investment in a securitisation fund received from a domestic company 10%
Income from investment in securitisation fund received to a foreign company 40%
Income from investment in securitisation fund received to NRI 10%
194LC Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against a loan agreement or the issue of long-term bonds No limit 5%
194LC Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC No limit 4%
194LD Payment of interest on bond (rupee-denominated) to FII or a QFI No limit 5%
194M Certain payments by Individuals/HUF are not liable to deduct TDS under Sections 194C, 194H, and 194J 50,00,000 5%
194N Cash withdrawal from accounts with Bank, Cooperative society, or post office engaged in the banking business Co-operative society: 3 Crore 2%
Others: 1 crore 2%
Cash withdrawal in case the person not filing ITR for the last three years and the original ITR filing due date expired Co-operative society: 3 Crore 5%
Others: 1 crore 5%
Others: 20 Lakh 2%
194O Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. 5,00,000 1% or 5% in case PAN is not furnished
194P Payment of pension or interest to specified senior citizens of age 75 years or more Basic exemption limit of senior citizens or super senior citizens Normal tax slab rates
194Q Payments for the purchase of goods 50,00,000 0.10%
194R Perquisite or benefit to a business or profession 20000 10%
194S TDS on the transfer of virtual digital assets Specified Persons- 50,000 1%
Others- 10,000

Author Bio

Qualification: CA in Job / Business
Company: N/A
Location: Shikohabad , Uttar Pradesh, India
Member Since: 15 Sep 2020 | Total Posts: 4
I (CA Kaushal Gupta) am qualified Chartered Accountant since 2018. PS: If you have issue about Income tax, GST, MCA, TDS, please contact at 7037999666 or type your issue at pcakg1989@gmail.com. View Full Profile

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