Proposed changes in TDS Regime as per Budget 2022: TDS Rate Chart applicable for Financial Year 2022-23
The proposed changes in TDS Regime as per Budget 2022 are as follows:
1. TDS on sale of immovable property
In order to remove inconsistency in provisions of section 194-IA and sections 43CA and 50C of the Act, it is proposed to amend section 194-IA of the Act to provide that in case of transfer of an immovable property (other than agricultural land), TDS is to be deducted at the rate of one percent of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher. In case the consideration paid for the transfer of immovable property and the stamp duty value of such property are both less than fifty lakh rupees, then no tax is to be deducted under section 194-IA.
2. TDS on benefit or perquisite of a business or profession
- To widen and deepen the tax base, it is proposed to insert a new section 194R to the Act to provide that the person responsible for providing to a resident, any benefit or perquisite, whether convertible into money or not, arising from carrying out of a business or exercising of a profession by such resident, shall, before providing such benefit or perquisite, as the case may be, to such resident, ensure that tax has been deducted in respect of such benefit or perquisite at the rate of ten per cent of the value or aggregate of value of such benefit or perquisite.
- No tax is to be deducted if the value or aggregate value of the benefit or perquisite paid or likely to be paid to a resident does not exceed twenty thousand rupees during the financial year.
- Further, the provisions of the said section shall not apply to an individual or a Hindu undivided family, whose total sales, gross receipts or turnover does not exceed one crore rupees in case of business or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year in which such benefit or perquisite, as the case may be, is provided.
3. TDS on virtual digital assets or Crypto-Currency
It is proposed to insert section 194S to the Act to provide for deduction of tax on payment for the transfer of virtual digital asset to a resident at the rate of one percent of such sum. However, in case the payment for such transfer is-
- wholly in kind or in exchange of another virtual digital asset where there is no part in cash; or
- partly in cash and partly in kind but the part in cash is not sufficient to meet the liability of deduction of tax in respect of whole of such transfer,
the person before making the payment shall ensure that the tax has been paid in respect of such consideration.
Rates of TDS applicable for Financial Year 2022-23 or Assessment Year 2023-24:
|Nature of Payment||Exemption||Individual /Company and others New Rate %)||If No Pan or Invalid PAN (Rate %)|
|192 – Salaries||Slab Rate||Slab Rates||30%|
|192A- Premature withdrawal from Employee Provident Fund||50,000||Individual: 10% Company: NA||20%|
|193 – Interest on securities||2,500||Individual: 10% Company: 10%`||20%|
|194 – Dividend other than the dividend as referred to in Section 115-O||5,000||Individual: 10% Company: 10%||20%|
|194A – Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks||40,000 (for individual) 50000 (for Senior Citizens)||Individual: 10%||20%|
|194B – Winning from Lotteries||10,000||Individual: 30% Company: 30%||30%|
|194BB – Winnings from Horse Race||10,000||Individual: 30% Company: 30%||30%|
|194C- Payment to Contractor – Single Transaction||30,000||Individual: 1% Company: 2%||20%|
|194C-Payment to Contractor – Aggregate During the Financial year||1,00,000||Individual: 1% Company: 2%||20%|
|194C- Contract – Transporter not covered under 44AE||30,000 / 75,000||Individual: 1% Company: 2%||20%|
|194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN||–||–||20%|
|194D – Insurance Commission||15,000||Individual: 5% Company: 5%||20%|
|194DA Payment in respect of life insurance policy||1,00,000||Individual: 5% Company: 5%||20%|
|194E – Payment to Non-Resident Sportsmen or Sports Association||–||Individual: 20% Company: 20%||20%|
|194EE – Payments out of deposits under National Savings Scheme||2,500||Individual: 10% Company: 10%||20%|
|194F – Repurchase Units by MFs||–||Individual: 20% Company: 20%||20%|
|194G – Commission – Lottery||15,000||Individual: 5% Company: 5%||20%|
|194H – Commission / Brokerage (Note 3)||15,000||Individual: 5% Company: 5%||20%|
|194I – Rent – Land and Building – furniture – fittings||2,40,000||Individual: 10% Company: 10%||20%|
|194I – Rent – Plant / Machinery / equipment||2,40,000||Individual: 2% Company: 2%||20%|
|194IA -Transfer of certain immovable property other than agricultural land [TDS is to be deducted at the rate of one percent of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher (Budget 2022)]||50,00,000||Individual: 1% Company: 1%||20%|
|194IB – Rent – Land or building or both||50,000 per month||Individual: 5%||20%|
|194IC – Payment of Monetary consideration under Joint development agreement||–||Individual: 10% Company: 10%||20%|
|194J – Professional Fees for technical services (w.e.f. from 1.4.2020)||30,000||Individual: 2% Company: 2%||20%|
|194J – Professional Fees in all other cases||30,000||Individual: 10% Company: 10%||20%|
|194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company||–||Individual: 10% Company: 10%||20%|
|194LA – TDS on compensation for compulsory acquisition of immovable Property||2,50,000||Individual: 10% Company: 10%||20%|
|194 LBA (1)- Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.||–||Individual: 10% Company: 10%||20%|
|194LB – Income by way of interest from infrastructure debt fund (non-resident)||–||Individual: 5% Company: 5%||20%|
|194LBB – Income in respect of investment in Securitisation trust.||–||Individual: 10% Company: 30%||30%|
|194LBC- Income in respect of investment made in a securitisation trust||–||Individual: 25% Company: 30%||30%|
|194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India||–||Individual: 5% Company: 5%||20%|
|194LD – Interest on certain bonds and govt. Securities||–||Individual: 5% Company: 5%||20%|
|194M – Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.||50,00,000||Individual: 5% Company: 5%||20%|
|194N – Cash withdrawal in excess of Rs. 20 Lakh during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office.||20,00,000||Individual: 2% Company: 2%||20%|
|194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office.||100,00,000||Individual: 2% Company: 2%||20%|
|194O – Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.||–||Individual: 1% Company: 1%||20%|
|194P- TDS by specified bank to specified senior citizen||–||Rates applicable to particular slab of income including applicable Surcharge and Health & Education Cess||–|
|194Q- Purchase of goods||50,00,000||0.1%||–|
|194R- Deduction of tax on benefit of perquisite in respect of business or profession (Budget 2022)||Resident Indiviual: 20,000||10%||–|
|194S- Transfer of a virtual digital asset (Budget 2022)||Resident Individual & HUF: 50,000 Others: 10,000||1%||–|
|195- Payment of any sum to Non resident||–||–||Higher of Rate in force or Double Taxation Avoidance Act rate|
|196B – Income from units||–||Individual: 10% Company: 10%||20%|
|196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)||–||Individual: 10% Company: 10%||20%|
|196D – Income of FIIs from securities||–||Individual: 20% Company: 20%||20%|
Due date of TDS Deposit for Financial Year 2022-23
Where tax is deducted by the office of the Government:
Tax Deposited without Challan
Tax Deposited with Challan
7th of next month
Tax on perquisites opted to be deposited by the employer
7th of next month
In any other case :
Tax Deductible in March
30th April of next year
7th of next month
TDS/TCS Return Filing Due Dates of Financial Year 2022-23
|Quarter||Quarter Period||TDS Return Due Date|
|1st Quarter||1st April to 30th June||31st July|
|2nd Quarter||1st July to 30th September||31st Oct|
|3rd Quarter||1st October to 31st December||31st Jan|
|4th Quarter||1st January to 31st March||31st May|
Time-Limit for Issue of TDS Certificate Form 16/Form 16A Form 16A should be issued within 15 days from the due date for furnishing the statement of tax deducted at the source.
|Quarter||Quarter Period||TDS Return Due Date||FORM 16 A Due Date|
|1st Quarter||1st April to 30th June||31st July||15th Aug|
|2nd Quarter||1st July to 30th September||31st Oct||15th Nov|
|3rd Quarter||1st October to 31st December||31st Jan||15th Feb|
|4th Quarter||1st January to 31st March||31st May||15th June|
Form 16 is issued for the cumulative period i.e. 1st April to 30th June and therefore the Due date for issuing Form 16 for FY 2022-23 would be 15th June.
Interest on late payment of TDS
|SECTION||NATURE OF DEFAULT||INTEREST SUBJECT TO TDS/TCS AMOUNT||PERIOD FOR WHICH INTEREST IS TO BE PAID|
|201A||Non deduction of tax at source, either in whole or in part||1% per month||From the date on which tax deductable to the date on which tax is actually deducted|
|After deduction of tax, non payment of tax either in whole or in part||1.5% per month||From the date of deduction to the date of payment|
Note: The above interest should be paid before filing of TDS return.
Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit. Note, that this is to be calculated on a monthly basis and not based on the number of days i.e. part of a month is considered as a full month.
For example, say that your payable TDS amount is Rs 5000 and the date of deduction is 11th January. Say you pay TDS on 25th May. Then the interest you owe is Rs 5000 x 1.5% p.m. x 5 months = Rs 375.
“Month” has not been defined in the Income Tax Act, 1961. However, in a number of High Court cases, it has been mentioned that it should be considered as a period of 30 days and not as an English calendar month.
This amount is to be paid from the date at which TDS was deducted, not from the date from which TDS was due.
For example, let the due date of TDS payment be 7th June and you have deducted TDS on 11th May. Say you have not deposited TDS by 7th June. Then you will be required to pay interest starting from 11th May and not 7th June.
Also consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 1st July. Then the due date is 7th august. Now say you deposit tax on 8th August (i.e. one day after the due date). Then interest is applicable from 1st July to 8th August i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3%
Penalty for late filing of TDS Return
Penalty (Sec 234E): Deductor will be liable to pay way of fee Rs. 200 per day till the failure to pay TDS continues. However penalty should not exceed the total amount of TDS deducted for which statement was required to be filed.
Penalty (Sec 271H): Assessing officer may direct a person who fails to file the statement of TDS within due date to pay penalty minimum of Rs.10,000 which may extended to Rs.1,00,000.
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