Section 393 — Master TDS Provision | ITA 2025

Section 393 — - TAX TO BE DEDUCTED AT SOURCE

Section 393 is the MASTER TDS PROVISION consolidating 1961 ss. 192-196D into a single comprehensive section with extensive Tables. THE LARGEST SECTION IN THE ENTIRE ACT (~80K bytes verbatim). Covers ALL TDS categories: SALARY (192); SECURITIES INTEREST (193); DIVIDEND (194); BANK INTEREST (194A); LOTTERY WINNINGS (194B); ONLINE GAMING (194BA); HORSE RACE (194BB); CONTRACTORS (194C); INSURANCE COMMISSION (194D); BROKERAGE (194H); PROFESSIONAL FEES (194J); RENT (194I); LISTED-EQUITY-PURCHASE (194Q); CASH WITHDRAWALS (194N); E-COMMERCE (194O); VDA (194S); NR PAYMENTS (195); CROSS-BORDER (195/196A-D); etc. Each category has DEDUCTOR / DEDUCTEE / RATE / THRESHOLD / TIMING / EXEMPTIONS prescribed in Tables. Practitioner-grade rule: EVERY PAYMENT to ANY person must be tested against TDS Tables for applicability.

Statutory text — Income-tax Act, 2025

Marginal note -- Tax to be deducted at source

(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).

TABLE FOR PAYMENTS TO RESIDENT Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D

1. Commission or brokerage

(i) Any income by way Any person. Rate: Rates in force. of remuneration or ___________ reward, whether by way of commission or Threshold limit: otherwise, for soliciting ` 20,000. or procuring insurance business (including business relating to the continuance, renewal or revival of insurance policies).

(ii) Any income by way of Specified person. Rate: 2% commission [not being ________ insurance commission referred to in serial Threshold limit: number 1(i)] or broker- ` 20,000. age. Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D

2. Rent

(i) Any income by way of Person other than Rate: 2% rent. specified person. ________ Threshold limit : ` 50,000 for a month or part of a month.

(ii) Any income by way of Specified person. Rate: (a) 2%, for the use rent. of any machinery or plant or equipment; and

(b) 10%, for the use of any land, or building (in- cluding factory building), or land appurtenant to a building (including facto- ry building), or furniture, or fittings. __________ Threshold limit [for (a) and (b)]: ` 50,000 for a month or part of a month. Note 1.—In serial number 2(i), the tax shall be deducted on such income at the time of—

(a) credit of rent to the account of the payee; or

(b) payment thereof in cash or by way of a cheque or a draft or any other mode, whichever is earlier, for the last month of the tax year or the last month of tenancy.

3. Payment on transfer of certain immovable property other than agricul- tural land

(i) Any consideration for P e r s o n [ o t h e r Rate: 1% of— transfer of any immova- than the person (a) consideration for ble property (other than who are required transfer of the im- agricultural land). to deduct tax un- movable property; or der serial number 3(iii)]. (b) stamp duty value of such property, whichever is higher. _________ Threshold limit: Fifty lakh rupees and as per Note 3. Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D

(ii) Any consideration, not Any person. Rate: 10% being consideration in __________ kind, under the agree- ment referred to in Threshold limit: Nil. section 67(14).

(iii) Any sum, being in the Any person. Rate: 10% nature of— __________

(a) c o m p e n s a t i o n or the enhanced Threshold limit: compensation; or ` 5,00,000.

(b) consideration or the enhanced con- sideration, on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land). Note 1.—Consideration for transfer of any immovable property under serial number 3(i) shall be the aggregate of the amounts paid or payable by all the transferees to the trans- feror or all the transferors for transfer of such immovable property for the purposes of the threshold limit mentioned in column D. Note 2.—In case of consideration on which provisions of both serial numbers 3(i) and 3(ii) are applicable, tax shall be deducted under 3(ii) only. Note 3.—For the purposes of 81[serial number 3(i)], the income-tax shall be deducted where consideration for transfer of any immovable property or the stamp duty value of such property, is equal to or greater than fifty lakh rupees.

4. Income from capital market

(i) Any income in respect Any person. Rate: 10% of— _________

(a) units of a Mutual Fund specified Threshold limit: ` 10,000. under Schedule VII (Table: Sl. No. 20 or 21); or

(b) units from the Administrator of the specified un- dertaking; or

(c) units from the specified compa- ny.

81. Substituted for “serial number 3(iii)” by the Finance Act, 2026, w.e.f. 1-4-2026. Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D

(ii) Any distributed income A n y B u s i n e s s Rate: 10% referred to in section Trust. ____________ 223, being of the nature referred to in Schedule Threshold limit: Nil. V (Table: Sl. Nos. 3 and 4), payable to a unitholder of a Busi- ness Trust.

(iii) Any income, other Any Investment Rate: 10% than that proportion fund specified in _________ of income which is ex- section 224. empt under Schedule Threshold limit: Nil. V (Table: Sl. No. 2), in respect of units of an in- vestment fund specified in section 224, payable to its unitholder.

(iv) Any income, in respect Any securitisation Rate: 10% of an investment in trust specified in ________ a securitisation trust section 221. specified in section 221 Threshold limit: Nil. to an investor.

5. Interest income

(i) Any income by way of Any person. Rate: Rates in force. Interest on securities. _________ Threshold limit: ` 10,000.

(ii) Any income by way (a) A banking Rate: Rates in force. of interest other than company; _______ interest on securities. or Threshold limit:

(b) a co-opera- tive society (a) ` 1,00,000 in the case carrying on of a senior citizen; the business (b) ` 50,000 in case of of banking; person other than or senior citizen.

(c) a post office for a deposit made under Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D a s c h e m e notified by the Cen- tral Govern- ment.

(iii) Any income being inter- Specified person Rate: Rates in force. est other than interest [other than per- _______ on securities. son in Sl. No. 5 (ii). C]. Threshold limit: ` 10,000. Note 1.—In serial numbers 5(ii) and (iii), where the interest income credited or paid is in respect of—

(a) time deposits with a banking company; or

(b) time deposits with a co-operative society engaged in carrying on the business of banking; or

(c) deposits with a public company formed and registered in India with the main object of carrying on business of long-term finance for construction or purchase of houses in India for residential purposes and is eligible for deduction under section 32(e), and the person mentioned in column C has not adopted core banking solutions, the thresh- old limit in column D shall be computed with reference to the income credited or paid by a branch of such person. Note 2.—The person responsible for making the payment referred to in serial number 5(ii) and (iii) of this Table, may at the time of making any deduction, increase or reduce the amount to be deducted for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the tax year.

6. Payments to contractors, fees for professional and technical services, etc.

(i) Any sum for carrying Any designated Rate : (a) 1%, if contractor out any work (including person. is individual or Hindu supply of labour for car- undivided family; rying out any work) in (b) 2%, if contractor is pursuance of a contract a person other than the between the contractor person mentioned in (a). and a designated per- _____ son. Threshold limit: [for (a) and (b)]

(a) ` 30,000; for any such sum; and

(b) ` 1,00,000 in case of aggregate of such sums. Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D

(ii) Any sum— Any person, being Rate: 2%

(a) for carrying out an individual or _____ any work (includ- Hindu undivided Threshold limit: ing supply of la- family [other than Fifty lakh rupees. bour for carrying those required to out any work) in deduct income- pursuance of a tax as per Sl. No. contract; or 6(i) and (iii) or Sl. No. 1(ii)].

(b) by way of fees for professional services; or

(c) by way of com- mission [not be- ing insurance commission re- ferred to in serial number 1(i)] or brokerage.

(iii) Any sum by way of— Specified person. Rate: (a) 2% of such sum

(a) fees for profes- in case of— sional services; or (i) fees for technical

(b) fees for technical services (not being services; or a professional ser- vices); or

(c) r e m u n e r a t i o n or fees or com- (ii) royalty in the na- mission by what- ture of considera- ever name called, tion for sale, distri- other than those bution or exhibition on which tax is of cinematographic deductible under films; or section 392, to (iii) payee, engaged only a director of a in the business of op- company; or eration of call centre;

(d) royalty; or (b) 10% of such sum in

(e) any sum referred cases other than (a). to in section _____ 26(2)(h). Threshold limit: (i) for (a), (b), (d) and (e) of Col. B: ` 50,000.

(ii) for (c) of Col. B: Nil. Note.—In serial number 6(i), if any sum is paid or credited for carrying out any work specified in section 402(47)(e), tax shall be deducted at source— Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D

(a) on the invoice value excluding the value of material, if such value is specified separately in the invoice; or

(b) on the whole of the invoice value, if the value of material is not specified separately in the invoice.

7. Dividend Any dividend (including div- Any domestic Rate: 10% idend on preference shares) company. _______ declared. Threshold limit: Nil. Note.—The tax shall be deducted at source before making any distribution or payment of dividend.

8. Other cases

(i) Any sum under a Any person. Rate : 2% on income life insurance policy, comprised in such sum. including the sum _______ allocated as bonus on such policy, oth- Threshold limit: er than the amount ` 1,00,000. not includible in the total income under Schedule II (Table:

Sl. No. 2).

(ii) Any sum exceed- Any person, being Rate: 0.1% ing fifty lakh rupees a buyer. _____ for purchase of any goods. Threshold limit: As per Note 1.

(iii) Total income of a Specified bank. Rate: Rates in force. specified senior citi- _____ zen after giving effect to deduction allow- Threshold limit: able under Chapter As applicable. VIII and rebate al- lowable under sec- tion 156.

(iv) Any benefit or per- Specified person. Rate: 10% of value or quisite, whether con- aggregate of values of vertible into money such benefit or or not, arising from perquisite. business or the exer- _____ cise of a profession of any resident. Threshold limit: ` 20,000. Sl. Nature of income or sum Payer Rate No. Threshold limit

A B C D

(v) Any sum on account Any e-commerce Rate: 0.1% of gross of sale of goods or operator. amount of such sale or provision of services services or both. by an e-commerce _____ participant, facilitat- ed by an e-commerce Threshold limit: Nil. operator through its digital or electronic facility or platform.

(vi) Any sum by way of Any person. Rate: 1% consideration for _____ transfer of a virtual digital asset. Threshold limit: Nil. Note 1.—(a) The deduction of tax under serial number 8(ii) shall not apply to a transaction on which tax is deductible or collectible under any of the provisions of the Act.

(b) The tax shall be deducted on the sum exceeding fifty lakh rupees. Note 2.—The provisions of serial number 8(iv) shall also apply to any benefit or perquisite, whether in cash or in kind or partly in cash and partly in kind, provided to a resident and before providing such benefit or perquisite, as the case may be, the person responsible for providing such benefit or perquisite shall ensure that tax has been deducted. Note 3.—In respect of serial number 8(v)—

(a) for deduction of tax, the provisions thereof shall take precedence over any other provisions of this Chapter;

(b) any payment made by a purchaser of goods or recipient of services directly to an e-commerce participant for the sale of goods or provision of services or both, facilitated by an e-commerce operator, shall be deemed to be the amount cred- ited or paid by the e-commerce operator to the e-commerce participant and this amount shall be included in the gross amount of such sale or services for the purposes of deduction of income-tax under this serial number;

(c) e-commerce operator shall be deemed to be the person responsible for paying to e-commerce participant;

(d) irrespective of anything contained in this Chapter, if—

(i) tax has been deducted on a transaction under this serial number; or

(ii) a transaction is not liable for tax deduction as provided in section 393(4) (Table: Sl. No. 11), then tax shall not be deducted on such transaction under any other provision of this Chapter;

(e) clause (d) shall not apply to any amount or aggregate of amounts received or receivable by an e-commerce operator for—

(i) hosting advertisements; or

(ii) providing any other services, which are not in connection with the sale or services referred to in this serial number. Note 4.—In case of a transaction on which provisions of serial number 8(v) are applicable along with the provisions of serial number 8(vi) for deduction of tax, then irrespective of anything contained in Note 3, tax on such transaction shall be deducted only under the provisions of serial number 8(vi). Note 5.—The provisions of serial number 8(iii) shall take precedence over any other provisions of this Chapter and tax shall be deducted under this provision. Note 6.—For serial number 8(iv) and (vi),—

(a) where the consideration or, benefit or perquisite provided, as the case may be,—

(i) is in exchange of another virtual digital asset where there is no part in cash, in respect of serial number 8(iv); or

(ii) is wholly in kind; or

(iii) is partly in kind and partly in cash, but such part in cash is not sufficient to meet the liability of deduction of tax in respect of the whole of such payment or benefit or perquisite, the person responsible for paying or providing shall ensure that the tax required to be deducted has been paid, before releasing such consideration or providing such benefit or perquisite, as the case may be;

(b) “person responsible for providing” means the person providing such benefit or perquisite, or in case of a company, the company itself including the principal officer thereof.

(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 FOR PAYMENTS TO NON-RESIDENT Sl. Nature of income Payee Payer Rate No. or sum A B C D E

1. Any income re- (a) A non-resi- Any person. 20% ferred to in section dent sports- 211. man (inclu- ding an ath- lete) or an Sl. Nature of income Payee Payer Rate No. or sum A B C D E entertainer, who is not a citizen of India; or

(b) a non-resi- dent sports association or institu- tion.

2. Any income by way Any non-resident A n y I n d i a n 5% of interest payable (not being a com- company or a in respect of mon- pany) or a foreign business trust. eys borrowed in for- company. eign currency from a source outside India,—

(a) under a loan agreement or issue of long- term in- frastructure bond on or after the 1st July, 2012 but before the 1st July, 2023; or

(b) by way of issue of any long- term bond on or after the 1st October, 2014 but before the 1st July, 2023, which is approved by the Central Gov- ernment in this be- half.

3. Any income by way Any non-resident A n y I n d i a n 5% of interest payable (not being a com- company or a in respect of mon- pany) or a foreign business trust. eys borrowed from company. Sl. Nature of income Payee Payer Rate No. or sum A B C D E a source outside India by way of is- sue of rupee denom- inated bond before the 1st July, 2023.

4. Any income by way Any non-resident A n y I n d i a n (a) 4%, where of interest payable (not being a com- company or a such bonds in respect of mon- pany) or a foreign business trust. are issued eys borrowed from company. on or af- a source outside ter the 1st India by way of April, 2020 issue of any long- but before term bond or rupee the 1st July, denominated bond, 2023; or which is listed only (b) 9%, where on a recognised such bonds stock exchange lo- are issued cated in any Inter- on or after national Financial the 1st July, Services Centre. 2023.

5. Any income by way Any non-resident Any infrastruc- 5% of interest. (not being a com- ture debt fund pany) or a foreign referred to in company. Schedule VII (Table: Sl. No. 46).

6. Any distributed in- Any unit holder, Any business (a) 5%, in case come referred to in being a non-res- trust. of income section 223, being of ident (not being of the na- the nature referred a company) or a ture re- to in Schedule V foreign company. ferred to in (Table: Sl. No. 3). Schedule V [Table: Sl. No. 3. B(a)]; and

(b) 1 0 % , i n case of in- come of the nature re- ferred to in Schedule V [Table: Sl. No. 3. B(b)]. Sl. Nature of income Payee Payer Rate No. or sum A B C D E

7. Any distributed in- Any unitholder, Any business Rates in force. come referred to in being a non-res- trust. section 223, being ident (not being of the nature re- a company) or a ferred to in Schedule foreign company. V (Table: Sl. No. 4).

8. Any income, oth- Any unitholder, Any investment Rates in force. er than that pro- being a non-res- fund specified portion of income ident (not being in section 224. which is exempt a company) or a under Schedule V foreign company. (Table: Sl. No. 2), in respect of units of an investment fund specified in section 224.

9. Any income in re- Any investor, be- Any securitisa- Rates in force. spect of an invest- ing a non-resident tion trust spec- ment in a securiti- (not being a com- ified in section sation trust specified pany) or a foreign 221. in section 221. company.

10. Any income— Any non-resident Any person. As per Note 2.

(a) in respect of (not being a com- u n i t s o f a pany) or a foreign Mutual Fund company. specified un- der Schedule VII (Table: Sl. No. 20 or 21); or

(b) in respect of units from the specified com- pany.

11. Any income in re- A n y o f f s h o r e Any person. 10% spect of units re- fund. ferred to in section 208. Sl. Nature of income Payee Payer Rate No. or sum A B C D E

12. Any income by way A n y o f f s h o r e Any person. 12.5% of long-term capital fund. gains arising from the transfer of units referred to in sec- tion 208;

13. Any income by Any non-resident. Any person. 10% way of interest or dividends in re- spect of bonds or Global Depository Receipts referred to in section 209.

14. Any income by way Any non-resident. Any person. 12.5% of long-term cap- ital gains arising from the transfer of bonds or Global Depository Receipts referred to in sec- tion 209.

15. Any income in re- Any Foreign Insti- Any person. As per Note 2. spect of securities tutional Investor. referred to in sec- tion 210(1) (Table:

Sl. No. 1).

16. Any income in re- A specified fund Any person. 10% spect of securities referred to in referred to in sec- Schedule VI [Note tion 210(1) (Table: 1(g)].

Sl. No. 1).

17. Any interest (not be- Any non-resident Any person. Rates in force. ing interest referred (not being a com- to against serial pany) or a foreign numbers 2, 3, 4 and company. 5) or any other sum chargeable under the provisions of this Act, not being income chargeable under the head “Sal- aries”. Note 1.—For serial numbers 2, 3 and 4, the interest payable shall be income to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan or the bond and its repayment. Note 2.—For serial numbers 10 and 15, tax shall be deducted at the rate of—

(a) 20%; or

(b) where an agreement referred to in section 159(1) or 159(2) applies to the payee and if the payee has furnished a certificate referred to in section 159(8), as the case may be, then, income-tax shall be deducted at the rate or rates of income-tax

provided in such agreement for such income, if such rate is lower than 20%. Note 3.—For serial number 17,—

(a) if interest is payable by the Government or a public sector bank or a public financial institution within the meaning of Schedule VII (Note 3), deduction of tax shall be made only at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode;

(b) the obligation to deduct tax at source and comply with the provisions of this serial number extend to all persons resident or non-resident, whether or not, the non-resident person has—

(i) a residence or place of business or business connection in India; or

(ii) any other presence in any manner whatsoever in India.

(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 FOR PAYMENTS TO ANY PERSON Sl. Nature of income or Payer Rate No. sum Threshold limit

A B C D

1. Any income by way of Any person. Rate: Rates in force. winnings (other than _____ winnings from online games as referred to in Threshold limit: ` 10,000 serial number 2) from— in case of a single transaction.

(a) any lottery; or Sl. Nature of income or Payer Rate No. sum Threshold limit

A B C D

(b) crossword puzzle; or

(c) card game and other game of any sort; or

(d) gambling or bet- ting of any form or nature whatsoever.

2. Any income by way of Any person. Rate: Rates in force. winnings from online _____ game. Threshold limit: As per Note 1.

3. Any income by way Any person, being a Rate: Rates in force. of winnings from any bookmaker or a person _____ horse race. to whom a licence has been granted by the Threshold limit: Government under any ` 10,000 in case of a law for the time being single transaction. in force for horse racing in any race course or for arranging for wagering or betting in any race course.

4. Any income, credited or Any person. Rate: 2% paid to a person, who _____ is or has been stocking, Threshold limit: distributing, purchasing ` 20,000. or selling lottery tickets, by way of commission, remuneration or prize (by whatever name called) on such tickets.

5. Any sum, paid in cash, Any person, being, — Rate: 2% f r o m o n e o r m o r e (a) a banking compa- _____ accounts maintained ny; Threshold limit: (a) three by any person (herein

(b) a co-operative so- crore rupees in case of referred as recipient). ciety engaged in recipient being, a co- carrying on the operative society; or Sl. Nature of income or Payer Rate No. sum Threshold limit

A B C D business of bank- (b) one crore rupees in ing; or case of recipient being

(c) a post office. person other than a co- operative society.

6. Any amount referred to Any person. Rate: 10% in section 80CCA(2)(a) _____ of the Income-tax Act, Threshold limit: 1961 (43 of 1961). ` 2,500.

7. Any sum in the nature Any person, being a firm. Rate: 10% of salary, remuneration, _____ commission, bonus or Threshold limit: interest paid to a partner ` 20,000. of the firm or credited to his account (including capital account). Note 1.—For serial number 2, tax shall be deducted—

(a) on net winnings in the user account of the payee at the end of the tax year;

(b) where there is any withdrawal from user account during the tax year, the tax shall be deducted at the time of such withdrawal on the net winnings comprised in such withdrawal as well as on the remaining amount of net winnings in user account at the end of the tax year, where the net winnings in each case is computed in the such manner as may be prescribed. Note 2.—For serial numbers 1 and 2, where the winnings or net winnings, as the case may be,—

(a) is wholly in kind; or

(b) is partly in kind and partly in cash, but such part in cash is not sufficient to meet the liability of deduction of tax in respect of the whole of such winnings, then, the person responsible for paying shall ensure that the tax required to be deducted has been paid, before releasing the winnings. Note 3.—For serial number 4, the person responsible for making the payment shall deduct tax at the time of credit of such sum or at the time of payment of such sum in cash or by issue of a cheque or a draft or by any other mode, whichever is earlier.

(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 FOR NO DEDUCTION AT SOURCE Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C

1. Commission or Broker- Commission or brokerage payable by Bharat age referred to in section Sanchar Nigam Limited or Mahanagar Tele- 393(1) [Table: Sl. No. phone Nigam Limited to their public call office 1(ii)]. franchisees.

2. Rent referred to in sec- Income by way of rent credited or paid to a busi- tion 393(1) [Table: Sl. ness trust, being a real estate investment trust, No. 2(ii)]. in respect of any real estate asset, referred to in Schedule V (Table: Sl. No. 4), owned directly by such business trust.

3. Compensation on acqui- Income by way of any award or agreement which sition of certain immov- has been exempted from levy of income-tax under able property referred to section 96 of the Right to Fair Compensation and in section 393(1) [Table: Transparency in Land Acquisition, Rehabilitation

Sl. No. 3(iii)]. and Resettlement Act, 2013 (30 of 2013).

4. Income in respect of If income is of the nature of capital gain. units referred to in sec- tion 393(1) [Table: Sl. No. 4(i)].

5. Income from units of a Income of the nature referred to in Schedule business trust referred to V [Table: Sl. No. 3.B(b)], if the special purpose in section 393(1) [Table: vehicle referred to in the said serial number has

Sl. No. 4(ii)]. not exercised the option under section 200.

6. Interest on securities (a) Interest payable on— referred to in section

(i) National Development Bonds; 393(1) [Table: Sl. No. 5(i)]. (ii) such debentures, issued by such insti- tution or authority or any other person as the Central Government may, by notification, specify in this behalf;

(iii) any security of the Central Government or a State Government, other than—

(A) 8% Savings (Taxable) Bonds, 2003; or

(B) 7.75% Savings (Taxable) Bonds, 2018; or Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C

(C) Floating Rate Savings Bonds, 2020 (Taxable); or

(D) any other security of the Central Government or State Govern- ment as the Central Government may, by notification, specify in this behalf;

(b) interest payable to—

(i) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), in respect of any se- curities owned by it or in which it has full beneficial interest; or

(ii) the General Insurance Corporation of India or to any of the four companies, formed by virtue of the schemes made under section 16(1) of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), in respect of any securities owned by the Corpora- tion or such company or in which the Corporation or such company has full beneficial interest; or

(iii) any other insurer in respect of any securities owned by it or in which it has full beneficial interest; or

(iv) a “business trust”, as defined in section 2(21), in respect of any securities, by a special purpose vehicle referred to in Schedule V (Table: Sl. No. 3).

7. Interest other than inter- (a) Interest income credited or paid to— est on securities referred (i) any banking company 82[or any co-op- to in section 393(1) erative society engaged in carrying on [Table: Sl. No. 5(ii) and the business of banking (including a 5(iii)]. co-operative land mortgage bank)]; or

(ii) any financial corporation established by or under a Central Act or State Act or Provincial Act; or

82. Inserted by the Finance Act, 2026, w.e.f. 1-4-2026. Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C

(iii) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956); or

(iv) the Unit Trust of India; or

(v) any company or co-operative society carrying on the business of insurance; or

(vi) such other institution, association or body or class of institutions, associ- ations or bodies which the Central Government may, for reasons to be recorded in writing, notified in this behalf before the 1st April, 2020;

(b) interest income credited or paid—

(i) by a co-operative society other than a co-operative bank, to a member thereof; or

(ii) by a co-operative society to any other co-operative society; or

(iii) in respect of 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; or

(iv) in respect of deposits (other than time deposits made on or after the 1st July, 1995) with a co-operative society, other than a co-operative society or bank referred to in sub-clause (iii), engaged in the business of banking, except when,—

(A) where the total sales, gross receipts or turnover of the co-operative society exceed fifty crore rupees during the tax year immediately preceding the tax year in which such interest is credited or paid; and

(B) the amount or aggregate of amounts of interest credited or paid exceeds the threshold limit mentioned in section 393(1) (Table: Sl. No. 5(ii)D); Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C

(c) interest income credited or paid—

(i) by the Central Government under any provision of this Act or the Income-tax Act, 1961 (43 of 1961), or the Estate Duty Act, 1953 (34 of 1953), or the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act, 1958 (18 of 1958), the Companies (Profits) Surtax Act, 1964 (7 of 1964), or the Interest-tax Act, 1974 (45 of 1974);

(ii) in respect of deposits under any scheme framed by the Central Government and notified by it in this behalf;

(iii) in respect of deposits (other than time deposits made on or after the 1st July, 1995) with a banking company; [(iv) on the compensation amount awarded 83 by a Motor Accidents Claims Tribunal—

(A) to an individual; or

(B) to a person other than an individ- ual, where the aggregate interest on such compensation does not exceed ` 50,000 during the tax year;]

(v) or payable by an infrastructure capital company; or infrastructure capital fund; or infrastructure debt fund; or a public sector company; or scheduled bank in relation to a zero coupon bond issued on or after the 1st June, 2005 by such company or fund or public sector company or scheduled bank;

(vi) as referred to in Schedule V (Table: Sl. No. 3);

(vii) by a firm to a partner of the firm.

83. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, item (iv) read as under : “(iv) by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income or, the aggregate of the amounts of such income does not exceed ` 50,000 during the tax year;” Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C

8. Payments to contractors (a) Where— referred to in section (i) any sum credited or paid or likely 393(1) [Table: Sl. No. to be credited or paid during the tax 6(i)]. year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages; and

(ii) that contractor owns ten or less goods carriages at any time during the tax year; and

(iii) furnishes a declaration to that effect along with his Permanent Account Number to the person paying or cred- iting the sum; and

(iv) the person responsible for paying to the contractor furnishes to the pre- scribed income-tax authority the particulars in such form and within such time as may be prescribed;

(b) where such sum is credited or paid by indi- vidual or Hindu undivided family exclusively for personal purposes of such individual or any member of Hindu undivided family.

9. Fees for professional Where such sum is credited or paid by individual or technical services or Hindu undivided family exclusively for personal referred to in section purposes of such individual or any member of 393(1) [Table: Sl. No. Hindu undivided family. 6(iii)].

10. Dividend referred to in Dividend income credited or paid to— section 393(1) (Table: (a) the Life Insurance Corporation of India

Sl. No. 7). established under the Life Insurance Cor- poration Act, 1956 (31 of 1956), in respect of any shares owned by it or in which it has full beneficial interest;

(b) the General Insurance Corporation of India or to any of the four companies, formed by virtue of the schemes made under section 16(1) of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), in respect of any shares owned by the Corporation or such company or in which the Corporation or such company has full beneficial interest; Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C

(c) any other insurer in respect of any shares owned by it or in which it has full beneficial interest;

(d) a “business trust”, as defined in section 2(21), by a special purpose vehicle referred to in Schedule V (Note 2);

(e) any other person as may be notified by the Central Government in this behalf;

(f) a shareholder, being an individual, if—

(I) the dividend is paid by the company by any mode other than cash; and

(II) amount or aggregate of amounts of such dividend distributed or paid or likely to be distributed or paid during the tax year does not exceed ` 10,000.

11. Payment by e-commerce Where the amount is credited or paid or likely operator to e-commerce to be credited or paid during the tax year to the participant referred to in account of an e-commerce participant, which is— section 393(1) [Table: Sl. (a) an individual or a Hindu undivided family; No. 8(v)]. and

(b) the gross amount of the sales or services or both during the tax year does not exceed ` 5,00,000; and

(c) the e-commerce participant has furnished the Permanent Account Number or Aadhaar number to the e-commerce operator.

12. Payment on transfer Where value or aggregate value of such consid- of virtual digital asset eration during the tax year does not exceed— referred to in section (a) ` 50000, when payable by an individual or 393(1) [Table: Sl. No. a Hindu undivided family,— 8(vi)].

(i) whose total sales, gross receipts or turnover from the business carried on by him or profession exercised by him does not exceed one crore rupees in case of business or fifty lakh rupees in case of profession, during the tax year immediately preceding the tax year in which such virtual digital asset is transferred; Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C

(ii) not having any income under the head “Profits and gains of business or profession”;

(b) ` 10000, when payable by any person other than the person referred to in clause (a).

13. Income from units of a Income of the nature referred to in Schedule business trust referred to V [Table: Sl. No. 3.B(b)], if the special purpose in section 393(2) (Table: vehicle referred to in the said clause has not

Sl. No. 6). exercised the option under section 200.

14. Income in respect of Income that is not chargeable to tax under the units of investment fund provisions of this Act. referred to in section 393(2) (Table: Sl. No. 8).

15. Income in respect of Income payable in respect of units of the Unit units of non-residents Trust of India to a non-resident Indian or a referred to in section non-resident Hindu undivided family, subject to 393(2) (Table: Sl. No. 10). prescribed conditions.

16. Income of Foreign Insti- Income, by way of capital gains arising from the tutional Investors from transfer of securities referred to in section 210, if securities referred to in payable to a Foreign Institutional Investor. section 393(2) (Table: Sl. No. 15).

17. Income of Specified Income is exempt as per Schedule VI (Table: Sl. Fund from securities Nos. 1 to 4). referred to in section 393(2) (Table: Sl. No. 16).

18. Payment of certain Payment made to— amounts in cash referred (a) the Government; to in section 393(3)

(b) any banking company or co-operative soci- (Table: Sl. No. 5). ety engaged in carrying on the business of banking or a post office;

(c) any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, as per the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934 (2 of 1934);

(d) any white label automated teller machine operator of a banking company or co-oper- ative society engaged in carrying on the Sl. Provisions for tax Condition for no deduction on income or sum No. deduction at source

A B C business of banking, as per the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51 of 2007).

19. Payment in respect of Payment made to heirs of an assessee. deposits under National Savings Scheme, etc., referred to in section 393(3) (Table: Sl. No. 6).

(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.

(6) 84[(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 DECLARATION FOR NO DEDUCTION AT SOURCE Sl. Person Provisions for tax deduction at source No.

A B C

1. An individual being a (a) payment of accumulated balance due to an resident. employee referred to in section 392(7);

(b) insurance Commission referred to in section 393(1) [Table: Sl. No. 1(i)];

(c) rent referred to in section 393(1) [Table: Sl. No. 2(ii)];

84. Shall be renumbered as sub-section (6)(a) thereof by the Finance Act, 2026, w.e.f. 1-4-2027. Sl. Person Provisions for tax deduction at source No.

A B C

(d) income in respect of units referred to in section 393(1) [Table: Sl. No. 4(i)];

(e) interest referred to in section 393(1) [Table:

Sl. No. 5(i), (ii) and (iii)];

(f) payment in respect of life insurance policy referred to in section 393(1) [Table: Sl. No. 8(i)];

(g) dividend referred to in section 393(1) (Table:

Sl. No. 7).

2. Any person not being a Sl. No. (1).C(a) to (f). company or a firm or an individual covered in Sl. No. (1). Note.—The provisions of this sub-section shall not apply in case of a person referred to in column B of the Table, other than an individual being a resident who is of the age of sixty years or more at any time during the tax year, if the aggregate of amounts of any income or sum of the nature referred to in provision mentioned in column C of this Table, is credited or paid or likely to be credited or paid during the relevant tax year in which such income or sum is to be included, exceeds the maximum amount not chargeable to tax. Following clause (b) shall be inserted after clause (a) of sub-section (6) of section 393 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, as defined in section 2(e) of the Depositories Act, 1996 (22 of 1996), where––

(i) the income is from units, interest on securities or dividends, as the case may be, as referred to in section 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 such procedure and manner, as may be prescribed. 85 [(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).]

85. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section

(7) read as under : “(7) The person responsible for paying any income or sum of the nature referred in sub-section

(6) shall deliver or cause to be delivered, one copy of the declaration referred therein, received from the person to the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, on or before the seventh day of the month following the month in which the declaration is furnished to him.”

(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.

(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).

(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.

(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. Collection of tax at source.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 393	INCOME-TAX ACT, 1961
Sub-s. (1) Table -- comprehensive TDS rates / categories	1961 ss. 192-196D consolidated
SALARY 192	1961 s. 192
INTEREST ON SECURITIES 193	1961 s. 193
DIVIDEND 194	1961 s. 194
INTEREST OTHER THAN SECURITIES 194A	1961 s. 194A
LOTTERY / WINNINGS 30% 194B / BB	1961 ss. 194B / 194BB
ONLINE GAMING 194BA (FA 2023)	1961 s. 194BA [FA 2023]
CONTRACTORS / SUB-CONTRACTORS 194C	1961 s. 194C
INSURANCE COMMISSION 194D / 194DA	1961 ss. 194D / 194DA
BROKERAGE / COMMISSION 194H	1961 s. 194H
RENT 194I	1961 s. 194I
PROFESSIONAL / TECHNICAL FEES 194J	1961 s. 194J
NR PAYMENTS / FOREIGN COMPANY 195	1961 s. 195
E-COMMERCE 194O (FA 2020)	1961 s. 194O [FA 2020]
LISTED EQUITY PURCHASE 194Q (FA 2021)	1961 s. 194Q [FA 2021]
CASH WITHDRAWALS 194N	1961 s. 194N
VDA TRANSFER 194S 1% (FA 2022)	1961 s. 194S [FA 2022]
RENT BY HUF/IND > INR 50K/MONTH 194-IB	1961 s. 194IB
IMMOVABLE PROPERTY > INR 50L 194-IA	1961 s. 194IA
NR rent / royalty / FTS 195	1961 s. 195
MF UNIT REPURCHASE 194K (FA 2020)	1961 s. 194K

STATUTORY ARCHITECTURE -- THE MASTER TDS TABLE

Section 393 is the LONGEST PROVISION in the entire 2025 Act -- a comprehensive TABLE consolidating all 1961 TDS provisions (ss. 192-196D) into a single architectural framework. Each TABLE ROW specifies: (I) PAYMENT CATEGORY (e.g., salary, dividend, professional fees); (II) DEDUCTOR (typically employer, payer, principal, etc.); (III) DEDUCTEE (recipient class); (IV) THRESHOLD (annual / per-transaction limit; below which TDS not applicable); (V) RATE (1%-30% depending on category and tax-status); (VI) TIMING (at credit / at payment / earlier); (VII) EXEMPTIONS / CARVE-OUTS (specific exemptions, lower deduction certificate, etc.). TYPICAL PAYMENT CATEGORIES AND RATES (illustrative): (a) SALARY: at average rate; computed by employer; complex methodology. (b) INTEREST (BANK): 10% (resident); 20% (NR / no PAN); INR 40K threshold (50K for senior citizen); (c) DIVIDEND: 10% resident; 20% NR (subject to DTAA); INR 5K threshold per company; (d) PROFESSIONAL FEES: 10% above INR 30K (40K post FA 2024); (e) RENT: 10% above INR 2.4L annual (FA 2017 enhanced from 1.8L); (f) CONTRACTORS: 1% (individual) / 2% (others) above INR 30K per contract / 1L aggregate; (g) BROKERAGE: 5% above INR 15K (FA 2024 enhanced from 5K); (h) NR PAYMENTS: 30% (or DTAA rate); broad coverage; (i) IMMOVABLE PROPERTY > INR 50L: 1% by buyer u/s 194IA; (j) E-COMMERCE: 1% on gross sale value (FA 2020 s. 194O); (k) CASH WITHDRAWALS: 2% above INR 1 cr (5%-cumulative cases above 20L); (l) VDA: 1% buyer-side (FA 2022 s. 194S); (m) ONLINE GAMING: 30% on net winnings (FA 2023 s. 194BA).

DEDUCTOR DUTIES

PAYER (DEDUCTOR) OBLIGATIONS: (a) DEDUCT TDS at applicable rate at TIME OF CREDIT or TIME OF PAYMENT (whichever earlier); (b) DEPOSIT TDS to Govt account WITHIN PRESCRIBED TIME (typically 7th of next month; March deductions by 30-Apr); (c) FILE QUARTERLY TDS RETURNS (Form 24Q salaries / 26Q residents non-salary / 27Q NR / 27EQ TCS); (d) ISSUE TDS CERTIFICATES (Form 16 salary / 16A non-salary) within 15 days of due date of return-filing; (e) Update Form 26AS / AIS / TIS for deductee. FAILURE CONSEQUENCES (s. 398): (I) DISALLOWANCE under s. 35(b) of expenditure (30% / 100% of payment); (II) INTEREST under s. 401 (1% per month for non-deduction; 1.5% per month for non-deposit post-deduction); (III) PENALTY equal to TDS not deducted; (IV) PROSECUTION u/s 471 (1961 s. 276B / 276BB) for wilful default.

DEDUCTEE PROTECTIONS

DEDUCTEE (PAYEE) PROTECTIONS: (a) TDS DEDUCTED IS INCOME RECEIVED -- s. 396 deems TDS amount as income; deductee gets credit; (b) FORM 26AS / AIS reflects all TDS for assessee; (c) LOWER DEDUCTION CERTIFICATE u/s 393(8) -- assessee can obtain lower or NIL TDS certificate; (d) FORM 15G / 15H -- senior-citizen / low-income individual self-declaration for non-deduction; (e) PAYEE-PAYS-AOK SHIELD u/s 35(b)(B) -- if payee files return and pays tax, payer's deduction protected post-FA 2012.

SPECIAL CATEGORIES

(I) SALARY (s. 392 + 393 Sl. 1): employer computes annual estimated tax + deducts pro-rata monthly. Form 16 issued. New regime / old regime computation per s. 202. (II) NR PAYMENTS (s. 393 Sl. for s. 195): (a) Cross-border interest / royalty / FTS / capital gains; (b) Higher rate without PAN (20% or treaty rate, whichever higher); (c) Form 15CA / 15CB cross-border-remittance compliance; (d) DTAA more-beneficial test under s. 159. (III) IMMOVABLE PROPERTY (s. 393 Sl. for 194IA): (a) Buyer deducts 1% if consideration > INR 50L; (b) Form 26QB challan; Form 16B certificate; (c) Common practical issue for individual real-estate buyers. (IV) E-COMMERCE (s. 393 Sl. for 194O): (a) E-commerce operator deducts 1% on gross sale value to e-commerce participant; (b) Critical for Amazon / Flipkart / Zomato / Swiggy / similar platforms. (V) VDA (s. 393 Sl. for 194S): (a) 1% TDS on VDA transfer consideration; (b) Buyer deducts; cryptocurrency exchanges typically central; (c) Form 26QE / 26QF compliance.

PRACTITIONER NOTES (TWELVE AREAS)

(i) COMPREHENSIVE TDS CHECK -- every payment must be tested against Table; common gaps: rent / professional fees / contractor / broker. (ii) THRESHOLD TRACKING -- annual / per-transaction; aggregate-test for contractors / commissioners. (iii) PAN VALIDATION -- without PAN, default 20% or higher rate (s. 397 / 1961 s. 206AA); demand PAN early. (iv) FORM 26AS RECONCILIATION -- mandatory for assessees; reconcile every TDS; chase missing / incorrect entries. (v) LOWER DEDUCTION CERTIFICATE -- if margin < TDS rate, obtain Form 13 certificate; reduces TDS rate. (vi) FORM 15G / 15H -- senior-citizen / low-income self-declaration; submit to bank annually. (vii) FOREIGN PAYMENT FORM 15CA / 15CB -- mandatory cross-border remittance > INR 5L; CA certification under 15CB. (viii) DTAA APPLICATION -- NR-payee TRC + Form 10F; treaty-rate prevails if more beneficial. (ix) IMMOVABLE PROPERTY 1% TDS -- mandatory for buyer if consideration > INR 50L; Form 26QB. (x) E-COMMERCE OPERATOR -- 1% TDS on participants; system-level integration. (xi) VDA / CRYPTO -- 1% TDS; exchange typically deducts; track for audit. (xii) FORM 16 / 16A TIMELY -- 15 days post quarterly TDS-return; issue to deductees.

CROSS-REFERENCES

Section 390 -- Master collection framework.
Section 392 -- Salary TDS specific (s. 192).
Section 394 -- TCS.
Section 395 -- Certificates / Form 13.
Section 396 -- TDS deemed income.
Section 397 -- Compliance / reporting / Forms 24Q/26Q/27Q.
Section 398 -- Consequences of failure (interest / penalty).
Section 35(b) -- Disallowance for non-TDS.
Section 159 -- DTAA framework.
Section 9 -- Source rule for NR.
Form 16 / 16A / 26AS / 24Q / 26Q / 27Q / 15G / 15H / 13.

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