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Home  ❯  Tax  ❯  Non-Res.  ❯  TDS Rates

TDS Rates FY 2021-22 (AY 2022-23) for Non-residents

Non-Residents : TDS Calculator AY 2022-23

TDS rates for AY 2022-23 for

  1. Salary and Wages payments to Non-resident Individual payees
  2. Other payments to Non-Resident Individual / Non-Individual and Foreign Company.
SectionFor Payment ofThreshold LimitTDS Rate
192APayment of accumulated balance of provident fund which is taxable in the hands of an employee.50,000/-10%
194BWinnings from Lotteries / Puzzle / Game10,000/-30%
194BBWinnings from Horse Race10,000/-30%
194EPayment to Non-Resident Sportsmen or Sports Association-20%
194EEPayment of NSS Deposits2,500/-10%
194FRepurchase of units by Mutual Funds / UTI-20%
194GCommission on Sale of Lottery tickets
(On aggregate payments exceeding ₹ 15,000/-)
15,000/-5%
194LBPayment of interest on infrastructure debt fund to Non-Resident or foreign company-5%
194LBA(2)Payment of the nature referred to in Section 10(23FC)(a)-5%
Payment of the nature referred to in Section 10(23FC)(b)-10%
194LBA(3)Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset.-30%
194LBBInvestment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].-30%
194LBCIncome distribution by a Securitisation Trust u/s 115TCA-30%
194LCPayment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)-5%
In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC-4%
194LDPayment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor-5%
194PIn case of a specified senior citizen (aged above 75 years and having income of the nature of pension and no other income except the income of the nature of interest), the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force.
194QBuyer (whose total sales, gross receipts or turnover from the business carried on by him exceed 10 crore rupees during immediately preceding the financial year) of Goods more than 50 lacs. (Please refer section for more details)50 lacs.1%
195Other Payments to Non-Resident
(a) Income from investment made by a Non-Resident in India Citizen-20%
(b) LTCG referred to in Section 115E-10%
(c) LTCG referred to in Section 112(1)(c)(iii)-10%
(d) LTCG referred to in Section 112A-10%
(e) STCG under Section 111A-15%
(f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]-20%
(g) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)-20%
(h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).-10%
(i) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.-10%
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.-10%
(k) Any other income-30%
196BIncome from units (including long-term capital gain on transfer of such units) to an offshore fund-10%
196CIncome from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)-10%
196DIncome of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)-20%
SectionFor Payment ofThreshold LimitTDS Rate
194BWinnings from Lotteries / Puzzle / Game 10,000/-30%
194BBWinnings from Horse Race10,000/-30%
194EPayment to Non-Resident Sportsmen or Sports Association-20%
194GCommission on Sale of Lottery tickets15,000/-5%
194LBPayment of interest on infrastructure debt fund to Non-Resident or foreign company-5%
194LBA(2)Payment of the nature referred to in Section 10(23FC)(a)-5%
Payment of the nature referred to in Section 10(23FC)(b)-10%
194LBA(3)Income distribution by a Investment Fund received from renting or leasing or letting out any real estate asset.-40%
194LBBInvestment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].-40%
194LBCIncome distribution by a Securitisation Trust u/s 115TCA-40%
194LCPayment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)-5%
In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC-4%
194LDPayment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor-5%
194PIn case of a specified senior citizen (aged above 75 years and having income of the nature of pension and no other income except the income of the nature of interest), the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force.
194QBuyer (whose total sales, gross receipts or turnover from the business carried on by him exceed 10 crore rupees during immediately preceding the financial year) of Goods more than 50 lacs. (Please refer section for more details)50 lacs.1%
195Other Payments to Foreign Company
(a) LTCG referred to in Section 112(1)(c)(iii)-10%
(b) LTCG referred to in Section 112A-10%
(c) STCG under Section 111A-15%
(d) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]-20%
(e) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)-20%
(f) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).-10%
(g) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. Agreement date after March 31, 1961 but before April 1, 1976-50%
(h) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. Agreement date after March 31, 1976-10%
(i) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. Agreement date after Feb. 29, 1964 but before April 1, 1976-50%
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.Agreement date after March 31, 1976-10%
(k) Any other income-40%
196BIncome from units (including long-term capital gain on transfer of such units) to an offshore fund-10%
196CIncome from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)-10%
196DIncome of Foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)-20%
Surcharge and Health & Education cess at Applicable Rates* is deductible on payments to Non-Resident and Foreign Companies.

* Applicable Rates

Non Resident - if income/payment is above ₹50 Lakh but below ₹1 Crore10%
Non Resident - if income/payment is above ₹1 Crore but below ₹2 Crores15%
Non Resident - if income/payment is above ₹2 Crores but below ₹5 Crores25%
Non Resident - if income/payment is above ₹5 Crores37%
Foreign companies - if income/payment is above ₹1 Crore but below ₹10 Crores2%
Foreign companies - if income/payment is above ₹10 Crore5%
Non-Resident Co-operative Society and Firms - if income/payment exceeds ₹1 crore12%
Health & Education Cess4% of (TDS/Tax + Surcharge)

Important :

Section 206AA - As per this section if the deductee does not provide valid PAN to the deductor, TDS shall be deducted at higher of the following rates:

Section 206AB - As per this section if deductee has NOT filed Income Tax return during past 3 years, for payments under Sections other than Sections 192, 192A, 194B, 194BB, 194LBC or 194N, the tax shall be deducted at higher of the following rates:

  1. at twice the rate specified in the relevant provision of the Act; or
  2. at twice the rate or rates in force; or
  3. at the rate of five per cent.

If the provisions of section 206AA is applicable to a specified person, in addition to the provision of this section, the tax shall be deducted at higher of the two rates provided in this section and in section 206AA.

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Updated : Mar 30, 2021