Tax · Free tool
TDS Section Finder
Browse common TDS sections by payment type. Wrong section + wrong rate = penalty u/s 234E (₹100/day) and disallowance u/s 40(a).
| Section | Payment | Rate | Threshold | Filer |
|---|---|---|---|---|
| 192 | Salary to employees | Slab rate | Above basic exemption | Employer |
| 193 | Interest on securities | 10% | ₹5,000 / FY | Issuer |
| 194-A | Interest other than on securities (FD, RD) | 10% | ₹40k (₹50k for seniors) / FY | Bank / NBFC |
| 194-B | Lottery / game / cryptocurrency-related winnings | 30% | ₹10,000 | Payer |
| 194-C | Contractor / sub-contractor payment | 1% individual / 2% other | ₹30k single or ₹1L aggregate | Payer |
| 194-D | Insurance commission | 5% | ₹15,000 / FY | Insurance co |
| 194-H | Brokerage / commission | 5% | ₹15,000 / FY | Payer |
| 194-I | Rent (companies / firms / large landlords) | 10% | ₹2,40,000 / FY | Tenant |
| 194-IA | Property purchase ≥ ₹50L | 1% | ₹50 lakh | Buyer |
| 194-IB | Rent by individual > ₹50k/month | 5% | ₹50k / month | Tenant (individual) |
| 194-J | Professional / technical fees | 10% prof / 2% tech | ₹30,000 / FY | Payer |
| 194-N | Cash withdrawal > ₹1 cr (or ₹20L if non-filer) | 2% / 5% | ₹1 crore | Bank |
| 194-O | E-commerce sale by seller (Amazon, Flipkart) | 1% | ₹5 lakh / FY (individuals) | E-com operator |
| 194-S | Crypto / Virtual Digital Asset transfer | 1% | ₹10k single / ₹50k specified person | Exchange |
| 195 | Any payment to non-resident (NRI) | Varies (10-30%) | No threshold | Payer (needs TAN) |
| 206C(1H) | TCS on sale of goods > ₹50L | 0.1% | ₹50 lakh | Seller |
| 206C(1G) | TCS on LRS / overseas tour | 0.5/5/20% | ₹7L (LRS) | Bank / tour op |
How to pick the right TDS section
The Income Tax Act assigns a dedicated section to almost every payment type. Common ones: 192 (salary, slab-based), 194-A(FD interest above ₹40k / ₹50k for seniors, 10%), 194-C(contractor / works contract, 1% individual, 2% others), 194-H(commission, 2%), 194-I (rent > ₹2.4L p.a., 10% building / 2% machinery), 194-IB (individual tenant paying > ₹50k/mo rent, 5%), 194-J (professional fees, 10%), 194-Q(purchase of goods > ₹50L from same seller in FY, 0.1%), 195(any payment to non-resident).
Worked example
A Bengaluru company hires a freelance designer for a one-off ₹3 lakh logo project. Picking 194-C (1% / 2%) would be wrong — designers are “professional services”. Correct section: 194-J, deduct 10% = ₹30,000 TDS, remit by the 7th of the next month. Deducting under the wrong section means the freelancer's Form 26AS shows nothing matching and disputes follow. Paying the same designer's sister-firm in the US would attract Section 195 instead, with rate based on the DTAA (typically 10% for fees for technical services to US).
When to use this
- SME accountants finalising vendor payments — quick rate + section lookup
- Startup founders setting up payroll & vendor TDS workflows
- Property purchase — deciding between 194-IA (1% on property >₹50L) and 195 (NRI seller)
- Cross-border payments — identifying 195 vs equalisation levy applicability
Deducting wrong section — or no TDS where required — triggers disallowance under Section 40(a) (the expense is added back to your income) plus ₹100/day late-filing fee under 234E. Pair with TDS on rent (194-IB) for tenant scenarios and TDS on property (194-IA) for property buyer scenarios.
FAQ
What if I don't deduct TDS when required?
Disallowance under section 40(a) — the entire expense is disallowed for 100% (resident payments) or 30% (specified). Plus interest u/s 201, plus penalty u/s 234E.
PAN missing — what TDS rate?
Section 206AA — higher of (a) the regular rate, (b) 20%. So 1% TDS becomes 20% if seller doesn't furnish PAN.
When to file TDS return?
Quarterly: by 31 Jul (Q1), 31 Oct (Q2), 31 Jan (Q3), 31 May (Q4). Form 24Q for salary, 26Q for non-salary, 27Q for non-residents.