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S P P & Co.

CHARTERED ACCOUNTANTS
 
     
   
 

TDS F.Y.2023-24 (Non Residents and Foreign Companies)

 Section Nature of Payment TDS Rates (%)
    Non- resident Foreign Company
       
  Section 192 Payment of Salary NormaNon Resident (other than company)l Slab Rate NA
  Section 192A Payment of accumulated balance of provident fund which is taxable in the hands of an employee. 10 NA
  Section 194B Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 30
  Section 194BA Winning from Online Games 30 30
  Section 194BB Winnings from horse races 30 30
  Section 194E Payment to non-resident sportsmen/sports association 20 20
  Section 194EE Payment in respect of deposits under National Savings Scheme 10 NA
  Section 194F Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20 NA
  Section 194G Commission  on sale of lottery tickets 5 5
  Section 194LB Payment of interest on infrastructure debt fund 5 5
  Sec. 194LBA(2) Payment of the nature referred to in Section 10(23FC)(a)(Interest income of a business trust from SPV distribution to its unitholders)
 5 5
  Section 194LBA(2) Payment of the nature referred to in Section 10(23FC)(b)(Dividend income of a business trust from SPV, in which it holds the entire share capital except the capital held by the government, and distribution to its unitholders) 10 10
 Section 194LBA(3) Payment of the nature referred to in section 10(23FCA) by business trust to unit holders(Rental/Leasing income payment of assets owned by the business trust to the unitholders ) 30 40
  Section 194LBB Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. 30 40
  Section 194LBC Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 30 40
 Section 194LC  Payment 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 / 4* 5 or 4*
 Section 194LC Long Term Bond/ rupee Denominated Bonds issue on or after 01 July 2023 listed in SE located in IFSC* 9 9
* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC
 Section 194LD Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor 5 5
Section 194N Aggregate Cash withdrawal from Bank / Co-operative bank / Post office etc.  (* by persons who have not filed ITR for 3 previous years immediately preceding the previous year and the due date for filing ITR under section 139(1) has expired)  Cash withdrawal  between Rs. 20 lakhs to Rs. 1 crore : 2% Cash withdrawal  between Rs. 20 lakhs to Rs. 1 crore : 2%
Cash withdrawal above Rs. 1 crore : 5% Cash withdrawal above Rs. 1 crore : 5%
Section 194N Aggregate Cash withdrawal from Bank, Post office etc. in case of others. 2 2
  Section 195 Payment of any other sum to a Non-resident    
  a) Income of foreign exchange assets payable to a Non-resident Indian Citizen 20 NA
  b) Income by way of long-term capital gains referred to in Section 115E  10 10
  c) Income by way of long-term capital gains referred to in section 112(1)(c) (iii) 10 10
  d) Income by way of long-term capital gains as referred to in Section 112A exceeding Rs. 1 Lakh 10 10
  e) Income by way of short-term capital gains referred to in Section 111A 15 15
  f) Any other long-term capital gains income [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A] 20 20
  g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) 20 20
  g)i) Income by way of dividend from a unit in IFSC.
    ii)Income by way of dividend other than above		 10
20		 10
20
  h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India 20 20
  i) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 20 50
(If Aggrement made after Feb 29.02.1964 but before 01.04.1974
  j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 20 50
 (If Aggrement made after Feb 29.02.1964 but before 01.04.1974
  k) Any other income 30 40
  Section 196A Income in respect of units of non resident/Foreign company. 20 20
  Section 196B Income from units (including long-term capital gain on transfer of such units) to an offshore fund 10 10
 Section 196C Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 10 10
  Section 196D(1) Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 20 20
       
  Section 196D(1A) Interest income from securities of specified funds  10
(Surcharge / Health edu. cess is Nil)		 10
(Surcharge / Health edu. cess is Nil)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.

 

The rate of TDS shall be increased by applicable surcharge and Health & Education cess as follows:-

*Payment Made to- Surcharge Rate Health and Education Cess (4.00%)
Non Resident (other than company) > 50 Lakhs but upto 1 crore 10% Yes
> 1 Crore but upto 2 Crore 15% Yes
> 2 crore but upto 5 crore 25% Yes
> 5 crore 37% (Old Regime)
25% (New Regime)		 Yes
Non Resident Company Between 1 crore and 10 crore 2% Yes
> 10 crore 5% Yes
Non Resident (Co-operative society & Firms) > 1 crore 12% Yes

 

TDS F.Y.2022-23 (Non Residents and Foreign Companies)

 Section

Nature of Payment

TDS Rates (in %)

1. where the person is not resident in India*-  

  Section 192

Payment of Salary

Normal Slab Rate

  Section 192A

Payment of accumulated balance of provident fund which is taxable in the hands of an employee.

10

  Section 194B

Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30

  Section 194BB

Income by way of winnings from horse races

30

  Section 194E

Payment to non-resident sportsmen/sports association

20

  Section 194EE

Payment in respect of deposits under National Savings Scheme

10

  Section 194F

Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India

20

  Section 194G

Commission, etc., on sale of lottery tickets

5

  Section 194LB

Payment of interest on infrastructure debt fund

5

  Sec. 194LBA(2)

Payment of the nature referred to in Section 10(23FC)(a)

5

  Section 194LBA(2)

Payment of the nature referred to in Section 10(23FC)(b)

10

  Section 194LBA(3)

Payment of the nature referred to in section 10(23FCA) by business trust to unit holders

30

  Section 194LBB

Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].

30

  Section 194LBC

Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)

30

 Section 194LC

 Payment 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 or 4*

* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC

 Section 194LD

Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor

5

  Section 195

Payment of any other sum to a Non-resident

 

 

a) Income in respect of investment made by a Non-resident Indian Citizen

20

 

b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen

10

 

c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112

10

 

d) Income by way of long-term capital gains as referred to in Section 112A

10

 

e) Income by way of short-term capital gains referred to in Section 111A

15

 

f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A

20

 

g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)

20

 

h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India

10 

 

i) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10

 

j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10

 

k) Any other income

30

  Section 196B

Income from units (including long-term capital gain on transfer of such units) to an offshore fund

10

 Section 196C

Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)

10

  Section 196D

Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)

Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.

20

 2. In the case of a company, where the company is not a domestic company*-

 Section 194B

Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30

 Section 194BB

Income by way of winnings from horse races

30

 Section 194E

Payment to non-resident sports association

20

Section 194G 

 Commission, etc., on sale of lottery tickets

5

 Section 194LB

Payment of interest on infrastructure debt fund

5

 Section 194LBA(2)

Payment of the nature referred to in Section 10(23FC)(a)

5

 Section 194LBA(2)

Payment of the nature referred to in Section 10(23FC)(b)

10

 Section 194LBA(3)

Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders.

40

 Section 194LBB

Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].

40

 Section 194LBC

Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)

40

Section 194LC 

Payment 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 or 4*

* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC

 Section 194LD

Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor

5

 Section 195

Payment of any other sum

 

 

a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112

10

 

b) Income by way of long-term capital gains as referred to in Section 112A

10

 

c) Income by way of short-term capital gains referred to in Section 111A

15

 

d) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33) , 10(36) and 112A

20

 

e) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)

20

 

f) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India

10

 

g) Income by way of royalty [not being royalty of the nature referred to in point f) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

 

 

A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

50

 

B. where the agreement is made after the 31st day of March, 1976

10

 

h) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

 

 

A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976

50

 

B. where the agreement is made after the 31st day of March, 1976

10

 

i) Any other income

40

 Section 196B

Income from units (including long-term capital gain on transfer of such units) to an offshore fund

10

 Section 196C

Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)

10

 Section 196D

Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)

Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.

20

__________________________

The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

[As amended by Finance Act, 2022]

 


 
     
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