Tax to be deducted at source

393. (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. No. Nature of income or sum Payer Rate Threshold limit A B C D 1. Commission or brokerage ( i) Any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of insurance policies). Any person. Rate: Rates in force. ___________ Threshold limit: ` 20,000. ( ii) Any income by way of commission [not being insurance commission referred to in serial number 1(i)] or broker- age. Specified person. Rate: 2% ________ Threshold limit: ` 20,000. Sl. No. Nature of income or sum Payer Rate Threshold limit A B C D 2. Rent ( i) Any income by way of rent. Person other than specified person. Rate: 2% ________ Threshold limit : ` 50,000 for a month or part of a month. ( ii) Any income by way of rent. Specified person. Rate: ( a) 2%, for the use 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 transfer of any immova- ble property (other than agricultural land). Person [other than the person who are required to deduct tax un- der serial number 3(iii)]. Rate: 1% of— ( a) consideration for transfer of the im - movable property; or ( b) stamp duty value of such property, whichever is higher. _________ Threshold limit: Fifty lakh rupees and as per Note 3. Sl. No. Nature of income or sum Payer Rate Threshold limit A B C D (ii) Any consideration, not being consideration in kind, under the agree - ment referred to in section 67(14). Any person. Rate: 10% __________ Threshold limit: Nil. (iii) Any sum, being in the nature of— ( a) compensation or the enhanced compensation; or ( 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). Any person. Rate: 10% __________ Threshold limit: ` 5,00,000. 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 of— ( a) units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21); or Any person. Rate: 10% _________ Threshold limit: ` 10,000. ( 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. No. Nature of income or sum Payer Rate Threshold limit A B C D ( ii) Any distributed income referred to in section 223, being of the nature referred to in Schedule V (Table: Sl. Nos. 3 and 4), payable to a unitholder of a Busi - ness Trust. Any Business Trust. Rate: 10% ____________ Threshold limit: Nil. (iii) Any income, other than that proportion of income which is ex- empt under Schedule V (Table: Sl. No. 2), in respect of units of an in- vestment fund specified in section 224, payable to its unitholder. Any Investment fund specified in section 224. Rate: 10% _________ Threshold limit: Nil. (iv) Any income, in respect of an investment in a securitisation trust specified in section 221 to an investor. Any securitisation trust specified in section 221. Rate: 10% ________ Threshold limit: Nil. 5. Interest income ( i) Any income by way of Interest on securities. Any person. Rate: Rates in force. _________ Threshold limit: ` 10,000. ( ii) Any income by way of interest other than interest on securities. ( a) A banking company; or ( b) a co-opera - tive society carrying on the business of banking; or ( c) a post office for a deposit made under Rate: Rates in force. _______ Threshold limit: ( a) ` 1,00,000 in the case of a senior citizen; ( b) ` 50,000 in case of person other than senior citizen. Sl. No. Nature of income or sum Payer Rate Threshold limit A B C D a scheme notified by the Cen - tral Govern- ment. (iii) Any income being inter- est other than interest on securities. Specified person [other than per - son in Sl. No. 5 (ii). C]. Rate: Rates in force. _______ 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 out any work (including supply of labour for car- rying out any work) in pursuance of a contract between the contractor and a designated per - son. Any designated person. Rate : (a) 1%, if contractor is individual or Hindu undivided family; (b) 2%, if contractor is a person other than the person mentioned in (a). _____ 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. No. Nature of income or sum Payer Rate Threshold limit A B C D ( ii) Any sum— ( a) for carrying out any work (includ- ing supply of la - bour for carrying out any work) in pursuance of a contract; or ( 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. Any person, being an individual or Hindu undivided family [other than those required to deduct income- tax as per Sl. No. 6(i) and (iii) or Sl. No. 1(ii)]. Rate: 2% _____ Threshold limit: Fifty lakh rupees. (iii) Any sum by way of— ( a) fees for profes - sional services; or ( b) fees for technical services; or ( c) remuneration or fees or com - mission by what- ever name called, other than those on which tax is deductible under section 392, to a director of a company; or ( d) royalty; or ( e) any sum referred to in section 26(2)(h). Specified person. Rate: (a) 2% of such sum in case of— ( i) fees for technical services (not being a professional ser - vices); or ( ii) royalty in the na - ture of considera- tion for sale, distri - bution or exhibition of cinematographic films; or (iii) payee, engaged only in the business of op- eration of call centre; (b) 10% of such sum in cases other than (a). _____ 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. No. Nature of income or sum Payer Rate 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- idend on preference shares) declared. Any domestic company. Rate: 10% _______ 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 life insurance policy, including the sum allocated as bonus on such policy, oth- er than the amount not includible in the total income under Schedule II (Table: Sl. No. 2). Any person. Rate : 2% on income comprised in such sum. _______ Threshold limit: ` 1,00,000. ( ii) Any sum exceed - ing fifty lakh rupees for purchase of any goods. Any person, being a buyer. Rate: 0.1% _____ Threshold limit: As per Note 1. ( iii) Total income of a specified senior citi- zen after giving effect to deduction allow - able under Chapter VIII and rebate al - lowable under sec - tion 156. Specified bank. Rate: Rates in force. _____ Threshold limit: As applicable. ( iv) Any benefit or per - quisite, whether con- vertible into money or not, arising from business or the exer- cise of a profession of any resident. Specified person. Rate: 10% of value or aggregate of values of such benefit or perquisite. _____ Threshold limit: ` 20,000. Sl. No. Nature of income or sum Payer Rate Threshold limit A B C D ( v) Any sum on account of sale of goods or provision of services by an e-commerce participant, facilitat- ed by an e-commerce operator through its digital or electronic facility or platform. Any e-commerce operator. Rate: 0.1% of gross amount of such sale or services or both. _____ Threshold limit: Nil. ( vi) Any sum by way of consideration for transfer of a virtual digital asset. Any person. Rate: 1% _____ 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 o