Section 393 Knowledge Center
A searchable repository of all provisions, thresholds and notes.
Commission & Brokerage
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
1(i) | Insurance commission / remuneration for soliciting insurance business Resident | Any person | Rates in force | Rs. 20,000 (annual) |
1(ii) | Commission (other than insurance) or brokerage Resident | Specified person | 2% | Rs. 20,000 (annual) |
Rent
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
2(i) | Rent paid by person other than specified person (individual/HUF not under audit) Resident | Person other than specified person | 2% | Rs. 50,000 per month or part of month |
2(ii)(a) | Rent for use of plant / machinery / equipment Resident | Specified person | 2% | Rs. 50,000 per month or part of month |
2(ii)(b) | Rent for land, building, furniture or fittings Resident | Specified person | 10% | Rs. 50,000 per month or part of month |
Immovable Property
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
3(i) | Transfer of immovable property (other than agricultural land) Resident transferor | Any transferee | 1% of consideration or stamp duty value, whichever higher | Rs. 50,00,000 |
3(ii) | Consideration (not in kind) under joint development agreement (s.67(14)) Resident | Any person | 10% | Nil |
3(iii) | Compensation on compulsory acquisition of immovable property Resident | Any person | 10% | Rs. 5,00,000 |
Capital Market
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
4(i) | Income on units of Mutual Fund / specified company units Resident | Any person | 10% | Rs. 10,000 |
4(ii) | Distributed income from a Business Trust to unitholder Resident unitholder | Any Business Trust | 10% | Nil |
Interest
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
5(i) | Interest on securities Resident | Any person | Rates in force (10%) | Rs. 10,000 |
5(ii) | Interest (other than securities) — senior citizen, paid by bank / co-op bank / post office Resident senior citizen | Bank / Co-op bank / Post office | Rates in force (10%) | Rs. 1,00,000 |
5(ii) | Interest (other than securities), paid by bank / co-op bank / post office Resident (other than senior citizen) | Bank / Co-op bank / Post office | Rates in force (10%) | Rs. 50,000 |
5(iii) | Interest (other than securities) by specified person (others) Resident | Specified person | Rates in force (10%) | Rs. 10,000 |
Contractor / Professional
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
6(i)(a) | Contract payment — contractor is Individual / HUF Resident individual/HUF contractor | Any designated person | 1% | Rs. 30,000 single / Rs. 1,00,000 aggregate |
6(i)(b) | Contract payment — contractor is other than Individual/HUF Resident contractor (non-IND/HUF) | Any designated person | 2% | Rs. 30,000 single / Rs. 1,00,000 aggregate |
6(ii) | Contract / professional / commission paid by individual or HUF (not under audit) Resident | Individual / HUF (non-specified) | 2% | Rs. 50,00,000 |
6(iii)(a) | Fees for technical services / royalty on cinematograph / call centre Resident | Specified person | 2% | Rs. 50,000 |
6(iii)(b) | Fees for professional services / royalty / non-compete (others) Resident | Specified person | 10% | Rs. 50,000 |
6(iii)(c) | Director's remuneration / sitting fees (not salary) Resident director | Company | 10% | Nil |
Dividend
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
7 | Dividend (including preference share dividend) Resident shareholder | Any domestic company | 10% | Nil |
Other Payments
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
8(i) | Sum under a life insurance policy (taxable portion) Resident | Any person | 2% on income comprised | Rs. 1,00,000 |
8(ii) | Purchase of goods (buyer's TDS) Resident seller | Buyer | 0.1% | Rs. 50,00,000 (TDS only on excess) |
8(iv) | Benefit or perquisite from business / profession Resident | Specified person | 10% | Rs. 20,000 |
8(v) | E-commerce sale of goods / services via operator's platform Resident e-commerce participant | E-commerce operator | 0.1% | Nil |
8(vi) | Transfer of virtual digital asset (crypto / VDA) Resident | Any person | 1% | Nil |
7 | Salary, remuneration, bonus, commission or interest paid by firm to partner Resident partner | Firm | 10% | Rs. 20,000 |
Cash Withdrawal
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
5 | Cash withdrawal from bank / co-op bank / post office Resident recipient | Bank / Co-op bank / Post office | 2% | Rs. 1 Crore (Rs. 3 Crore for co-op society) |
Non-Resident
| Serial | Nature | Payer | Rate | Threshold |
|---|---|---|---|---|
1 | Income of non-resident sportsperson / entertainer / sports association Non-resident sportsperson/entertainer (non-citizen) or sports body | Any person | 20% | Nil |
2 | Interest on foreign currency loan / long-term infra bond (pre-1.7.2023) Non-resident / foreign company | Indian company / business trust | 5% | Nil |
4(a) | Interest on long-term / RDB listed on IFSC exchange (issued 1.4.2020–30.6.2023) Non-resident / foreign company | Indian company / business trust | 4% | Nil |
4(b) | Interest on long-term / RDB on IFSC (issued on or after 1.7.2023) Non-resident / foreign company | Indian company / business trust | 9% | Nil |
13 | Interest / dividend on bonds or GDRs (s.209) Non-resident | Any person | 10% | Nil |
14 | Long-term capital gains on transfer of bonds / GDRs Non-resident | Any person | 12.5% | Nil |
17 | Any other interest / sum chargeable (not salary) Non-resident / foreign company | Any person | Rates in force | Nil |