Old Section
(IT Act 1961) |
Nature of Payment |
New Section
(IT Act 2025) |
Rate |
Threshold
Limit |
Remarks |
| SALARY & PF |
| 192 |
Payment of Salary to Employees |
392 |
Slab Rates |
Basic Exemption Limit |
As per the applicable income tax slabs |
| 192A |
Accumulated PF balance paid to employee (premature) |
392(7) |
10% |
₹50,000 |
10% if PAN furnished; else 20% (Sec 397) |
| RENT |
| 194I(a) |
Rent — Plant, Machinery, Equipment (Specified Person) |
393(1)
[Sl. 2(ii).D(a)] |
2% |
₹50,000 p.m. |
Specified person = company/ firm/ LLP etc. |
| 194I(b) |
Rent — Land, Building, Furniture (Specified Person) |
393(1)
[Sl. 2(ii).D(b)] |
10% |
₹50,000 p.m. |
Specified person = company/ firm/ LLP etc. |
| 194-IB |
Rent paid by Individual/HUF (not subject to audit) |
393(1)
[Sl. 2(i)] |
2% |
₹50,000 p.m. |
Applicable to Individuals/HUF payers |
| COMMISSION & BROKERAGE |
| 194D |
Commission/Brokerage — Insurance |
393(1)
[Sl. 1(i)] |
Rates in force |
₹20,000 |
Rate as per Slab / applicable rate |
| 194H |
Commission/Brokerage — Others |
393(1)
[Sl. 1(ii)] |
2% |
₹20,000 |
|
| IMMOVABLE PROPERTY |
| 194-IA |
Transfer of Immovable Property (buyer deducts) |
393(1)
[Sl. 3(i)] |
1% |
₹50 Lakh |
|
| 194IA |
Compensation on Acquisition of Certain Immovable Property |
393(1)
[Sl. 3(iii)] |
1% |
₹50 Lakh |
Compulsory acquisition by Govt |
| 194IC |
Payment under JDA (not in kind) u/s 67(14) |
393(1)
[Sl. 3(ii)] |
10% |
— |
Joint Development Agreement payments |
| MUTUAL FUND / TRUST / INVESTMENT FUND |
| 194K |
Income from Mutual Fund Units / Specified Undertaking |
393(1)
[Sl. 4(i)] |
10% |
₹10,000 |
|
| 194LBA |
Interest income from Business Trust units (Resident) |
393(1)
[Sl. 4(ii)] |
10% |
— |
|
| 194LBA |
Dividend income from Business Trust units (Resident) |
393(1)
[Sl. 4(ii)] |
10% |
— |
|
| 194LBB |
Income from Investment Fund units u/s 224 |
393(1)
[Sl. 4(iii)] |
10% |
— |
Excludes exempt portion under Schedule V |
| 194LBC |
Income from Securitisation Trust u/s 221 |
393(1)
[Sl. 4(iv)] |
10% |
— |
|
| INTEREST |
| 193 |
Interest on Securities |
393(1)
[Sl. 5(i)] |
Rates in force |
₹10,000 |
|
| 194A |
Interest (other than on securities) — Senior Citizen |
393(1)
[Sl. 5(ii).D(a)] |
Rates in force |
₹1,00,000 |
Higher threshold for senior citizens |
| 194A |
Interest (other than on securities) — Others |
393(1)
[Sl. 5(ii).D(b)] |
Rates in force |
₹50,000 |
|
| 194A |
Any other interest (non-securities) |
393(1)
[Sl. 5(iii)] |
Rates in force |
₹10,000 |
|
| CONTRACTS & PROFESSIONAL FEES |
| 194C |
Work Contract — Individual / HUF contractor |
393(1)
[Sl. 6(i).D(a)] |
1% |
₹30,000 (Single) /
₹1 Lakh (Aggregate) |
|
| 194C |
Work Contract — Other than Individual/HUF |
393(1)
[Sl. 6(i).D(b)] |
2% |
₹1 Lakh (Aggregate) |
|
| 194M |
Payments by Ind/HUF (not in audit) for Contract/Prof Fees |
393(1)
[Sl. 6(ii)] |
2% |
₹50 Lakh |
|
| 194J(a) |
Fees for Technical Services (non-professional) / Royalty for films / Call Centre |
393(1)
[Sl. 6(iii).D(a)] |
2% |
₹50,000 |
|
| 194J(b) |
Fees for Professional Services / Sum u/s 26(2)(h) |
393(1)
[Sl. 6(iii).D(b)] |
10% |
₹50,000 |
|
| 194J(b) |
Remuneration / Fees / Commission to Director (non-salary) |
393(1)
[Sl. 6(iii).D(b)] |
10% |
— |
No threshold |
| DIVIDENDS |
| 194 |
Dividends declared (including preference shares) — Resident |
393(1)
[Sl. 7] |
10% |
— |
|
| LIFE INSURANCE / GOODS / E-COMMERCE / VDA |
| 194DA |
Life insurance policy maturity amount (net of exempt) |
393(1)
[Sl. 8(i)] |
2% |
₹1 Lakh |
On net amount (after Schedule II deduction) |
| 194Q |
Purchase of Goods |
393(1)
[Sl. 8(ii)] |
0.1% |
In excess of ₹50 Lakh |
Buyer deducts on purchase amount |
| 194R |
Business Perquisite / Benefit (cash or kind) |
393(1)
[Sl. 8(iv)] |
10% |
₹20,000 |
|
| 194R |
Perquisite in kind where cash is insufficient to cover tax |
393(1)
[Sl. 8(iv)] |
10% |
₹20,000 |
Tax must be paid before release (Note 3) |
| 194O |
E-commerce: Sale of goods/services via an operator platform |
393(1)
[Sl. 8(v)] |
0.1% |
— |
|
| 194S |
VDA Transfer — by a person other than Ind/HUF |
393(1)
[Sl. 8(vi)] |
1% |
— |
Crypto / Virtual digital assets |
| 194SP |
VDA Transfer — any person (cash or kind, or partly) |
393(1)
[Sl. 8(vi)] |
1% |
— |
Note 4 applies: tax before release |
| WINNINGS, LOTTERY / GAMES / HORSE RACE |
| 194B |
Winnings: Lottery, Crossword, Card Games, Gambling |
393(3)
[Sl. 1] |
Rates in force |
₹10,000 per transaction |
|
| 194B |
Above winnings – in kind/cash insufficient (tax paid first) |
393(3)
[Sl. 1] |
Rates in force |
₹10,000 per transaction |
Note 1 |
| 194BA |
Winnings from Online Games |
393(3)
[Sl. 2] |
Rates in force |
Net winnings at year end |
On the user account balance |
| 194BA |
Online game winnings in kind/cash are insufficient |
393(3)
[Sl. 2] |
Rates in force |
₹10,000 per transaction |
Note 2 |
| 194BB |
Winnings from Horse Race |
393(3)
[Sl. 3] |
Rates in force |
₹10,000 per transaction |
|
| LOTTERY COMMISSION / CASH WITHDRAWALS / PARTNERS / NSS |
| 194G |
Commission on Lottery Tickets (to stockists/distributors) |
393(3)
[Sl. 4] |
2% |
₹20,000 |
|
| 194N |
Cash withdrawal by Co-operative Society from bank/PO |
393(3)
[Sl. 5.D(a)] |
2% |
₹3 Crore |
|
| 194N |
Cash withdrawal by other persons from bank/PO |
393(3)
[Sl. 5.D(b)] |
2% |
₹1 Crore |
|
| 194EE |
NSS Deposit withdrawal [Sec 80CCA(2)(a) of IT Act 1961] |
393(3)
[Sl. 6] |
10% |
₹2,500 |
|
| 194T |
Payments to Partner — Salary, Remuneration, Commission, Bonus, Interest |
393(3)
[Sl. 7] |
10% |
₹20,000 |
New section in IT Act 2025 |
