Section 393 — Tax to be deducted at source

(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 over any other
provisions of this Chapter;
( b) any payment made by a purchaser of goods or recipient of services directly to
an e-commerce participant for the sale of goods or provision of services or both,
facilitated by an e-commerce operator, shall be deemed to be the amount cred -
ited or paid by the e-commerce operator to the e-commerce participant and this
amount shall be included in the gross amount of such sale or services for the
purposes of deduction of income-tax under this serial number;
( c) e-commerce operator shall be deemed to be the person responsible for paying to
e-commerce participant;
( d) irrespective of anything contained in this Chapter, if—
( i) tax has been deducted on a transaction under this serial number; or
( ii) a transaction is not liable for tax deduction as provided in section 393(4)
(Table: Sl. No. 11),
then tax shall not be deducted on such transaction under any other provision of
this Chapter;
( e) clause ( d) shall not apply to any amount or aggregate of amounts
received or receivable by an e-commerce operator for—
( i) hosting advertisements; or
( ii) providing any other services,
which are not in connection with the sale or services referred to in this serial
number.
Note 4.—In case of a transaction on which provisions of serial number 8(v) are applicable along
with the provisions of serial number 8(vi) for deduction of tax, then irrespective of anything
contained in Note 3, tax on such transaction shall be deducted only under the provisions of
serial number 8(vi).
Note 5.—The provisions of serial number 8(iii) shall take precedence over any other provisions
of this Chapter and tax shall be deducted under this provision.
Note 6.—For serial number 8(iv) and (vi),—
( a) where the consideration or, benefit or perquisite provided, as the case may be,—
( i) is in exchange of another virtual digital asset where there is no part in cash,
in respect of serial number 8(iv); or
( ii) is wholly in kind; or
( iii) is partly in kind and partly in cash, but such part in cash is not sufficient
to meet the liability of deduction of tax in respect of the whole of such
payment or benefit or perquisite,
the person responsible for paying or providing shall ensure that the tax required
to be deducted has been paid, before releasing such consideration or providing
such benefit or perquisite, as the case may be;
( b) “person responsible for providing” means the person providing such benefit or
perquisite, or in case of a company, the company itself including the principal
officer thereof.
(2) Where any income or sum of the nature specified in column B of the Table
below, is credited or paid by the person specified in column D during the tax year,
to a non-resident specified in column C, the person responsible for paying such
income or sum shall deduct income-tax on the amount of such income or sum,—
( a) at the rate specified in column E;
( b) at the time of credit of 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
( c) subject to the provisions of sub-sections (4), (8) and (9).
TABLE
FOR PAYMENTS TO NON-RESIDENT
Sl.
No.
Nature of income
or sum
Payee Payer Rate
A B C D E
1. Any income re -
ferred to in section
211.
( a) A non-resi -
dent sports-
man (inclu-
ding an ath-
lete) or an
Any person. 20%
Sl.
No.
Nature of income
or sum
Payee Payer Rate
A B C D E
entertainer,
who is not
a citizen of
India; or
( b) a non-resi -
dent sports
association
or institu -
tion.
2. Any income by way
of interest payable
in respect of mon -
eys borrowed in for-
eign currency from
a source outside
India,—
( a) under a loan
agreement or
issue of long-
term in-
frastructure
bond on or
after the 1st
July, 2012 but
before the 1st
July, 2023; or
( b) by way of issue
of any long-
term bond on
or after the 1st
October, 2014
but before the
1st July, 2023,
which is approved
by the Central Gov-
ernment in this be-
half.
Any non-resident
(not being a com-
pany) or a foreign
company.
Any Indian
company or a
business trust.
5%
3. Any income by way
of interest payable
in respect of mon -
eys borrowed from
Any non-resident
(not being a com-
pany) or a foreign
company.
Any Indian
company or a
business trust.
5%
Sl.
No.
Nature of income
or sum
Payee Payer Rate
A B C D E
a source outside
India by way of is -
sue of rupee denom-
inated bond before
the 1st July, 2023.
4. Any income by way
of interest payable
in respect of mon -
eys borrowed from
a source outside
India by way of
issue of any long-
term bond or rupee
denominated bond,
which is listed only
on a recognised
stock exchange lo -
cated in any Inter -
national Financial
Services Centre.
Any non-resident
(not being a com-
pany) or a foreign
company.
Any Indian
company or a
business trust.
( a) 4%, where
such bonds
are issued
on or af -
ter the 1st
April, 2020
but before
the 1st July,
2023; or
( b) 9%, where
such bonds
are issued
on or after
the 1st July,
2023.
5. Any income by way
of interest.
Any non-resident
(not being a com-
pany) or a foreign
company.
Any infrastruc-
ture debt fund
referred to in
Schedule VII
(Table: Sl. No.
46).
5%
6. Any distributed in -
come referred to in
section 223, being of
the nature referred
to in Schedule V
(Table: Sl. No. 3).
Any unit holder,
being a non-res -
ident (not being
a company) or a
foreign company.
Any business
trust.
( a) 5%, in case
of income
of the na -
ture re -
ferred to in
Schedule V
[Table: Sl.
No. 3. B(a)];
and
( b) 10%, in
case of in -
come of the
nature re -
ferred to in
Schedule V
[Table: Sl.
No. 3. B(b)].
Sl.
No.
Nature of income
or sum
Payee Payer Rate
A B C D E
7. Any distributed in -
come referred to in
section 223, being
of the nature re -
ferred to in Schedule
V (Table: Sl. No.
4).
Any unitholder,
being a non-res -
ident (not being
a company) or a
foreign company.
Any business
trust.
Rates in force.
8. Any income, oth -
er than that pro -
portion of income
which is exempt
under Schedule V
(Table: Sl. No. 2),
in respect of units of
an investment fund
specified in section
224.
Any unitholder,
being a non-res -
ident (not being
a company) or a
foreign company.
Any investment
fund specified
in section 224.
Rates in force.
9. Any income in re -
spect of an invest -
ment in a securiti -
sation trust specified
in section 221.
Any investor, be -
ing a non-resident
(not being a com-
pany) or a foreign
company.
Any securitisa-
tion trust spec-
ified in section
221.
Rates in force.
10. Any income—
( a) in respect of
units of a
Mutual Fund
specified un -
der Schedule
VII (Table: Sl.
No. 20 or 21);
or
( b) in respect of
units from the
specified com-
pany.
Any non-resident
(not being a com-
pany) or a foreign
company.
Any person. As per Note 2.
11. Any income in re -
spect of units re -
ferred to in section
208.
Any offshore
fund.
Any person. 10%
Sl.
No.
Nature of income
or sum
Payee Payer Rate
A B C D E
12. Any income by way
of long-term capital
gains arising from
the transfer of units
referred to in sec -
tion 208;
Any offshore
fund.
Any person. 12.5%
13. Any income by
way of interest or
dividends in re -
spect of bonds or
Global Depository
Receipts referred
to in section 209.
Any non-resident. Any person. 10%
14. Any income by way
of long-term cap -
ital gains arising
from the transfer
of bonds or Global
Depository Receipts
referred to in sec -
tion 209.
Any non-resident. Any person. 12.5%
15. Any income in re -
spect of securities
referred to in sec -
tion 210(1) (Table:
Sl. No. 1).
Any Foreign Insti-
tutional Investor.
Any person. As per Note 2.
16. Any income in re -
spect of securities
referred to in sec -
tion 210(1) (Table:
Sl. No. 1).
A specified fund
referred to in
Schedule VI [Note
1(g)].
Any person. 10%
17. Any interest (not be-
ing interest referred
to against serial
numbers 2, 3, 4 and
5) or any other sum
chargeable under
the provisions of
this Act, not being
income chargeable
under the head “Sal-
aries”.
Any non-resident
(not being a com-
pany) or a foreign
company.
Any person. Rates in force.
Note 1.—For serial numbers 2, 3 and 4, the interest payable shall be income to the extent to
which such interest does not exceed the amount of interest calculated at the rate approved
by the Central Government in this behalf, having regard to the terms of the loan or the bond
and its repayment.
Note 2.—For serial numbers 10 and 15, tax shall be deducted at the rate of—
( a) 20%; or
( b) where an agreement referred to in section 159(1) or 159(2) applies to the payee
and if the payee has furnished a certificate referred to in section 159(8), as the
case may be, then, income-tax shall be deducted at the rate or rates of income-tax
provided in such agreement for such income, if such rate is lower than 20%.
Note 3.—For serial number 17,—
( a) if interest is payable by the Government or a public sector bank or a public
financial institution within the meaning of Schedule VII (Note 3), deduction of
tax shall be made only at the time of payment thereof in cash or by the issue of
a cheque or draft or by any other mode;
( b) the obligation to deduct tax at source and comply with the provisions of this
serial number extend to all persons resident or non-resident, whether or not, the
non-resident person has—
( i) a residence or place of business or business connection in India; or
( ii) any other presence in any manner whatsoever in India.
(3) Where any income or sum of the nature specified in column B of the Table
below, is credited or paid by the person specified in column C during the tax year,
to any person, the person responsible for making payment of 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 exceed the threshold limit specified in column D,
or on net winnings as per Note 1 of the Table;
( b) at the rate specified in column D;
( c) at the time of payment thereof in cash or by way of a cheque or a draft
or by any other mode, or as specified therein; and
( d) subject to the provisions of sub-sections (4), (5), (6), (8) and (9).
TABLE
FOR PAYMENTS TO ANY PERSON
Sl.
No.
Nature of income or
sum
Payer Rate
Threshold limit
A B C D
1. Any income by way of
winnings (other than
winnings from online
games as referred to in
serial number 2) from—
( a) any lottery; or
Any person. Rate: Rates in force.
_____
Threshold limit: ` 10,000
in case of a single
transaction.
Sl.
No.
Nature of income or
sum
Payer Rate
Threshold limit
A B C D
( b) crossword puzzle;
or
( c) card game and
other game of any
sort; or
( d) gambling or bet -
ting of any form or
nature whatsoever.
2. Any income by way of
winnings from online
game.
Any person. Rate: Rates in force.
_____
Threshold limit:
As per Note 1.
3. Any income by way
of winnings from any
horse race.
Any person, being a
bookmaker or a person
to whom a licence has
been granted by the
Government under any
law for the time being
in force for horse racing
in any race course or for
arranging for wagering
or betting in any race
course.
Rate: Rates in force.
_____
Threshold limit:
` 10,000 in case of a
single transaction.
4. Any income, credited or
paid to a person, who
is or has been stocking,
distributing, purchasing
or selling lottery tickets,
by way of commission,
remuneration or prize
(by whatever name
called) on such tickets.
Any person. Rate: 2%
_____
Threshold limit:
` 20,000.
5. Any sum, paid in cash,
from one or more
accounts maintained
by any person (herein
referred as recipient).
Any person, being, —
( a) a banking compa-
ny;
( b) a co-operative so -
ciety engaged in
carrying on the
Rate: 2%
_____
Threshold limit: (a) three
crore rupees in case of
recipient being, a co-
operative society; or
Sl.
No.
Nature of income or
sum
Payer Rate
Threshold limit
A B C D
business of bank -
ing; or
( c) a post office.
(b) one crore rupees in
case of recipient being
person other than a co-
operative society.
6. Any amount referred to
in section 80CCA(2)( a)
of the Income-tax Act,
1961 (43 of 1961).
Any person. Rate: 10%
_____
Threshold limit:
` 2,500.
7. Any sum in the nature
of salary, remuneration,
commission, bonus or
interest paid to a partner
of the firm or credited to
his account (including
capital account).
Any person, being a firm. Rate: 10%
_____
Threshold limit:
` 20,000.
Note 1.—For serial number 2, tax shall be deducted—
( a) on net winnings in the user account of the payee at the end of the tax year;
( b) where there is any withdrawal from user account during the tax year, the tax
shall be deducted at the time of such withdrawal on the net winnings comprised
in such withdrawal as well as on the remaining amount of net winnings in user
account at the end of the tax year,
where the net winnings in each case is computed in the such manner as may
be prescribed.
Note 2.—For serial numbers 1 and 2, where the winnings or net winnings, as the case may
be,—
( a) is wholly in kind; or
( b) is partly in kind and partly in cash, but such part in cash is not sufficient to meet
the liability of deduction of tax in respect of the whole of such winnings,
then, the person responsible for paying shall ensure that the tax required to be deducted has
been paid, before releasing the winnings.
Note 3.—For serial number 4, the person responsible for making the payment shall deduct tax
at the time of credit of such sum or at the time of payment of such sum in cash or by issue
of a cheque or a draft or by any other mode, whichever is earlier.
(4) The deduction of tax at source shall not be made under the provisions referred
to in column B of the Table below, in respect of the income or sum along with the
conditions, specified in column C:
TABLE
FOR NO DEDUCTION AT SOURCE
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
1. Commission or Broker-
age referred to in section
393(1) [Table: Sl. No.
1(ii)].
Commission or brokerage payable by Bharat
Sanchar Nigam Limited or Mahanagar Tele -
phone Nigam Limited to their public call office
franchisees.
2. Rent referred to in sec -
tion 393(1) [Table: Sl.
No. 2(ii)].
Income by way of rent credited or paid to a busi-
ness trust, being a real estate investment trust,
in respect of any real estate asset, referred to in
Schedule V (Table: Sl. No. 4), owned directly by
such business trust.
3. Compensation on acqui-
sition of certain immov-
able property referred to
in section 393(1) [Table:
Sl. No. 3(iii)].
Income by way of any award or agreement which
has been exempted from levy of income-tax under
section 96 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013 (30 of 2013).
4. Income in respect of
units referred to in sec -
tion 393(1) [Table: Sl.
No. 4(i)].
If income is of the nature of capital gain.
5. Income from units of a
business trust referred to
in section 393(1) [Table:
Sl. No. 4(ii)].
Income of the nature referred to in Schedule
V [Table: Sl. No. 3.B( b)], if the special purpose
vehicle referred to in the said serial number has
not exercised the option under section 200.
6. Interest on securities
referred to in section
393(1) [Table: Sl. No.
5(i)].
( a) Interest payable on—
( i) National Development Bonds;
( ii) such debentures, issued by such insti-
tution or authority or any other person
as the Central Government may, by
notification, specify in this behalf;
( iii) any security of the Central Government
or a State Government, other than—
( A) 8% Savings (Taxable) Bonds,
2003; or
( B) 7.75% Savings (Taxable) Bonds,
2018; or
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
( C) Floating Rate Savings Bonds,
2020 (Taxable); or
( D) any other security of the Central
Government or State Govern -
ment as the Central Government
may, by notification, specify in
this behalf;
( b) interest payable to—
( i) the Life Insurance Corporation of
India established under the Life
Insurance Corporation Act, 1956
(31 of 1956), in respect of any se -
curities owned by it or in which
it has full beneficial interest; or
( ii) the General Insurance Corporation of
India or to any of the four companies,
formed by virtue of the schemes made
under section 16(1) of the General
Insurance Business (Nationalisation)
Act, 1972 (57 of 1972), in respect of
any securities owned by the Corpora-
tion or such company or in which the
Corporation or such company has full
beneficial interest; or
( iii) any other insurer in respect of any
securities owned by it or in which it
has full beneficial interest; or
( iv) a “business trust”, as defined in section
2(21), in respect of any securities, by
a special purpose vehicle referred to
in Schedule V (Table: Sl. No. 3).
7. Interest other than inter-
est on securities referred
to in section 393(1)
[Table: Sl. No. 5(ii) and
5(iii)].
( a) Interest income credited or paid to—
( i) any banking company 82[or any co-op-
erative society engaged in carrying on
the business of banking (including a
co-operative land mortgage bank)]; or
( ii) any financial corporation established
by or under a Central Act or State Act
or Provincial Act; or
82. Inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
( iii) the Life Insurance Corporation of
India established under the Life
Insurance Corporation Act, 1956
(31 of 1956); or
( iv) the Unit Trust of India; or
( v) any company or co-operative society
carrying on the business of insurance;
or
( vi) such other institution, association or
body or class of institutions, associ -
ations or bodies which the Central
Government may, for reasons to be
recorded in writing, notified in this
behalf before the 1st April, 2020;
( b) interest income credited or paid—
( i) by a co-operative society other than
a co-operative bank, to a member
thereof; or
( ii) by a co-operative society to any other
co-operative society; or
( iii) in respect of deposits with a primary
agricultural credit society or a primary
credit society or a co-operative land
mortgage bank or a co-operative land
development bank; or
( iv) in respect of deposits (other than time
deposits made on or after the 1st July,
1995) with a co-operative society,
other than a co-operative society or
bank referred to in sub-clause ( iii),
engaged in the business of banking,
except when,—
( A) where the total sales, gross receipts or
turnover of the co-operative society
exceed fifty crore rupees during the
tax year immediately preceding the tax
year in which such interest is credited
or paid; and
( B) the amount or aggregate of amounts
of interest credited or paid exceeds the
threshold limit mentioned in section
393(1) (Table: Sl. No. 5(ii)D);
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
( c) interest income credited or paid—
( i) by the Central Government under
any provision of this Act or the
Income-tax Act, 1961 (43 of 1961),
or the Estate Duty Act, 1953 (34 of
1953), or the Wealth-tax Act, 1957
(27 of 1957), or the Gift-tax Act, 1958
(18 of 1958), the Companies (Profits)
Surtax Act, 1964 (7 of 1964), or the
Interest-tax Act, 1974 (45 of 1974);
( ii) in respect of deposits under any scheme
framed by the Central Government and
notified by it in this behalf;
( iii) in respect of deposits (other than time
deposits made on or after the 1st July,
1995) with a banking company;
83[(iv) on the compensation amount awarded
by a Motor Accidents Claims Tribunal—
( A) to an individual; or
( B) to a person other than an individ-
ual, where the aggregate interest
on such compensation does not
exceed ` 50,000 during the tax
year;]
( v) or payable by an infrastructure capital
company; or infrastructure capital
fund; or infrastructure debt fund; or
a public sector company; or scheduled
bank in relation to a zero coupon bond
issued on or after the 1st June, 2005
by such company or fund or public
sector company or scheduled bank;
( vi) as referred to in Schedule V (Table: Sl.
No. 3);
( vii) by a firm to a partner of the firm.
83. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, item (iv) read
as under :
“( iv) by way of interest on the compensation amount awarded by the Motor Accidents
Claims Tribunal where the amount of such income or, the aggregate of the amounts
of such income does not exceed ` 50,000 during the tax year;”
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
8. Payments to contractors
referred to in section
393(1) [Table: Sl. No.
6(i)].
( a) Where—
( i) any sum credited or paid or likely
to be credited or paid during the tax
year to the account of a contractor
during the course of business of plying,
hiring or leasing goods carriages; and
( ii) that contractor owns ten or less goods
carriages at any time during the tax
year; and
( iii) furnishes a declaration to that effect
along with his Permanent Account
Number to the person paying or cred-
iting the sum; and
( iv) the person responsible for paying to
the contractor furnishes to the pre -
scribed income-tax authority the
particulars in such form and within
such time as may be prescribed;
( b) where such sum is credited or paid by indi-
vidual or Hindu undivided family exclusively
for personal purposes of such individual or
any member of Hindu undivided family.
9. Fees for professional
or technical services
referred to in section
393(1) [Table: Sl. No.
6(iii)].
Where such sum is credited or paid by individual
or Hindu undivided family exclusively for personal
purposes of such individual or any member of
Hindu undivided family.
10. Dividend referred to in
section 393(1) (Table:
Sl. No. 7).
Dividend income credited or paid to—
( a) the Life Insurance Corporation of India
established under the Life Insurance Cor -
poration Act, 1956 (31 of 1956), in respect
of any shares owned by it or in which it has
full beneficial interest;
( b) the General Insurance Corporation of India
or to any of the four companies, formed by
virtue of the schemes made under section
16(1) of the General Insurance Business
(Nationalisation) Act, 1972 (57 of 1972),
in respect of any shares owned by the
Corporation or such company or in which
the Corporation or such company has full
beneficial interest;
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
( c) any other insurer in respect of any shares
owned by it or in which it has full beneficial
interest;
( d) a “business trust”, as defined in section
2(21), by a special purpose vehicle referred
to in Schedule V (Note 2);
( e) any other person as may be notified by the
Central Government in this behalf;
( f) a shareholder, being an individual, if—
( I) the dividend is paid by the company
by any mode other than cash; and
( II) amount or aggregate of amounts of
such dividend distributed or paid or
likely to be distributed or paid during
the tax year does not exceed ` 10,000.
11. Payment by e-commerce
operator to e-commerce
participant referred to in
section 393(1) [Table: Sl.
No. 8(v)].
Where the amount is credited or paid or likely
to be credited or paid during the tax year to the
account of an e-commerce participant, which is—
( a) an individual or a Hindu undivided family;
and
( b) the gross amount of the sales or services or
both during the tax year does not exceed
` 5,00,000; and
( c) the e-commerce participant has furnished
the Permanent Account Number or Aadhaar
number to the e-commerce operator.
12. Payment on transfer
of virtual digital asset
referred to in section
393(1) [Table: Sl. No.
8(vi)].
Where value or aggregate value of such consid -
eration during the tax year does not exceed—
( a) ` 50000, when payable by an individual or
a Hindu undivided family,—
( i) whose total sales, gross receipts or
turnover from the business carried
on by him or profession exercised by
him does not exceed one crore rupees
in case of business or fifty lakh rupees
in case of profession, during the tax
year immediately preceding the tax
year in which such virtual digital asset
is transferred;
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
( ii) not having any income under the
head “Profits and gains of business
or profession”;
( b) ` 10000, when payable by any person other
than the person referred to in clause (a).
13. Income from units of a
business trust referred to
in section 393(2) (Table:
Sl. No. 6).
Income of the nature referred to in Schedule
V [Table: Sl. No. 3.B( b)], if the special purpose
vehicle referred to in the said clause has not
exercised the option under section 200.
14. Income in respect of
units of investment fund
referred to in section
393(2) (Table: Sl. No. 8).
Income that is not chargeable to tax under the
provisions of this Act.
15. Income in respect of
units of non-residents
referred to in section
393(2) (Table: Sl. No. 10).
Income payable in respect of units of the Unit
Trust of India to a non-resident Indian or a
non-resident Hindu undivided family, subject to
prescribed conditions.
16. Income of Foreign Insti-
tutional Investors from
securities referred to in
section 393(2) (Table: Sl.
No. 15).
Income, by way of capital gains arising from the
transfer of securities referred to in section 210, if
payable to a Foreign Institutional Investor.
17. Income of Specified
Fund from securities
referred to in section
393(2) (Table: Sl. No. 16).
Income is exempt as per Schedule VI (Table: Sl.
Nos. 1 to 4).
18. Payment of certain
amounts in cash referred
to in section 393(3)
(Table: Sl. No. 5).
Payment made to—
( a) the Government;
( b) any banking company or co-operative soci-
ety engaged in carrying on the business of
banking or a post office;
( c) any business correspondent of a banking
company or co-operative society engaged
in carrying on the business of banking, as
per the guidelines issued in this regard by
the Reserve Bank of India under the Reserve
Bank of India Act, 1934 (2 of 1934);
( d) any white label automated teller machine
operator of a banking company or co-oper-
ative society engaged in carrying on the
84. Shall be renumbered as sub-section (6)(a) thereof by the Finance Act, 2026, w.e.f. 1-4-2027.
Sl.
No.
Provisions for tax
deduction at source
Condition for no deduction on income or sum
A B C
business of banking, as per the authorisation
issued by the Reserve Bank of India under
the Payment and Settlement Systems Act,
2007 (51 of 2007).
19. Payment in respect of
deposits under National
Savings Scheme, etc.,
referred to in section
393(3) (Table: Sl. No. 6).
Payment made to heirs of an assessee.
(5) Irrespective of anything contained in this Chapter, the tax shall not be deducted
by any person from any amount payable to—
( a) the Government; or
( b) the Reserve Bank of India; or
( c) a corporation established by or under a Central Act which is, under any
law in force, exempt from income-tax on its income; or
( d) a Mutual fund as specified at Schedule VII (Table: Sl. No. 20 or 21), where
such amount is payable to it by way of—
( A) interest; or
( B) dividend in respect of any securities or shares owned by it or in
which it has full beneficial interest; or
( C) any other income accruing or arising to it.
(6) 84[(a)] The deduction of tax shall not be made under provisions referred to in
column C of the Table below, in the case of a person as specified in column B, if
such person furnishes to the person responsible for paying any income or sum of
the nature referred to in such provisions, a written declaration in duplicate in such
form and manner as may be prescribed that the tax on such person’s estimated total
income of the tax year in which such income or sum is to be included in computing
his total income shall be nil.
TABLE
DECLARATION FOR NO DEDUCTION AT SOURCE
Sl.
No.
Person Provisions for tax deduction at source
A B C
1. An individual being a
resident.
( a) payment of accumulated balance due to an
employee referred to in section 392(7);
( b) insurance Commission referred to in section
393(1) [Table: Sl. No. 1(i)];
( c) rent referred to in section 393(1) [Table: Sl.
No. 2(ii)];
85. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section
(7) read as under :
“(7) The person responsible for paying any income or sum of the nature referred in sub-section
(6) shall deliver or cause to be delivered, one copy of the declaration referred therein, received
from the person to the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner, on or before the seventh day of the month following the
month in which the declaration is furnished to him.”
Sl.
No.
Person Provisions for tax deduction at source
A B C
( d) income in respect of units referred to in section
393(1) [Table: Sl. No. 4(i)];
( e) interest referred to in section 393(1) [Table:
Sl. No. 5(i), (ii) and (iii)];
( f) payment in respect of life insurance policy
referred to in section 393(1) [Table: Sl. No.
8(i)];
( g) dividend referred to in section 393(1) (Table:
Sl. No. 7).
2. Any person not being a
company or a firm or
an individual covered
in Sl. No. (1).
Sl. No. (1).C(a) to (f).
Note.—The provisions of this sub-section shall not apply in case of a person referred to in
column B of the Table, other than an individual being a resident who is of the age of sixty
years or more at any time during the tax year, if the aggregate of amounts of any income or
sum of the nature referred to in provision mentioned in column C of this Table, is credited
or paid or likely to be credited or paid during the relevant tax year in which such income or
sum is to be included, exceeds the maximum amount not chargeable to tax.
Following clause ( b) shall be inserted after clause ( a) of sub-section (6) of
section 393 by the Finance Act, 2026, w.e.f. 1-4-2027:
(b) The declaration referred* in clause ( a) may also be furnished electronically to a
depository, as defined in section 2(e) of the Depositories Act, 1996 (22 of 1996), where––
( i) the income is from units, interest on securities or dividends, as the case
may be, as referred to in section 393(1) [Table: 4(i), 5(i) or 7];
( ii) such units or securities are held with such depository; and
( iii) such securities are listed on a recognised stock exchange,
in accordance with such procedure and manner, as may be prescribed.
85[(7) The person responsible for paying any income or sum of the nature referred to in
sub-section (6) shall deliver or cause to be delivered, such declaration referred therein,
received from the person, as specified in column B of the Table in sub-section (6) or
the depository, to the prescribed income-tax authority, on or before the seventh day
of the month immediately following the end of each quarter in which declaration is
furnished to him as per sub-section (6).]
(8) Irrespective of anything contained in sub-section (6), the deduction of tax shall
not be made from the interest paid by an Offshore Banking Unit on borrowing
from or deposit made on or after 1st April, 2005, by a non-resident or a person not
ordinarily resident in India.
(9) Irrespective of anything contained in this Chapter, the deduction of tax shall
not be made from any payment to a person for, or on behalf of, the New Pension
System Trust referred to in Schedule VII (Table: Sl. No. 41).
(10) In a case other than that referred to in section 392(2)( a), where under an
agreement or an arrangement, if the tax chargeable on any income of the recipient
referred to in this Chapter is to be borne by the payer, then, for the purposes of
deduction of tax, the income shall be increased to an amount which after deduction
of tax as per provisions of this Chapter becomes equal to the net amount payable
under such agreement or arrangement.
(11) The credit of any income or sum to any account, whether called “suspense
account” or by any other name, in the books of account of the person liable to pay
such income or sum, shall be deemed to be the credit of such income or sum to
the account of the payee and the provisions of this Chapter shall apply accordingly.