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[Cites 0, Cited by 0] [Section 393] [Entire Act]

Union of India - Subsection

Section 393(1) in The Income Tax Act, 2025

(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 RatePayerRate
   Threshold Limit
ABCD
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 brokerage.Specified person.Rate: 2%——Threshold limit: ₹ 20, 000.
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 (including factory building), or land appurtenant to a building (including factory 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 agricultural land   
 (i) Any consideration for transfer of any immovable property (other than agricultural land).Person [other than the person who are required to deduct tax under serial number 3(iii)].Rate: 1% of—(a) consideration for transfer of the immovable property; or(b) stamp duty value of such property, whichever is higher.——Threshold limit: Fifty lakh rupees and as per Note 3.
 (ii) Any consideration, not being consideration in kind, under the agreement 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 consideration,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 transferor 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 serial number 3(iii), 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.   
ABCD
4. Income from capital market   
 (i) Any income in respect of— units of a Mutual(a) Fund specified under Schedule VII (Table: Sl. No. 20 or 21);(b) or units from the Administrator of the specified undertaking;(c) or units from the specified company.Any person.Rate: 10%——Threshold limit: ₹ 10, 000.
 (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 Business Trust.Any Business Trust.Rate: 10%——Threshold limit: Nil.
 (iii) Any income, other than that proportion of income which is exempt under Schedule V (Table: Sl. No. 2), in respect of units of an investment 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.(iii) Any income being interest other than interest on securities.(a) A banking company; or(b) a co-operative society carrying on the business of banking; or(c) a post office for a deposit made under a scheme notified by the Central Government.Specified person [other than person in Sl. No. 5(ii).C].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.Rate: Rates in force.—— Threshold limit: ₹10, 000.
Note 1.— In serial number 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 threshold 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.