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Latest TDS Rate Chart for FY 2023-24 (AY 2024-25)

Guide On TDS Rate Chart For Financial Year 2024-2025

Latest TDS Rate Chart for FY 2023-24 (AY 2024-25)

Tax Deducted at Source (TDS) is a crucial concept for businesses operating in India. It's a mechanism where the tax liability is deducted at the source of income by the payer before disbursing the payment to the recipient. This deducted amount is then deposited to the government's account. Understanding TDS rates and keeping yourself updated with the latest changes are essential for accurate financial management.

In this article, we will explore the TDS rate charts for the financial year (FY) 2024-25 (Assessment Year 2025-26), we will also discuss the various income categories, applicable rates, and recent updates, helping you navigate the system effectively.

What is a TDS Rate Chart?

A TDS rate chart is a reference table outlining the different types of income subject to TDS and the corresponding tax deduction rates. These rates are determined by the Income Tax Act of India and are periodically revised by the government. Referring to an accurate and updated TDS rate chart ensures you comply with tax regulations and avoid potential penalties.

Understanding TDS Rate Components

TDS rate charts typically categorize income sources and provide the corresponding TDS rate for each category. They may also differentiate rates based on factors like:

  • Nature of Payment: The type of income being paid determines the applicable TDS rate. Common examples include salaries, interest income, professional fees, rent payments, etc
  • PAN Status: Whether the recipient (deductee) provides a Permanent Account Number (PAN) significantly impacts the TDS rate. Not having a PAN typically attracts a higher deduction rate
  • Tax Residency: The residency status of the recipient (resident or non-resident) plays a role in determining the TDS rate

The Importance of TDS Rate Charts

TDS rate charts serve as a reference point for both deductors and deductees. They specify the applicable tax rate to be deducted at source for various income streams. Knowing the correct TDS rate ensures:

Compliance: Following the prescribed TDS rates guarantees adherence to tax regulations, minimizing the risk of penalties and interest charges for non-compliance.

Accurate Tax Calculations: Both deductors and deductees can use the chart to estimate their tax liabilities, enabling them to plan their finances effectively.

Easier Tax Filing: By understanding the TDS already deducted, deductees can accurately calculate their final tax liability while filing their income tax returns.

Who Deducts TDS?

The responsibility of deducting TDS falls on the deductor, which can be:

  • Individuals or HUFs (Hindu Undivided Families) making specified payments
  • Companies
  • Government agencies
  • Local authorities

The deductor is obligated to deduct TDS only if the payment exceeds the prescribed threshold limit set by the Income Tax Act.

Types of Income Subject to TDS

TDS applies to a wide range of income sources, including:

  • TDS rate on salary income
  • Interest income (bank deposits, fixed deposits, etc.)
  • TDS rate on rent income
  • TDS rates on commission payments
  • Professional fees
  • Payments to contractors
  • Payments for the sale of immovable property
  • Winnings from lottery, puzzles, etc.
  • Dividend income (except for certain cases)
  • Repurchase of debentures

TDS Rate Chart for Financial Year 2024-25

Section
Type of Payment 
Threshold TDS Rate Limit (₹)
Individual/HUF Rate (%)
Others

Rate (%)

192
Salaries
Rs. 2,50,000
TDS Slab Rates
TDS Slab Rates
192A
Premature EPF withdrawal*
Rs. 50,000
10%
10%
193
Interest on securities
Rs. 10,000
10%
10%
194
Dividend Payment
Rs. 5,000
10%
10%
194A
Interest on deposits
Rs. 40,000

Rs. 50,000 (For senior citizens)

10%
10%
194A
Interest by others apart from on securities
Rs. 5,000
10%
10%
194B
Winnings (Lottery, Puzzles, Games)
Aggregate of Rs. 10,000**
30%
30%
194BB
Winnings from horse races
Rs. 10,000
30%
30%
194C
Contractor/Sub-contractor Payments – Single Payments
Rs. 30,000
1%
2%
194C
Contractor/sub-contractor Payments – Aggregate Payments
Rs. 1,00,000
1%
2%
194D
Insurance commission payment to domestic companies
Rs. 15,000
NA
10%
194D
Insurance commission payments to other companies 
Rs. 15,000
5% TDS rate on salary
NA
194DA
Life Insurance Maturity
Rs. 1,00,000
5%
5%
194EE
Payment of an amount standing to the credit of an individual under NSS (National Savings Scheme)
Rs. 2500
10%
10%
194F
Payment of repurchase of unit by UTI (Unit Trust of India) or any mutual fund
No Limit
20%
20%
194G
Payments or commission on sale of lottery tickets
Rs. 15,000
5%
5%
194H
TDS rates on commission or brokerage
Rs. 15,000
5%
5%
194I
TDS rate on rent of land, building, or furniture
Rs. 2,40,000
10%
10%
194I
TDS rate on rent of plant and machinery
Rs. 2,40,000
2%
2%
194IA
Payment for transfer of immovable property other than agricultural land
Rs. 50,00,000
1%
1%
194IB
TDS rate on rent payment that is made by an individual or HUF not covered under payment 194I
Rs. 50,000 (per month)
5%
NA
194IC
Payment that are made under Joint Development Agreement (JDA) to Individual/HUF
No Limit
10%
10%
194J
Fees paid for professional services
Rs. 30,000
10%
10%
194J
Paid for technical services
Rs. 30,000
2%
2%
194J
Paid as royalty for sale/distribution/exhibition of cinematographic films
Rs. 30,000
2%
2%
194K
Payment of income for units of a mutual fund, for eg.- dividends
Rs. 5,000
10%
10%
194LA
Payment for compensation for acquiring certain immovable property
Rs. 2,50,000
10%
10%
194LB
Interest payment on infrastructure bonds to Non-Resident Indians
NA
5%
5%
194LBA(1)
Income distributed by a business trust among its unit holder
NA
10%
10%
194LD
Payment of interest on rupee-denominated bonds, municipal debt security, and government securities
NA
5%
5%
194M
Amounts paid for contract, brokerage, commission, or professional fee (other than 194C, 194H, 194J)
Rs. 50,00,000
5%
5%
194N
Instances where cash withdrawal over a certain amount takes place from the bank, and ITR is filed
Rs. 1,00,00,000
2%
2%
194N
Instances where cash withdrawal takes place from a bank and one does not file an ITR
Rs. 20,00,000
2%
2%
194O
Amount paid for the sale of products/services by e-commerce service providers via their digital platform
Rs. 5,00,000
1%
1%
194Q
Payments for the purchase of goods
Rs. 50,00,000
0.10%
0.10%
194S
TDS on crypto or other virtual asset payment
NA
1%
1%
206AA
TDS for no PAN
NA
At a rate higher than
  1. Specified rate as per the act
  2. 20%
  3. Rate in force
20%
206AB
Income tax return non-filers
NA
Rate higher of:
  1. 5%
  2. Twice the mentioned rate in provision
  3. Rate in force

Guide On TDS Rate Chart For Financial Year 2024-2025

Latest TDS Rate Chart for FY 2023-24 (AY 2024-25)

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