The TDS rates for the FY 2023-24/FY 2024-25 can help you to determine your tax liability. So, make sure to read this blog till the end and do share with your friends, too!
TDS Rates for the FY 2023-24/FY 2024-25
| Section | Nature of transaction | Deductee | Threshold Limit (Rs) | TDS Rate |
|---|---|---|---|---|
| 192 | Payment of salary | Resident, Non-Resident | Basic exemption limit of employee | Normal Slab Rates |
| 192A | Premature withdrawal from EPF | Resident, Non-Resident | 50,000 |
10% (if PAN is furnished). 20% (if PAN is not furnished – Budget 2023) |
| 193 | Interest on securities | Resident |
Debentures- 5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000 Other securities- No limit |
10% (Through Budget, 2023 exemption of TDS on interest from listed debentures has been removed. Therefore, tax is to be deducted on interest on such specified securities) |
| 194 | Payment of any dividend | Resident | 5,000 | 10% |
| 194A | Interest from other than interest from securities (from deposits with banks/post office/co-operative society) | Resident |
Senior Citizens- 50,000 Others- 40,000 |
10% |
| 194A |
Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives |
Resident | 5,000 | 10% |
| 194B | Income from lottery winnings, card games, crossword puzzles, and other games of any type | Resident, Non-Resident, Foreign Company | 10,000 (aggregate) | 10% |
| 194BA | Income from online games | Resident, Non-Resident, Foreign Company | NIL | 30% |
| 194BB | Income from horse race winnings | Resident, Non-Resident, Foreign Company | 10,000 (Aggregate) | 30% |
| 194C | Payment to contractor/sub-contractor | Resident |
Single transaction- 30,000 Aggregate transactions- 1,00,000 |
Individuals/HUFs – 1% Other than individuals/HUFs – 2% |
| 194D | Insurance commission to | Resident | ||
|
i) Individuals ii) Companies |
Resident |
15,000 15000 |
5% 10% |
|
| 194DA | Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy. | Resident | 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/sports association | Non-Resident, Foreign Company | No limit | 20% |
| 194EE | Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | Resident, Non-Resident | 2,500 | 10% |
| 194F | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | Resident, Non-Resident | No limit | 20% |
| 194G | Payments, commission, etc., on the sale of lottery tickets | Resident, Non-Resident, Foreign Company | 15,000 | 5% |
| 194H | Commission or brokerage | Resident | 15,000 | 5% |
| 194-I | Rent: | Resident | ||
| 194-I(a) Rent on plant and machinery | Resident | 2,40,000 | 2% | |
| 194-I(b) Rent on land/building/furniture/fitting | Resident | 2,40,000 | 10% | |
| 194-IA | Payment in consideration of transfer of certain immovable property other than agricultural land. | Resident | 50,00,000 | 1% |
| 194-IB | Rent payment by an individual or HUF not covered under Section 194-I | Resident | 50,000/month | 5% |
| 194-IC | Payment under Joint Development Agreements (JDA) to Individual/HUF | Resident | No limit | 10% |
| 194J | Any sum paid by way of fee for professional services | Resident | 30,000 | 10% |
| 194J | Any sum paid by way of remuneration/fee/commission to a director | Resident | 30,000 | 10% |
| 194J | Any sum paid for not carrying out any activity concerning any business; | Resident | 30,000 | 10% |
| 194J | Any sum paid for not sharing any know-how, patent, copyright, etc. | Resident | 30,000 | 10% |
| 194J | Any sum paid as a fee for technical services | Resident | 30,000 | 2% |
| 194J | Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. | Resident | 30,000 | 2% |
| 194K | Payment of any income for units of a mutual fund, for example, dividend | Resident | No limit | 10% |
| 194LA | Payment in respect of compensation on acquiring certain immovable property | Resident | 2,50,000 | 10% |
| 194LB | Payment of interest on infrastructure debt fund to Non-Resident | Non-Resident, Foreign Company | No limit | 5% |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds | Non-Resident, Foreign Company | No limit | 5% |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC | Non-Resident, Foreign Company | No limit | 4% |
| 194LD | Payment of interest on bond (rupee-denominated) to FII or a QFI | Non-Resident, Foreign Company | No limit | 5% |
| 194LBA(1) | Certain income distributed by a business trust to its unitholder | Resident | No limit | 10% |
| 194LBA(2) | Interest income of a business trust from SPV distribution to its unitholders | Non-Resident, Foreign Company | No limit | 5% |
| 194LBA(2) | Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders | Non-Resident, Foreign Company | No limit | 10% |
| 194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Non-Resident | No limit | 30% |
| 194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Foreign Company | No limit | 40% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Resident, Non-Resident | No limit | 10% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Foreign Company | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to an individual and HUF | Resident | No limit | 25% |
| 194LBC | Income from investment in securitisation fund received to domestic company | Resident | No limit | 10% |
| 194LBC | Income from investment in securitisation fund received to a foreign company | Foreign Company | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to NRI | Non-Resident | No limit | 10% |
| 194M | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | Resident | 50,00,000 | 5% |
| 194N | Cash withdrawal exceeding a certain amount | Resident, Non-Resident |
Co-operative society: 3 Crore Others: 1 crore |
2% |
| 194N | Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired | Resident, Non-Resident |
– 20 lakh to 1 crore -1 crore |
2% 5% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore |
| 194O | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. | Resident | 5,00,000 |
1% (5%, in case PAN is not furnished) |
| 194P | Payment of pension or interest to specified senior citizens of age 75 years or more | Resident | Basic exemption limit of senior citizens or super senior citizens | Normal Income Tax Slab rates |
| 194Q | Payments for the purchase of goods | Resident | 50,00,000 | 0.10% |
| 194R | Perquisite or benefit to a business or profession | Resident | 20,00,000 | 10% |
| 194S | TDS on the transfer of virtual digital assets | Resident |
Specified Persons- 50,000 Others- 10,000 |
1% |
| 195 | Income on investments made by NRI citizen | Non-Resident | No limit | 20% |
| 195 | Income by way of LTCG referred to in section 115E in the case of NRI | Non-Resident | No limit | 10% |
| 195 | Income by way of LTCG under section 112(1)(c)(iii) | Non-Resident, Foreign Company | No limit | 10% |
| 195 | Income by way of LTCG under section 112A | Non-Resident, Foreign Company | No limit | 10% |
| 195 | Income by way of STCG under section 111A | Non-Resident, Foreign Company | No limit | 15% |
| 195 | Any other income by way of LTCG | Non-Resident, Foreign Company | No limit | 20% |
| 195 | Interest payable on money borrowed by the government or Indian concern in foreign currency | Non-Resident, Foreign Company | No limit | 20% |
| 195 | Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A | Non-Resident, Foreign Company | No limit | 10% |
| 195 |
Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy. If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976 |
Foreign Company | No limit | 50% |
| 195 |
Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976 |
Foreign Company | No limit | 10% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | Non-Resident | No limit | 10% |
| 195 |
Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976 |
Foreign Company | No limit | 50% |
| 195 |
Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered after 31st March 1976 |
Foreign Company | No limit | 10% |
| 195 | Any other income | Non-Resident | No limit | 30% |
| 195 | Any other income | Foreign Company | No limit | 40% |
| 196B | Income (including LTCG) from units of an offshore fund | Non-Resident, Foreign Company | No limit | 10% |
| 196C | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | Non-Resident, Foreign Company | No limit | 10% |
| 196D | Income (excluding dividend and capital gain) from Foreign Institutional Investors. | Non-Resident, Foreign Company | No limit | 20% |
| 206AB |
Income (excluding dividend and capital gain) from Foreign Institutional Investors.
Payment to non-filers, i.e. those who have not filed their income tax return in the last year Non filers do not include: – People who are not required to file their ITRs – NRs who do not have a PE in India |
Resident | No limit |
– 2 times the rate given in the Income Tax Act or Finance Act or – 5%, whichever is higher |
| 206AA | TDS rate in case of Non availability of PAN | Resident, Non-Resident, Foreign Company | No limit | Rates specified above or 20%, whichever is higher |
Amendments in the TDS Rates
Section 192A- Reduction in TDS rate on EPF withdrawal in case PAN is unavailable
If the individual withdrawing money from EPF (within 5 years) does not provide PAN, then the TDS will be deducted @20%. And, earlier this limit was 30%.
Section 193: Removal of exemption of TDS on interest from listed debentures
There is a removal of exemption of TDS on interest from listed debentures. Therefore, there will be a deduction on interest on such specified securities.
Section 194BA – TDS on Winnings from Online Games
From 1st July, 2023, now, even the winnings from online games will attract TDS. Having said that, through the Union Budget, there is an insertion of a new Section namely Section 194BA which deals with TDS on winnings from online games.
The rate of TDS applicable is 30%. Further, there is the removal of the threshold limit of Rs. 10,000.
Section 194N – Enhanced Limit for Co-operative Society
In case of cash withdrawals from cooperative society, there will be a deduction of TDS if the amount exceeds Rs. 3 crores. Earlier this limit was Rs. 1 crore.