Income Tax Dept Announces TDS Rates Applicable for AY 2024-25
The concept of Tax Deducted at Source or TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at...
The concept of Tax Deducted at Source or TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.
Rates for deduction of tax at source
Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered.
| Income Tax Act Section | Payment Category | Threshold limit | TDS Rate (%) |
| 192 | Salary Income | Income Tax Slab | Slab rates |
| 192A | EPF – Premature withdrawal | Rs. 50,000 | 10% (20% in case of no PAN) |
| 193 | Interest on Securities | Rs. 5,000 – Debentures Rs. 10,000 – Govt securities | 10% |
| 194 | Dividend | Rs. 5,000 | 10% |
| 194A | Interest by banks / post office other than on securities | Rs. 50,000 – Senior Citizens Rs. 40,000 – Others | 10% |
| 194A | Interest by others other than on securities | Rs. 5,000 | 10% |
| 194B | Winnings from Lotteries / Puzzle / Game | Rs. 10,000 | 30% |
| 194BA | Income from online games | NA | 30% |
| 194BB | Winnings from Horse Race | Rs. 10,000 | 30% |
| 194C | Contract | Rs. 30,000 (Single Transaction) Rs. 1,00,000 (Aggregate of Transactions) | 1% (Individuals/HUF) 2% (Others) |
| 194D | Payment of Insurance Commission | Rs. 15,000 | 5% (Individual) 10% (Others) |
| 194DA | Maturity of Life Insurance Policy | Rs. 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/sports association | NA | 20% + Surcharge & Cess |
| 194EE | Payment in respect of deposit under National Savings scheme | Rs. 2,500 | 10% |
| 194F | Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India | NA | 20% |
| 194G | Commission on Sale of Lottery tickets | Rs. 15,000 | 5% |
| 194H | Commission or Brokerage | Rs. 15,000 | 5% |
| 194I | Rent of Land, Building or Furniture | Rs. 2,40,000 | 10% |
| 194I | Rent of Plant & Machinery | Rs. 2,40,000 | 2% |
| 194IA | Transfer of Immovable Property , other than Agricultural land | Rs. 50 Lakh | 1% |
| 194IB | Payment of rent by individual or HUF not liable to tax audit | Rs. 50,000 (per month) | 5% |
| 194IC | Payment of monetary consideration under Joint Development Agreements | NA | 10% |
| 194J | Fees for professional or technical services | NA- Director Others- Rs. 30,000 | 2% (Technical services) 10% (Professional services) |
| 194K | Income in respect of units (UTI/MF) | NA | 10% |
| 194LA | Payment of compensation on acquisition of certain immovable property | Rs. 2,50,000 | 10% |
| 194LB | Interest from Infrastructure Bond to NRI | NA | 5% |
| 194LC | Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds | NA | 4% (Long-term Bond or Rupee Denominated Bond listed on RSE in IFSC) 5% (Others) |
| 194LD | Interest on Rupee denominated bond, municipal debt security and govt. Securities | NA | 5% |
| 194M | Contract, commission, brokerage or professional fee (other than 194C, 194H or 194J) | 50 Lakh | 5% |
| 194N | Cash withdrawal from bank and ITR filed | Rs. 3 cr (Cooperative society) Rs. 1cr – Others | 2% |
| 194N | Cash withdrawal from bank and ITR not filed | Rs. 20 Lakh | 2% |
| 194N | Cash withdrawal from bank and ITR not filed | Rs. 3 cr -Cooperative society Rs. 1cr | 5% |
| 194O | E-commerce sale | Rs. 5 lakh | 1% (5%, in case of no PAN) |
| 194P | TDS on Senior Citizen above 75 Years (No ITR filing cases) | – | Slab Rates |
| 194Q | Purchase of goods | Rs. 50 lakh | 0.10% |
| 194R | Benefits or perquisites arising from business or profession | Rs. 20,000 | 10% |
| 194S | TDS on payment for Virtual Digital Assets or crypto currency | Rs 50,000 (Specified Persons) Rs 10,000 (Others) | 1% |
| 206AA | TDS rate in case of Non availability of PAN | – | Higher of : –As per act –Twice the rate in force –20% |
| 206AB | TDS on non-filers of ITR at higher rates | - | Higher of – 5% – Twice the rate or rate in force |
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