The Income Tax Department has released the Tax Deduction at Source ( TDS ) rate chart for the Financial Year 2024-25. TDS system where tax is deducted by the payer at the time of making specified payments such as salary, interest, commission, rent, etc.
The individual or entity responsible for making the payment, known as the deductor, deducts a specific portion of tax from the payment amount before disbursing it to the payee, referred to as the deductee. The failure to pay the TDS attracts penalties.
TDS and How it works
TDS is applied on payments like interest and salary, among other things. Within the allotted period, it is deposited with the government. The deductor must disclose the specifics of TDS deducted and deposited in TDS returns, which must be filed on a periodic basis. A TDS certificate is given by the deductor to the deductee as evidence of the tax deduction. Details including the type of payment, the amount of tax withheld, and other pertinent data are included in this certificate.
When completing their income tax return, the deductee can claim credit for the amount of TDS deducted. The overall tax liability of the deductee for the fiscal year is subtracted from the amount of TDS that was deducted.
TDS Rate Chart for 2024-25
| Section | Nature of Payment | Threshold | Individual/HUF TDS rates | Others TDS Rate |
| 192 | Salaries | Rs. 2,50,000 | Slab rates | Slab rates |
| 192A | Premature EPF withdrawal | Rs. 50,000 | 10% | 10% |
| 193 | TDS on interest on Securities | Rs. 10,000 | 10% | 10% |
| 194 | Payment of Dividend | Rs. 5000 | 10% | 10% |
| 194A | Interest issued by banks or post offices on deposits | Rs. 40,000 | 10% | 10% |
| 194A | Interest issued by banks or post offices on deposits (For Senior citizens) | Rs. 50,000 | 10% | 10% |
| 194A | Interest by others apart from on securities | Rs. 5,000 | 10% | 10% |
| 194B | Amounts that someone has won through lotteries, puzzles, or games | Aggregate of Rs- 10,000 | 30% | 30% |
| 194BB | Amounts that someone has won from horse races | Rs. 10,000 | 30% | 30% |
| 194C | Payments to contractor sub- contractor — Single Payments | Rs. 30,000 | 1% | 2% |
| 194C | Payments to contractor/sub–contractor Aggregate Payments | Rs. 1,00,000 | 1% | 2% |
| 194D | Payment of insurance commission Domestic Companies | Rs. 15,000 | NA | 5% |
| 194D | Payment of insurance commission to companies offer than domestic ones | Rs. 15,000 | 5% | NA |
| 194DA | Maturity of Life Insurance Policy | 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 | Commission or brokerage | Rs. 15,000 | 5% | 5% |
| 194I | Rent of land or furniture | Rs. 2,40,000 | 10% | 10% |
| 194I | Rent of plant and machinery | Rs. 2,40,000 | 2% | 2% |
| 194IA | Payment for transfer of immovable property other than agricultural land | 50,00,000 | 1% | 1% |
| 194IB | 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 | Amount paid for technical services | Rs. 30,000 | 2% | 2% |
| 194J | Amounts 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 example- dividends | Rs. 5,000 | 10% | 10% |
| 194LA | Payment made for compensation for acquiring certain immovable property | Rs. 2,50,000 | 10% | 10% |
| 194LB | Payment of interest on infrastructure bonds to Non-Resident Indians | NA | 5% | 5% |
| 194LBA(1) | Certain income distributed by a business trust a-nong 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 | In case cash withdrawal over a certain amount takes place from the bank, and ITR is filed | Rs. 1,00,00,000 | 2% | 2% |
| 194N | In case cash withdrawal takes place from a bank and one does not file 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 made for the purchase of Goods | Rs. 50,00,000 | 0.10% | 0.10% |
| 194S | TDS on the payment of any crypto or other virtual asset | NA | 1% | 1% |
| 206AA | TDS for non-availability of PAN | NA | At the Higher rate of: 1.Specified rate as per the act 2. 20% 3. Rate in Force | 20% |
| 206AB | TDS on non-filers of Income tax return | NA | Rate Higher of: 1.5% 2.Twice the rate mention in provision 3.Rate in force |
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