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  7. TDS Rate Chart for FY 2024-25 (AY 2025-26)

TDS Rate Chart for FY 2024-25 (AY 2025-26)

Updated on: 24 Oct, 2024 03:25 PM

TDS (Tax Deducted at Source) means collection of taxes by the Indian government at the source of income. TDS is applicable to various incomes like salary, rent, dividend, asset sales, etc. TDS (Tax Deducted at Source) is an important part of Income Tax compliance. TDS has to be deducted at the rates prescribed by the tax department. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.

Budget 2024 Update

The TDS rates in budget 2024 have been revised. The new revised TDS rates under different sections are given in the below table.

Rationalisation of TDS Rates:

Section Current TDS Rate Proposed TDS Rate
Section 194D 5% 2%
Section 194DA 5% 2%
Section 194G 5% 2%
Section 194H 5% 2%
Section 194IB 5% 2%
Section 194M 5% 2%
Section 194O 1% 0.1%
Section 194F Proposed to be omitted

Contents

What is TDS?

TDS, or Tax Deducted at Source, is a taxation system in which the tax is deducted at the source of the income at the time of making the payment. The Indian government introduced it to prevent tax evasion. The TDS deducted is then submitted to the government. TDS is applicable on incomes such as rent, interest, salaries, and commission. The company or person that makes the payment after deducting TDS is called a deductor, and the company or person receiving the payment is called the deducted.

TDS on Payment to Partners by Firm under Section 194T

Starting from April 1, 2025, if a firm makes any payments to its partners, it must deduct TDS at 10% if the payment amount exceeds the threshold limit of 20,000. These payments include salary, remuneration, bonus, commission, and interest.

Note: TDS is not applicable to the drawings and the capital repayment to the partners. But TDS applies to the interest on capital or borrowings from partners.

What is TDS Chart?

A TDS (Tax Deducted at Source) chart is a document or chart that outlines the rates at which tax is to be deducted at the source from various types of income as per the Income Tax Act. TDS chart provides information on the rates at which tax is to be deducted from the source for different types of payments such as salaries, interest, rent, professional fees, etc. These rates can vary depending on the nature of the payment, the amount, and the status of the recipient (whether they are an individual, a company, etc.).

TDS Rate Chart for FY 2024-25

TDS Section list with threshold limit and TDS rate:

Section Nature of transaction Threshold Limit (Rs) TDS Rate
192 Salary Basic exemption limit As per applicable slab rates
192A Premature Withdrawal of EPF 50,000 10% rate of TDS if PAN is provided.
If EPF withdrawal is made without PAN, the applicable rate is 20%.
193 Interest on securities Debentures- 5,000
8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000
Other securities- No limit 		10% In the 2023 budget, the exemption of TDS on interest from listed debentures has been removed. This means tax must now be deducted on the interest earned from these securities.
194 Dividend 5,000 10%
194A Interest on deposit in a bank or post office Senior Citizens- 50,000
Others- 40,000		 10% for both
194A Interest from other sources except interest on securities and interest on bank deposits. 5,000 10%
194B Income from lottery winnings, puzzles, crosswords, card games, etc. 10,000 30%
194BA Earnings from online games Nil 30%
194BB Income from horse race 10,000 30%
194C Payment done to subcontractor/contractor Single transaction- 30,000
Aggregate transactions- 1,00,000		 HUF/Individuals: 1%
Others: 2%
194D Insurance commission to:
a) Individuals 15,000 5%
b) Companies 15,000 10%
194DA Payment made towards life insurance policy 1,00,000 5%
194E Payment to non-resident sports association/ sportsmen No specified limit 20% The mentioned rate will be subject to an additional surcharge and a 4% cess.
194EE Payment to the National Savings Scheme 2,500 10%
194F Payment for the re-purchase of the unit by Mutual Fund or UTI No specified limit 20%
194G Commission on selling lottery tickets 15,000 5%
194H Commission/Brokerage 15,000 5%
194-I Rent:
194-I(a) plant and machinery 2,40,000 2%
194-I(b) land/building/furniture/fitting 2,40,000 10%
194-IA Payment on transfer of immovable property except agricultural land 50,00,000 1%
194-IB Rent paid by HUF/Individual who is not required to conduct a tax audit 50,000 per month 5%
194-IC Payment under JDA, Joint Development Agreements No specified limit 10
194J Fees paid for -
  • Technical services
  • Royalty in the nature of consideration for sale, distribution, or exhibition of cinematographic films
 30,000
30,000		 2%
2%
194J Fees paid for any other professional services or technical service 30,000 10%
194K Earnings from units payable to a resident No specified limit 10%
194LA Compensation for acquiring an immovable property 2,50,000 10%
194LB Interest paid to Non-resident on Infrastructure Debt Fund No specified limit 5% The mentioned rate will be subject to an additional surcharge and a 4% cess.
194LBA(1) Earnings received by a business trust from an SPV No specified limit 10%
194LBB Income of a unit holder from an investment fund. No specified limit 10%
194LBC Income from investment in securitization trust
Individuals/HUF
Others		 No specified limit 25%
30%
194M Payment of commission except income tax commission under Section 194C, 194H, and 194J 50,00,000 5%
194N Cash withdrawal exceeding a specific amount
1 crore		 1 crore 2%
194N Cash withdrawals from multiple bank accounts during the previous year
Amount exceeding 1 crore (exceeding 20 lakhs for people not filing ITR for previous 3 years) 1 crore 2%
Aggregate cash withdrawal exceeding 20 lakhs 20 lakhs 2%
Aggregate cash withdrawal exceeding 1 crore 1 crore 5%
194O Payment to e-commerce participants by e-commerce operator 5,00,000 1%
5% in case PAN is not provided
194P TDS for senior citizens aged over 75 years Basic exemption limit Normal tax slab rates
194Q Purchase of goods after 1.07.2021 50,00,000 0.10%
194R (Introduced in budget 2022) TDS deducted on benefit or Perquisite to a business or profession 20,000 10%
194S Payment of virtual digital assets Specified Persons- 50,000
Others- 10,000		 1%
195 Income on investments of NRI citizens No specified limit 20%
195 LTCG under section 115E in the case of NRI citizen No specified limit 10%
195 LTCG under section 112(1)(c)(iii) No specified limit 10%
195 LTCG under section 112A No specified limit 10%
195 STCG under section 111A No specified limit 15%
195 Other LTCG other then LTCG mentioned u/s 112A, 10(33), 10(36) No specified limit 20%
195 Interest paid on borrowings from an Indian company or government in INR. No specified limit 20%
195 Income from royalty, paid by Indian company/government under section 115A No specified limit 10%
195 Earnings from royalties by the government or Indian company as per an agreement according to the industrial policy. No specified limit 10%
195 Income from royalties payable from Indian companies or the government.
Agreement should be made between 31st Mar 1961 to 1st Apr 1976		 No specified limit 50%
195 Earnings from royalties to be paid by the government or Indian company in pursuance of an agreement on matters included in the industrial policy
Agreement should be between 31st March 1976		 No specified limit 10%
195 Earnings from technical fees to be paid by the Indian government or company in pursuance of an agreement for industrial policy No specified limit 10%
195 Earnings from technical fees are to be paid by the government or Indian company in accordance with an agreement on industrial policy matters.
If the agreement for the payment is entered between 29th Feb 1964 and 1st Apr 1976		 No specified limit 50%
195 Earnings from technical fees to be paid by government or Indian company in accordance with an agreement on industrial policy matters.
If the agreement for the payment is entered between 29th Feb 1964 and 1st Apr 1976		 No Specified limit 10%
195 Any other income No specified limit 30%
195 Any other income No specified limit 40%
196B LTCG and other income from units of an offshore fund No specified limit 10%
196C LTCG and other income from foreign currency bonds or Indian GDRs No specified limit 10%
196D Income (except dividend and capital gain) from FIIs No specified limit 20%
206AB Payment made to people not filing their ITR
Latest Update:
  • People not required to file ITR and NRs not having Permanent establishment in
  • India are not considered as non-filers
 No specified limit - 2 times the rate mentioned in the Income Tax Act
- 5%, whichever is higher
206AA TDS rate if PAN not available No specified limit Rates specified
or
20%,
whichever is higher

Are you looking for TDS calculation and want to pay TDS error-free? Get in touch with our experts.

TDS Rates Applicable on Non-Resident Indian (Other than a Company) for FY 2024-25

Particulars TDS Rate
Section 192: Payment of salary Normal Slab Rate
Section 192A: Premature withdrawal from EPF 10%
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194E: Payment to non-resident sportsman/entertainer 20%
Section 194EE: Payment under National Savings Scheme (NSS) 10%
Section 194F: Payment due to repurchase by UTI or Mutual Fund 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194LB: Payment for compensation on acquisition of property 5%
Section 194LBA(2): Payment from SPV to business trust/unitholders 5% / 10%
Section 194LBA(3): Rental income payment by business trust 30%
Section 194LBB: Payment by investment fund to unitholder 30%
Section 194LBC: Income from investment in securitization fund 30%
Section 194LC: Interest payment on foreign currency loan 5% / 4%
Section 194LD: Interest on rupee-denominated bond 5%
Section 195: Payment of any other sum to NRI 10% / 20% / 30%
Section 196B: Income from units of an offshore fund 10%
Section 196C: Income from foreign currency bonds or GDR 10%
Section 196D: Income from Foreign Institutional Investors 20%

TDS Rates Applicable for a Domestic Company for FY 2024-25

Particulars TDS Rate
Section 192: Payment of salary Normal Slab Rate
Section 192A: Premature withdrawal from EPF 10%
Section 193: Interest on securities 10%
Section 194: Payment of any dividend 10%
Section 194A: Interest income (excluding securities) 10%
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194C: Payment to contractor/sub-contractor 1% / 2%
Section 194D: Insurance commission 10%
Section 194DA: Income portion of life insurance payout 5%
Section 194EE: Payment under National Savings Scheme (NSS) 10%
Section 194F: Payment due to repurchase by UTI or Mutual Fund 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194H: Commission or brokerage 5%
Section 194-I: Rent on plant/machinery or land/building/furniture 2% / 10%
Section 194-IA: Transfer of immovable property 1%
Section 194-IC: Payment under Joint Development Agreements (JDA) 10%
Section 194J: Payment for professional/technical services, etc. 2% / 10%
Section 194K: Income from units of mutual funds 10%
Section 194LA: Compensation on acquisition of immovable property 10%
Section 194LBA(1): Income distributed by a business trust 10%
Section 194LBB: Income paid by investment fund to unitholder 10%
Section 194LBC: Income from investment in securitization fund 10%
Section 194M: Payments by Individual/HUF exceeding ₹50 Lakhs 5%
Section 194N: Cash withdrawals exceeding ₹1 Crore 2% / 5%
Section 194O: Sale of goods/services via e-commerce platforms 1%
Section 194Q: Purchase of goods exceeding ₹50 Lakhs 0.1%
Any Other Income 10%

TDS Rates Applicable for a company other than Domestic Company for FY 2024-25

Particulars TDS Rate
Section 194B: Income by way of lottery winnings, card games, etc. 30%
Section 194BB: Income by way of horse race winnings 30%
Section 194E: Payment to non-resident sportsman/entertainer 20%
Section 194G: Commission on the sale of lottery tickets 5%
Section 194LB: Payment for compensation on acquisition of property 5%
Section 194LBA(2): Payment from SPV to business trust/unitholders 5% / 10%
Section 194LBA(3): Rental income payment by business trust 40%
Section 194LBB: Payment by investment fund to unitholder 40%
Section 194LBC: Income from investment in securitization fund 40%
Section 194LC: Interest payment on foreign currency loan 5% / 4%
Section 194LD: Interest on rupee-denominated bond 5%
Section 195: Payment of any other sum, including capital gains 10% / 20% / 40%
Section 196B: Income from units of an offshore fund 10%
Section 196C: Income from foreign currency bonds or GDR 10%
Section 196D: Income from Foreign Institutional Investors 20%

FAQ on TDS Rate Chart

Q- What is the TDS Rate for Rent in FY 2023-24?

If the annual rent paid is more than 2,40,000, TDS is applicable.

Q- Who is eligible to pay TDS?

Any person whose total income exceeds the basic exemption limit and falls under the taxable bracket is eligible to pay TDS.

Q- Can I get a TDS refund?

Any tax paid in excess is refunded by the Income Tax Department. Once you file your ITR and your refund gets processed, the government refunds the excess income tax.

Q- What are the components of the TDS?

The TDS components are TDS, surcharge, PE-Cess, and SHE Cess.

Q- What are the changes in TDS rates for FY 2023 24?

Effective from July 1, 2023, the Tax Collected at Source (TCS) rate shall not exceed 20% if the collectee fails to furnish their PAN to the collector or if they are non-filers. Furthermore, concerning Tax Deducted at Source (TDS) under Section 192A for EPF withdrawals, the rate shall be fixed at 20% instead of the maximum marginal rate, even if the recipient does not provide their PAN.

Q- What is the threshold limit for TCS and TDS?

For TDS:

  • The tax deduction rate is 0.1% of the sum exceeding Rs. 50 lacs. This means if the transaction amount is over Rs. 50 lacs, the TDS will be levied at a rate of 0.1% on the amount exceeding Rs. 50 lacs.

For example, if the transaction amount is Rs. 60 lacs, the TDS would be calculated as follows:

TDS = 0.1% of (Rs. 60,00,000 - Rs. 50,00,000) = 0.1% of Rs. 10,00,000 = Rs. 1,000.

For TCS:

  • The tax collection rate is also 0.1% of the sale sum exceeding Rs. 50 lacs. Similar to TDS, if the sale amount is over Rs. 50 lacs, the TCS will be levied at a rate of 0.1% on the amount exceeding Rs. 50 lacs.

For example, if the sale amount is Rs. 70 lacs, the TCS would be calculated as follows:

TCS = 0.1% of (Rs. 70,00,000 - Rs. 50,00,000) = 0.1% of Rs. 20,00,000 = Rs. 2,000.

These rates and thresholds are subject to change, so it's essential to verify with the tax expert for accurate information.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.