TDS Rates for FY 2024-25
30 Mar, 2024Tax Deduction at Source (TDS) is one of the important compliances for Income Tax Assessee. There are various sections in Income Tax Law, which specify different TDS rates, nature of payment & its threshold limits for TDS. In Budget 2023, major changes have been proposed with respect to TDS viz. a higher limit of 3 crore for TDS on cash withdrawal is being provided to co-operative societies, removing the minimum threshold of 10,000/- for TDS relating to online gaming, reducing the TDS rate from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases. Below are the various TDS rates applicable for FY 2024-2025 (AY 2025-2026) i.e. for the period from 01.04.2024 to 31.03.2025 have been presented in Tabular Form.
| TDS rates applicable for FY 2024-25 | |||
| SECTION | NATURE OF TRANSACTION | THRESHOLD LIMIT | TDS RATE |
| 192 | Salary | Basic Exemption | As per calculated TDS rates |
| 192A | Premature withdrwal of EPF | 50,000 | 10% if PAN is provided, 20% without PAN |
| 193 | Interest on Securities | Interest from:- Debentures:5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018: 10,000 Others: No Limit |
10% |
| 194 | Dividend | 5000 | 10% |
| 194A | Interest on deposits in Bank or Post Office | Senior Citizen - 50,000, others - 40,000 | 10% for both |
| 194B | Income from lottery winnings, puzzels, card games etc | 10,000 | 30% |
| 194BA | Earnings from online games | No minimum threshold | 30% |
| 194BB | Income from horse race winnings | 10,000 | 30% |
| 194C | Payment to contractors or sub-contractors for work or services | 30,000 for single payment and 1,00,000 for aggregate payments | 1% For individuals and HUF 2% For other than individuals and HUF |
| 194D | Insurnance commission to individuals / companies | 15,000 | Individuals 5%; companies 10% |
| 194DA | Payments made towards life insurance policy | 1,00,000 | 5% |
| 194E | Payment to NR Sportsman/ Sports Association/ Entertainer | No specific limit | 20% [SC + Cess] |
| 194EE | Payment to National Savings Scheme | 2,500 | 10% |
| 194F | Payment for the purchase of units of Mutual Fund or UTI | No specific limit | 20% |
| 194G | Commission on sale of lottery tickets | 15,000 | 5% |
| 194H | Commission/ brokerage | 15,000 | 5% |
| 194-I | Rent -land, building, furniture fittings | 2,40,000 | 10% |
| 194 I | Rent - Plant and Machinery | 2,40,000 | 2% |
| 194IA | Payment for sale of immovable property except agricultural land | 50,00,000 | 1% |
| 194-IB | Rent paid by HUF/Individual not required to conduct Tax Audit | 50,000 per month | 5% |
| 194-IC | Payment under Joint development agreement | No specific limit | 10% |
| 194J | Professional or technical services, royalty, etc. | Professional fees: ₹30,000 Technical Fees: ₹30,000 Royalty: ₹30,000 Non compete Fees: ₹30,000 Director remuneration: No Limit |
Technical Fees (FTS), Royalty for cinematographic films, Payment to call centres: 2% Other cases: 10% |
| 194K | Income form units of Mutual Funds/UTI | 5,000 | 10% |
| 194LA | Payment of compensation on acquisition of certain immovable property | 2,50,000 | 10% |
| 194LB | Income by way of interest from infrastructure debt fund | No specific limit | 5% [SC+Cess] |
| 194LBA | Certain income from units of a business trust | No specific limit | Resident unit holder: 10% Non resident unit holder: 5% in case of interest received from special purpose vehicle, & 10% in case of dividend received from special purpose vehicle |
| 194LBB | Income in respect of units of investment fund | No specific limit | Resident investor: 10% Non-resident investor: Rates in force |
| 194LBC | Income in respect of investment in securitization trust | No specific limit | HUF: 25% Other Resident investors: 30% Non-Resident/ Foreign company: Rates in force |
| 194LC | Income by way of interest from Indian company | No specific limit | 5% [SC+Cess] |
| 194LD | Interest paid by an Indian company or a business trust to a FII or a QFI | No specific limit | 5% [SC+Cess] |
| 194M | Payment made by an individual or a HUF (if their books are not audited) to a resident contractor or professional for personal use or to carry out any business or profession | 50,00,000 | 5% |
| 194N | Cash withdrawals exceeding specified limits | 20 lakh (if no ITR has been filed for all the three previous AYs), or. ₹ 1 crore (if ITRs have been filed for all or any one of three previous AYs). | 2% on cash withdrawals exceeding ₹1 crore in a financial year (₹3 crore in case of co-operative society) |
| 194O | Certain payments by E-Commerce Operator to E-Commerce Participants | 5,00,000 | 1% of gross amount of sale of Goods/ Services 5% in case of no PAN furnished |
| 194P | Income of specified senior citizen - For this purpose, specified senior citizen is an individual who satisfies the following conditions: i) He/She is a resident individual ii) He/She is 75 years or more at any time during the previous Financial year. iii) He/She has income from pension which is credited in his pension account with “specified Bank” iv) He has no other income except interest received / receivable from any account maintained by such individual in the same “Specified Bank” in which he gets pension income. (“specified bank” means a banking company which is a scheduled bank and has been appointed as agents of RBI under section 45 of the RBI Act) v) He/She shall be required to furnish a declaration under Form 12BBA to the “specified bank”. |
Basic Exemption | As per calculated TDS rates |
| 194Q | Purchase of goods | 50,00,000 | 0.1% of consideration (5% in case of no PAN) |
| 194R | Benefits or Perquisite in respect of Business and Profession - Businesses or professions are responsible for deducting TDS @10% if the total value of the gifts or perquisites given is more than INR 20,000 during a financial year for every recipient. | 20,000 | 10% |
| 194S | TDS on payment for Virtual Digital Assets |
More than Rs 10,000 or Rs 50,000 in the case of specified persons, in a particular year. - A Specified Person means: - Individual or HUF who does not have income under business and profession - Individual or HUF having business income up to Rs 1 crore - Individual or HUF having professional receipts up to Rs 50 lakh |
1% |
Section 195 of the IT Act - TDS Applicability for Non-Residents
There is no threshold limit to deduct TDS under Section 195. However, the payer must deduct tax only when the payment made to a non-resident is taxable in India. Therefore, no tax is to be deducted in case of exempt income or any other income that is not taxable as per the Income Tax Act unless the government notifies explicitly.
TDS is deducted at either of the following rates, whichever is beneficial to the payee:
Rates as per the Finance Act of the given year
Rates contained in the Double Taxation Avoidance Agreement (DTAA) between India and the country of residence of such non - resident.
Note:Surcharges and education cess must be added to the rates provided by the Act at the relevant rate. There is no need to add a surcharge or education cess if the payment is done according to DTAA rates. The following are the rates:
The TDS rates given under the Finance Act 2023 are as follows:
| SECTION | NATURE OF TRANSACTION | THRESHOLD LIMIT | TDS RATE |
| 195 | Income in respect of investment made by an NRI - Interest/dividend | No specific limit | 20% |
| 195 | Income by way of long-term capital gains in Section 115E in case of an NRI | No specific limit | 10% |
| 195 | Income from long-term capital gains from listed shares specified u/s 112A | No specific limit | 10% |
| 195 | Short Term Capital gains under section 111A | No specific limit | 15% |
| 195 | Other income from long-term capital gains | No specific limit | 20% |
| 195 | Interest payable by the government or Indian Concern on money borrowed in Foreign Currency | No specific limit | 20% |
| 195 | Royalty & fees for technical services payable by the Government or an Indian entity | No specific limit | 20% |
| 195 | Winnings from lotteries, online games, and horse races | No specific limit | 30% |
| 195 | Any other income | No specific limit | 30% |
However, if the payee fails to furnish a valid PAN to the payer, the TDS shall be done at the higher of the following rates as per Section 206AA: