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TDS RATE CHART FOR FINANCIAL YEAR 2024-2025

WHAT IS TDS (TAX DEDUCTED AT SOURCE)?

TDS refers to a system where a certain percentage of tax is deducted at the source of income, such as salary, interest, or payments for services. It is a way for governments to collect taxes in advance. TDS has to be deducted at the rates prescribed by the income tax department.

TDS RATE CHART

SECTION OF IT ACTNATURE OF PAYMENTRATE OF TDSTHRESHOLD(INR)
192Salary paymentAs per the applicable income tax slab rate of the individual.Taxable income that is liable to tax.
192APremature withdrawal from EPF10%₹ 50000
193Interest on securities10%No TDS if interest is payable on securities like government bonds and debentures of a public sector company, below ₹ 10000
194Payment of Dividend10%₹ 5000
194AInterest other than on securities10%₹ 40000 for individuals(₹ 50000 for senior citizens) from bank deposits, post office etc.
194BWinning from lotteries30%₹ 10000
194BAWinning from online games30%Nil
194BBWinning from horse race30%10000
194CPayment to contractorsIndividual or HUF – 1% Others – 2%₹ 30000 for a single contract or ₹ 100000 in aggregate during the F.Y.
194DInsurance CommissionIndividual or HUF -5% Others -10%₹ 15000
194DAPayment received – life insurance policy5%₹ 100000
194EEPayment received- national saving schemes (NSS)10%₹ 2500
194FRepurchase units by MFs20%NIL
194GCommission – lottery5%₹ 15000
194HCommission or brokerage5%₹ 15000
194I(a)Rent for plant and machinery2%₹ 240000
194I(b)Rent for land, building & furniture10%₹ 240000
194IATransfer of immovable property1%₹ 5000000
194IBRent payment by individual/HUF not covered under u/s 194I5%50000 P.M.
194ICPayment under specified joint development agreement(JDA)10%NIL
194JFees for all other professional services, remuneration, commission etc.10%30000
194JTechnical services, royalty, distribution/exhibition of cinematographic films ,call center etc.2%30000
194KDividend payment by mutual fund10%5000
194LAPayment in respect of compensation on acquiring immovable property10%250000
194LBPayment of interest on infrastructure debt fund (NR)5%NIL
194LBACertain income distributed by a business trust10%NIL
194LBBIncome in respect of investment of investment fund10% for residents,30% for non-residents Others- 10% for residents,40% for non-residentsNIL
194LBCIncome in respect of investment in securitization trustIndividual/HUF-25% , 30% for domestic company, 40% for foreign companyNIL
194LDInterest on certain bonds and government securities5%  NIL
194MPayment by individual/HUF not liable to deduct TDS(section 194C,194H,194J)5%₹ 5000000
194NCash withdrawal in excess of 1 crore during previous year from 1 or more account with bank or co-operative society2%₹3 crore for co-operative societies, ₹1 crore for others
  2%(20 lakh- 1 crore) 5%( above 1 crore)₹20 lakhs(if ITR not filed for previous 3 years)
194OTDS on e-commerce operator through its digital or electronic facility or platform1%500000
194PPayment of pension or interest to senior citizen of age 75 years or more( ITR not required)Slab rateNIL
194QPayment for the purchase of goods exceeding ₹50 lakhs0.1%In excess of ₹50 lakhs
194RBenefit or perquisites of business or profession10%20000  
194STDS on the transfer of virtual digital assets1%₹ 10000 ( by persons other than specified person) ₹ 50000(specified persons)

TDS RATE CHART(FOREIGN)FY: 2024-2025

SectionNature of paymentTDS rateThreshold(INR)
192APayment against EPF scheme10%₹30000
194ENon-resident sportsman20%NIL
194LBPayment of interest on infrastructure debt fund (NR)5%NIL
194LBACertain income distributed by a business trust5%NIL
 194LBA(a)Income referred to in section 10(23FC)(a)from units of business trust5%NIL
194LBA(b)Income referred to in section 10(23FC)(b)from units of a business trust10%NIL
194LBA(c)Income referred to in section 10(23FCA)from unit of a business trust30%NIL
194LBBIncome on units of investment fund30% – individual/HUF 40% – othersNIL
194LBCIncome in respect of investment in securitization trust30% – individual/HUF 40% – othersNIL
194LDInterest on certain bonds and government securities5%NIL
194NPayment of certain amount In cash2%NIL
194NFPayment of certain amounts in cash to non-filers1%NIL
195Payment of sum to any other non-residents  
(a)Income in respect of investment made by a non-resident Indian citizen20%NIL
(b)Income by way of long-term capital gains referred to in section 115E in case of a non-resident Indian citizen10%NIL
(C)Income by way of long term capital gains referred to in sub-clause(iii)of clause (c) of sub section(1) of section 11210%NIL
(d)Income by way of long-term capital gains as referred to in section 112A10%NIL
(e)Income by way of short-term capital gains referred to in section 111A15%NIL
(f)Any other income by way of long-term capital gains20%NIL
(g)Income by way of interest payable by government or an Indian concern on money borrowed or debt incurred by government or the Indian concern in the foreign currency20%NIL
(h)Income by way of royalty payable by government or an Indian concern in pursuance of an agreement made by it with the government or the Indian concern where such royalty is in consideration for the transfer of all or any rights in respect of copyright in any book on a subject referred to in the first provision to sub section (1A) of sec 115A of the income tax act, to the Indian concern , or in respect of any computer software referred to in the second provision to sub section(1A) of section 115A of the income-tax act, to a person resident in India20%NIL
(i)Income by way of royalty payable by government or an Indian concern in pursuance of an agreement made by it with the government of an Indian concern and where such agreement is with an Indian concern, the agreement is approved by the central government20%NIL
(j)Income by way of fees for technical services payable by government or an Indian concern in pursuance of an agreement made by it with the government20%NIL
(k)Any other income30%NIL
196AUnit holder foreign company in mutual fund20%NIL
196BUnits by off shore fund10%NIL
196CIncome from foreign bonds10%NIL
196DIncome of foreign institutional investors on securities20%NIL
196DAIncome of specified fund from securities10%NIL

Note: Rate of TDS without PAN – 20% flat (if TDS is lower than 20%)

In conclusion, TDS under Income Tax Act, 1961, is a provision that mandates the deduction of tax at source (TDS) on payments made. Understanding and adhering to the provisions of TDS is crucial for both payers and payees to ensure compliance with tax laws and avoid any penalties or interest levied by the tax authorities.

Our experts of team will guide you related to compliances of Companies, Firms and other entities if you have any doubt regarding this, then you can send your doubts on company suggestion and clear it.

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