TDS Rate Chart for FY 2023-24 (AY 2024-25)
TDS stands for Tax Deducted at Source. Tax deduction at source (TDS) means collecting tax on income in the form of salary, rent, asset sales, dividends, etc., by requiring the payer to collect income tax due on such income while crediting/paying to the payee and deposit the same to the government on payee’s behalf. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.
The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India. Any person paying income is responsible to deduct tax at source and deposit TDS within the stipulated due date.
TDS Rate Charts for the FY 2023-24
| Section | Nature of transaction | Threshold Limit (Rs) | TDS Rate |
| 192 | Payment of salary | Basic exemption limit of employee | Normal Slab Rates |
| 192A | Premature withdrawal from EPF | 50,000 | 10% Budget 2023: TDS rate for EPF withdrawals without a PAN number is now 20%, from the previous maximum marginal rate |
| 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% Budget 2023: Exemption of TDS on interest from listed debentures has been removed. Therefore, tax has to be deducted on interest on such specified securities. |
| 194 | Payment of any dividend | 5,000 | 10% |
| 194A | Interest from other than interest from securities (from deposits with banks/post office/co-operative society) | Senior Citizens- 50,000 Others- 40,000 | 10% |
| 194A | Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives | 5,000 | 10% |
| 194B | Income from lottery winnings, card games, crossword puzzles, and other games of any type | Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 Online Gamine- Refer 194BA | 30% |
| 194BA | Income from online games | Nil | 30% |
| 194BB | Income from horse race winnings | 10,000 Aggregate winnings during a financial year not single transaction | 30% |
| 194C | Payment to contractor/sub-contractor:- | Single transaction- 30,000 Aggregate transactions- 1,00,000 | |
| a) Individuals/HUF | 1% | ||
| b) Other than Individuals/HU | 2% | ||
| 194D | Insurance commission to: | ||
| a) Domestic Companies | 15,000 | 10% | |
| b) Other than companies | 15,000 | 5% | |
| 194DA | Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy. | 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/sports association | No limit | 20% *This rate shall be increased by applicable surcharge and 4% cess |
| 194EE | Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | 2,500 | 10% |
| 194F | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | No limit | 20% |
| 194G | Payments, commission, etc., on the sale of lottery tickets | 15,000 | 5% |
| 194H | Commission or brokerage | 15,000 | 5% |
| 194-I | Rent: | ||
| 194-I(a) Rent on plant and machinery | 2,40,000 | 2% | |
| 194-I(b) Rent on land/building/furniture/fitting | 2,40,000 | 10% | |
| 194-IA | Payment in consideration of transfer of certain immovable property other than agricultural land. | 50,00,000 | 1% |
| 194-IB | Rent payment by an individual or HUF not covered u/s. 194-I | 50,000 per month | 5% |
| 194-IC | Payment under Joint Development Agreements (JDA) to Individual/HUF | No limit | 10 |
| 194J | Any sum paid by way of fee for professional services | 30,000 | 10% |
| 194J | Any sum paid by way of remuneration/fee/commission to a director | 30,000 | 10% |
| 194J | Any sum paid for not carrying out any activity concerning any business; | 30,000 | 10% |
| 194J | Any sum paid for not sharing any know-how, patent, copyright, etc. | 30,000 | 10% |
| 194J | Any sum paid as a fee for technical services | 30,000 | 2% |
| 194J | Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films | 30,000 | 2% |
| 194J | Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. | 30,000 | 2% |
| 194K | Payment of any income for units of a mutual fund, for example, dividend | No limit | 10% |
| 194LA | Payment in respect of compensation on acquiring certain immovable property | 2,50,000 | 10% |
| 194LB | Payment of interest on infrastructure debt fund to Non-Resident | No limit | 5% *This rate shall be increased by applicable surcharge and 4% cess |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds | No limit | 5% |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC | No limit | 4% |
| 194LD | Payment of interest on bond (rupee-denominated) to FII or a QFI | No limit | 5% |
| 194LBA (1) | Certain income distributed by a business trust to its unitholder | No limit | 10% |
| 194LBA (2) | Interest income of a business trust from SPV distribution to its unitholders | No limit | 5% |
| 194LBA (2) | Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders | No limit | 10% |
| 194LBA (3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | No limit | 30% |
| 194LBA (3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | No limit | 40% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | No limit | 10% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to an individual and HUF | No limit | 25% |
| 194LBC | Income from investment in securitisation fund received to a domestic company | No limit | 10% |
| 194LBC | Income from investment in securitisation fund received to a foreign company | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to NRI | No limit | 10% |
| 194M | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | 50,00,000 | 5% |
| 194N | Cash withdrawal exceeding a certain amount | Co-operative society: 3 Crore Others: 1 crore | 2% |
| 194N | Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired | – 20 lakh to 1 crore -1 crore | 2% 5% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore |
| 194O | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. | 5,00,000 | 1% 5% in case PAN is not furnished |
| 194P | Payment of pension or interest to specified senior citizens of age 75 years or more | Basic exemption limit of senior citizens or super senior citizens | Normal tax slab rates |
| 194Q | Payments for the purchase of goods | 50,00,000 | 0.10% |
| 194R (Refer notes) | Perquisite or benefit to a business or profession | 20,000 | 10% |
| 194S (Refer notes) | TDS on the transfer of virtual digital assets | Specified Persons- 50,000 Others- 10,000 | 1% |
| 195 | Income on investments made by NRI citizen | No limit | 20% |
| 195 | Income by way of LTCG referred to in section 115E in the case of NRI | No limit | 10% |
| 195 | Income by way of LTCG under section 112(1)(c)(iii) | No limit | 10% |
| 195 | Income by way of LTCG under section 112A | No limit | 10% |
| 195 | Income by way of STCG under section 111A | No limit | 15% |
| 195 | Any other income by way of LTCG | No limit | 20% |
| 195 | Interest payable on money borrowed by the government or Indian concern in foreign currency | No limit | 20% |
| 195 | Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A | No limit | 10% |
| 195 | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy | No limit | 10% |
| 195 | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976 | No limit | 50% |
| 195 | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976 | No limit | 10% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | No limit | 10% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976 | No limit | 50% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered after 31st March 1976 | No limit | 10% |
| 195 | Any other income | No limit | 30% |
| 195 | Any other income | No limit | 40% |
| 196B | Income (including LTCG) from units of an offshore fund | No limit | 10% |
| 196C | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | No limit | 10% |
| 196D | Income (excluding dividend and capital gain) from Foreign Institutional Investors. | No limit | 20% |
| 206AB | Payment to non-filers, i.e. those who have not filed their income tax return in the last year Budget 2023: Non filers do not include: – People who are not required to file their ITRs – NRs who do not have a PE in India | No limit | – 2 times the rate given in the Income Tax Act or Finance Act or – 5%, whichever is higher |
| 206AA | TDS rate in case of Non availability of PAN | No limit | Rates specified above or 20%, whichever is higher |
The Normal slab rates for FY 2023-24 for individuals and HUF have changed under the new tax regime.
- Applicable surcharge and health and education cess shall be deducted in addition to the TDS rates deducted for NRI deductees.
- In the above TDS rate chart, the ‘Resident’ payee under the column ‘TDS deducted’ includes domestic companies.
- All TDS amendments introduced in Budget 2023 have been included in the TDS chart above.
Union Budget 2022 New TDS Provisions
Section 194R- TDS on Providing Benefit or Perquisite to Businesses
TDS should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident for carrying out any business or profession by such resident. The person giving such benefits should deduct TDS at 10% on the value or aggregate value of such benefit given.
Applicability- The Individuals or HUF Also, no tax should be deducted if the aggregate value of the perquisite or benefit does not exceed Rs 20,000.
Purpose- The government has inserted this provision to ensure that the recipient of such benefits does not avoid reporting such benefits as income in their ITR.
Tax deduction- If the benefit to be given is in-kind and cash is insufficient for TDS deduction, before releasing such payment, it is to be ensured that tax has been paid in respect of such benefit or perquisite.
How to file an Income tax return
Section 194S- TDS on Crypto Income
For tracing the transaction of virtual digital assets, the government has inserted a new provision of Section 194S for deduction of TDS at 1% by the persons at the time of payment of any sum as consideration for transfer of virtual digital assets.
Threshold limit- TDS shall be deducted if the aggregate value of transfer of virtual digital assets is more than Rs 10,000 during the relevant financial year.
However, if any individual or HUF-
- Does not have income from business or profession.
- If they earn income from business or profession, but the income does not exceed Rs 1 crore or Rs 50 lakh, respectively.
Are responsible for deducting TDS under this section if the aggregate value of VDA exceeds Rs 50,000 during the year.
income tax return filing in ernakulam
Tax deduction: The government has further put clarification for TDS deduction on the payments made in kind or partly in kind.
As per the TDS provisions proposed, if the person makes payment:–
- Partly in cash or kind, but the part payment made in cash is not enough to deduct TDS in respect of the whole of such transaction.
- Wholly in kind or for the exchange of another virtual digital asset (i.e. no payment in cash).
Income tax return filing in kochi
FAQs
What are the responsibilities of the person deducting tax at source (TDS)?
Following are the basic responsibilities of the person who is liable to deduct TDS.
- Obtain Tax Deduction Account Number (TAN) and mention the same in all the documents of TDS.
- Deduct TDS at the applicable rate.
- Deposit the tax deducted to the Government account (within the specified due dates).
- Periodically file TDS statements, i.e., TDS return (within the specified due date).
- Issue the TDS certificate (Form 16 or Form 16A) to the payee in respect of TDS deducted by him (within the specified due dates).
What to do if there is any mistake in deduction of Tax at Source(TDS)?
Sometimes due to ignorance or otherwise, the person may deduct TDS at the rates lower than the rates prescribed in the Act. Hence, it is important that before filing the TDS return, the rate at which TDS is deducted should be verified for every transaction. If any case is found where the TDS is shortly deducted, If such a case is found then the balance tax should immediately be deposited vide a new challan.
Whether TDS should be deducted on payment made to the Government?
No tax should be deducted by any person from any sum payable to-
1. the Government, or
2. the Reserve Bank of India (RBI), or
3. a corporation established under a Central Act whose income is exempt from income-tax, or
4. a Mutual Fund specified under clause (23D) of section 10, where the amount is payable to it as interest or dividend in respect of any shares/securities owned by it or in which the specified mutual funds has full beneficial interest, or any other income accruing or arising to it.