TDS or Tax Deducted at Source means the collection of tax income by a payer to pay to the government on behalf of the payee. TDS is deducted from various income sources like rent, salary, professional fees, and more. Now, the percentage or TDS rate that applies to a certain transaction is prescribed as per various laws. Here, you can find a TDS rate chart that specifies the TDS rates for different transactions and the kind of Deductee (Resident, Non-Resident, or a Foreign Company).
TDS Rate Chart (FY 2024-25) (Updated as per Budget 2024)
| Section | Nature of Payment | Threshold | TDS Rate |
|---|---|---|---|
| 192 | (Resident and Non-Resident) Salary (Based on Income Tax Slab Rates) | Basic Exemption Limit | Slab Rates |
| 192A | (Resident and Non-Resident) Premature withdrawal from EPF | 50,000 | 10% |
| 193 | (Resident) Interest on securities (Government, Local Authority, Listed Debentures) | Debentures- 5,000 8% and 7.75% Savings Bonds- 10,000 Others- No Limit | 10% |
| 194 | (Resident) Dividend on shares | 5,000 | 10% |
| 194A | (Resident) Interest other than interest on securities (Fixed Deposits, etc.) | Senior Citizens – 50,000 Others – 40,000 | 10% |
| 194B | (Resident, Non-Resident, and Foreign Company) Lottery winnings, crossword puzzles, card games | Income from lottery, card games, etc- 10,000 Online Gaming- Refer 194BA | 30% |
| 194 BA | (Resident, Non-Resident, and Foreign Company) Online Gaming income | NIL | 30% |
| 194BB | (Resident, Non-Resident, and Foreign Company) Winnings from horse races | 10,000 (Aggregate annual income) | 30% |
| 194C | (Resident) Payment to contractors and sub-contractors | One transaction- 30,000 Aggregate Income- 1,00,000 | 1% for Individuals/HUF, 2% for others |
| 194D | (Resident) Insurance commission | 15,000 | 10% for domestic companies, 2% for others as effective from 1st April 2025 |
| 194DA | (Resident) Payment in respect of life insurance policy | 1,00,000 | 2% (Effective from 1st October 2024) |
| 194 E | (Non-Resident and Foreign Company) Payment to a non-resident sportman or sports association | NIL | 20% (will be increased by applicable surcharge and 4% cess) |
| 194EE | (Resident and Non-Resident) Payment under National Savings Scheme (NSS) | 2,500 | 10% |
| 194G | (Resident, Non-Resident, and Foreign Company) Commission on sale of lottery tickets | 15,000 | 2% (Effective from 1st October 2024) |
| 194H | (Resident) Commission or brokerage | 15,000 | 2% (Effective from 1st October 2024) |
| 194-I(a) | (Resident) Rent on plant and machinery | 2,40,000 | 2% |
| 194-I(b) | (Resident) Rent on land, building, furniture, or fitting | 2,40,000 | 10% |
| 194-IA | (Resident) Payment on transfer of certain immovable property (other than agricultural land) | 50,00,000 | 1% |
| 194-IB | (Resident) Rent payment not covered under 194I | 50,000 per month | 2% (Effective from 1st October 2024) |
| 194-IC | (Resident) Payment under JDA | No limit | 10% |
| 194J | (Resident) Professional fees, director’s remuneration, business activity payment, patent, copyright, etc. | 30,000 | 10% |
| 194J | (Resident) Technical fees, Royalty, Cinema fee, and technical service fee of a person working in a call center. | 30,000 | 2% |
| 194K | (Resident) Mutual fund, dividend, etc. | No limit | 10% |
| 194LA | (Resident) Compensation on acquisition of immovable property | 2,50,000 | 10% |
| 194LB | (Non-Resident and Foreign Company) Interest on infrastructure dent fund to Non-Resident | No limit | 5% |
| 194LBA (1) | (Resident) A part of income distributed by a business to its unitholder | No limit | 10% |
| 194LBA (2) | (Non-Resident and Foreign Company) Interest income distributed by a firm to its unitholders from SPV distribution Dividend income distributed by a business to its unitholders from SPV | No limit | 5% 10% |
| 194LBA (3) | Rental income payment of assets by a business to its unitholders | No limit | 30% (Non-Residents) 40% (Foreign Company) |
| 194LBB | Certain income paid to unitholders for units of an investment fund | No limit | 10% (Resident) 30% (Non-Resident) 40% (Foreign Company) |
| 194LBC | Income from investment in securitisation fund received to: – Individual or HUF (Resident) – Domestic company – Foreign Company | No limit | – 20% – 30% – 40% |
| 194LC | (Non-Resident and Foreign Company) Interest on loan borrowed in foreign currency | No limit | 5% 4% (Against long-term bonds listed under IFSC) |
| 194LD | (Non-Resident and Foreign Company) Interest on bond to FII or QFI | No Limit | 5% |
| 194M | (Resident) Payment to contractors, professionals. Payment of commission (Not covered by 194C, 194J, or 194H) | 50,00,000 | 2% (Effective from 1st October 2024) |
| 194N | (Resident and Non-Resident) Cash withdrawals exceeding INR 1 crore | 3 Crores: Co-Operative Society 1 Crore- Others | 2% (For withdrawals over INR 20 lakhs but less than INR 1 crore) 5% (For more than INR 1 crore if the person hasn’t filed ITR in the last three years) |
| 194O | (Resident) TDS on e-commerce transactions | 0.1% (As effective from 1st October 2024) 5% in case of unfurnished PAN | |
| 194P | (Resident) Payment of pension or interest by banks to senior citizens aged 75 years or more | Basic exemption limit for senior or super senior citizens | Slab Rates |
| 194Q | (Resident) Purchase of goods exceeding INR 50 lakhs | 50,00,000 | 0.10% |
| 194R | (Resident) Benefit or prerequisite for a business or professional | 20,000 | 10% |
| 194S | (Resident) TDS on transfer of digital assets Specified people (individual or HUF not earning from business or profession) | Specified people- 50,000 Others- 10,000 | 1% |
| 194T | For payments made to partners by the firm. | 20,000 | 10% |
| 195 | (Non-Residents) Income on investments by an NRI citizen Income by LTCG Royalty income / technical fees from agreements under industrial policy payable by the government or Indian concern Any other income | No Limit No Limit No Limit No Limit | 20% 10% 20% 30% |
| 195 | (Foreign Company) Royalty income from agreements under industrial policy payable by the government or Indian concern Technical fees income from agreements under industrial policy payable by the government or Indian concern Any other income | No Limit No Limit No Limit | 50% (Between 31st March 1961 and 1st April 1976) 20% (After 31st March 1976) 50% (Between 29th February 1964 and 1st April 1976) 20% (After 31st March 1976) 40% |
| 195 | (Non-Resident and Foreign Company) Income from LTCG Income from STCG under 111A | No Limit No Limit | 10% (As per 112(1)(c)(iii) and 121A) 20% (Any other income by LTCG) 15% |
| 195 | (Non-Resident and Foreign Company) Royalty income from Indian concern or government for copyright (Section 115A) or computer software (Section 115A). Interest on foreign currency loans borrowed by the government or Indian concern. | No Limit | 20% |
| 196B | (Non-Resident and Foreign Company) Income (including LTCG) from offshore fund units. | No Limit | 10% |
| 196C | (Non-Resident and Foreign Company) Income (including LTCG) from foreign currency bonds or GDR. | No Limit | 10% |
| 196D | (Non-Resident and Foreign Company) Income (excluding dividend and capital gain) from Foreign Institutional Investors. | No Limit | 20% |
| 206AA | (Resident, Non-Resident, and Foreign Company) TDS in case of unavailable of PAN | No Limit | Specified rate above or 20% (whichever higher) |
| 206AB | (Resident) Payments to non-filers (those who haven’t filed ITR in the last year): Non-filer exclude: – Individuals not required to file ITRs | No Limit | 2 times the rate specified in income tax act or finance act or 5% (whichever is higher) |
Conclusion
The TDS rate chart for FY 2024-2025 highlights the varied tax deduction requirements across a wide range of payment types, beneficiaries, and transaction thresholds. For individuals and businesses, understanding these rates is crucial for accurate tax compliance, whether it involves salaries, interest, rent, or special transactions like lottery winnings and online gaming.
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Frequently Asked Questions (FAQs)
1) What are the TDS Rates?
TDS rates are the percentages by which the deductor deducts the tax from certain transactions. TDS rates are different as per the type of transaction. Hence, it is important for the deductor to understand applicable TDS rates on different transactions.
2) What is 194C TDS 1% or 2%?
TDS as per Section 194C is 1% in case the contractor or sub-contractor is an individual or an HUF. It is 2% in all other cases besides an individual or HUF.
3) What is the new TDS section?
As per the new section 194T in the Income Tax Act, all payments made by the firm to their partners in terms of salary, bonus, and more will attract a TDS rate of 10%.
4) When is TDS 2%?
TDS rate is 2% on various transactions as per different sections, including Section 194D, 194E, 194G, and more.
5) What is the TDS for 50,000 salaries?
TDS rates on salary differ as per different slabs as per Section 192. For a salary of 50,000 per month, i.e. 6,00,000 per annum, it is 5%.
6) Is TDS always 10%?
No. TDS is not always 10%. It actually differs as per the payment classification.
7) What are TDS rates under Section 195?
Section 195 mandates TDS on sums payable to NRIs or foreign entities under the Income Tax Act 1961.
