TDS rate chart for FY 2023-24 (AY 2024-25)
| Section | Nature of Payment | Threshold Limit (INR) | TDS Rate Chart |
| 192 | Salary | Basic exemption limit of employee | Normal Slab Rates for FY 2023-24 (AY 2024-25) |
| 192A | Premature Withdrawal from EPF | 50,000 | 10% in case of availability of PAN 20% in case of unavailability of PAN |
| 193 | Interest on Securities | 2,500 | 10% |
| 194 | Payment of Dividend | 5,000 | 10% |
| 194A | Interest from deposits with banks/post office/co-operative society) | (a) Senior Citizen- 50,000 (b) Others- 40,000 |
10% |
| 194A | Interest other than “Interest on Securities” (Other than Interest from deposits with banks/post office/co-operative society) | 5,000 | 10% |
| 194B | Winning from lotteries, cross-word, puzzles, card games, etc. | 10,000 | 30% |
| 194BA | Winnings from online games | No Limit | 30% |
| 194BB | Winning from Horse Race | 10,000 | 30% |
| 194C | Payment to Contractor | (a)Individuals/HUFs- 1% (b)others- 2% |
|
| 194D | Insurance Commission | 15,000 | (a) Individuals- 5% (b) Companies- 10% |
| 194DA | Payment in respect of life insurance policy | 1,00,000 | 5% |
| 194E | Payment to Non-resident sportsmen or association | No limit | 20% + Cess |
| 194EE | Payment in respect of deposit under the National Saving Scheme | 2500 | 10% |
| 194F | Payments on account of re-purchase of units by Mutual fund or UTI | No limit | 20% |
| 194G | Commission, prize, etc. on sale of tickets | 15,000 | 5% |
| 194H | Commission or Brokerage | 15,000 | 5% |
| 194-I(a) | Rent for Plant & Machinery | 2,40,000 | 2% |
| 194-I(b) | Rent for Immovable Property (Land/building or Furniture/fitting) | 2,40,000 | 10% |
| 194-IA | Payment for acquisition of Immovable property | 50,00,000 | 1% (TDS is to be deducted at the rate of 1% of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher.) |
| 194-IB | Payment of Rent by individual/HUF not liable for audit | 50,000 per month | 5% |
| 194-IC | Payment for monetary consideration under Joint Development Agreement | No limit | 10% |
| 194J | Fee for Professional or Technical Services (FTS), Royalty, etc. | 30,000 | 2% ( Fees for technical services, certain Royalties, call center) 10%- Others |
| 194K | Payment of Dividends by Mutual funds | 5,000 | 10% |
| 194LA | Payment of compensation on acquisition of Immovable property | 2,50,000 | 10% |
| 194LB | Interest from Infrastructure Bond to NRI | No limit | 5% |
| 194LBB | Payment of income by Investment fund | No limit | 10% |
| 194LBC | Income by Securitization fund | No limit | (a) Individuals/HUFs- 25% (b) Others- 30% |
| 194M | Payment of Commission, Brokerage, or Fees for Professional Service by Individual or HUF( other than covered u/s 194C, 194H,194J) | 50,00,000 | 5% |
| 194N | Cash withdrawal exceeding a certain limit | (a) 1 crore | 2% |
| (b) Exceeding Rs. 20 lakhs (for those who have not filed an income tax return (ITR) for the last three years prior to withdrawing cash, and the tax due date has expired under section 139(1).) Under this situation, the tax must be deducted at the following rate: | <20 lakh- 2% <3 crore (co-operative society)- 5% |
||
| 194-O | TDS on payment by an E-commerce operator | 5 lakh | 1% in case of availability of PAN 5% in case of unavailability of PAN |
| 194Q | Payment for the purchase of goods | 50 lakh | 0.1% |
| 194R | Perquisites or benefit to a business or profession | 20,000 | 10% |
| 194S | TDS on the transfer of Virtually Digital Asset | Specified Persons- 50,000 Others- 10,000 |
1% |
| 206AA | TDS in case of unavailability of PAN | (as per the respective section) | Higher of the following: (a) at the rate or rate in force or (b) @20% |
| 206AB | TDS in case of non-filers of ITR | Higher of the following: (a) 5% (b) twice the rate or rate in force (c) twice the rate specified in the relevant section [provided that the person is a Non-resident and not having any permanent establishment in India, a person is not liable to file ITR and is not notified by the authorities to do so] |
TDS on payments to Non-Resident
Tds u/s 195 is deducted on payments to be made to Non-Resident. There is no threshold limit under section 195 of the Income Tax Act, hence TDS will be deducted from the entire income/amount. TDS shall be deducted at the time of making payment. Form 27Q is required to be submitted on a quarterly basis on or before the due date on payments other than salary made to NRI.
TDS Rate Chart for NRI
| Section | Nature of Payment | Threshold Limit (INR) | TDS Rate Chart |
| 195 | Payment of any other sum to a Non-Resident Indian (NRI) | NA | |
| (a) Income in case of investment made by an NRI | 20% | ||
| (b) LTCG income as referred to in Section 115E, Section 112A & sub-clause (iii) of clause (c) of sub-Section (1) of Section 112. | 10% | ||
| (c) STCG income as referred to in Section 111A | 15% | ||
| (d) Income by way of interest payable by the Government or an Indian concern on funds borrowed or debt incurred by the Government or the Indian concern in foreign currency (other than income by way of interest under Section 194LB or Section 194LC | 20% | ||
| (e) any other income | 30% |
Updates in Union Budget 2023-24, TDS Rate Chart for FY 2023-2024 / AY 2024-2025
Section 194BA: TDS introduced on income from online gaming, applicable from 1st April, 2024.
Section 196A: Non-residents earning income from mutual funds in India can provide a Tax Residency Certificate from April 1st, 2023, to avail the benefit of TDS as per the rate given in the tax treaty, instead of the flat rate of 20%.
Section 192A: The TDS rate on PF withdrawal for employees who do not have PAN has been reduced from the maximum marginal rate to 20%.
Section 193: There will be no exemption from TDS on interest from listed debentures. Thus, tax has to be deducted on interest on such specified securities.
Section 194N: The TDS threshold on cash withdrawal by co-operative societies has been increased. Starting April 1st, 2023, tax will be deducted on cash withdrawals exceeding Rs 3 crore, instead of the previous limit of Rs 1 crore.
