TDS Rates for the Financial Year 2024-25 ( Assessment Year 2025-26)
Introduction:
In the realm of taxation, the concept of Tax Deducted at Source (TDS) holds immense importance. TDS is a mechanism employed by the government to collect taxes at the very source of income generation. This mechanism not only ensures consistent revenue collection but also helps in preventing tax evasion. As an integral component of the Indian taxation system, TDS affects individuals and businesses alike.
In this blog or article, we dive into the TDS Rate Chart, which provides a structured framework for deducting taxes from various types of transactions. Whether you're a salaried employee, a freelancer, or a business owner, understanding the TDS rates applicable to different transactions is crucial to ensure compliance and avoid penalties.
Updated On 01 Oct 2024 {alertSuccess}
*TDS Rate Updates
Section 194D : Payment of Insurance Commission other then company
2% from 1st Apr 2025
Section 194DA : Payment of life insurance policy
2% from 1st Oct 2024
Section 194G : Commission on sale of lottery tickets
2% from 1st Oct 2024
Section 194H : Payment of commission or brokerage
2% from 1st Oct 2024
Section 194-IB : Payment of Rent by certain individuals or HUF
2% from 1st Oct 2024
Section 194M : Payment of certain sums by certain individuals or HUFs
2% from 1st Oct 2024
Section 194-O : Payment of certain sum by e-commerce operator to e-commerce participants
0.1% from 1st Oct 2024
Section 194F : Payment on account of repurchase of units by mutual funds or UTI
(Not Applicable) Ommited from 1st Oct 2024 {alertInfo}
| TDS Section | Nature of Transaction | Limit (Rs) | TDS Rates |
|---|---|---|---|
| 192 | Salary | Basic exemption limit | As per applicable Income tax slab rates |
| 192A | Premature Withdrawal of EPF | 50,000 | 10% rate of TDS if PAN is provided. Without PAN is 20%. |
| 193 | Interest on securities | Debenture:5,000 Saving Bond: 10,000 Other: No Limit |
10% |
| 194 | Dividend | 5,000 | 10% |
| 194A | Interest on bank deposits or post office deposits | Senior Citizens- 50,000 Others- 40,000 |
10% for both |
| 194A | Interest other then interest on securities and interest on bank deposits. | 5,000 | 10% |
| 194B | Income from lottery winnings, puzzles, crosswords, card games, etc. | 10,000 | 30% |
| 194BA | Earnings from online games | Nil | 30% |
| 194BB | Income from horse race | 10,000 | 30% |
| 194C | Payment to subcontractor/contractor | Single transaction- 30,000 Aggregate transactions- 1,00,000 |
◾HUF/Individuals: 1% ◾Others: 2% |
| 194D | Insurance commission to: ◾a) Individuals ◾b) Companies |
15,000 15,000 |
*5% 10% |
| 194DA | Payment made towards life insurance policy | 1,00,000 | *5% 2% from 1st Oct 2024 |
| 194E | Payment to non-resident sports association/ sportsmen | Not specified | 20% |
| 194EE | Payment to National Savings Scheme | 2,500 | 10% |
| 194F | Payment for the re-purchase of the unit by Mutual Fund or UTI | Not specified | *20% N/A From 1st Oct 2024 |
| 194G | Commission on selling lottery tickets | 15,000 | *5% 2% from 1st Oct 2024 |
| 194H | Commission/brokerage | 15,000 | *5% 2% from 1st Oct 2024 |
| 194-I | Rent: | ||
| 194-I(a) | ◾plant and machinery | 2,40,000 | 2% |
| 194-I(b) | ◾land/building/furniture/fitting | 2,40,000 | 10% |
| 194-IA | Payment on transfer of immovable property except agricultural land | 50,00,000 | 1% |
| 194-IB | Rent paid by HUF/Individual who is not required to conduct tax audit | 50,000 per month | *5% 2% from 1st Oct 2024 |
| 194-IC | Payment under JDA, Joint Development Agreements | Not specified | 10% |
| 194J | Fees paid for - ◾Technical services |
30,000 30,000 |
2% 2% |
| 194J | Professional services | 30,000 | 10% |
| 194K | Earnings from units payable to a resident | Not specified | 10% |
| 194LA | Compensation for acquiring an immovable property | 2,50,000 | 10% |
| 194LB | Interest paid to Non-resident on Infrastructure Debt Fund | Not specified | 5% |
| 194N | Cash withdrawal exceeding a specific amount | 1 crore | 2% |
| 194N | Cash withdrawal from multiple bank accounts during the previous year | ||
| ◾Amount exceeding 1 crore (exceeding 20 lakhs for people not filing ITR for previous 3 years) | 1 Crore | 2% | |
| ◾Aggregate cash withdrawal exceeding 20 lakhs | 20 lakhs | 2% | |
| ◾Aggregate cash withdrawal exceeding 1 crore | 1 crore | 5% | |
| 194O | Payment to e-commerce participant by e-commerce operator | 5,00,000 | *1% 0.1% from 1st Oct 2024 5% in case PAN is not provided |
| 194P | TDS for senior citizens aged over 75 years | Basic exemption limit | Normal tax slab rates |
| 194Q | Purchase of goods after 1.07.2021 | 50,00,000 | 0.10% |
| 194R (Introduced in budget 2022) | TDS deducted on benefit or Perquisite to a business or profession | 20,000 | 10% |
| 194S | Payment of virtual digital assets | Specified Persons- 50,000 Others- 10,000 |
1% |