Updated on November 28, 2024 01:22:03 PM

Overview

For the Year 2024-2025, the TDS rate chart is given to ensure that the tax at source is correctly deducted on the transactions, such as salaries, rent, dividends, professional fees, interest, etc. Also, it is also important to stay updated on the latest TDS rate to be deducted for different natures of payments covered under different sections of Income Tax Act. This blog will cover the latest insights on the latest TDS rate along with the threshold limit of the year 2024-2025 and also the recent change on TDS w.e.f. 1st October, 2024.

What is TDS Return?

A TDS (Tax Deducted at Source) return is a quarterly statement that summarizes the TDS deducted by a taxpayer and deposited with the government. Businesses and individuals are required to deduct TDS on certain payments like salaries, rent and interest, and they must file these returns to report the deducted amounts. The return includes details such as the amount deducted, the nature of payments, and the tax identification number of both the deductor and the deductee. Filing TDS returns is essential for compliance with Income Tax Laws in India.

What is TDS Chart?

TDS chart covers TDS rates for deducting tax at source on a certain threshold amount. TDS charts assist to identify the correct rate of TDS which is applicable to taxpayers who are liable to deduct & deposit tax on various types of income in India. By seeking this chart, the taxpayer will come to know when and how much TDS should be deducted from the given income.

TDS Rate Chart for FY 2024-2025

Section Nature of Transaction Threshold limit TDS Rate
192SalaryBasic exemption limit of the employeeAs per applicable slab rates
192APremature withdrawal from EPF(employee provident fund)₹ 50,00010%
193 Interest on Securities For Debentures- ₹ 5,000 10%
For 8% Saving Bonds 2003 & 7.75% Saving Bonds 2018- ₹ 10,000
No limit for other securities
194Payment of Dividend₹ 5,00010%
194AInterest paid on deposit by Banks or Post offices (other than interest from securities)₹ 50,000 (For senior citizens) ₹ 40,000 (others)10%
194AInterest other than interest on securitiesAssessee to any person - ₹ 5,00010%
194BWinning from lottery, Crosswords, Puzzle, Card Game, and other games₹ 10,00030%
194BBWinning from Horse Races₹ 10,00030%
194CPayment made to contractor and subcontractorsSingle transaction - ₹ 30,000 per contract; Aggregate transactions - ₹ 1,00,000 per annum1% for Individuals and HUF;
2% for others
194DPayment of insurance commission to domestic companies₹ 15,00010%
Payment of insurance commission to person other than companies₹ 15,0005%
194DAMaturity of Life Insurance Policy₹ 1,00,000 or more5% (before 1st October 2024);
2% (from 1st October 2024)
194EPayment to non-resident sportsmen or entertainer or sports associationNo limit20%
194EEPayment under National Saving Scheme (NSS)₹ 2,50010%
194GCommission on sale of Lottery tickets₹ 15,0005% (before 1st October 2024);
2% (from 1st October 2024)
194HCommission or Brokerage₹ 15,0005% (before 1st October 2024);
2% (from 1st October 2024)
194IRent of land, building, or furniture₹ 2,40,00010%
Rent of plant and machinery₹ 2,40,0002%
194IAPayment for transfer of immovable property (Land or Building) other than agricultural land₹ 50,00,0001%
194IBRent payment that is made by an individual or HUF not covered under section 194I₹ 50,000 per month5% (before 1st October 2024);
2% (from 1st October 2024)
194ICPayment that are made under Joint Development Agreement (JDA) to Individual/HUFNo Limit10%
194JFees paid for professional services₹ 30,00010%
Fees paid for technical services₹ 30,0002%
Royalty (consideration for sale, distribution, or exhibition of Cinematographic films)₹ 30,0002%
Other Royalty₹ 30,00010%
194JProfessional fees, any remuneration, commission, other than salary paid to directorNo limit10%
194KIncome on units other than in nature of capital gains, for example dividend income on mutual funds₹ 5,00010%
194LAPayment made for compensation on compulsory acquiring of certain immovable property₹ 2,50,00010%
194LBPayment of interest on infrastructure debt fund to Non-Resident IndiansNo limit5%
194LBA(1)Certain income distributed by a business trust among its unit holderNo limit10%
194LDPayment of interest on rupee-denominated bonds, to FII or a QFINo limit5%
194MPayment to contractor, Commission or Brokerage, Fees for Professional services Not covered u/s 194C, 194H, 194J₹ 50,00,0005% (before 1st October 2024); 2% (from 1st October 2024)
194NCash withdrawal over a certain amount takes place from the bank, and ITR is filed For co-operative society ₹ 3 Crore 2%
Others ₹ 1 Crore 2%
₹ 20 Lakhs - 1 Crore 2%
194NCash withdrawal over a certain amount, but assessee has not filed ITR for last 3 years₹ 20 Lakhs - 1 Crore 2%
Above ₹ 1 Crore 5%
194OAmount paid for the sale of products/services by e-commerce operators via their digital/electronic platform₹ 5,00,0001% (before 1st October 2024)
0.1% (from 1st October 2024)
194QPayments made for the purchase of goods by a buyer whose total turnover exceeds ₹ 10 Crore in the Last FY₹ 50,00,0000.1%
194STDS on transfer of any virtual digital asset, like cryptocurrencyFor specified persons - ₹ 50,000; 1%
Specified persons: Individual or HUF not having income from business or profession Others - 10%
206AATDS rate in case of non-availability of PANNo limitTDS at a rate higher of:
1.   Specified rate as per the Income Tax Act; or
2.  20% (5% in case of section 194O & 194Q); or
3.  Rates in force
206ABTDS on payments to non-filers (who have not filed their ITR)
Non-filers exclude:
1)   persons not liable to file ITRs
2)   or non-resident without Permanent establishment in India
NATDS at higher of below rates:
1)   Twice the rate in Income Tax Act; or
2)  5%

Recent Changes for the Year 2024-2025 on TDS Rate w.e.f. 1st October, 2024

  • There are many significant changes, which have been approved under the Finance Bill. Some major changes have made and come into effect from October 1st, 2024, which are mentioned as follows:
SectionsNature of TransactionsCurrent / Existing RatesRevised Rates
194DAPayment in Respect to Life insurance policy5%2%
194GCommission on sale of lottery tickets5%2%
194HPayment towards Commission and Brokerage5%2%
194IBPayment of rent by Individual or HUF5%2%
194MPayment of certain sums by certain individuals or HUF, not covered u/s 194C, 194H, 194J5%2%
194OPayment of certain sums by e-commerce operators1%0.1%
  • TDS on Purchase of Immovable Property

Section 194-IA | TDS on Transfer of any immovable property, as per the provisions of this section when a buyer purchases immovable property (excluding agricultural land) for a consideration of ₹50 lakhs or more it's the responsibility of the buyer to deduct TDS amount @ 1% of the total sale consideration before making the payment to the seller for the purchase of property, and it applies to all modes of payment (cash, cheque, bank transfer, etc.). The deducted TDS must be deposited with the government within 30 days from the end of the month in which the deduction was made.


  • Other tax rules applicable for October 1:
  • 1.   Floating rate bonds TDS:

    The tax shall be deducted at source at the rate of 10% from specified central and state government bonds, which also include floating rate bonds from 1st October, 2024. Limit to deduct TDS from Floating rate bonds is ₹ 10,000.

    2.   Buyback of shares:

    Buyback of shares is mainly subject to a higher tax burden for the investor. The shareholder’s acquisition cost of these shares will be taken into account when calculating capital gains or losses.

    3.  STT:

    STT means securities transaction tax, with effect from 1st October,2024:-

    • STT on sale of futures in securities will increase from 0.0125% to 0.02%
    • STT on options will increase from 0.0625% to 1%

Conclusion

The TDS chart rate for the financial year 2024-2025 is an important chart for the payer who is responsible for deducting TDS before the payment of the amount to the payee. The deducted amount of TDS will be deposited with the government within the stipulated time. But before TDS deduction from the amount which will be paid to the payee, it must be cross-checked first that TDS has been deducted as per the applicable rates, so that penalties would not bother on assessee business operations.

Frequently Asked Questions

How often does the TDS Chart update?

The TDS rate chart is updated annually. By following this chart, the deductee can deduct the TDS based on the recent TDS rate, which is applicable on a certain threshold limit.

Where can I find the official TDS rate chart?

You can find the official TDS rate by visiting the website of the Income Tax Department.

How TDS is calculated with the help of charts?

TDS is calculated with the help of TDS rate chart. This chart can be used efficiently by referring to the most relevant section in which you want to make payment. After selecting the section, your next step is to multiply the given percentage with the given threshold limit. On calculation, you will get the final result of how much you have to deduct TDS from the payment amount.

What are the different types of payment subject to TDS?

There are various types of payment which are subjected to TDS, such as salary, rent, wages, interest, commission, brokerage, etc.

REQUEST A CALL BACK
google icon

More trusted, Verified reviews

google rating icon100+ Reviews