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.
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.
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.
| Section | Nature of Transaction | Threshold limit | TDS Rate |
|---|---|---|---|
| 192 | Salary | Basic exemption limit of the employee | As per applicable slab rates |
| 192A | Premature withdrawal from EPF(employee provident fund) | ₹ 50,000 | 10% |
| 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 | |||
| 194 | Payment of Dividend | ₹ 5,000 | 10% |
| 194A | Interest paid on deposit by Banks or Post offices (other than interest from securities) | ₹ 50,000 (For senior citizens) ₹ 40,000 (others) | 10% |
| 194A | Interest other than interest on securities | Assessee to any person - ₹ 5,000 | 10% |
| 194B | Winning from lottery, Crosswords, Puzzle, Card Game, and other games | ₹ 10,000 | 30% |
| 194BB | Winning from Horse Races | ₹ 10,000 | 30% |
| 194C | Payment made to contractor and subcontractors | Single transaction - ₹ 30,000 per contract; Aggregate transactions - ₹ 1,00,000 per annum | 1% for Individuals and HUF; 2% for others |
| 194D | Payment of insurance commission to domestic companies | ₹ 15,000 | 10% |
| Payment of insurance commission to person other than companies | ₹ 15,000 | 5% | |
| 194DA | Maturity of Life Insurance Policy | ₹ 1,00,000 or more | 5% (before 1st October 2024); 2% (from 1st October 2024) |
| 194E | Payment to non-resident sportsmen or entertainer or sports association | No limit | 20% |
| 194EE | Payment under National Saving Scheme (NSS) | ₹ 2,500 | 10% |
| 194G | Commission on sale of Lottery tickets | ₹ 15,000 | 5% (before 1st October 2024); 2% (from 1st October 2024) |
| 194H | Commission or Brokerage | ₹ 15,000 | 5% (before 1st October 2024); 2% (from 1st October 2024) |
| 194I | Rent of land, building, or furniture | ₹ 2,40,000 | 10% |
| Rent of plant and machinery | ₹ 2,40,000 | 2% | |
| 194IA | Payment for transfer of immovable property (Land or Building) other than agricultural land | ₹ 50,00,000 | 1% |
| 194IB | Rent payment that is made by an individual or HUF not covered under section 194I | ₹ 50,000 per month | 5% (before 1st October 2024); 2% (from 1st October 2024) |
| 194IC | Payment that are made under Joint Development Agreement (JDA) to Individual/HUF | No Limit | 10% |
| 194J | Fees paid for professional services | ₹ 30,000 | 10% |
| Fees paid for technical services | ₹ 30,000 | 2% | |
| Royalty (consideration for sale, distribution, or exhibition of Cinematographic films) | ₹ 30,000 | 2% | |
| Other Royalty | ₹ 30,000 | 10% | |
| 194J | Professional fees, any remuneration, commission, other than salary paid to director | No limit | 10% |
| 194K | Income on units other than in nature of capital gains, for example dividend income on mutual funds | ₹ 5,000 | 10% |
| 194LA | Payment made for compensation on compulsory acquiring of certain immovable property | ₹ 2,50,000 | 10% |
| 194LB | Payment of interest on infrastructure debt fund to Non-Resident Indians | No limit | 5% |
| 194LBA(1) | Certain income distributed by a business trust among its unit holder | No limit | 10% |
| 194LD | Payment of interest on rupee-denominated bonds, to FII or a QFI | No limit | 5% |
| 194M | Payment to contractor, Commission or Brokerage, Fees for Professional services Not covered u/s 194C, 194H, 194J | ₹ 50,00,000 | 5% (before 1st October 2024); 2% (from 1st October 2024) |
| 194N | Cash 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% | ||
| 194N | Cash withdrawal over a certain amount, but assessee has not filed ITR for last 3 years | ₹ 20 Lakhs - 1 Crore | 2% |
| Above ₹ 1 Crore | 5% | ||
| 194O | Amount paid for the sale of products/services by e-commerce operators via their digital/electronic platform | ₹ 5,00,000 | 1% (before 1st October 2024) 0.1% (from 1st October 2024) |
| 194Q | Payments made for the purchase of goods by a buyer whose total turnover exceeds ₹ 10 Crore in the Last FY | ₹ 50,00,000 | 0.1% |
| 194S | TDS on transfer of any virtual digital asset, like cryptocurrency | For specified persons - ₹ 50,000; | 1% |
| Specified persons: Individual or HUF not having income from business or profession | Others - 10% | ||
| 206AA | TDS rate in case of non-availability of PAN | No limit | TDS 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 |
| 206AB | TDS 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 | NA | TDS at higher of below rates: 1) Twice the rate in Income Tax Act; or 2) 5% |
| Sections | Nature of Transactions | Current / Existing Rates | Revised Rates |
|---|---|---|---|
| 194DA | Payment in Respect to Life insurance policy | 5% | 2% |
| 194G | Commission on sale of lottery tickets | 5% | 2% |
| 194H | Payment towards Commission and Brokerage | 5% | 2% |
| 194IB | Payment of rent by Individual or HUF | 5% | 2% |
| 194M | Payment of certain sums by certain individuals or HUF, not covered u/s 194C, 194H, 194J | 5% | 2% |
| 194O | Payment of certain sums by e-commerce operators | 1% | 0.1% |
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.
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:-
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.
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.
You can find the official TDS rate by visiting the website of the Income Tax Department.
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.
There are various types of payment which are subjected to TDS, such as salary, rent, wages, interest, commission, brokerage, etc.
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