TDS Rate Chart for FY 2024-25 (AY 2025-26)
Understanding TDS:
Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department to collect tax at the point of income generation. Under this system, the payer is required to deduct tax while making specified payments and remit the amount to the government on behalf of the recipient. This approach helps minimize tax evasion and ensures a steady flow of revenue.
Below is a detailed TDS rate chart summarizing key provisions under the Income Tax Act.
Union Budget 2025 Updates on TDS & TCS
The Union Budget 2025 has introduced reforms aimed at streamlining compliance for taxpayers, particularly those in the middle-income bracket. To simplify the tax structure, the government has increased threshold limits across multiple TDS sections. The revised limits are as follows:
| Section | Nature of Payment | Existing Threshold (₹) | Revised Threshold (₹) |
|---|---|---|---|
| 193 | Interest on securities | NIL | 10,000 |
| 194A | Interest (excluding securities) | (i) Senior citizens: 50,000 (ii) Others: 40,000 (for banks, cooperative societies, and post offices) (iii) Other cases: 5,000 | (i) Senior citizens: 1,00,000 (ii) Others: 50,000 (iii) Other cases: 10,000 |
| 194 | Dividend income for individual shareholders | 5,000 | 10,000 |
| 194K | Mutual fund income (dividends) | 5,000 | 10,000 |
| 194B & 194BB | Lottery winnings, crossword puzzles, and horse races | Aggregate exceeding 10,000 annually | 10,000 per transaction |
| 194D | Insurance commission | 15,000 | 20,000 |
| 194G | Commission/prizes on lottery ticket sales | 15,000 | 20,000 |
| 194H | Commission or brokerage | 15,000 | 20,000 |
| 194-I | Rent payments | 2,40,000 per year | 6,00,000 per year |
| 194J | Professional/technical service fees | 30,000 | 50,000 |
| 194LA | Compensation on land acquisition | 2,50,000 | 5,00,000 |
| 206C(1G) | Remittances under LRS & Overseas Tour Packages | 7,00,000 | 10,00,000 |
TDS Rates in India for FY 2023-24 and FY 2024-25
The following tables present the applicable TDS rates for different categories of payments, including resident and non-resident individuals, as well as domestic and foreign companies. Taxpayers responsible for making these payments must deduct TDS and deposit it within the prescribed timelines.
Key TDS Rate Chart for Resident Individuals & Entities
| Section | Payment Type | Threshold Limit (₹) | TDS Rate |
|---|---|---|---|
| 192 | Salary payments | Employee’s basic exemption limit | As per applicable slab |
| 192A | Premature EPF withdrawal | 50,000 | 10% |
| 193 | Interest on securities | Debentures – 5,000 | 10% |
| 194 | Dividend income | 5,000 | 10% |
| 194A | Interest from banks/post offices | Senior Citizens: 50,000 Others: 40,000 | 10% |
| 194B | Lottery/crossword winnings | 10,000 | 30% |
| 194C | Payments to contractors | Single Transaction: 30,000 Aggregate: 1,00,000 | 1% (Individuals/HUF), 2% (Others) |
| 194D | Insurance commission | 15,000 | 5% (Individuals), 10% (Companies) |
| 194H | Commission/brokerage | 15,000 | 5% (before Oct 2024), 2% (after Oct 2024) |
| 194-I | Rent | 2,40,000 | 2% (Machinery/Equipment), 10% (Land/Building) |
| 194J | Professional/technical fees | 30,000 | 10% (Professional Services), 2% (Technical Services) |
| 194LA | Compensation for land acquisition | 2,50,000 | 10% |
TDS Rates for Non-Residents (NRIs) & Foreign Companies
| Section | Nature of Payment | Applicable Rate |
|---|---|---|
| 194E | Payments to non-resident sportsmen/sports associations | 20% |
| 194LB | Interest on infrastructure debt funds | 5% |
| 194LC | Interest on foreign currency loans/bonds | 5% (general), 4% (IFSC bonds) |
| 194LD | Interest on rupee-denominated bonds | 5% |
| 194LBA(2) | Business trust interest from SPV | 5% |
| 194LBB | Income from investment funds | 30% (NRIs), 40% (foreign companies) |
| 194LBC | Securitization fund income | 25% (Individuals), 30% (Companies), 40% (Foreign Companies) |
| 195 | Income on investments made by NRIs | 20% |
| 195 | Long-term capital gains on equity shares (Section 112A) | 10% |
| 195 | Short-term capital gains (Section 111A) | 15% |
| 195 | Royalty & technical fees (industrial policy agreements) | 20% |
| 195 | Other income | 30% (NRIs), 40% (Foreign Companies) |
Special TDS Provisions
- TDS on Virtual Digital Assets (VDA) – Section 194S:
- Specified Persons: 50,000 threshold – 1%
- Others: 10,000 threshold – 1%
- TDS on E-Commerce Transactions – Section 194O:
- If transactions exceed ₹5,00,000: 1% (before Oct 2024), 0.1% (after Oct 2024)
- TDS on Cash Withdrawals – Section 194N:
- If cash withdrawals exceed ₹1 crore (₹3 crore for co-operatives): 2%
- If non-filers withdraw between ₹20 lakh and ₹1 crore: 2%
- If non-filers withdraw over ₹1 crore: 5%
- Higher TDS for Non-Filers – Section 206AB:
- TDS is twice the applicable rate for those who haven’t filed ITR in the last year.
- PAN Unavailability – Section 206AA:
- If PAN is not provided, TDS is deducted at the higher of the applicable rate or 20%.
Starting from April 1, 2025, the Union Budget 2024 introduces Section 194T, mandating a 10% Tax Deducted at Source (TDS) on payments exceeding ₹20,000 made by a firm to its partners, including salary, commission, bonus, or interest. This deduction occurs at the earlier of payment or credit to the partner’s account. Partners should plan withdrawals carefully to manage cash flow and tax liabilities.
Below is an overview of the TDS rates applicable for the Financial Year (FY) 2024-25 (Assessment Year 2025-26):
| Section | Nature of Payment | Threshold Limit (₹) | TDS Rate (%) |
|---|---|---|---|
| 192 | Payment of salary | Applicable Slab Rates | As per Slab Rates |
| 192A | Premature withdrawal from EPF | 50,000 | 10 |
| 193 | Interest on securities | 10,000 | 10 |
| 194 | Payment of any dividend | 5,000 | 10 |
| 194A | Interest other than interest from securities | 40,000 (50,000 for senior citizens) | 10 |
| 194B | Income from lottery winnings, card games, crossword puzzles, etc. | 10,000 | 30 |
| 194BA | Income from online games | No Threshold | 30 |
| 194BB | Income from horse race winnings | 10,000 | 30 |
| 194C | Payment to contractor/sub-contractor | Single payment: 30,000; Aggregate: 1,00,000 | 1 (Individuals/HUF), 2 (Others) |
| 194D | Insurance commission | 15,000 | 5 (Individuals/HUF), 10 (Domestic Companies) |
| 194DA | Insurance payout in respect of a life insurance policy | 1,00,000 | 5 |
| 194E | Payment to non-resident sportsmen/sports association | No Threshold | 20 |
| 194EE | Payment under National Savings Scheme (NSS) | 2,500 | 10 |
| 194F | Payment for the repurchase of units by Unit Trust of India (UTI) or a Mutual Fund | No Threshold | 20 |
| 194G | Commission, etc., on the sale of lottery tickets | 15,000 | 5 |
| 194H | Commission or brokerage | 15,000 | 5 |
| 194-I | Rent | 2,40,000 | 2 (Plant & Machinery), 10 (Land/Building/Furniture/Fittings) |
| 194-IA | Payment for transfer of certain immovable property other than agricultural land | 50,00,000 | 1 |
| 194-IB | Rent payment by an individual or HUF not covered u/s. 194-I | 50,000 per month | 5 |
| 194-IC | Payment under Joint Development Agreements (JDA) to Individual/HUF | No Threshold | 10 |
| 194J | Fees for professional or technical services | 30,000 | 2 (Technical Services), 10 (Others) |
| 194K | Payment of income for units of a mutual fund, e.g., dividend | 5,000 | 10 |
| 194LA | Payment in respect of compensation on acquiring certain immovable property | 2,50,000 | 10 |
| 194LB | Payment of interest on infrastructure debt fund to Non-Resident | No Threshold | 5 |
| 194LBA | Certain income distributed by a business trust to its unitholder | No Threshold | 10 |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | No Threshold | 10 |
| 194LBC | Income from investment in securitisation fund | No Threshold | 25 (Individuals/HUF), 30 (Domestic Companies), 40 (Foreign Companies) |
| 194M | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | 50,00,000 | 5 |
| 194N | Cash withdrawal from a banking company, co-operative society, or a post office | 1,00,00,000 | 2 |
| 194O | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform | 5,00,000 | 1 |
| 194P | Payment of pension or interest to specified senior citizens of age 75 years or more | Applicable Slab Rates | As per Slab Rates |
| 194Q | Payments for the purchase of goods | 50,00,000 | 0.10 |
| 194R | Perquisite or benefit to a business or profession | 20,000 | 10 |
| 194S | TDS on the transfer of virtual digital assets | 10,000 (50,000 for specified persons) | 1 |
| 195 | Income on investments made by NRI citizens | No Threshold | 20 |
| 196B | Income (including LTCG) from units of an offshore fund | No Threshold | 10 |
| 196C | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | No Threshold | 10 |
| 196D | Income (excluding dividend and capital gain) from Foreign Institutional Investors | No Threshold | 20 |
| 206AB | Payment to non-filers, i.e., those who have not filed their income tax return in the last year | No Threshold | Higher of: 2 times the rate specified in the Income Tax Act or Finance Act; or 5% |
| 206AA | TDS rate in case of Non-availability of PAN | No Threshold | Rates specified above or 20%, whichever is higher |
Note: The above rates are subject to amendments as per the latest finance act and notifications. It’s advisable to consult the official Income Tax Department resources or a tax professional for the most accurate and updated information.
The Tax Deducted at Source (TDS) rates for domestic companies in India for the Financial Year (FY) 2024-25 (Assessment Year 2025-26) have been updated to simplify compliance. Below is a comprehensive chart detailing these rates:
| Section | Nature of Payment | Threshold (₹) | TDS Rate (%) |
|---|---|---|---|
| 192 | Payment of salary | Applicable Slab Rates | Applicable Slab Rates |
| 192A | Premature withdrawal from EPF | ₹50,000 | 10% |
| 193 | Interest on securities | ₹10,000 | 10% |
| 194 | Payment of dividend | ₹5,000 | 10% |
| 194A | Interest other than interest on securities – Interest by banks/post offices – Interest by others | ₹40,000 (₹50,000 for senior citizens) ₹5,000 | 10% 10% |
| 194B | Winnings from lotteries, crossword puzzles, etc. | ₹10,000 (aggregate) | 30% |
| 194BB | Winnings from horse races | ₹10,000 | 30% |
| 194C | Payment to contractors/sub-contractors – Individuals/HUF – Others | ₹30,000 (single payment) ₹1,00,000 (aggregate) | 1% 2% |
| 194D | Insurance commission | ₹15,000 | 2% (effective from 1st April 2025) |
| 194DA | Payment in respect of life insurance policy | ₹1,00,000 | 2% (effective from 1st October 2024) |
| 194EE | Payments under National Savings Scheme (NSS) | ₹2,500 | 10% |
| 194F | Payments on repurchase of units by UTI or mutual fund | No Limit | Proposed to be omitted (effective from 1st October 2024) |
| 194G | Commission on sale of lottery tickets | ₹15,000 | 2% (effective from 1st October 2024) |
| 194H | Commission or brokerage | ₹15,000 | 2% (effective from 1st October 2024) |
| 194-I | Rent – Plant and machinery – Land, building, furniture, fittings | ₹2,40,000 | 2% 10% |
| 194-IA | Payment on transfer of certain immovable property other than agricultural land | ₹50,00,000 | 1% |
| 194-IC | Payment under Joint Development Agreements (JDA) to Individual/HUF | No Limit | 10% |
| 194J | Fees for professional or technical services – Professional services – Technical services | ₹30,000 | 10% 2% |
| 194K | Payment of income in respect of units of mutual funds | ₹5,000 | 10% |
| 194LA | Payment of compensation on acquisition of certain immovable property | ₹2,50,000 | 10% |
| 194LBA(1) | Certain income distributed by a business trust to its unitholder | No Limit | 10% |
| 194LBB | Income in respect of units of investment fund to unitholder | No Limit | 10% |
| 194LBC | Income from investment in securitisation fund | No Limit | 10% |
| 194M | Payment by Individual/HUF for contract work, commission, brokerage, or professional fees (not covered under 194C, 194H, 194J) | ₹50,00,000 | 2% (effective from 1st October 2024) |
| 194N | Cash withdrawal exceeding – ₹20 lakh (for non-filers of ITR) – ₹1 crore (for filers of ITR) | ₹20,00,000 ₹1,00,00,000 | 2% 2% |
| 194O | Payment by e-commerce operator to e-commerce participant | ₹5,00,000 | 0.1% (effective from 1st October 2024) |
| 194Q | Payment for purchase of goods exceeding ₹50 lakhs | ₹50,00,000 | 0.1% |
| Any Other Income | Not specified | No Limit | 10% |
Key Changes Effective from 1st October 2024:
- Insurance Commission (Section 194D): TDS rate reduced from 5% to 2%.
- Life Insurance Policy Payments (Section 194DA): TDS rate reduced from 5% to 2%.
- Commission or Brokerage (Section 194H): TDS rate reduced from 5% to 2%.
- Commission on Sale of Lottery Tickets (Section 194G): TDS rate reduced from 5% to 2%.
- Payments by E-commerce Operators (Section 194O): TDS rate reduced from 1% to 0.1%.
These amendments aim to simplify TDS compliance and reduce the burden on taxpayers.
Note: If the Permanent Account Number (PAN) of the deductee is not provided, tax will be deducted at a higher rate as per Section 206AA.
For detailed information and any further updates, it is advisable to refer to official notifications from the Income Tax Department or consult a tax professional.
Conclusion
The revised TDS provisions for FY 2024-25 aim to simplify tax compliance while ensuring a robust mechanism for tax collection. With increased threshold limits and revised rates, taxpayers can expect a more streamlined process. Proper adherence to these changes will help businesses and individuals maintain compliance and avoid penalties.
frequently asked questions (FAQs) regarding the TDS rates and provisions for this period.
1. What are the TDS rates for salaries in FY 2024-25?
For salaries, TDS is deducted under Section 192. The rate of TDS depends on the applicable income tax slab rates for the individual, considering factors like age and income level. Employers are responsible for deducting TDS based on the estimated income of the employee for the financial year.
2. Is TDS applicable on interest earned from bank deposits?
Yes, under Section 194A, TDS is applicable on interest earned from bank deposits. The threshold limit is ₹40,000 for individuals and ₹50,000 for senior citizens. If the interest income exceeds these limits, TDS is deducted at a rate of 10%.
3. What is the TDS rate for contractors and sub-contractors?
Under Section 194C, payments made to contractors and sub-contractors are subject to TDS. The rates are:
- Individual/HUF Contractors: 1%
- Other Entities: 2%
The threshold limits are ₹30,000 for a single payment and ₹1,00,000 for aggregate payments in a financial year.
4. Are winnings from lotteries and games subject to TDS?
Yes, under Section 194B, any winnings from lotteries, crossword puzzles, card games, and other similar games are subject to TDS at a rate of 30%. TDS is applicable if the winnings exceed ₹10,000.
5. What is the TDS rate on rent payments?
Under Section 194I, TDS on rent payments is applicable as follows:
- Rent for Plant and Machinery: 2%
- Rent for Land, Building, Furniture, and Fittings: 10%
The threshold limit for TDS deduction on rent is ₹2,40,000 per financial year.
6. Are there any new TDS provisions introduced in the Union Budget 2024?
Yes, the Union Budget 2024 introduced Section 194T, which pertains to payments made by firms to their partners. Effective from April 1, 2025, firms are required to deduct TDS at a rate of 10% on payments such as salary, commission, bonus, or interest exceeding ₹20,000 in a financial year to their partners. This deduction occurs at the time of crediting the amount or making the payment, whichever is earlier.
7. What happens if TDS is not deducted or deposited by the deductor?
Failure to deduct or deposit TDS can result in penalties and interest charges for the deductor. The deductee may also face difficulties in claiming tax credits. It’s essential for deductors to comply with TDS provisions to avoid legal consequences.
8. How can one check the TDS deducted and deposited against their PAN?
Individuals can check the TDS deducted and deposited against their PAN by accessing Form 26AS through the Income Tax Department’s e-filing portal. This form provides a consolidated statement of all TDS entries associated with the PAN.
9. Is TDS applicable to non-resident Indians (NRIs)?
Yes, TDS provisions apply to NRIs as well. The rates and thresholds may differ based on the nature of the income and relevant sections of the Income Tax Act. For instance, under Section 195, any sum paid to a non-resident is subject to TDS, with rates varying based on the income type.
10. Can a deductee claim a refund of excess TDS deducted?
Yes, if excess TDS has been deducted, the deductee can claim a refund by filing their income tax return for the relevant assessment year. The Income Tax Department will process the refund after verifying the return.
