TDS Rates for the FY 2023-24/FY 2024-25
This resource provides an overview of the TDS rates applicable for the financial year 2023-24 and 2024-25 in India.
TDS Rates in India
The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India. Any person paying income is responsible to deduct tax at source and deposit TDS within the stipulated due date.
Tax Deducted at Source (TDS)
TDS stands for Tax Deducted at Source. It's a mechanism in India where a tax collector deducts tax on income payments before paying the recipient the remaining amount. This ensures that some tax is collected upfront throughout the year, rather than waiting for the recipient to file their income tax return.
TDS Rates for the FY 2023-24/FY 2024-25
| Section | Nature of Transaction | Deductee | Threshold Limit (Rs) | TDS Rate |
|---|---|---|---|---|
| 192 | Payment of salary | Resident, Non-Resident | Basic exemption limit of employee | Normal Slab Rates |
| 192A | Premature withdrawal from EPF | Resident, Non-Resident | 50,000 | 10% (if PAN is furnished). 20% (if PAN is not furnished – Budget 2023) |
| 193 | Interest on securities | Resident | Debentures- 5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000 Other securities- No limit |
10% (Through Budget, 2023 exemption of TDS on interest from listed debentures has been removed. Therefore, tax is to be deducted on interest on such specified securities) |
| 194 | Payment of any dividend | Resident | 5,000 | 10% |
| 194A | Interest from other than interest from securities (from deposits with banks/post office/co-operative society) | Resident | Senior Citizens- 50,000 Others- 40,000 |
10% |
| 194B | Income from lottery winnings, card games, crossword puzzles, and other games of any type | Resident, Non-Resident, Foreign Company | 10,000 (aggregate) | 10% |
| 194BA | Income from online games | Resident, Non-Resident, Foreign Company | NIL | 30% |
| 194BB | Income from horse race winnings | Resident, Non-Resident, Foreign Company | 10,000 (Aggregate) | 30% |
| 194C | Payment to contractor/sub-contractor | Resident | Single transaction- 30,000 Aggregate transactions- 1,00,000 |
Individuals/HUFs – 1% Other than individuals/HUFs – 2% |
| 194D | Insurance commission to i) Individuals ii) Companies |
Resident | 15,000 | 5% 10% |
| 194DA | Income for the insurance pay-out, while payment of any sum in respect of a lifeinsurance policy. | Resident | 1,00,000 | 5% |
| 194E | Payment to non-resident sportsmen/sports association | Non-Resident, Foreign Company | No limit | 20% |
| 194EE | Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | Resident, Non-Resident | 2,500 | 10% |
| 194F | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | Resident, Non-Resident | No limit | 20% |
| 194G | Payments, commission, etc., on the sale of lottery tickets | Resident, Non-Resident, Foreign Company | 15,000 | 5% |
| 194H | Commission or brokerage | Resident | 15,000 | 5% |
| 194-I | Rent: a) Rent on plant and machinery b) Rent on land/building/furniture/fitting |
Resident | a) 2,40,000 b) 2,40,000 |
a) 2% b) 10% |
| 194-IA | Payment in consideration of transfer of certain immovable property other than agricultural land. | Resident | 50,00,000 | 1% |
| 194-IB | Rent payment by an individual or HUF not covered under Section 194-I | Resident | 50,000/month | 5% |
| 194-IC | Payment under Joint Development Agreements (JDA) to Individual/HUF | Resident | No limit | 10% |
| 194J | Any sum paid by way of fee for professional services | Resident | 30,000 | 10% |
| 194J | Any sum paid by way of remuneration/fee/commission to a director | Resident | 30,000 | 10% |
| 194J | Any sum paid for not carrying out any activity concerning any business; | Resident | 30,000 | 10% |
| 194J | Any sum paid for not sharing any know-how, patent, copyright, etc. | Resident | 30,000 | 10% |
| 194J | Any sum paid as a fee for technical services | Resident | 30,000 | 2% |
| 194J | Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. | Resident | 30,000 | 2% |
| 194K | Payment of any income for units of a mutual fund, for example, dividend | Resident | No limit | 10% |
| 194LA | Payment in respect of compensation on acquiring certain immovable property | Resident | 2,50,000 | 10% |
| 194LB | Payment of interest on infrastructure debt fund to Non-Resident | Non-Resident, Foreign Company | No limit | 5% |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds | Non-Resident, Foreign Company | No limit | 5% |
| 194LC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC | Non-Resident, Foreign Company | No limit | 4% |
| 194LD | Payment of interest on bond (rupee-denominated) to FII or a QFI | Non-Resident, Foreign Company | No limit | 5% |
| 194LBA(1) | Certain income distributed by a business trust to its unitholder | Resident | No limit | 10% |
| 194LBA(2) | Interest income of a business trust from SPV distribution to its unitholders | Non-Resident, Foreign Company | No limit | 5% |
| 194LBA(2) | Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders | Non-Resident, Foreign Company | No limit | 10% |
| 194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Non-Resident | No limit | 30% |
| 194LBA(3) | Rental income payment of assets owned by the business trust to the unitholders of such business trust | Foreign Company | No limit | 40% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Resident, Non-Resident | No limit | 10% |
| 194LBB | Certain income paid to a unitholder in respect of units of an investment fund | Foreign Company | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to an individual and HUF | Resident | No limit | 25% |
| 194LBC | Income from investment in securitisation fund received to domestic company | Resident | No limit | 10% |
| 194LBC | Income from investment in securitisation fund received to a foreign company | Foreign Company | No limit | 40% |
| 194LBC | Income from investment in securitisation fund received to NRI | Non-Resident | No limit | 10% |
| 194M | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | Resident | 50,00,000 | 5% |
| 194N | Cash withdrawal exceeding a certain amount | Resident, Non-Resident | Co-operative society: 3 Crore Others: 1 crore |
2% |
| 194N | Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired | Resident, Non-Resident | – 20 lakh to 1 crore -1 crore |
2% 5% |
| 194O | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. | Resident | 5,00,000 | 1% (5%, in case PAN is not furnished) |
| 194P | Payment of pension or interest to specified senior citizens of age 75 years or more | Resident | Basic exemption limit of senior citizens or super senior citizens | Normal Income Tax Slab rates |
| 194Q | Payments for the purchase of goods | Resident | 50,00,000 | 0.10% |
| 194R | Perquisite or benefit to a business or profession | Resident | 20,00,000 | 10% |
| 194S | TDS on the transfer of virtual digital assets | Resident | Specified Persons- 50,000 Others- 10,000 |
1% |
| 195 | Income on investments made by NRI citizen | Non-Resident | No limit | 20% |
| 195 | Income by way of LTCG referred to in section 115E in the case of NRI | Non-Resident | No limit | 10% |
| 195 | Income by way of LTCG under section 112(1)(c)(iii) | Non-Resident, Foreign Company | No limit | 10% |
| 195 | Income by way of LTCG under section 112A | Non-Resident, Foreign Company | No limit | 10% |
| 195 | Income by way of STCG under section 111A | Non-Resident, Foreign Company | No limit | 15% |
| 195 | Any other income by way of LTCG | Non-Resident, Foreign Company | No limit | 20% |
| 195 | Interest payable on money borrowed by the government or Indian concern in foreign currency | Non-Resident, Foreign Company | No limit | 20% |
| 195 | Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A | Non-Resident, Foreign Company | No limit | 10% |
| 195 | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy. | Foreign Company | No limit | 50% |
| 195 | Income from royalty payable by government or Indian concern in pursupythoance of an agreement on matters related to industrial policy | Foreign Company | No limit | 10% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | Non-Resident | No limit | 10% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | Foreign Company | No limit | 50% |
| 195 | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | Foreign Company | No limit | 10% |
| 195 | Any other income | Non-Resident | No limit | 30% |
| 195 | Any other income | Foreign Company | No limit | 40% |
| 196B | Income (including LTCG) from units of an offshore fund | Non-Resident, Foreign Company | No limit | 10% |
| 196C | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | Non-Resident, Foreign Company | No limit | 10% |
| 196D | Income (excluding dividend and capital gain) from Foreign Institutional Investors. | Non-Resident, Foreign Company | No limit | 20% |
| 206AB | Income (excluding dividend and capital gain) from Foreign Institutional Investors. Payment to non-filers, i.e. those who have not filed their income tax return in the last year | Resident | No limit | – 2 times the rate given in the Income Tax Act or Finance Act or – 5%, whichever is higher |
| 206AA | TDS rate in case of Non availability of PAN | Resident, Non-Resident, Foreign Company | No limit | Rates specified above or 20%, whichever is higher |
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Krishna Gopal Varshney
An editor at apnokacaKrishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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Krishna Gopal Varshney
An editor at Myitronline
Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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