TDS Rate Chart FY 2023-24 (AY 2024-25)
Author: Editorial Team | in, Updated on: April 05, 2025 | Category:
Overview : The Financial Year 2023-24 brought significant developments in TDS regulations. Notable changes include the introduction of Section 194BA (30% TDS on online gaming winnings from July 1, 2023), continued implementation of Section 194R for business perquisites, and Section 194S for virtual digital assets at a 1% rate. The framework maintained differential rates for technical services (2%) versus professional services (10%) under Section 194J, reflecting the government's sector-specific approach to tax collection.
Understanding TDS and Its Importance for Indian Taxpayers
Tax Deducted at Source (TDS) is a crucial mechanism in India's tax collection system, where taxes are deducted directly from the source of income generation. When payments such as salaries, professional fees, rent, interest, or commissions are made, the payer (the deductor) deducts a specified percentage as tax and deposits it with the government. This approach ensures a steady flow of tax revenue throughout the year and enhances overall compliance.
For the Financial Year 2023-24 (Assessment Year 2024-25), understanding the applicable TDS provisions is essential for both individuals and businesses to maintain compliance with Indian tax regulations. This comprehensive guide covers all TDS rates effective from April 1, 2023, including the introduction of new provisions during the year.
Simplified TDS Chart - FY 2023-24 (AY 2024-25)
The table below provides a quick reference to the most commonly used TDS rates effective for the financial year 2023-24:
| Section | Nature of Payment (Simplified) | Rate (%) | Threshold Limit (₹) |
|---|---|---|---|
| 192 | Slab Rate | As per the Income Slab | |
| 194A | Interest (Bank/PO/Coop Soc) | 10% | ₹50K (Sr. Cit) / ₹40K (Others) (Annual) |
| 194A | Interest (Others) | 10% | ₹5,000 (Annual) |
| 194C | Contractor Payments | 1% (Ind/HUF), 2% (Others) | Single ≥₹30K; Agg. Ann. ≥₹1L |
| 194H | Commission/Brokerage | 5% | ₹15,000 (Annual) |
| 194-I | Rent (L&B/Furniture) | 10% | ₹2,40,000 (Annual) |
| 194-I | Rent (Plant & Machinery) | 2% | ₹2,40,000 (Annual) |
| 194-IB | Rent by Ind/HUF (Not under Audit) | 5% | ₹50,000 per month |
| 194J | Professional/Director/Other Fees | 10% | ₹30,000 (Category/Year, excl. Director) |
| 194J | Technical Fees/Royalty(Sale)/Call | 2% | ₹30,000 (Category/Year) |
| 194M | Certain Pay by Ind/HUF | 5% | ₹50 Lakhs (Annual) |
| 194Q | Purchase of Goods | 0.1% (> 50L) | ₹50 Lakhs (Agg. Purch. Ann.) |
| 194R | Business Benefit/Perquisite | 10% | ₹20,000 (Annual) |
| 194S | Virtual Digital Asset Transfer | 1% | ₹50K (Specified) / ₹10K (Others) (Annual) |
Comprehensive TDS Rate Chart: FY 2023-24 (Assessment Year 2024-25)
For a detailed understanding of all applicable TDS provisions, the comprehensive chart below outlines all rates and threshold limits under various sections of the Income Tax Act, including the new provisions effective during FY 2023-24:
| Section | Nature of Payment | Rate (%) | Threshold Limit (₹) |
|---|---|---|---|
| 192 | Salary Payments | Slab Rate | Basic Exemption Limit |
| 192A | Premature EPF Withdrawal (<5 yrs service) | 10% | 50,000 |
| 193 | Interest on Securities | 10% | 10,000 (Gen) / 5,000 (Debentures) |
| 194 | Dividend (other than dividend under Section 115-O) | 10% | 5,000 (Ann.) |
| 194A | Interest (Other than Securities) | 10% | 50K (Sr.Cit-Bank)/40K (Oth-Bank)/5K (Other) |
| 194B | Lottery/Crossword/Gambling Winnings | 30% | 10,000 (Ann.) |
| 194BA | Online Gaming Winnings (from 01-Jul-2023) | 30% (Net Winnings) | No Threshold |
| 194BB | Winnings from Horse Races | 30% | 10,000 (Ann.) |
| 194C | Payment to Contractor/Sub-contractor | 1% (Ind/HUF), 2% (Oth) | Single ≥30K; Agg. Ann. ≥1L |
| 194D | Insurance Commission | 5% (Ind/Others), 10% (Co.) | 15,000 (Ann.) |
| 194DA | Life Insurance Policy Payout (Taxable) | 5% (on income component) | Agg. Pay ≥1L (Ann.) |
| 194G | Commission on Sale of Lottery Tickets | 5% | 15,000 (Ann.) |
| 194H | Commission or Brokerage (other than Insurance Comm.) | 5% | 15,000 (Ann.) |
| 194-I | Rent (Plant & Machinery / Land & Bldg / Furniture) | 2% / 10% | 2,40,000 (Ann.) |
| 194-IA | Transfer of Immovable Property (other than Agri. Land) | 1% (Con./SDV higher) | ≥ 50 Lakhs |
| 194-IB | Rent by Individual/HUF (not liable to tax audit) | 5% | 50,000 per month |
| 194J | Fees - Prof/Tech/Royalty/Director/Non-Compete | 2%(Tech/Call), 10%(Prof/Dir) | 30K per cat./yr (excl. Dir) |
| 194M | Contract/Commission/Prof. Fees by specified Ind/HUF | 5% | 50 Lakhs (Ann.) |
| 194N | Cash Withdrawal from Bank/PO/Co-op Soc. | 2% (or 5% if ITR non-filer) | >1Cr / >3Cr(Coop) (>20L if no ITR) |
| 194-O | Payment by E-commerce Operator | 1% (Gross Amount) | 5 Lakhs (Ind/HUF Part., Ann.) |
| 194P | TDS by Bank for Specified Senior Citizens (75+) | Slab Rate | Conditions Apply |
| 194Q | TDS on Purchase of Goods by specified Buyer | 0.1% (on amount > 50L) | Buyer T/O >10Cr & Purch ≥ 50L Ann. |
| 194R | Benefit or Perquisite in Business/Profession | 10% | 20,000 (Ann.) |
| 194S | Payment on Transfer of Virtual Digital Asset (VDA) | 1% (Consideration) | 50K (Spec Payer) / 10K (Oth) (Ann.) |
| Sec 194F | Repayment Under NSS | 20% | 25,000 (w.e.f. 01.07.1992) |
| 206C(1H) | TCS on Sale of Goods | 0.1% (on amount > 50L) | Seller T/O >10Cr & Sale ≥ 50L Ann. |
Notable TDS Provisions for FY 2023-24
- Introduction of Section 194BA - Online Gaming Winnings (from July 1, 2023) : The Finance Act 2023 introduced a new TDS provision specifically for online gaming platforms, effective from July 1, 2023. This section requires a 30% TDS on net winnings calculated at the end of the financial year or at the time of withdrawal, whichever is earlier. Unlike other winnings, there is no minimum threshold exemption, making all online gaming winnings subject to TDS regardless of the amount.
- Section 194R - Benefits and Perquisites in Business : This provision, which saw its first full year of implementation in FY 2023-24, captures non-monetary benefits provided in business or professional contexts. The 10% TDS applies to benefits exceeding ₹20,000 annually, including items like free samples, travel incentives, and promotional goods. The provision ensures tax compliance on non-cash benefits that previously might have escaped the tax net.
- Section 194S - Virtual Digital Assets : Introduced in the previous financial year, this section continued to apply a 1% TDS on the transfer of cryptocurrencies and other virtual digital assets. The threshold remains ₹50,000 annually for specified persons and ₹10,000 for others. This provision helps track digital asset transactions in a rapidly evolving technological landscape.
- Section 194J - Differential Rates for Professional and Technical Services : The dual-rate structure under Section 194J continued in FY 2023-24, with technical services, royalties relating to software sales, and call centres subject to a reduced 2% TDS rate, while other professional services, director fees, and non-compete fees remained at 10%. This differentiation recognises the competitive nature and lower margins in the technical services industry.
Conclusion
The financial year 2023-24 saw the continued evolution of India's TDS framework with a special focus on digital transactions and sector-specific rates. At Setindiabiz , we offer comprehensive TDS compliance solutions including expert guidance on all provisions, return preparation, lower deduction certificate assistance, and resolution of TDS-related notices. Partner with us for seamless compliance while focusing on your core business.
Disclaimer: This information is based on the Income Tax Act of 1961 and incorporates changes introduced in the Finance Act of 2023. While we strive for accuracy, tax laws are complex and subject to interpretation. We recommend consulting with a tax professional for advice specific to your situation.
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Editorial Team | in
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.