Updated : March 02, 2024TDS Rate Chart for FY 2023-24 (AY 2024-25)
Overview : TDS (Tax Deducted at Source) is a taxation system employed by the Indian government where taxes are collected directly from the source of income. TDS applies to income sources such as salary, rent, dividend, and asset sales. It is an essential aspect of Income Tax compliance and must be deducted at the rates prescribed by the tax department. To help you understand these rates better, below you will find a TDS rate chart summarising all the TDS provisions of the Income Tax Act for the financial year 2023-24 (AY 2024-25).
What is TDS ?
TDS is an acronym for “Tax Deducted at Source”. It is a method used by the government to collect income tax in advance as you earn money instead of waiting for you to file a tax return at the end of the year. As a small business, when you make certain payments such as salaries, rent, or payments to contractors, you must deduct a small percentage as TDS and deposit it with the government.
TDS Rate Chart for FY 2023-24 (AY 2024-25)
| Section | Nature of Payment | Threshold | TDS Rate (with PAN) | TDS Rate (without PAN) |
|---|---|---|---|---|
| 194C | Payments to Contractors and Subcontractors, Advertising | Single payment > Rs. 30,000 or Aggregate > Rs. 1,00,000 | 1% (Individual/HUF) 2% (Others) | 5% (Individual/HUF) 20% (Others) |
| 194-I (a) | Rent on Land, Building, Furniture & Fittings | Rs. 2,40,000 per annum | 10% | 20% |
| 194-I (b) | Rent on Plant & Machinery | Rs. 2,40,000 per annum | 2% | 20% |
| 194J | Professional/Technical Fees | Rs. 30,000 | 10% | 20% |
| 194H | Commission/Brokerage (other than lottery) | Rs. 15,000 | 5% | 20% |
| 194Q | Payments for the purchase of goods | Rs. 50,00,000 | 0.1% | 5% |
| 192 | Salary | As per income tax slabs | Slab Rates | Slab Rates |
| 192A | Premature withdrawal of PF | Rs. 50,000 | 10% | 20% (Usually higher) |
| 193 | Interest on Securities | Bonds - 10,000 Other Securities - No Limit | 10% | 20% |
| 194 | Dividends | Rs. 5000 | 10% | 20% |
| 194A | Interest (other than on securities) | Rs. 40,000 Rs. 50,000 for senior citizens Rs. 5,000 from friends/relatives | 10% | 20% |
| 194B | Winnings from lottery, games, etc. | Rs. 10,000 | 30% | 30% |
| 194BA | Income from online games | Nil | 30% | 30% |
| 194BB | Winnings from horse races | Rs. 10,000 | 30% | 30% |
| 194D | Insurance Commission | Rs. 20,000 | Individuals - 5% Companies - 10%% | 20% |
| 194E | Payment to non-resident sportsmen/sports association | No threshold | 20% | 20% |
| 194EE | Payments in respect of deposits under NSS | Rs. 2500 | 10% | 20% |
| 194F | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | No threshold | 20% | 20% |
| 194G | Commission/brokerage on lotteries | Rs. 15,000 | 5% | 20% |
| 194IA | Sale of Immovable Property | Rs. 50,00,000 | 1% | 20% |
| 194IB | Rent payment that is made by an individual or HUF not covered under payment 194I (No Business/No Audit Cases) | 50,000 per month | 5% | 20% |
| 194IC | Payment under Joint Development Agreements (JDA) to Individual/HUF | No threshold | 10% | 20% |
| 194K | Payment of dividends by mutual Funds | Rs. 5000 | 10% | 20% |
| 194LA | Compensation on acquisition of certain immovable property | Rs. 2,50,000 | 10% | 20% |
| 194M | Certain payments by Individuals/HUF where they are not liable to deduct TDS under Sections 194C, 194H, and 194J | Rs. 50,00,000 | 5% | 20% |
| 194N | In case cash withdrawal over a certain amount takes place from the bank | ITR Filers - Rs. 1 Crore ITR Non-Filers - Rs. 20,00,000 | 2% | 20% |
| 194-O | Amount paid for the sale of products/services by e-commerce service providers via their digital platform | Rs. 5,00,000 | 1% | 5% |
| 194R | Benefits/perquisites from business or profession | Rs. 20,000 | 10% | 20% |
| 194R | Payment for transfer of Virtual Digital Assets | Rs. 10,000 (specified person) Rs. 50,000 (others) | 1% | 1% |
Conclusion
In conclusion, understanding the TDS rates and provisions can be a complex process. At SetIndiabiz, we offer professional consultation services to guide you through the process and ensure compliance with the Income Tax Act. Our team of experts can also assist you with TDS return filing, saving you time and effort. Contact us today to learn more about our services and how we can help you stay on top of your tax obligations.
