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TDS Rate Chart for FY 2023-24 (AY 2024-25)

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).

BRIEF SUMMARY

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%
194S
Payment for transfer of Virtual Digital Assets
Rs. 10,000 (specified person) Rs. 50,000 (others)
1%
1%

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.

Conclusion

FAQs

Q1: What is the TDS rate for 2023-24?

The TDS rates for the financial year 2023-24 (AY 2024-25) can be found in the above-mentioned TDS rate chart. The rates vary depending on the nature of payment, threshold limits, and whether the payee has a PAN. It is essential to refer to the chart and ensure compliance with the Income Tax Act to avoid penalties. If you have any doubts or require further assistance, you can contact SetIndiabiz for professional consultation services.

Q2: What is the TDS limit for commission in FY 2023-24?

The TDS limit for commission in FY 2023-24 is Rs. 15,000. If the commission amount exceeds this limit, TDS will be deducted at the rate of 5% for individuals and 10% for companies. It is important to refer to the TDS rate chart provided above to ensure compliance with the Income Tax Act and avoid penalties. If you have any doubts or require further assistance, you can contact SetIndiabiz for professional consultation services.

Q3: What is the current TDS on sale of the property?

In India, for property sales exceeding Rs. 50 lakhs, a Tax Deducted at Source (TDS) of 1% of the sale price is applicable. However, if the seller of the property is a Non-Resident Indian (NRI), the TDS rate increases to 20% of the sale price. It is advisable to seek the guidance of a tax professional for specific queries or concerns related to TDS on property sales.

Q4: What is the 194C TDS rate in FY 2023-24?

The TDS rate for payments to contractors and subcontractors under section 194C of the Income Tax Act is 1% for individual/HUF payees and 2% for others with a PAN card. If the payee does not have a PAN card, the TDS rate is 5% for individuals/HUF and 20% for others. These rates are applicable for the financial year 2023-24 (AY 2024-25).

Q5: What is the 194J (professional fees)TDS rate in FY 2023-24?

As of now, the TDS rate for section 194J is 10%The TDS rate under section 194J of the Income Tax Act (IT Act) for payments made to professionals, such as doctors, engineers, lawyers, architects, and chartered accountants, is 10%. This rate is applicable for the financial year 2023-24 (AY 2024-25).

TDS/TCS Rates

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