TDS Rate Chart FY 2024-25 (AY 2025-26)
TDS rate chart FY 2024-25 and thresholds for TDS are periodically revised by the Income Tax Department to reflect current fiscal policies and economic conditions.
Shruti Dutta29 Jul, 2024
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Tax Deducted at Source (TDS) is an integral part of the Indian tax system, ensuring the timely collection of taxes by deducting them at the source of income. The TDS rate chart FY 2024-25 and thresholds for TDS are periodically revised by the Income Tax Department to reflect current fiscal policies and economic conditions. Understanding these rates is crucial for both individuals and businesses to ensure compliance and proper financial planning. Checkout the article to know more about the TDS rate chart for the financial year 2024-25 (assessment year 2025-26)
TDS Rate Chart FY 2024-25
Tax Deducted at Source (TDS) is a crucial aspect of tax compliance in India. It ensures that TDS rate chart FY 2024-25 is collected at the source of income and deposited with the government. The Income Tax Department specifies the TDS rates for various types of TDS on Salary, and income and are subject to change each financial year. Below is the New TDS rates AY 2025-26| TDS Rate Chart FY 2024-25 | |||
| TDS Sections | Current TDS Rate | Proposed TDS Rate | Effective from |
| Section 194D - Payment of insurance commission in case of other than company | 5% | 2% | 1st April 2025 |
| Section 194DA - Payment in respect of life insurance policy | 5% | 2% | 1st October 2024 |
| Section 194G - Commission on sale of lottery tickets | 5% | 2% | 1st October 2024 |
| Section 194H - Payment of commission or brokerage | 5% | 2% | 1st October 2024 |
| Section 194-IB - Payment of Rent by certain individuals or HUF | 5% | 2% | 1st October 2024 |
| Section 194M - Payment of certain sums by certain individuals or HUFs | 5% | 2% | 1st October 2024 |
| Section 194-O - Payment of certain sum by e-commerce operator to e-commerce participants | 1% | 0.1% | 1st October 2024 |
| Section 194F - Payment on account of repurchase of units by mutual funds or UTI | Proposed to be Omitted | 1st October 2024 | |
Union Budget 2023 New TDS Provisions
The Union Budget 2023 introduced several new TDS (Tax Deducted at Source) provisions to streamline tax collection and broaden the tax base. These changes impact various categories of payments and transactions, ensuring a more efficient tax system and improved compliance. Understanding TDS Meaning and the new provisions is crucial for taxpayers to adhere to the updated regulations and avoid penalties. Below is an overview of the key new TDS Rate Chart FY 2024-25 provisions introduced in the Union Budget 2023: Section 194BA—TDS on Online Gaming: Effective April 1, 2023, a 30% TDS will be levied on net winnings from online gaming. The online gaming platform will deduct the TDS when you withdraw your winnings. If you do not withdraw your winnings by the end of the financial year, the TDS will be applied to the amount remaining in your account at the year's end. Section 196A – Reduced TDS Rate Under Tax Treaty: From April 1, 2023, non-residents earning income from mutual funds in India can opt for a lower TDS rate as specified in the applicable tax treaty, provided they submit a tax residency certificate. Previously, the TDS rate for such income was 20%. Section 192A – Relaxation for Employees Without PAN: Starting April 1, 2023, employees who do not provide a Permanent Account Number (PAN) will have their provident fund balance taxed at 20%. This is a reduction from the maximum marginal rate (MMR) of up to 42.74%, which was previously applied. Section 193 – TDS on Interest from Specified Securities: As of April 1, 2023, TDS will be deducted on interest earned from specified securities in dematerialised form. This change addresses the common issue of unreported interest income and ensures accurate income reporting in tax returns. Section 194N – Increased TDS Threshold for Cooperative Societies: From April 1, 2023, TDS will be applicable on cash withdrawals by cooperative societies exceeding Rs. 3 Crore, up from the previous threshold of Rs. 1 Crore. Section 194R – Clarification on TDS for Benefits and Perquisites: The 2023 budget clarified that TDS should be deducted on benefits or perquisites, whether in cash, kind, or combination. This also applies to Section 28(iv). New Section 155(20)—Credit of TDS in the Year of Income Reporting: Effective October 1, 2023, taxpayers who report income on an accrual basis but have TDS deducted in the following financial year can now apply for a tax credit in the year the income is declared in their tax return. Applications for this credit must be made within two years of the financial year in which the tax credit is reflected.| Also Read | |
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TDS Rates for Assessment Year 2025-26
Tax Deducted at Source (TDS) is an essential mechanism in the Indian tax system, ensuring that taxes are collected at the source of income. The TDS Rate Chart FY 2024-25 is specified by the Income Tax Department and can vary each year. Below is a comprehensive TDS slab rates FY 2024-25| Assessment for TDS Rate Chart FY 2024-25 (AY 2025-26) | ||||
| Section | Nature of Payment | Threshold Limit (Rs.) | Individual / HUF TDS Rates (%) | Others TDS Rate (%) |
| 192 | Salaries | Rs. 2,50,000 | Slab Rates | Slab Rates |
| 192A | Premature EPF Withdrawal | Rs. 50,000 | 10% | 10% |
| 193 | Interest on Securities | Rs. 10,000 | 10% | 10% |
| 194 | Payment of Dividend | Rs. 5,000 | 10% | 10% |
| 194A | Interest from Banks/Post Offices on Deposits | Rs. 40,000 (Rs. 50,000 for senior citizens) | 10% | 10% |
| 194A | Interest by Others (excluding securities) | Rs. 5,000 | 10% | 10% |
| 194B | Winnings from Lotteries, Puzzles, or Games | Aggregate of Rs. 10,000** | 30% | 30% |
| 194BB | Winnings from Horse Races | Rs. 10,000 | 30% | 30% |
| 194C | Payments to Contractors/Sub-Contractors – Single Payments | Rs. 30,000 | 1% | 2% |
| 194C | Payments to Contractors/Sub-Contractors – Aggregate Payments | Rs. 1,00,000 | 1% | 2% |
| 194D | Insurance Commission to Domestic Companies | Rs. 15,000 | NA | 10% |
| 194D | Insurance Commission to Non-Domestic Companies | Rs. 15,000 | 5% | NA |
| 194DA | Maturity of Life Insurance Policy | Rs. 1,00,000 | 5% | 5% |
| 194EE | Payment under NSS (National Savings Scheme) | Rs. 2,500 | 10% | 10% |
| 194F | Repurchase of Units by UTI or Mutual Fund | No Limit | 20% | 20% |
| 194G | Commission on Sale of Lottery Tickets | Rs. 15,000 | 5% | 5% |
| 194H | Commission or Brokerage | Rs. 15,000 | 5% | 5% |
| 194I | Rent of Land, Building, or Furniture | Rs. 2,40,000 | 10% | 10% |
| 194I | Rent of Plant and Machinery | Rs. 2,40,000 | 2% | 2% |
| 194IA | Transfer of Immovable Property (excluding agricultural land) | Rs. 50,00,000 | 1% | 1% |
| 194IB | Rent Payment by Individuals/HUF Not Covered under 194I | Rs. 50,000 (per month) | 5% | NA |
| 194IC | Payments under Joint Development Agreement (JDA) | No Limit | 10% | 10% |
| 194J | Fees for Professional Services | Rs. 30,000 | 10% | 10% |
| 194J | Payments for Technical Services | Rs. 30,000 | 2% | 2% |
| 194J | Royalty for Sale/Distribution/Exhibition of Cinematographic Films | Rs. 30,000 | 2% | 2% |
| 194K | Income from Mutual Fund Units (e.g., Dividends) | Rs. 5,000 | 10% | 10% |
| 194LA | Compensation for Acquiring Certain Immovable Property | Rs. 2,50,000 | 10% | 10% |
| 194LB | Interest on Infrastructure Bonds to NRIs | NA | 5% | 5% |
| 194LBA(1) | Income Distributed by a Business Trust to Unit Holders | NA | 10% | 10% |
| 194LD | Interest on Rupee-Denominated Bonds, Municipal Debt Securities, and Government Securities | NA | 5% | 5% |
| 194M | Payments for Contracts, Brokerage, Commission, or Professional Fees (excluding 194C, 194H, 194J) | Rs. 50,00,000 | 5% | 5% |
| 194N | Cash Withdrawal from Bank (ITR Filed) | Rs. 1,00,00,000 | 2% | 2% |
| 194N | Cash Withdrawal from Bank (No ITR Filed) | Rs. 20,00,000 | 2% | 2% |
| 194O | Sale of Products/Services by E-Commerce Platforms | Rs. 5,00,000 | 1% | 1% |
| 194Q | Purchase of Goods | Rs. 50,00,000 | 0.10% | 0.10% |
| 194S | Payment for Crypto or Other Virtual Assets | NA | 1% | 1% |
| 206AA | TDS for Non-Availability of PAN | NA | Higher of Specified Rate or 20% | 20% |
| 206AB | TDS on Non-Filers of Income Tax Returns | NA | Higher of 5% or Twice the Rate in Provision | Rate in Force |
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TDS rate chart FY 2024-25 FAQs
What is a TDS rate chart?
A TDS (Tax Deducted at Source) rate chart, also known as a TDS section chart, is a reference tool that provides a comprehensive overview of the applicable TDS rates for different types of payments under the Indian income tax system.
How often are TDS rates updated?
TDS rates are typically updated annually in the Union Budget. However, changes can also be made through amendments by the Income Tax Department as needed.
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