TDS Rate Chart for Financial Year 2024-2025 (Assessment Year 2025-2026)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax of India. When you receive income from sources like salary, rent, or interest, the payer deducts a portion of the tax before giving you the remaining amount. This deducted TDS is then deposited to the government on your behalf. The TDS rates are determined by the Government of India. The article provides you with the TDS Rate chart for the Financial Year 2024-25 (Assessment Year 2025-26), containing new TDS rates.

Budget 2024: Rationalization of TDS Rates

Budget 2024 introduces reductions in the TDS rates for specific payments to foster business operations and improve compliance among taxpayers. These changes are set to take effect on either October 1, 2024 or April 1, 2025. Below is a table detailing the affected payments, the corresponding changes in TDS rates and the New TDS rates,

Section	Current TDS Rate	New TDS Rates	Effective Date
Section 194H – Payment of commission or brokerage	5%	2%	October 1, 2024
Section 194-IB – Payment of rent by certain individuals or HUF	5%	2%	October 1, 2024
Section 194M – Payment of certain sums by certain individuals or Hindu undivided family	5%	2%	October 1, 2024
Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant	1%	0.1%	October 1, 2024
Section 194F – Payments on account of repurchase of units by Mutual Fund or Unit Trust of India	Proposed to be omitted	—	October 1, 2024

TDS Rate Chart for FY 2024-2025

The TDS rates as applicable in the Financial Year 202-2024 (Assessment Year 2024-2025) are highlighted in the TDS Rate Chart table below –

Section	Nature of payment	Threshold limit (INR)	Rate of TDS
192	Salary	Taxable income liable to income tax	Any of the following rate as opted by the employee – · Normal slab rate; or · New tax regime slab rate.
192A	Premature withdrawal from Employees’ Provident Fund	INR 50,000	10%
193	Interest on securities	INR 2,500	10%
194	Dividend	INR 5,000	10%
194A	Interest (other than interest on securities)	Bank deposit/ banking co-operative society deposits/ post office deposit – · In case of senior citizens – INR 50,000; · Any other case – INR 40,000. Deposits (other than above) – INR 5,000	10%
194B	Winning from lottery/ crossword puzzle	10,000	30%
194BA	Winning from online games	-	30%
194BB	Winning a horse race	10,000 (notably, a threshold of INR 10,000 will apply to aggregate winning during the Financial Year)	30%
194C	Payments to contractors	Single transaction – INR 30,000; and Aggregate of transactions – INR 1,00,000	In case of individuals/ HUF – 1% Any other case – 2%
194D	Insurance commission	INR 15,000	In the case of individuals – 5% In case of company – 10%
194DA	Payment relating to life insurance policy	INR 1,00,000	5%
194E	Payment to non-resident sportsmen/ sports association	-	20%
194EE	Payments relating to deposits under NSS (National Savings Scheme)	INR 2,500	10%
194F	Payment towards repurchase of the unit by Unit Trust of India/ Mutual Fund	-	20%
194G	Commission/ prize, etc. on sale of the lottery tickets	INR 15,000	5%
194H	Commission/ Brokerage	INR 15,000	5%
194-I	Rent	INR 2,40,000	In the case of plant and machinery – 2% In the case of land/ building/ factory/ furniture/ fittings – 10%
194-IA	Payment towards transfer of certain immovable property (other than agricultural land)	INR 50 Lakhs	1%
194-IB	Payment of rent by HUF/ individual (not liable to tax audit)	INR 50,000 per month	5%
194-IC	Payment under JDA (Joint Development Agreement)	NIL	10%
194J	FTS (Fees for Professional or Technical Services)	INR 30,000	In the case of fees for technical services/ specified royalties – 2% In any other case – 10%
194K	Income relating to specified units	INR 5,000	10%
194LA	Payment towards compensation for acquisition of certain specified immovable property [land (other than agricultural land)/ building or part thereof]	INR 2,50,000	10%
194LB	Income relating to interest from infrastructure debt fund	NIL	5%
194LBA	Income from the units of business trust	NIL	10%
194LBB	Income from units of investment funds	NIL	10%
194LBC	Income relating to investment in securitization trust	NIL	In case the payee is individual/ HUF – 25% In any other case – 30%
194LC	Income relating to interest from Indian Company/ business trust	NIL	5%
194LD	Income relating to interest on certain specified bonds/ government securities	NIL	5%
194M	Payment of certain sums (i.e. commission/ brokerage/ fees for professional	INR 50 Lakhs	5%
194N	Payment of certain amounts in cash, i.e. cash withdrawals	INR 20 Lakhs in case the recipient has not furnished income tax return for three previous years (immediately preceding the previous year in which cash is withdrawn) INR 1 crore in any other case	In case amount/ aggregate amounts exceed INR 20 Lakhs – 2% In case amount/ aggregate amounts exceed INR 1 crore – 5%
194-O	Payment of sum by an e-commerce operator to participant	INR 5 Lakhs	1%
194P	Tax deduction in case of senior citizen of 75 or more years age	Taxable income which is liable to tax	As per rates in force
194Q	Payment towards purchase of goods	INR 50 Lakhs	0.10%
194R	Benefit/ perquisite in respect of business/ profession	INR 20,000	10%
194S	Payment relating to transfer of virtual digital asset	Payment done by specified person – INR 50,000 Payment done by any other person – INR 10,000	1%
195	Payment of any other amount/ sum to a non-resident
	Income relating to investment done by a non-resident Indian Citizen	NIL	20%
	Income relating to LTCG referred in section 115E of the Income Tax Act with regard to a non-resident Indian Citizen	NIL	10%
	Income relating to LTCG referred in section 112(1)(iii) of the Income Tax Act	NIL	10%
	Income relating to LTCG referred in section 112A of the Income Tax Act	NIL	10%
	Income relating to STCG referred in section 111A of the Income Tax Act	NIL	15%
	Any other income relating to LTCG	NIL	20%
	Income relating to interest payable by the Government/ Indian concerns on money borrowed/ debt incurred in foreign currency	NIL	20%
	Any other income	NIL	30%
206AA	TDS deduction in case Permanent Account Number (PAN) of deductee is not furnished to deductor	NIL	Higher of the following – 1. At rates specified in relevant section; 2. At rate/ rates in force; or 3. At 20%.
206AB	TDS deduction in case of non-filers of income tax return	NIL	Higher of the following – 1. At twice the rates specified in relevant section; 2. At twice the rate/ rates in force; or 3. At 5%.

This TDS rate chart details the sections, nature of payment, threshold limit, and the corresponding TDS rates.

Important amendments introduced vide the Finance Act, 2023 –

Section 193 – Interest on Securities –

With effect from 1^st April 2023, provisions of section 193 of the Income Tax Act will be applicable to payments relating to interest on listed debentures to any resident. Notably, earlier the said payment was exempted from TDS.

Section 194B – Winning from lottery/ crossword puzzle –

Threshold limit of INR 10,000 will be applicable aggregate amount from winning from lottery/ crossword puzzle/ card game or any other game/ gambling/ betting.
With effect from 1^st April 2023, provisions of section 194B of the Income Tax Act will not apply to winning from any online game.

Section 194BA – Winning from online games (newly inserted provisions effective from 1^st April 2023) –

Any person responsible for paying, income by way of winning from any online games, to any person is required to deduct TDS u/s 194BA. TDS is deductible on net winning in the user account at the end of the Financial Year. However, in case of withdrawal during the Financial Year from the user account, TDS will be deductible at the time of withdrawal.