The rate of TDS deduction depends on the prescribed rules. It is important to follow them while filing the return.
Here’s taking a look at the TDS Rate Chart for FY 2024-25 (AY 2025-26):
| Section | Nature of payment | Threshold limit | TDS Rates |
| 192 | Salary | Basic exemption | As per Income Tax slab rates |
| 192A | Premature withdrawal of EPF | 50,000 | 10% (PAN required); Rate changes if PAN not provided |
| 193 | Interest on securities | 5,000 | 10% |
| 194 | Dividend | 5,000 | 10% |
| 194A | Interest on deposit in a post office or bank | 50,000 (Senior Citizens) 40,000 (Others) | 10% |
| 194B | Income earned through card games, lotteries, and/or other games | 10,000 | 30% |
| 194BA | Online games earnings | No minimum threshold | 30% |
| 194BB | Earnings from horse races | 10,000 | 30% |
| 194D | Insurance commission payments | 15,000 | Individuals: 5% Companies: 10% |
| 194DA | Life insurance policy payments | 1,00,000 | 5% |
| 194EE | National Savings Scheme payments | 2,500 | 10% |
| 194F | Payment for repurchase of units by Mutual Fund or UTI | No specified limit | 20% |
| 194H | Commission/Brokerage | 15,000 | 5% |
| 194-I | Plant & Machinery rent Rent of Furniture, Building, or Land | 2,40,000 2,40,000 | 2% 10% |
| 194-IA | If Immovable Property is transferred besides agricultural land | 50,00,000 | 1% |
| 194-IB | Rent | 50,000 (per month) | 5% |
| 194K | Earnings from units payable to resident | No specified limit | 10% |
| 194LA | Compensation to acquire immovable property | 2,50,000 | 10% |
| 194N | Cash withdrawal exceeding a specific amount From multiple bank accounts during the previous year Aggregate cash withdrawal exceeding 20 lakh | Cooperative society – 3 crore Others – 1 crore 1 crore 20 lakh | 2% (For all) |
| 194P | For senior citizens who are above 75 years | Basic exemption limit | Normal tax slab rates |
| 194S | Virtual Digital Assets payment | Specified Persons- 50,000 Others- 10,000 | 1% |
| 206AB | Payment made to individuals not filing their ITR | No specified limit | Double the rate mentioned in the I-T Act or 5%, whichever is higher |
| 206AA | In case PAN is unavailable | No specified limit | Rates specified or 20%, whichever is higher |
Important amendments introduced vide the Finance Act, 2023 –
Section 193 – Interest on Securities –
With effect from 1st 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 1st 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 1st 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.
Section 194 N – Payments of certain amounts in cash (i.e. cash withdrawals) –
The threshold limit, in case if the recipient is co-operative society, will be INR 3 Crores instead of INR 1 Crore.