The Central Board of Direct Taxes (CBDT) has unveiled updated TDS rates for the financial year 2024-25, which will be applicable for the assessment year 2025-26. These modifications, introduced via the Finance (No. 2) Act, 2024, impact various types of income, including salaries, interest on securities, lottery winnings, and more. Here are the main highlights:
- Salary Payments (Section 192) – TDS will be deducted according to the standard income tax slab rates.
- Winnings from Online Games (Section 194BA) – The TDS rate for winnings from online games remains fixed at 30%, irrespective of the prize total.
- Interest on Securities (Section 193) – Interest earned from debentures, government bonds, and other securities will be subject to a TDS of 10%.
- Contract Payments (Section 194C) – Individual or Hindu Undivided Family (HUF) contractors will incur a TDS rate of 1%, whereas other contractors will face a 2% deduction.
- Winnings from Lotteries (Section 194B) – A TDS of 30% continues to apply to all winnings from lotteries, crossword puzzles, and similar contests.
Additional changes have also been made concerning the taxation of Virtual Digital Assets (VDAs), commission payments, and life insurance benefits. Notably, the TDS on life insurance policies (Section 194DA) will be reduced to 2% effective from October 1, 2024.
Latest TDS Rate Chart from Income Tax Department – October 2024 Download