TDS, or Tax Deducted at Source, is a method employed by the Indian government to collect income tax directly at the source of income. The individual responsible for deducting the tax must do so at prescribed rates and then deposit the deducted amount to the government’s account.
TDS Rate Chart for FY 2024-25 (AY 2025-2026)
The charts listed below show the TDS amount which is applicable to different types of payment:
| Section | Nature of Payment | TDS Rate |
| 192 | Salary Income | As per the slab rates |
| 192A | Premature withdrawal of EPF | 10% (30% in case PAN is not provided) |
| 193 | Interest on securities | 10% |
| 194 | Dividend | 10% |
| 194A | Interest that is earned apart from securities by others | 10% |
| 194A | Interest that is earned apart from post office/ bank securities | 10% |
| 194B | Income earned through the winnings from card games, lotteries, and/or other games | 30% |
| 194BB | Earnings from horse races | 30% |
| 194D | Insurance commission payments | Companies: 10%Individuals: 5% |
| 194DA | Life insurance policy payments | 5% |
| 194E | If payments are made to sportsmen who are non-residents | 20% |
| 194EE | In case NSS deposits are sold | 10% |
| 194F | Payment towards repurchase of units by Unit Trust of India or Mutual Funds | 20% |
| 194G | Any commission that is received in case lottery tickets are sold | 5% |
| 194H | Brokerage or Commission | 5% |
| 194I | Plant & Machinery rentRent of Furniture, Building, or Land | 2%10% |
| 194IA | If Immovable Property is transferred (apart from agricultural land) | 1% |
| 194IB | Rent | 5% |
| 194IC | In case monetary compensation is paid (Joint Development Agreements) | 10% |
| 194J | Fee that is paid for technical or professional services | 10% or 2% |
| 194LA | Compensation that is paid in case an immovable property is purchased | 10% |
| 194LB | Interest that is earned from an Infrastructure Bond (NRI) | 5% |
| 194LBB | Investment fund which pays income to the unit holder [except for incomes that are exempt under Section 10 (23FBB) | 10% |
| 194LBC | Income generated from investments in securitisation trust (as per Section 115TCA) | 25% |
| 194LD | Interest in some government securities and bonds | 5% |
| 194N | Any cash withdrawal that is done more one account or more in the previous year by a corporate society that is in the banking business, a post office, or an individual who has a banking company | 2% |
| 194Q | Goods that are purchased | 0.10% |
| 194P | For senior citizens who are above 75 years | As per the slab rates |
| 194S | Virtual Digital Assets payment | 1% |
| 206AA | In case PAN is not available | 20% of rate in force or double the rate as per the act, whichever is higher |
| 206AB | In case ITR is not filed at higher rates | Rate in force or double the rateDouble the rate (as per the act)5% (whichever is higher) |
TDS Rates Chart for Resident Indians
TDS rates chart for income tax on select categories for the financial year 2023-2024 are listed below. These rates are applicable for resident Indians.
| Nature of payment | % of TDS |
| Payment of salary (Section 192) | Normal slab rate |
| Payment of accrued due of EPF Scheme, to Employees which is taxable in their hand (Section 192A) | 10% |
| Interest on securities (Section 193) | 10% |
| Dividend excluding the dividends mentioned in section 115-O (Section 194) | 10% |
| Income received from interest other than “interest on securities (Section-194A) | 10% |
| Income received from winning lotteries, crosswords, and games, etc. ( Section-194B / Section 194BB) | 30% |
| Payment to contractors / sub-contractors (Section 194C) | 2% for payments made to contractors who are not HUFs/individuals and 1% for payments made to contractors/sub-contractors who are HUFs/individuals |
| Insurance commission (Section-194D) | 5% |
| Payment for Life insurance policy (Section 194DA) | 1% |
| Rent (Section 194-I) | For plant and machinery 2%Land, furniture, fitting and furniture-10% |
| Payment on transfer of immovable property excluding agricultural land Section (194- IA) | 1% |
Income Tax TDS Rates Applicable for NRIs
| Nature of payment | % of TDS |
| Payment of salary (Section 192) | Normal slab rate |
| Payment of accumulated balance of provident fund (Section 192A) | 10% |
| Income received from winnings lotteries, crossword puzzles, card games and other games of any sort (Section 194B) | 30% |
| Income received from winnings from horse races (Section 194BB). | 30% |
| Payment on deposit under National Savings scheme (section- 194EE) | 20% |
| Payment on repurchase of Mutual Fund or Unit Trust of India ( Section 194F) | 20% |
| Commission on sale of lottery tickets (Section 194G) | 10% |
| Interest on infrastructure debt fund (Section 194LB) | 5% |
| Interest income distribution by a Business Trust (Section 194LBS(3)) | 30% |
| Distribution of income by an Investment Fund under Section 115UB of the Income Tax Act (Section 194LBB) | 30% |
| Distribution of income by a Securitisation Trust under Section 115TCA of the Income Tax Act (Section 194LBC) | 30% |
| Interest income from Indian company on funds borrowed in international currency (Section 194LC) | 5% |
| Income by way of interest on certain government securities and rupee-denominated bonds (Section 194LD) | 5% |
TDS Rates for a Domestic Company
The following are details regarding the TDS rates applicable for a domestic company:
| Particulars | TDS Rate |
| Section 192: Salary paymentSection 192A: Premature withdrawal from EPF | 10% |
| Section 193: Interest on securitiesAny security of the State or Central Government;Any securities or debentures for money issued by any local authority established by a State, Central, Provincial Act;Any debentures issued by a company where such debentures are;Interest charged on any other security | 10% |
| Section 194: Dividend payment | 10% |
| Section 194A: Income received in the form of interest | 10% |
| Section 194B: Income received from winning lottery, card games, or crossword puzzles | 30% |
| Section 194BB: Income received by wining horse race | 30% |
| Section 194C: Payment made to contractor/ subcontractor/ Hindu Undivided Family (HUF)/ Individuals/ Others | 1% to 2% |
| Section 194D: Insurance Commission | 10% |
| Section 194DA: Payment of any sum in respect of a life insurance policy w.e.f. 1 September 2019, the insurer will deduct tax on the income portion compromised in the insurance payout. | 5% |
| Section 194EE: Payment of funds remaining on a person’s National Savings Scheme credit (NSS) | 10% |
| Section 194F: Payment payable for a Unit Trust of India (UTI) or Mutual Fund to repurchase a unit | 20% |
| Section 194G: Payment like commissions on selling lottery tickets | 5% |
| Section 194H: Brokerage or Commission | 5% |
| Section 194-IA: Transfer of certain movable property, excluding agricultural land, in exchange for payment. | 1% |
| Section 194-IC: Payment under Joint Development Agreements (JDA) to HUF/ Individual | 10% |
| Section 194J: Any sum paid by way of:Fee for professional servicesFee/ remuneration/ commission to a directorFor not carrying out any activity in relation to any businessFor not sharing any know how, copyright, patent, etc.Fee for technical servicesRoyalty towards the sale or distribution, or exhibition of cinematographic filmsFees for technical services but payee is engaged in the business of operation of call centre | 10%10%10%10%2%2%2% |
| Section 194K: Any income received for mutual fund units in accordance with section 10(23D), or from the administrator or a specified entity | 10% |
| Section 194LA: Payment for compensation received upon purchase of particular real estate | 10% |
| Section 194LBA(1): A business trust may transfer certain income to its unitholder. | 10% |
| Section 194LBB: A certain amount of income given to a unitholder in relation to their investment fund units. | 10% |
| Section 194 LBC: Income from investment from securitization of funds | 10% |
| Section 194M: Payment from HUF or individual within Rs.50,0000 | 5% |
| Section 194N: A cash withdrawal that exceeds a specific threshold (limit- Rs 1 crore).The TDS rates would be applied according to the following slabs if a person withdraws Rs 20 lakh or more for which they have not filed an ITR for the past three years and the due day for doing so has passed:For amounts greater than Rs. 20 lakh but less than Rs. 1 crore, as well as for amounts greater than Rs. 1 crore. | 2%2%5% |
| Section 194O: For the e-commerce operator’s use of its digital, electronic facility or platform for the selling of goods or the supply of services. | 1% |
| Section 194Q: If the total cost of the goods surpasses Rs 50 lakhs, households would receive payments. | 0.1% |
| Any other income | 10% |
TDS Rates Where the Company is Not a Domestic Company
Here are the details about the TDS rates applicable for a company other than domestic company:
| Particulars | TDS Rate |
| Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type | 30% |
| Section 194BB: Income received from horse race winning | 30% |
| Section 194E: Payment to a non-resident sports association, sportsperson, performer, or entertainer who is not an Indian citizen. | 20% |
| Section 194G: Payments such as commission, etc., on the sale of lottery tickets | 5% |
| Section 194LB: Payment for compensation received upon purchase of particular real estate | 5% |
| Section 194LBA(2): Payment such as–interest income received or receivable to a business trust from SPV and distribution to its unitholders.-dividend income received from SPV by a business trust, in which it holds the entire share capital other than required to be held by the government or government body, and distribution to its unitholders. | 5%10% |
| Section 194LBA(3): Payment to unitholders in the form of income in the form of rental income from real estate assets directly owned by such business trust. | 40% |
| Section 194LBB: payment of specific income to a unitholder by an investment fund. | 40% |
| Section 194LBC: Income from investment in securitization fund | 40% |
| Section 194LC: Payment in the nature of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds*.*If interest is payable against long term bonds listed in recognised stock exchange in IFSC | 5%4% |
| Section 194LD: Interest on the bond (in rupees) will be paid to qualified foreign investors or foreign institutional investors. | 5% |
| Section 195: Payment of any other sum, such as- Income from an NRI’s investment (Interest/Dividend) Long-term capital gain from the listed securities and shares mentioned in Section 112A Any other long term capital gains Interest is paid by the government or an Indian company on foreign currency borrowed funds. Any other income | 20%10%20%20%30% |
| Section 196B: Income from units of an offshore funds | 10% |
| Section 196C: Income from foreign current bonds | 10% |
| Section 196D: Income from foreign institutional investors | 20% |
Budget 2024 Updates
The following is the list of new updates under budget 2024:
| TDS Sections | Current TDS Rate | Proposed TDS Rate | Effective from |
| Section 194D – In case of other than company, Payment of insurance commission | 5.00% | 2.00% | 1 April 2025 |
| Section 194DA – Payment in respect of life insurance policy | 5.00% | 2.00% | 1 October 2024 |
| Section 194G -Commission on sale of lottery tickets | 5.00% | 2.00% | 1 October 2024 |
| Section 194H – Commission or brokerage payment | 5.00% | 2.00% | 1 October 2024 |
| Section 194-IB – Rent Payment by certain individuals or HUF | 5.00% | 2.00% | 1 October 2024 |
| Section 194M – Payment of certain sums by certain individuals or HUFs | 5.00% | 2.00% | 1 October 2024 |
| Section 194-O – Payment of certain sum to e-commerce participants by e-commerce operator | 1.00% | 0.1% | 1 October 2024 |
| Section 194F – Payment by mutual funds or UTI on account of repurchase of units | Proposed to be removed | 1 October 2024 | |
TDS Rates
- Where can we check the amount of TDS credit available?Under Form 26AS, the amount of TDS credit can be checked.
- Should TDS be deducted from payments made to the government?Tax should be deducted not only from payments made to the government but also from any sum payable to the government, RBI, tax-exempt corporations under a Central Act, or specified Mutual Funds under section 10(23D).
- What to do if there is any mistake in deduction of Tax at Source (TDS)?Sometimes a person may deduct TDS at a rate that is less than the rate specified in the Act due to ignorance or another reason. Therefore, it is crucial to confirm the rate at which TDS is deducted for each transaction before submitting the TDS return.
- Should TDS be deducted from payments made to the Government?Tax should be deducted not only from payments made to the government but also from any sum payable to the government, RBI, tax-exempt corporations under a Central Act, or specified Mutual Funds under section 10(23D). TDS applies to interest, dividends on shares or securities owned by the mutual fund, or any other income accruing to it.
- Where can we check the amount of TDS credit available?Under Form 26AS, the amount of TDS credit can be checked.
- What is TDS formula?Average Income tax rate = Income tax payable (calculated through slab rates) divided by employee’s estimated income for the financial year.
- What are the types of TDS?There are two types of TDS certificates: Form 16 and Form 16A.
- Is Form 16A same as TDS?Form 16 is a TDS Certificate that specifies TDS deductions from salaries. It’s not your last obligation. As a result, when comparing Form 16 and ITR, it’s important to keep in mind that Form 16 is not a replacement for the Income Tax Return.
- What is the rate of TDS on salary?The amount of TDS to be deducted is calculated by dividing the employee’s projected tax due for the fiscal year by the number of months they worked for the specific employer.
- What is the full form of TDS?TDS denotes Tax Deducted at Source.
- What are the responsibilities of the person deducting tax at source?Taxpayers must obtain a Tax Deduction Account Number (TAN) and include it in all TDS-related documentation. Apart from this, the tax will be deducted at an applicable rate.
- Is TDS 1% or 75?A TDS deduction of 1% of the entire sale value will be made by the buyer. No TDS payment on the sale of the property is deducted if the property’s value is less than Rs.50 lakhs. Additionally, the buyer may pay in instalments.
