TDS And TCS Rate Chart FY 2025-26 AY 2026-27

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

Rates for deduct of tax at source

Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered

How to pay Tax Deducted/Collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

1) Electronic mode: E-Payment is mandatory for
- a) All corporate assesses; and
- b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
2) Physical Mode: By furnishing the Challan 281 in the authorized bank branch

Note:-

Where tax is deducted/collected by government office, it can remit tax to the Central Government without production of income-tax challan. In such case, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government, shall submit a statement in Form No. 24G.to Protean (formerly NSDL eGov) with prescribed time-limit.

Credit for tax payments

a. Challan Status
b. View Your Tax Credit

TDS RATE CHART FY 2025-26 (AY 2026-27)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		Rs.	TDS Rate (%)
192	Salaries	–	Slab Rate	Slab Rate
192A	Premature withdrawal from EPF	50,000	10	–
193	Interest on Securities	10,000	10	10
194	Dividends	10,000	10	10
194A	Interest (Banks)	50,000	10	10
194A	Interest – Senior Citizen (Banks)	1 Lakh	10	10
194A	Interest (Others)	10,000	10	10
194B	Winning from Lotteries	10,000	30	30
194BA	Winnings from online games	–	30	30
194BB	Winning from Horse Race	10,000	30	30
194C	Contractor – Single Transaction	30,000	1	2
194C	Contractor – During the F.Y.	1 Lakh	1	2
194C	Transporter (44AE) declaration with PAN	–	–	–
194D	Insurance Commission (15G-15H allowed)	20,000	2	10
194DA	Payment received – Life insurance Policy	1 Lakh	2	2
194EE	Payment received – National Savings Scheme (NSS)	2,500	10	10
194F	Repurchase Units by MFs	–	–	–
194G	Commission – Lottery	20,000	2	2
194H	Commission / Brokerage	20,000	2	2
194I(a)	Rent for Plant & Machinery	50,000 per month	2	2
194I(b)	Rent of Land Building & Furniture	50,000 per month	10	10
194IA	Transfer of certain immovable property other than agricultural land	50 Lakh	1	1
194IB	Rent payment by individual / HUF not covered u/s 194I	50,000 per month	2	2
194IC	Payment under specified Joint Development Agreement	–	10	10
194J (a)	Fees – Technical Services, Call Centre, Royalty, Distribution / Exhibition of Cinematography Films, etc.	50,000	2	2
194J (b)	Fees – All other Professional Services	50,000	10	10
194K	Payment of dividend by mutual Funds	10,000	10	10
194LA	Compensation on transfer of certain immovable property other than agricultural land	5 Lakh	10	10
194LB	Income by way of interest from infrastructure debt fund (non-resident)	–	5	5
194LBA	Certain income from units of a business trust (applicable from 01.10.2014)	–	10	10
194LBB	Income in respect of investment of investment fund	–	10% for residents, 30% for non-residents	10% for residents, 40% for non-residents
194LBC	Income in respect of investment in securitization trust	–	10% for residents, 40% for non-residents, 10% for individual & HUF	10% for residents, 40% for non-residents, 10% for individual & HUF
194LD	Interest on certain bonds and Govt. Securities (from 01.06.2013)		5	5
194M	Payment made for Contracts, Brokerage or Professional Fees etc. by Individual and HUF (other than sections 194C, 194H and 194J)	50 Lakh	2	2
194N	Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (w.e.f 01.09.2019)	1 Crore (Rs. 3 Crores, if withdrawal is by co-operative society)	2	2
		20 Lakh (if ITR not filed for previous 3 years)	2 (Rs. 20 Lakh – 1 Crore)	2
			5 (Rs. 1 Crore and above)	5
194O	TDS on e-commerce participants	5 Lakh	0.1	0.1
194P	TDS in case of Specified Senior Citizen (above 75 years) having Salary & Interest (ITR not required)		Slab Rate	NA
194Q	TDS on Purchase of Goods exceeding Rs. 50 Lakh (Applicable From 01-July-2021)	In Excess of Rs. 50 Lakh	0.1	0.1
194R	Benefits or perquisites of business or profession	20,000	10	10
194S	Payment of consideration for transfer of virtual digital asset by persons other than specified person	10,000	1	1
	Payment of consideration for transfer of virtual digital asset by specified person	50,000	1	1
194SP	Payment for transfer of virtual digital asset where payment is in kind or in exchange of another virtual digital asset and tax required to be deducted is paid before such payment is released	10,000	1	1
194T	Payments by Partnership Firms to Partners	20,000	10	10
Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)

Notes:

The above list covers most of the sections applicable for domestic transactions

Section – 206AA

Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (i.e. deductor), failing which tax shall be deducted at the higher of the following rates, namely:-
(i) at the rate specified in the relevant provision of this Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of twenty percent:
Provided that where the tax is required to be deducted under section 194-O, the provisions of clause (iii) shall apply as if for the words “twenty percent”, the words “five percent” had been substituted.
Provided further that where the tax is required to be deducted under section 194Q, the provisions of clause (iii) shall apply as if for the words “twenty percent”, the words “five percent” had been substituted.

TDS RATE CHART (FOREIGN) FY: 2025-26 (AY: 2026-27)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		RS.	Existing TDS Rates (%)
192A	Payment against EPF Scheme	30000	10	10
194E	Non-resident Sportsman or Sports Assn.	–	20	20
194LB	Interest from infrastructure debt fund payable to non-resident	–	5	5
194LBA	Certain income from units of a business trust	–	5	5
194LBA(a)	Income referred to in section 10(23FC)(a) from units of a business trust	–	5	5
194LBA(b)	Income referred to in section 10(23FC)(b) from units of a business trust	–	10	10
194LBA(c)	Income referred to in section 10(23FCA) from units of a business trust	–	30	30
194LBB	Income on units of Investment Fund	–	30	40
194LBC	Income in respect of investment in securitization trust	–	30	40
194LC*	Interest from specified company payable to non-resident	–	5	5
194LD	Interest on certain bonds and govt. securities	–	5	5
194N	Payment of certain amounts in cash	–	2	2
194NF	Payment of certain amounts in cash to non-filers	–	1	1
195	Payment of any other sum to a Non-resident
	a) Income in respect of investment made by a Non-resident Indian Citizen	–	20	20
	b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen	–	12.5	12.5
	c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112	–	12.5	12.5
	d) Income by way of long-term capital gains as referred to in Section 112A	–	12.5	12.5
	e) Income by way of short-term capital gains referred to in Section 111A	–	20	20
	f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A	–	12.5	12.5
	g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)	–	20	20
	h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India	–	20	20
	i) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	20	20
	j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	20	20
	k) Any other income	–	30	30
196A	Foreign Company being unit holder in Mutual Fund	–	20	20
196B	Units held by Off-shore Fund	–	12.5	12.5
196C	Income from Foreign Currency Bonds	–	12.5	12.5
196D	Income of FII on Securities	–	20	20
196DA	Income of specified fund from securities	–	10	10
*Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)*
* TDS would be 4% in case where interest is payable in respect of long-term Bond or Rupee Denominated Bond listed on recongnised stock exchange located in IFSC. TDS would be 9% where money borrowed from a source outside India by issuing long-term Bond or Rupee Denominated Bond on or after 01-04-2023, which is listed only on recongnised stock exchange located in IFSC.

TCS RATE CHART FY: 2025-26 (AY: 2026-27)

Collection Codes under section 206C

Code	Nature of Payment	TCS Rate %
A	Alcoholic Liquor for human consumption & Tendu leaves	1
B	Timber obtained under a forest lease or other mode	2
C	Timber obtained under any other mode other than forest lease	2
D	Any other forest produce not being a timber or Tendu leaves	2
E	Scrap	1
F	Parking Lot	2
G	Toll Plaza	2
H	Mining & Quarrying	2
I	Tendu Leaves	5
J	Minerals	1
K	Bullion & Jewellery	1
L	Sale of Motor Vehicle (exceeding Rs. 10 Lakh)	1
M	TCS on sale in cash of any goods (other than bullion / jewellary) (Only applicable for F.Y. 2016-17 )	1
N	TCS on providing of any services (other than Ch-XVII-B) (Only applicable for F.Y. 2016-17)	1
O	Tour Program Package	5
P	LRS – Educational Loan – Financial Institution (Removed from 01/04/2025)	0
Q	LRS-other purposes – Liberalized Remittance Scheme (Threshold Limit – 10 Lakh)	5
R	Sale of Goods (Removed from 01/04/2025)	0
T	LRS – Education or Medical Treatment not covered under Code P	5

Note: TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Notes:

The above list covers most of the sections applicable for domestic transactions.

Section-206CC

Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates, namely:-
(i) at twice the rate specified in the relevant provision of this Act; or
(ii) at the rate of five per cent.
The provisions of this section shall not apply to a non-resident who does not have permanent establishment in India.

TDS And TCS Rate Chart FY 2025-26 AY 2026-27

Rates for deduct of tax at source

How to pay Tax Deducted/Collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

1) Electronic mode: E-Payment is mandatory for
- a) All corporate assesses; and
- b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
2) Physical Mode: By furnishing the Challan 281 in the authorized bank branch

Note:-

Credit for tax payments

a. Challan Status
b. View Your Tax Credit

TDS RATE CHART FY 2025-26 (AY 2026-27)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		Rs.	TDS Rate (%)
192	Salaries	–	Slab Rate	Slab Rate
192A	Premature withdrawal from EPF	50,000	10	–
193	Interest on Securities	10,000	10	10
194	Dividends	10,000	10	10
194A	Interest (Banks)	50,000	10	10
194A	Interest – Senior Citizen (Banks)	1 Lakh	10	10
194A	Interest (Others)	10,000	10	10
194B	Winning from Lotteries	10,000	30	30
194BA	Winnings from online games	–	30	30
194BB	Winning from Horse Race	10,000	30	30
194C	Contractor – Single Transaction	30,000	1	2
194C	Contractor – During the F.Y.	1 Lakh	1	2
194C	Transporter (44AE) declaration with PAN	–	–	–
194D	Insurance Commission (15G-15H allowed)	20,000	2	10
194DA	Payment received – Life insurance Policy	1 Lakh	2	2
194EE	Payment received – National Savings Scheme (NSS)	2,500	10	10
194F	Repurchase Units by MFs	–	–	–
194G	Commission – Lottery	20,000	2	2
194H	Commission / Brokerage	20,000	2	2
194I(a)	Rent for Plant & Machinery	50,000 per month	2	2
194I(b)	Rent of Land Building & Furniture	50,000 per month	10	10
194IA	Transfer of certain immovable property other than agricultural land	50 Lakh	1	1
194IB	Rent payment by individual / HUF not covered u/s 194I	50,000 per month	2	2
194IC	Payment under specified Joint Development Agreement	–	10	10
194J (a)	Fees – Technical Services, Call Centre, Royalty, Distribution / Exhibition of Cinematography Films, etc.	50,000	2	2
194J (b)	Fees – All other Professional Services	50,000	10	10
194K	Payment of dividend by mutual Funds	10,000	10	10
194LA	Compensation on transfer of certain immovable property other than agricultural land	5 Lakh	10	10
194LB	Income by way of interest from infrastructure debt fund (non-resident)	–	5	5
194LBA	Certain income from units of a business trust (applicable from 01.10.2014)	–	10	10
194LBB	Income in respect of investment of investment fund	–	10% for residents, 30% for non-residents	10% for residents, 40% for non-residents
194LBC	Income in respect of investment in securitization trust	–	10% for residents, 40% for non-residents, 10% for individual & HUF	10% for residents, 40% for non-residents, 10% for individual & HUF
194LD	Interest on certain bonds and Govt. Securities (from 01.06.2013)		5	5
194M	Payment made for Contracts, Brokerage or Professional Fees etc. by Individual and HUF (other than sections 194C, 194H and 194J)	50 Lakh	2	2
194N	Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (w.e.f 01.09.2019)	1 Crore (Rs. 3 Crores, if withdrawal is by co-operative society)	2	2
		20 Lakh (if ITR not filed for previous 3 years)	2 (Rs. 20 Lakh – 1 Crore)	2
			5 (Rs. 1 Crore and above)	5
194O	TDS on e-commerce participants	5 Lakh	0.1	0.1
194P	TDS in case of Specified Senior Citizen (above 75 years) having Salary & Interest (ITR not required)		Slab Rate	NA
194Q	TDS on Purchase of Goods exceeding Rs. 50 Lakh (Applicable From 01-July-2021)	In Excess of Rs. 50 Lakh	0.1	0.1
194R	Benefits or perquisites of business or profession	20,000	10	10
194S	Payment of consideration for transfer of virtual digital asset by persons other than specified person	10,000	1	1
	Payment of consideration for transfer of virtual digital asset by specified person	50,000	1	1
194SP	Payment for transfer of virtual digital asset where payment is in kind or in exchange of another virtual digital asset and tax required to be deducted is paid before such payment is released	10,000	1	1
194T	Payments by Partnership Firms to Partners	20,000	10	10
Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)

Notes:

The above list covers most of the sections applicable for domestic transactions

Section – 206AA

TDS RATE CHART (FOREIGN) FY: 2025-26 (AY: 2026-27)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		RS.	Existing TDS Rates (%)
192A	Payment against EPF Scheme	30000	10	10
194E	Non-resident Sportsman or Sports Assn.	–	20	20
194LB	Interest from infrastructure debt fund payable to non-resident	–	5	5
194LBA	Certain income from units of a business trust	–	5	5
194LBA(a)	Income referred to in section 10(23FC)(a) from units of a business trust	–	5	5
194LBA(b)	Income referred to in section 10(23FC)(b) from units of a business trust	–	10	10
194LBA(c)	Income referred to in section 10(23FCA) from units of a business trust	–	30	30
194LBB	Income on units of Investment Fund	–	30	40
194LBC	Income in respect of investment in securitization trust	–	30	40
194LC*	Interest from specified company payable to non-resident	–	5	5
194LD	Interest on certain bonds and govt. securities	–	5	5
194N	Payment of certain amounts in cash	–	2	2
194NF	Payment of certain amounts in cash to non-filers	–	1	1
195	Payment of any other sum to a Non-resident
	a) Income in respect of investment made by a Non-resident Indian Citizen	–	20	20
	b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen	–	12.5	12.5
	c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112	–	12.5	12.5
	d) Income by way of long-term capital gains as referred to in Section 112A	–	12.5	12.5
	e) Income by way of short-term capital gains referred to in Section 111A	–	20	20
	f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A	–	12.5	12.5
	g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)	–	20	20
	h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India	–	20	20
	i) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	20	20
	j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	20	20
	k) Any other income	–	30	30
196A	Foreign Company being unit holder in Mutual Fund	–	20	20
196B	Units held by Off-shore Fund	–	12.5	12.5
196C	Income from Foreign Currency Bonds	–	12.5	12.5
196D	Income of FII on Securities	–	20	20
196DA	Income of specified fund from securities	–	10	10
*Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)*
* TDS would be 4% in case where interest is payable in respect of long-term Bond or Rupee Denominated Bond listed on recongnised stock exchange located in IFSC. TDS would be 9% where money borrowed from a source outside India by issuing long-term Bond or Rupee Denominated Bond on or after 01-04-2023, which is listed only on recongnised stock exchange located in IFSC.

TCS RATE CHART FY: 2025-26 (AY: 2026-27)

Collection Codes under section 206C

Code	Nature of Payment	TCS Rate %
A	Alcoholic Liquor for human consumption & Tendu leaves	1
B	Timber obtained under a forest lease or other mode	2
C	Timber obtained under any other mode other than forest lease	2
D	Any other forest produce not being a timber or Tendu leaves	2
E	Scrap	1
F	Parking Lot	2
G	Toll Plaza	2
H	Mining & Quarrying	2
I	Tendu Leaves	5
J	Minerals	1
K	Bullion & Jewellery	1
L	Sale of Motor Vehicle (exceeding Rs. 10 Lakh)	1
M	TCS on sale in cash of any goods (other than bullion / jewellary) (Only applicable for F.Y. 2016-17 )	1
N	TCS on providing of any services (other than Ch-XVII-B) (Only applicable for F.Y. 2016-17)	1
O	Tour Program Package	5
P	LRS – Educational Loan – Financial Institution (Removed from 01/04/2025)	0
Q	LRS-other purposes – Liberalized Remittance Scheme (Threshold Limit – 10 Lakh)	5
R	Sale of Goods (Removed from 01/04/2025)	0
T	LRS – Education or Medical Treatment not covered under Code P	5

Note: TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Notes:

The above list covers most of the sections applicable for domestic transactions.

Section-206CC

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

The Union Budget 2025 proposed the rationalisation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) to ease compliance challenges for taxpayers especially for middle-income earners. The government has raised the threshold limits across various TDS sections, aiming to simplify the tax process. The proposed changes are as follows

Section Present Proposed
193 – Interest onsecurities NIL 10,000
194A – Interest other thanInterest on securities (i) 50,000/- for seniorcitizen;(ii) 40,000/- in case ofotherswhen payer is bank,cooperative society andpost office(iii) 5,000/- in othercases (i) 1,00,000/- for seniorcitizen(ii) 50,000/- in case ofotherswhen payer is bank, cooperativesociety and postoffice(iii) 10,000/- in other cases
194 – Dividend, for an individual shareholder 5,000 10,000
194K – Income in respect of units of a mutual fund 5,000 10,000
194B – Winningsfrom lottery, crossword puzzle Etc. &194BB – Winnings from horse race Aggregate of amountsexceeding 10,000/-during the financial year 10,000/- in respect of asingle transaction
194D – Insurance commission 15,000 20,000
194G – Income by way ofcommission, prize etc. on lottery tickets 15,000 20,000
194H – Commission orbrokerage 15,000 20,000
194-I – Rent 2,40,000 (in a financial year) 6,00,000 (in a financial year)
194J – Fee for professional or technical services 30,000 50,000
194LA – Income by way of enhanced compensation 2,50,000 5,00,000
206C(1G) – Remittance under LRS and overseastour program package 7,00,000 10,00,000

Note:

The Tax Collected at Source (TCS) will be removed on remittances made for educational purposes when these remittances are financed through loans from specified financial institutions (Section 80E).

The Tax Collected at Source (TCS) on the purchase of goods will be removed, effective from April 1, 2025.

The higher TDS rate will only apply in cases where taxpayers do not provide PAN.

TDS Rates in India

The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India. Any person paying income is responsible to deduct tax at source and deposit TDS within the stipulated due date.

TDS Rate Charts for the FY 2023-24 and FY 2024-25

Section	Deductee*	Nature of transaction	Threshold Limit (Rs)	TDS Rate
192	R, NR	Payment of salary	Basic exemption limit of employee	Normal Slab Rates
192A	R, NR	Premature withdrawal from EPF	50,000	10%
193	R	Interest on securities	Debentures- 5,000	10%
			8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000
			Other securities- No limit
194	R	Payment of any dividend	5,000	10%
194A	R	Interest from other than interest from securities (from deposits with banks/post office/co-operative society)	Senior Citizens- 50,000 Others- 40,000	10%
194A	R	Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives	5,000	10%
194B	R, NR, FC	Income from lottery winnings, card games, crossword puzzles, and other games of any type	Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 Online Gaming – Refer 194BA	30%
194BA	R, NR, FC	Income from online games	Nil	30%
194BB	R, NR, FC	Income from horse race winnings	10,000 (Aggregate winnings during a financial year not single transaction)	30%
194C	R	Payment to contractor/sub-contractor:-	Single transaction- 30,000 Aggregate transactions- 1,00,000
		a) Individuals/HUF		1%
		b) Other than Individuals/HUF		2%
194D	R	Insurance commission to:	15,000	10%
		a) Domestic Companies		10%
		b) Other than companies		5%
194DA	R	Income from the insurance pay-out, while payment of any sum in respect of a life insurance policy.	1,00,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194E	NR, FC	Payment to non-resident sportsmen/sports association	No limit	20%
194EE	R, NR	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	2,500	10%
194F	R, NR	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	No limit	20% This section is omitted with effect from 1st October 2024
194G	R, NR, FC	Payments, commission, etc., on the sale of lottery tickets	15,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194H	R	Commission or brokerage	15,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194-I	R	Rent:	2,40,000	2%
		194-I(a) Rent on palnt & machinery		2%
		194-I(b) Rent on land/building/furniture/fitting		10%
194-IA	R	Payment in consideration of transfer of certain immovable property other than agricultural land.	50,00,000	1%
194-IB	R	Rent payment by an individual or HUF not covered u/s. 194-I	50,000 per month	5% (before 1st October 2024) 2% (from 1st October 2024)
194-IC	R	Payment under Joint Development Agreements (JDA) to Individual/HUF	No limit	10
194J	R	Any sum paid by way of fee for professional services	30,000	10%
194J	R	Any sum paid by way of remuneration/fee/commission to a director	30,000	10%
194J	R	Any sum paid for not carrying out any activity concerning any business;	30,000	10%
194J	R	Any sum paid for not sharing any know-how, patent, copyright, etc.	30,000	10%
194J	R	Any sum paid as a fee for technical services	30,000	2%
194J	R	Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films	30,000	2%
194J	R	Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.	30,000	2%
194K	R	Payment of any income for units of a mutual fund, for example, dividend	No limit	10%
194LA	R	Payment in respect of compensation on acquiring certain immovable property	2,50,000	10%
194LB	NR, FC	Payment of interest on infrastructure debt fund to Non-Resident	No limit	5%
194LC	NR, FC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds	No limit	5%
194LC	NR, FC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC	No limit	4%
194LD	NR, FC	Payment of interest on bond (rupee-denominated) to FII or a QFI	No limit	5%
194LBA(1)	R	Certain income distributed by a business trust to its unitholder	No limit	10%
194LBA(2)	NR, FC	Interest income of a business trust from SPV distribution to its unitholders	No limit	5%
194LBA(2)	NR, FC	Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders	No limit	10%
194LBA(3)	NR	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	30%
194LBA(3)	FC	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	40%
194LBB	R	Certain income paid to a unitholder in respect of units of an investment fund	No limit	10%
194LBB	NR	Certain income paid to a unitholder in respect of units of an investment fund	No limit	30%
194LBB	FC	Certain income paid to a unitholder in respect of units of an investment fund	No limit	40%
194LBC	R	Income from investment in securitisation fund received to an individual and HUF	No limit	25%
194LBC	NR	Income from investment in securitisation fund received to a domestic company	No limit	30%
194LBC	FC	Income from investment in securitisation fund received to a foreign company	No limit	40%
194M	R	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	50,00,000	5% (before 1st October 2024) 2% (from 1st October 2024)
194N	R, NR	Cash withdrawal exceeding a certain amount	Co-operative society: 3 Crore	2%
194N	R, NR	Cash withdrawal exceeding a certain amount	Others: 1 crore	2%
194N	R, NR	Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired	– 20 lakh to 1 crore	2%
194N	R, NR		-1 crore	5% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore
194O	R	Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	5,00,000	1% (before 1st October 2024) 0.1% (from 1st October 2024)
194P	R	Payment of pension or interest to specified senior citizens of age 75 years or more	Basic exemption limit of senior citizens or super senior citizens	Normal tax slab rates
194Q	R	Payments for the purchase of goods	50,00,000	0.10%
194R	R	Perquisite or benefit to a business or profession	20,000	10%
194S	R	TDS on the transfer of virtual digital assets	Specified Persons- 50,000	1%
194S	R	Specified persons: Individual or a HUF not having income from business or profession OR	Others- 10,000	1%
195	NR	Income on investments made by NRI citizen	No limit	20%
195	NR	Income by way of LTCG referred to in section 115E in the case of NRI	No limit	10%
195	NR, FC	Income by way of LTCG under section 112(1)(c)(iii)	No limit	10%
195	NR, FC	Income by way of LTCG under section 112A	No limit	10%
195	NR, FC	Income by way of STCG under section 111A	No limit	15%
195	NR, FC	Any other income by way of LTCG	No limit	20%
195	NR, FC	Interest payable on money borrowed by the government or Indian concern in foreign currency	No limit	20%
195	NR, FC	Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A	No limit	20%
195	NR	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	No limit	20%
195	FC	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	No limit	50%
195	FC	If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976	No limit	50%
195	FC	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	No limit	20%
195	FC	If the agreement for such royalty payment is entered after 31st March 1976	No limit	20%
195	NR	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	No limit	20%
195	FC	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	No limit	50%
195	FC	If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976	No limit	50%
195	FC	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	No limit	20%
195	FC	If the agreement for such payment is entered after 31st March 1976	No limit	20%
195	NR	Any other income	No limit	30%
195	FC	Any other income	No limit	40%
196B	NR, FC	Income (including LTCG) from units of an offshore fund	No limit	10%
196C	NR, FC	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	No limit	10%
196D	NR, FC	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	No limit	20%
206AB	R	Payment to non-filers, i.e. those who have not filed their income tax return in the last year Non-filers do not include: – People who are not required to file their ITRs – NRs who do not have a PE in India	No limit	– 2 times the rate given in the Income Tax Act or Finance Act or
206AA	R, NR, FC	TDS rate in case of Non availability of PAN	No limit	Rates specified above or 20%, whichever is higher

*”R” denotes Resident,
“FC” denotes Foreign company, and
“NR” denotes Non-Resident.

Note:

The Normal slab rates from FY 2023-24 for individuals and HUF have changed under the new tax regime.
Applicable surcharge and health and education cess shall be deducted in addition to the TDS rates deducted for NRI and FC deductees.
In the above TDS rate chart, the ‘Resident’ payee under the column ‘TDS deducted’ includes domestic companies.
All TDS amendments introduced in Budget 2023 have been included in the TDS chart above.

Union Budget 2024 New TDS Provisions

Section 194T – Payments to partners of firms

Starting from April 1, 2025, TDS will be applicable on payments made by a firm to its partners. Under Section 194T, if you receive salary, commission, bonus, or interest exceeding Rs. 20,000 in a financial year, the firm must deduct TDS at a rate of 10%. This deduction will occur either when the payment is credited to your account or when the payment is made, whichever comes first. It’s essential for partners to plan their withdrawals carefully, as this new provision will impact cash flow and tax liabilities.

Overview of TDS Rate Chart for the FY 2023-24 and FY 2024-25

Section	Nature of transaction	TDS Rate
192	Payment of salary	Normal Slab Rates
192A	Premature withdrawal from EPF	With PAN: 10% Without PAN: 20%
193	Interest on securities	10%
194	Payment of any dividend	10%
194A	Interest other than interest from securities (from deposits with banks/post office/co-operative society)Interest from banks/post office/co-operative society	10%
194B	Income from lottery winnings, card games, crossword puzzles etc.	30%
194BA	Income from online games	30%
194BB	Income from horse race winnings	30%
194C	Payment to contractor/sub-contractor:-
	a) Individuals/HUF	1%
	b) Other than Individuals/HU	2%
194D	Insurance commission to:
	a) Domestic Companies	10%
	b) Other than companies	5%
194DA	Insurance pay-out in respect of a life insurance policy	5% (before 1st October 2024) 2% (from 1st October 2024)
194E	Payment to non-resident sportsmen/sports association	20% + surcharge + 4% cess
194EE	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
194F	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	20%
194G	Payments, commission, etc., on the sale of lottery tickets	5% (before 1st October 2024) 2% (from 1st October 2024)
194H	Commission or brokerage	5% (before 1st October 2024) 2% (from 1st October 2024)
194-I	Rent:
	194-I(a) Rent on plant and machinery	2%
	194-I(b) Rent on land/building/furniture/fitting	10%
194-IA	Payment in consideration of transfer of certain immovable property other than agricultural land.	1%
194-IB	Rent payment by an individual or HUF not covered u/s. 194-I	5% (before 1st October 2024) 2% (from 1st October 2024)
194-IC	Payment under Joint Development Agreements (JDA) to Individual/HUF	10
194J	Any sum paid by way of fee for professional services	10%
194J	Any sum paid by way of remuneration/fee/commission to a director	10%
194J	Any sum paid for not carrying out any activity concerning any business;	10%
194J	Any sum paid for not sharing any know-how, patent, copyright, etc.	10%
194J	Any sum paid as a fee for technical services	2%
194J	Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films	2%
194J	Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.	2%
194K	Payment of any income for units of a mutual fund, for example, dividend	10%
194LA	Payment in respect of compensation on acquiring certain immovable property	10%
194LB	Payment of interest on infrastructure debt fund to Non-Resident	5% + surcharge + 4% cess
194LC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds	5%
194LC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC	4%
194LD	Payment of interest on bond (rupee-denominated) to FII or a QFI	5%
194LBA(1)	Certain income distributed by a business trust to its unitholder	10%
194LBA(2)	Interest income of a business trust from SPV distribution to its unitholders	5%
194LBA(2)	Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders	10%
194LBA(3)	Rental income payment of assets owned by the business trust to the unitholders of such business trust	30%
194LBA(3)	Rental income payment of assets owned by the business trust to the unitholders of such business trust	40%
194LBB	Certain income paid to a unitholder in respect of units of an investment fund	10%
194LBB	Certain income paid to a unitholder in respect of units of an investment fund	40%
194LBC	Income from investment in securitisation fund received to an individual and HUF	25%
194LBC	Income from investment in securitisation fund received to a domestic company	10%
194LBC	Income from investment in securitisation fund received to a foreign company	40%
194LBC	Income from investment in securitisation fund received to NRI	10%
194M	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	5% (before 1st October 2024) 2% (from 1st October 2024)
194N	Cash withdrawal from a banking company, co-operative society engaged in the business of banking or a post office:	2%
	Filed ITR during the last three years and cash withdrawal exceeds Rs 3 crore	2%
	In case person has not filed ITR for the last three years – total cash withdrawn is more than ₹20 lacs and up to ₹3 Crore in a FY – total cash withdrawn is more than ₹3 Crore is a financial year	– 2% – 5%
194O	Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	1% (before 1st October 2024) 0.1% (from 1st October 2024)
194P	Payment of pension or interest to specified senior citizens of age 75 years or more	Normal tax slab rates
194Q	Payments for the purchase of goods	0.10%
194R	Perquisite or benefit to a business or profession	10%
194S	TDS on the transfer of virtual digital assets	1%
195	Income on investments made by NRI citizen	20%
195	Income by way of LTCG referred to in section 115E in the case of NRI	10%
195	Income by way of LTCG under section 112(1)(c)(iii)	10%
195	Income by way of LTCG under section 112A	10%
195	Income by way of STCG under section 111A	15%
195	Any other income by way of LTCG	20%
195	Interest payable on money borrowed by the government or Indian concern in foreign currency	20%
195	Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A	10%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	10%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976	50%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976	10%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	10%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976	50%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered after 31st March 1976	10%
195	Any other income	30%
195	Any other income	40%
196B	Income (including LTCG) from units of an offshore fund	10%
196C	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	10%
196D	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%
206AB	Payment to non-filers, i.e. those who have not filed their income tax return in the last year Budget 2023: Non filers do not include: – People who are not required to file their ITRs – NRs who do not have a PE in India	– 2 times the rate given in the Income Tax Act or Finance Act or – 5%, whichever is higher
206AA	TDS rate in case of Non availability of PAN	Rates specified above or 20%, whichever is higher

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TDS Rates Applicable on Non Resident Indian (Other than a Company)

Particulars	TDS Rate
Section 192: Payment of salary Section 192A: Premature withdrawal from EPF	Normal Slab Rate 10%
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	30%
Section 194BB: Income by way of horse race winnings	30%
Section 194E: Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.	20%
Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund	20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets	5%
Section 194LB: Payment in respect of compensation on acquisition of certain immovable property.	5%
Section 194LBA(2): Payment like- -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 in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.	30%
Section 194LBB: Payment of certain income by an investment fund to a unitholder.	30%
Section 194LBC: Income from investment in securitisation fund	30%
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: Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor.	5%
Section 195: Payment of any other sum to NRI:Income on investments made by NRI citizen; Income by way of LTCG referred to in section 115E in the case of NRI; Income by way of LTCG under section 112(1)(c)(iii); Income by way of LTCG under section 112A; Income by way of STCG under section 111A; Any other income by way of LTCG; Interest payable on money borrowed by the government or Indian concern in foreign currency; Income from royalty payable to the Indian concern, by government or Indian concern, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A Income from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy; Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy; Any other income.	20% 10% 10% 10% 15% 20% 20% 10% 10% 10% 30%
Section 196B: Income (including LTCG) from units of an offshore fund.	10%
Section 196C: Income (including LTCG) from foreign currency bonds or GDR of an Indian company	10%
Section 196D: Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%

TDS Rate Charts Where the Company is a Domestic Company

Particulars	TDS Rate
Section 192: Payment of salary Section 192A: Premature withdrawal from EPF	Normal Slab Rate 10%
Section 193: Interest on securities. a) any security of the Central or State Government; b) any debentures or securities for money issued by any local authority or a corporation established by a Central, State or Provincial Act; c) any debentures (listed on a recognised stock exchange) issued by a company where such debentures are ; d) interest on any other security	10% 10% 10% 10%
Section 194: Payment of any dividend	10%
Section 194A: Income in the form of interest (other than interest on securities).	10%
Section 194B: Income by way of lottery winnings, card games, crossword puzzles, and other games of any type	30%
Section 194BB: Income by way of horse race winnings	30%
Section 194C: Payment to contractor/sub-contractor. a) Individuals/HUF b) Others	1% 2%
Section 194D: Insurance commission	10%
Section 194DA: Payment of any sum in respect of a life insurance policy.w.e.f. 1st September 2019, the insurer shall deduct tax (TDS) on the income portion comprised in the insurance pay-out.	5%
Section 194EE: Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
Section 194F: Payment due to repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund	20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets	5%
Section 194H: Commission or brokerage	5%
Section 194-I: Rent on a) Plant and Machinery b) Land/building/furniture/fitting w.e.f 1st April 2019, tax deduction limit on rent is increased to Rs 2.4 lakhs p.a. from Rs 1.8 lakhs p.a.	2% 10%
Section 194-IA: Payment in consideration of transfer of certain immovable property other than agricultural land. Section 194-IC: Payment under Joint Development Agreements (JDA) to Individual/HUF	1% 10%
Section 194J: Any sum paid by way of: (a) Fee for professional services; (b) Remuneration/fee/commission to a director; (c) For not carrying out any activity in relation to any business; (d) For not sharing any know-how, patent, copyright etc. (e) Fee for technical services, and (f) Royalty towards the sale or distribution, or exhibition of cinematographic films. (g) Fees for technical services but payee is engaged in the business of operation of call centre	10% 10% 10% 10% 2% 2% 2%
Section 194K: Payment of any income for units of a mutual fund as per section 10(23D) or from the administrator or specified company	10%
Section 194LA: Payment in respect of compensation on acquisition of certain immovable property.	10%
Section 194LBA(1): Certain income distributed by a business trust to its unitholder	10%
Section 194LBB: Certain income paid in respect of units of an investment fund to a unitholder.	10%
Section 194LBC: Income from investment in securitisation fund	10%
Section 194M: Certain payments by Individual/HUF (Limit- Rs 50 Lakhs)	5%
Section 194N: Cash withdrawal exceeding a certain amount (limit- Rs 1 crore). In case Rs 20 lakh or more is withdrawn by the person not-filing ITR for the last three years, for which the due date of filing ITR has expired, the TDS rates shall be applicable as per below slabs- For the amount more than Rs.20 lakh but up to Rs. 1 crore, and And for the amount exceeding Rs. 1 crore	2% 2% 5%
Section 194O: For the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	1%
Section 194Q: Payments to residents for the purchase of goods if the aggregate value of goods exceeds Rs 50 lakhs.(TDS is deductible on value exceeding Rs 50 lakhs)	0.1%
Any Other Income	10%

TDS Rates Where the Company is Not a 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 by way of horse race winnings	30%
Section 194E: Payment to non-resident sportsman (including an athlete) or an entertainer (not a citizen of India) or non-resident sports association.	20%
Section 194G: Payments such as commission, etc., on the sale of lottery tickets	5%
Section 194LB: Payment in respect of compensation on acquisition of certain immovable property.	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 in the nature of income in the nature of rental income, out of real estate assets owned directly by such business trust, to unitholders.	40%
Section 194LBB: Payment of certain income by an investment fund to a unitholder.	40%
Section 194LBC: Income from investment in securitisation 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: Payment of interest on the bond (rupee-denominated) to Foreign Institutional Investors or a Qualified Foreign Investor.	5%
Section 195: Payment of any other sum, such as-Income by way of LTCG under section 112(1)(c)(iii); Income by way of LTCG under section 112A; Income by way of STCG under section 111A; Any other income by way of LTCG; Interest payable on money borrowed by the government or Indian concern in foreign currency; Income from royalty payable to the Indian concern, by government or Indian concern, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A (an agreement made after 1st March 1976); Income from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy. Where the agreement is made after- 31st March 1961 but before 1st April 1976-31st March 1976 Income from technical fees to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy. Where agreement is made after- 29th February 1964 but before 1st April 197631st March 1976 Any other income.	10% 10% 15% 20% 20% 10% 50% 10% 50% 10% 40%
Section 196B: Income (including LTCG) from units of an offshore fund.	10%
Section 196C: Income (including LTCG) from foreign currency bonds or GDR of an Indian company	10%
Section 196D: Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%

FAQs

1. What is Tax Deducted at Source (TDS)?

Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department of India, where the payer deducts a certain percentage of tax before making specific payments like salary, rent, or interest. This deducted amount is then deposited with the government on behalf of the payee.

2. What are the significant changes in TDS rates as per the Budget 2024?

The Budget 2024 introduced reductions in 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. For instance, the TDS rate for payments under Section 194H (commission or brokerage) in the TDS percentage chart has been reduced from 5% to 2%, effective October 1, 2024.

3. How does the TDS on salary work for the Financial Year 2024-2025?

For the Financial Year 2024-2025, TDS on salary is deducted based on the tax slab rates applicable to the individual’s taxable income. Employees can opt for either the normal slab rate or the new tax regime TDS slab rates, and the employer will deduct TDS accordingly as per the applicable TDS percentage chart.

4. What are the TDS rates for interest on securities and dividends?

As per the TDS section chart, TDS rates for FY 2024 25 for interest on securities under Section 193, if the interest amount exceeds INR 2,500, the TDS rate is 10%. For dividends under Section 194, if the dividend amount exceeds INR 5,000, the TDS rate is also 10%.

5. Are there any changes in TDS rates for FY 2024 25 for online gaming winnings?

Yes, with effect from April 1, 2023, Section 194BA was introduced, which mandates a 30% TDS on net winnings from online games. This TDS is deductible on the net winnings in the user account at the end of the financial year or at the time of withdrawal as mentioned in the TDS section chart during the financial year, whichever is earlier.

6. How has the TDS rate for rent payments changed?

Under Section 194-IB, applicable to rent payments by certain individuals or Hindu Undivided Families (HUF), the TDS rate has been reduced from 5% to 2%, effective October 1, 2024.

7. What is the TDS rates for FY 2024 25 for payments made by e-commerce operators to participants?

As per Section 194-O, the TDS slab rates on payments made by e-commerce operators to e-commerce participants has been reduced from 1% to 0.1%, effective October 1, 2024.

8. Are there any penalties for not furnishing a Permanent Account Number (PAN) to the deductor?

Yes, under Section 206AA, if the deductee fails to furnish their PAN to the deductor, TDS is deducted at the higher of the following rates:

The rate specified in the relevant section of the Income Tax Act.
The rate or rates in force.
20%.

9. What is the TDS rate for winnings from lotteries or crossword puzzles?

Under Section 194B, if the winnings from lotteries or crossword puzzles exceed INR 10,000, the TDS rate is 30%.

10. How does the new tax regime affect TDS deductions?

The new tax regime, introduced in the Union Budget 2020–21 and revised in subsequent budgets, offers reduced tax rates without exemptions and deductions. Taxpayers can choose between the old and new tax regimes, and TDS on salary will be deducted based on the regime opted by the employee.

11. What is the latest TDS rate chart for FY 2025?

The latest TDS rate chart for FY 2025 is a detailed document that outlines the tax deduction at source (TDS) rates for various types of income, applicable for the financial year 2025. It helps individuals and businesses ensure that they are deducting the correct amount of tax from payments made.

12. Why is the latest TDS rate chart for FY 2025 important?

The TDS rate chart for FY 2025 is crucial for understanding the revised tax rates on various payments like salaries, interest, and professional fees, helping individuals and businesses remain compliant with tax regulations.

13. Where can I find the TDS new rate chart 2025?

The TDS new rate chart 2025 is available on government tax portals and can be referred to for the most recent modifications in TDS rates for the year 2025 or else you can refer to the TDS section chart article by IndiaFilings.

14. How do I know if the TDS chart 2025 applies to me?

The TDS new rate chart 2025 applies to anyone receiving income on which TDS is applicable. You can compare it with your sources of income (such as salary, rent, or interest) to see if the new rates affect you.

One Rate One Section for TDS

Simplify ITR forms, bring ’one rate one section’ for TDS: Deloitte survey

A vast majority of income tax filers want simplified ITRs for individuals, easier way for computing incentives and deductions, and simplification of TDS framework for ‘one rate one section’, a Deloitte survey said on Wednesday.

Deloitte’s Income-Tax Policy Survey also suggested doing away with the requirement of issuing Form 16A as the TDS information is already reported and available in the Form 26AS and AIS of the recipient.

The survey also suggested limiting the number of sections with regard to withholding tax, classifying payments into two-to-three distinct and non-overlapping categories, and ensuring that each section has only one rate, which will significantly reduce the burden of compliance without any major loss in tax collections from a tax administrative perspective.

For example, 1 per cent TDS on tangible goods, 2 per cent on services, 0.1 per cent on e-commerce transactions, and 10 per cent on other transactions such as dividend and interest.

The Income Tax Policy Survey involves an online survey of over 320 industry professionals in organisations across multiple industries, including C-suite, directors and presidents from the finance and tax functions; general managers (finance/tax), and vice-presidents (finance/tax); as well as finance and taxation managers.

A vast majority of respondents (76 per cent) rooted for simplification in computing incentives and deductions, reflecting taxpayers‘ concern in understanding and computing eligible incentives/deductions.

Nearly three-fourths (73 per cent) of respondents advocated for simplifying the computation methodology of the fair value of assets and other property as well as the computation of foreign tax credit.

Ease of preparing and filing individual ITR forms is a major ask, supported by nearly 74 per cent of respondents, while 71 per cent sought to simplify ITR forms for corporates.

For 73 per cent of respondents, simplification of the tax audit report is a major ask, indicating a high level of complexity and compliance burden.

About 68 per cent of respondents laid emphasis on the requirement to ease preparing and filing of TDS/TCS returns.

Deloitte also suggested that as a simpler income tax law is in the works, the government should avoid the use of provisos and instead, the text could be integrated into simple sentences so that the reader can understand its logical function better.

The effectiveness of the tax law can be significantly enhanced if the words used are meaningful, well thought out, and well organised.

For example, several related sections, perhaps located in different parts of the statute, could be combined into one chapter, Deloitte said.

Know Your TDS Rates for FY 2024-25 (AY 2025-2026)

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 â€œinterest 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.

Revised TDS Rates F.Y. 2024-25 & AY 2025-26: effective from 1 October 2024 Complete Chart

New Effective from 1 October 2024: Revised TDS Rate Chart F.Y. 2024-25 (AY 2025-26)

Below is table of Revised TDS rates applicable from 1 October 2024:

Section	Present TDS Rate	Proposed TDS Rate	With Effect From
Section 194D – Payment of insurance commission (in case of person other than company)	5%	2%	01-04-2025
Section 194DA – Payment in respect of life insurance policy	5%	2%	01-10-2024
Section 194G – Commission etc on sale of lottery tickets	5%	2%	01-10-2024
Section 194H – Payment of commission or brokerage	5%	2%	01-10-2024
Section 194-IB – Payment of rent by certain individuals or HUF	5%	2%	01-10-2024
Section 194M – Payment of certain sums by certain individuals or Hindu undivided family	5%	2%	01-10-2024
Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant	1%	0.1%	01-10-2024
Section 194F – Payments on account of repurchase of units by Mutual Fund or Unit Trust of India	Proposed to be omitted	N/A	01-10-2024

Complete TDS Rates Chart applicable for F.Y. 2024-25 & AY 2025-26 with changes

Rates for tax deduction at source^* [For Assessment year 2025-26]

Particulars	TDS Rates (in %)
1. In the case of a person other than a company
1.1 where the person is resident in India-
Section 192: Payment of salary	Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee.	10
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;	10
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;	10
c) any security of the Central or State Government;[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]	10
d) interest on any other security	10
Section 194: Income by way of dividend	10
Section 194A: Income by way of interest other than “Interest on securities”	10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort, or from gambling or betting of any form or nature whatsoever.	30
Section 194BA: Income by way of winnings from any online game	30
Section 194BB: Income by way of winnings from horse races	30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals	1
b) Others	2
Section 194D: Insurance commission	5% till 31 March 2025 (2% from 1 April 2025)
Section 194DA: Payment in respect of life insurance policyw.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out	5% till 30 September 2024 (2% from 1October 2024)
Section 194EE: Payment in respect of deposit under National Savings scheme	10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India	20 (Omitted from 1 October 2024)
Section 194G: Commission, etc., on sale of lottery tickets	5% till 30 September 2024 (2% from 1October 2024)
Section 194H: Commission or brokerage	5% till 30 September 2024 (2% from 1October 2024)
Section 194-I: Rent
a) Plant & Machinery	2
b) Land or building or furniture or fitting	10
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land	1
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit	5% till 30 September 2024 (2% from 1October 2024)
Section 194-IC: Payment of monetary consideration under Joint Development Agreements	10
Section 194J: Fees for professional or technical services:i) sum paid or payable towards fees for technical servicesii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;iii) Any other sumNote: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.	2210
Section 194K: Income in respect of units payable to resident person	10
Section 194LA: Payment of compensation on acquisition of certain immovable property	10
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.	10
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]	10
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA)	25 in case of Individual or HUF 30 in case of other person
Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.	5% till 30 September 2024 (2% from 1October 2024)
Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office:i) in excess of Rs. 1 crore#ii) in excess of Rs. 20 lakhs** for those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired. The deduction of tax under this situation shall be at the rate of:a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year; orb) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year.# The threshold limit of Rs. 1 crore is increased to Rs. 3 croresif the withdrawal of cash is made by co-operative society.	22/5
Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce participant	1% till 30 September 2024 (0.1% from 1October 2024)
Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 or more	Tax on total income as per rate in force
Section 194Q: Payment for purchase of goods of the aggregate value exceeding Rs. 50 lakhsNote: TDS is deductible on sum exceeding Rs. 50 lakhs	0.1
Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident.	10
Section 194S: Payment on transfer of Virtual Digital AssetNote: No tax shall be deducted under this provision in the following circumstance:• If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year.• if the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year.Specified person means:(a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred;(b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.	1
Any Other Income	10
*1.2 where the person is not resident in India-**
Section 192: Payment of Salary	Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee.	10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.	30
Section 194BA: Income by way of winnings from any online game	30
Section 194BB: Income by way of winnings from horse races	30
Section 194E: Payment to non-resident sportsmen/sports association	20
Section 194EE: Payment in respect of deposits under National Savings Scheme	10
Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India	20
Section 194G: Commission, etc., on sale of lottery tickets	5
Section 194LB: Payment of interest on infrastructure debt fund	5
Sec. 194LBA(2): Payment of the nature referred to in Section 10(23FC)(a)	5
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b)	10
Section 194LBA(3): Payment of the nature referred to in section 10(23FCA) by business trust to unit holders	30
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].	30
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)	30
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)	5 or 4* or 9* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC Where money borrowed from a source outside India by issuing a long-term bond or rupee-denominated bond on or after 01-04-2023, which is listed only on a recognised stock exchange located in an IFSC
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor	5
Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen	20
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen	10
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112	10
d) Income by way of long-term capital gains as referred to in Section 112A	10
e) Income by way of short-term capital gains referred to in Section 111A	15
f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A	20
g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)	20
h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India	20
i) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	20
j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	20
k) Any other income	30
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund	10
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)	10
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.	20
2. In the case of a company-
2.1 where the company is a domestic company-
Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;	10
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;	10
c) any security of the Central or State Government;[i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]	10
d) interest on any other security	10
Section 194: Dividend	10
Section 194A: Income by way of interest other than “Interest on securities”	10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.	30
Section 194BA: Income by way of winnings from any online game	30
Section 194BB: Income by way of winnings from horse races	30
Section 194C: Payment to contractor/sub-contractor
a) HUF/Individuals	1
b) Others	2
Section 194D: Insurance commission	10
Section 194DA: Payment in respect of life insurance policyw.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out	5
Section 194EE: Payment in respect of deposit under National Savings scheme	10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India	20
Section 194G: Commission, etc., on sale of lottery tickets	5
Section 194H: Commission or brokerage	5
Section 194-I: Rent
a) Plant & Machinery	2
b) Land or building or furniture or fitting	10
Section 194-IA:Payment on transfer of certain immovable property other than agricultural land	1
Section 194-IC:Payment of monetary consideration under Joint Development Agreements	10
Section 194J: Fees for professional or technical services:iv) sum paid or payable towards fees for technical servicesv) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;vi) Any other sumNote: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.	2210
Section 194K : Income in respect of units payable to resident person	10
Section 194LA: Payment of compensation on acquisition of certain immovable property	10
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.	10
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] .	10
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)	10
Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.	5%
Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office:iii) in excess of Rs. 1 croreiv) in excess of Rs. 20 lakhs** for those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired. The deduction of tax under this situation shall be at the rate of:a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs but not exceeding Rs. 1 crore during the previous year; orb) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year.	22/5
Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce participant	1
Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 or more	Tax on total income as per rate in force
Section 194Q: Payment to resident for purchase of goods of the aggregate value exceeding Rs. 50 lakhsNote: TDS is deductible on sum exceeding Rs. 50 lakhs	0.1
Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident.	10
Section 194S: Payment on transfer of Virtual Digital AssetNote: No tax shall be deducted under this provision in the following circumstance:• If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year.• if the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year.Specified person means:(a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred;(b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.	1
Any Other Income	10
*2.2 where the company is not a domestic company-**
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.	30
Section 194BA: Income by way of winnings from any online game	30
Section 194BB: Income by way of winnings from horse races	30
Section 194E: Payment to non-resident sports association	20
Section 194G: Commission, etc., on sale of lottery tickets	5
Section 194LB: Payment of interest on infrastructure debt fund	5
Section 194LBA(2): – Payment of the nature referred to in Section 10(23FC)(a)	5
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b)	10
Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders.	40
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].	40
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)	40
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)	5 or 4* or 9* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC Where money borrowed from a source outside India by issuing a long-term bond or rupee-denominated bond on or after 01-04-2023, which is listed only on a recognised stock exchange located in an IFSC;
Section 194LD:Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor	5
Section 195: Payment of any other sum
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112	10
b) Income by way of long-term capital gains as referred to in Section 112A	10
c) Income by way of short-term capital gains referred to in Section 111A	15
d) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33) , 10(36) and 112A	20
e) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)	20
f) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India	20
g) Income by way of royalty [not being royalty of the nature referred to in point f) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976	50
B. where the agreement is made after the 31st day of March, 1976	20
h) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976	50
B. where the agreement is made after the 31st day of March, 1976	20
i) Any other income	40
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund	10
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)	10
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.	20

* The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

How to pay Tax Deducted/Collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

1) Electronic mode: E-Payment is mandatory for
- a) All corporate assesses; and
- b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable.
2) Physical Mode: By furnishing the Challan 281 in the authorized bank branch

Here’s taking a look at the TDS Rate Chart for FY 2024-25 (AY 2025-26)

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 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.

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.

TDS Rate Chart FY 2023-24: TDS Section List & Latest Updates

TDS Rate Chart for FY 2023-24 (AY 2024-25)

TDS Rate Chart for FY 2023-24 (AY 2024-25) with TDS Section List

Staying compliant with TDS regulations is crucial for businesses as non-deduction, wrong deduction and even deduction under wrong TDS section could attract huge penalties. It’s important that businesses know the applicable rate, TDS section and exempt limit for each nature of payment.

In this page we have embedded the latest TDS rate chart for FY 2023-24 which is published by the Income Tax department containing TDS section list, threshold limit and rate for all type of payments. We also have mentioned the recent changes in Tax Deducted at Source laws in Union Budget 2023 like provisions related to online gaming income and PF withdrawal without PAN.

Before we get into the TDS section chart let’s have a quick look at the most frequent payments along with their rate of TDS rate and sections

What is TDS Rate Chart for FY 2023-24?

The Tax Deducted at Source Rate Chart for the financial year 2023-24 provides a comprehensive overview of the applicable rates for various types of transactions.

TDS Section List	Nature of Payment	Threshold (₹)	For Individual / HUF	For Others
192	Payment made as salaries	₹ 2,50,000	Slab Rates	Slab Rates
192A	Early withdrawal of EPF (Employee Provident Fund)	₹ 50,000	10%	10%
193	Tax deduction at source on interest earned on securities	₹ 10,000	10%	10%
194	Distribution of dividends	₹ 5,000	10%	10%
194A	Interest from banks or post offices on deposits	₹ 40,000 ₹ 50,000 (For senior citizens)	10%	10%
194A	Interest from sources other than securities	₹ 5,000	10%	10%
194B	Winnings of lotteries, puzzles, or games	Aggregate of ₹ 10,000	30%	30%
194BA	Winnings from online Games	–	30%	30%x`
194BB	Winnings of horse races	₹ 10,000	30%	30%
194C	Payments made to contractors or sub-contractors one time	₹ 30,000	1%	2%
194C	Payments made to contractors or sub-contractors on an aggregate basis	₹ 1,00,000	1%	2%
194D	Commission paid on insurance sales to domestic companies	₹ 15,000	Not Applicable	10%
194D	Commission paid on insurance sales to non-domestic companies	₹ 15,000	5%	Not Applicable
194DA	Maturity of life insurance policy	₹ 1,00,000	5%	5%
194EE	Payment received from the National Savings Scheme (NSS) by individuals	₹ 2500	10%	10%
194F	Repurchase of units by UTI (Unit Trust of India) or any mutual fund	No Limit	20%	20%
194G	Payments or commission made on the sale of lottery tickets	₹ 15,000	5%	5%
194H	Commission or brokerage fees	₹ 15,000	5%	5%
194I	Rent paid for land, building, or furniture	₹ 2,40,000	10%	10%
194I	Rent paid for plant and machinery	₹ 2,40,000	2%	2%
194IA	Payment for the transfer of immovable property excluding agricultural land	₹ 50,00,000	1%	1%
194IB	Rent payment made by an individual or HUF not covered under section 194I	₹ 50,000 (per month)	5%	Not Applicable
194IC	Payments made under a Joint Development Agreement (JDA) to individuals or HUF	No Limit	10%	10%
194J	Fees paid for professional and technical services	₹ 30,000	10%	10%
194J	Royalty paid for the sale, distribution, or exhibition of cinematographic films	₹ 30,000	2%	2%
194K	Income received from units of a mutual fund, such as dividends	₹ 5,000	10%	10%
194LA	Compensation payment for acquiring certain immovable property	₹ 2,50,000	10%	10%
194LB	Interest payment on infrastructure bonds to Non-Resident Indians	Not Applicable	5%	5%
194LBA(1)	Distribution of certain income by a business trust to its unit holders	Not Applicable	10%	10%
194LD	Interest payment on rupee-denominated bonds, municipal debt security, and government securities	Not Applicable	5%	5%
194M	Payments made for contracts, brokerage, commission, or professional fees (excluding sections 194C, 194H, 194J)	₹ 50,00,000	5%	5%
194N	Cash withdrawal exceeding a specified amount from the bank, with filed ITR	₹ 1,00,00,000	2%	2%
194N	Cash withdrawal from a bank without filing ITR	₹ 20,00,000	2%	2%
194O	Amount received for the sale of products/services by e-commerce service providers through digital platforms	₹ 5,00,000	1%	1%
194Q	Payments made for the purchase of goods	₹ 50,00,000	0.10%	0.10%
194S	TDS on the payment of cryptocurrencies or other virtual assets	Not Applicable	1%	1%
206AA	TDS applicable in case of non-availability of PAN	Not Applicable	At a higher rate than: The rate specified by the act 20% The currently applicable rate	At a higher rate than: The rate specified by the act 20% The currently applicable rate
206AB	TDS on non-filers of Income Tax Return	Not Applicable	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate

The above TDS Chart for FY 2023-24 is extracted from the Income Tax website and restructured for better understanding. The information in the chart is subject to change, therefore do not consider this legal advice.

Important TDS Updates in Budget 2023

Section 194BA – Introduction of TDS on income from online gaming.
Section 196A – Non-residents earning income from mutual funds in India can provide a Tax Residency Certificate starting April 1st, 2023, to avail the TDS benefit as per the rate specified in the tax treaty, instead of the standard 20% rate.
Section 192A – TDS rate on PF withdrawal for employees without PAN reduced to 20% from the maximum marginal rate.
Section 193 – No exemption from TDS on interest from listed debentures. TDS must be deducted on interest earned from such specified securities.
Section 194N – Increased TDS threshold for cash withdrawal by co-operative societies. From April 1st, 2023, TDS will be deducted on cash withdrawals exceeding Rs 3 crore, up from the previous limit of Rs 1 crore.

What is TDS Chart?

A TDS (Tax Deducted at Source) 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. It presents a structured table or chart format that includes relevant sections of the Income Tax Act, along with corresponding nature of payments, threshold limits, and the applicable TDS rates for various categories of taxpayers.

The TDS Chart serves as a quick reference guide for taxpayers, employers, and deductors to determine the correct TDS rates to be applied while making payments to different parties. TDS rate chart is published by Income Tax Department every year with changes.

Important Points for TDS Deduction

Deduction: TDS is deducted by the payer (deductor) at the time of making certain specified payments to the payee (deductee). The deductor is responsible for deducting the applicable TDS amount from the payment and remitting it to the government.
Applicable payments: TDS is deducted from various types of payments such as salaries, interest, dividends, rent, professional fees, commission, contractual payments, lottery winnings, and more.
TDS rates: The TDS rates are specified by the government and vary depending on the nature of the payment and the status of the deductee.
- TDS Rates are higher for companies than for Individuals
- TDS Rates are higher for foreign companies than domestic companies
- TDS is charged at a higher rate when PAN is not submitted.
threshold limits: TDS is applicable when the payment exceeds a specified threshold limit. The threshold is based on the aggregate of yearly payments to be made.
- Example, the threshold for TDS on professional fees is 30,000. If a payment of Rs 40,000 is made by hospital to a doctor in two installments of Rs 20000 each, then no TDS is to be deducted in first installment, while TDS on whole 40,000 should be deducted on second installment.
TDS Calculation: TDS is calculated on the value of goods and services. No TDS is to be deducted on GST component
TDS Certificate: After deducting TDS, the deductor needs to issue a TDS certificate to the deductee as proof of tax deduction. This certificate contains details such as the deductor’s PAN, deductee’s PAN, TDS amount, and other relevant information.
TDS Deposit: The deductor is required to deposit the TDS amount with the government before 7^th of the subsequent month.
TDS Return: The deductor is also obligated to furnish periodic TDS returns with the tax authorities.

Summary: Important TDS Section List FY 2023-24

Here is the list of important TDS sections which will serve as a handy reference, providing you with the necessary information to fulfill your TDS obligations.

TDS Section	TDS Rate	Nature of Payment	Limit
194C	1% to Individual / HUF2% to other entities	Payment made to Contractors	Rs 30,000/ Year
194J	10%	Professional fees	Rs 30,000/ Year
194Q	0.1%	Purchase of goods	50 lakhs
194H	5%	Commission and Brokerage	Rs 15,000
194I	10% on Land/ Building2% on plant and machinery	Rent	Rs 2,40,000

TDS, TCS, and Foreign TDS Rate Charts for FY 2024-25 (AY: 2025-26)

TDS RATE CHART FY: 2024-25 (AY: 2025-26)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		Rs.	TDS Rate (%)
192	Salaries	–	Slab Rate	Slab Rate
192A	Premature withdrawal from EPF	50000	10	–
193	Interest on Securities	10000	10	10
194	Dividends	5000	10	10
194A	Interest (Banks)	40000	10	10
194A	Interest – Senior Citizen (Banks)	50000	10	–
194A	Interest (Others)	5000	10	10
194B	Winning from Lotteries	10000	30	30
194BA	Winnings from online games	–	30	30
194BB	Winnings from Horse Race	10000	30	30
194C	Contractor – Single Transaction	30000	1	2
194C	Contractor – During the F.Y.	1 Lakh	1	2
194C	Transporter (44AE) declaration with PAN	–	–	–
194D	Insurance Commission (15G-15H allowed)	15000	5	10
194DA	Payment received – Life insurance Policy	1 Lakh	1	1
194EE	Payment received – National Savings Scheme (NSS)	2500	10	10
194F	Repurchase Units by MFs	–	20	20
194G	Commission – Lottery	15000	5	5
194H	Commission / Brokerage	15000	5	5
194I(a)	Rent for Plant & Machinery	2.40 Lakh	2	2
194I(b)	Rent of Land Building & Furniture	2.40 Lakh	10	10
194IA	Transfer of certain immovable property other than agricultural land	50 Lakh	1	1
194IB	Rent payment by individual / HUF not covered u/s 194I	50,000 p.m.	5	NA
194IC	Payment under specified Joint Development Agreement	–	10	10
194J (a)	Fees – Technical Services, Call Centre, Royalty, Distribution / Exhibition of Cinematography Films, etc.	30000	2	2
194J (b)	Fees – All other Professional Services	30000	10	10
194K	Payment of dividend by mutual Funds	5000	10	10
194LA	Compensation on transfer of certain immovable property other than agricultural land	2.50 Lakh	10	10
194LB	Income by way of interest from infrastructure debt fund(non-resident)	–	5	5
194LBA	Certain income from units of a business trust (applicable from 01.10.2014)	–	10	10
194LBB	Income in respect of investment of investment fund	–	10% for residents, 30% for non-residents	10% for residents, 40% for non-residents
194LBC	Income in respect of investment in securitization trust	–	30% for residents, 40% for non-residents, 25% for individual & HUF	30% for residents, 40% for non-residents, 25% for individual & HUF
194LD	Interest on certain bonds and Govt. Securities (from 01.06.2013)		5	5
194M	Payment made for Contracts, Brokerage or Professional Fees etc. by Individual and HUF (other than sections 194C, 194H and 194J)	50 Lakh	5	5
194N	Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (w.e.f 01.09.2019)	1 Crore (Rs. 3 Crores, if withdrawal is by co-operative society)	2	2
		20 Lakhs (if ITR not filed for previous 3 years)	2 (Rs. 20 Lakhs – 1 Crore)	2
			5 (Rs. 1 Crore and above)	5
194O	TDS on e-commerce participants	5 Lakh	1%(01.10.2020)	1% (01.10.2020)
194P	TDS in case of Specified Senior Citizen (above 75 years) having Salary & Interest (ITR not required)		Slab Rate	NA
194Q	TDS on Purchase of Goods exceeding Rs. 50 Lakhs (Applicable From 01-July-2021)	In Excess of Rs. 50 Lakhs	0.1	0.1
194R	Benefits or perquisites of business or profession	20000	10	10
194S	Payment of consideration for transfer of virtual digital asset by persons other than specified person	10000	1	1
	Payment of consideration for transfer of virtual digital asset by specified person	50000	1	1
194SP	Payment for transfer of virtual digital asset where payment is in kind or in exchange of another virtual digital asset and tax required to be deducted is paid before such payment is released	10000	1	1
Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)

Notes:

1)	The above list covers most of the sections applicable for domestic transactions
2)	Section – 206AA	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (i.e. deductor), failing which tax shall be deducted at the higher of the following rates, namely:-(i) at the rate specified in the relevant provision of this Act; or (ii) at the rate or rates in force; or (iii) at the rate of twenty percent:Provided that where the tax is required to be deducted under section 194-O, the provisions of clause (iii) shall apply as if for the words “twenty percent”, the words “five percent” had been substituted.Provided further that where the tax is required to be deducted under section 194Q, the provisions of clause (iii) shall apply as if for the words “twenty percent”, the words “five percent” had been substituted.
3)	Section – 206AB	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, where tax is required to be deducted at source under the provisions of Chapter XVIIB, other than sections 192, 192A, 194B, 194BB, 194LBC or 194N on any sum or income or amount paid, or payable or credited, by a person to a specified person, the tax shall be deducted at the higher of the following rates, namely:––(i) at twice the rate specified in the relevant provision of the Act; or (ii) at twice the rate or rates in force; or (iii) at the rate of five per cent.If the provisions of section 206AA is applicable to a specified person, in addition to the provision of this section, the tax shall be deducted at higher of the two rates provided in this section and in section 206AA.For the purposes of this section “specified person” means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in each of these two previous years.Provided that the specified person shall not include a non-resident who does not have a permanent establishment in India.

TDS RATE CHART (FOREIGN) FY: 2024-25 (AY: 2025-26)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		RS.	Existing TDS Rates (%)
192A	Payment against EPF Scheme	30000	10	10
194E	Non-resident Sportsman or Sports Assn	–	20	20
194LB	Interest from infrastructure debt fund payable to non-resident	–	5	5
194LBA	Certain income from units of a business trust	–	5	5
194LBA(a)	Income referred to in section 10(23FC)(a) from units of a business trust	–	5	5
194LBA(b)	Income referred to in section 10(23FC)(b) from units of a business trust	–	10	10
194LBA(c)	Income referred to in section 10(23FCA) from units of a business trust	–	30	30
194LBB	Income on units of Investment Fund	–	30	40
194LBC	Income in respect of investment in securitization trust	–	30	40
194LC*	Interest from specified company payable to non-resident	–	5	5
194LD	Interest on certain bonds and govt. securities	–	5	5
194N	Payment of certain amounts in cash	–	2	2
194NF	Payment of certain amounts in cash to non-filers	–	1	1
195	Payment of any other sum to a Non-resident
	a) Income in respect of investment made by a Non-resident Indian Citizen	–	20	20
	b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen	–	10	10
	c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112	–	10	10
	d) Income by way of long-term capital gains as referred to in Section 112A	–	10	10
	e) Income by way of short-term capital gains referred to in Section 111A	–	15	15
	f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A	–	20	20
	g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)	–	20	20
	h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India	–	20	20
	i) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	20	20
	j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	20	20
	k) Any other income	–	30	30
196A	Foreign Company being unit holder in Mutual Fund	–	20	20
196B	Units held by Off-shore Fund	–	10	5
196C	Income from Foreign Currency Bonds	–	5	5
196D	Income of FII on Securities	–	20	20
196DA	Income of specified fund from securities	–	10	10
*Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)*
* TDS would be 4% in case where interest is payable in respect of long-term Bond or Rupee Denominated Bond listed on recongnised stock exchange located in IFSC. TDS would be 9% where money borrowed from a source outside India by issuing long-term Bond or Rupee Denominated Bond on or after 01-04-2023, which is listed only on recongnised stock exchange located in IFSC.

TCS RATE CHART FY: TDS / TCS Rate Chart FY: 2024-25 (AY: 2025-26)
Collection Codes under section 206C

Code	Nature of Payment	TCS Rate %
A	Alcoholic Liquor for human consumption & Tendu leaves	1
B	Timber obtained under a forest lease or other mode	2.5
C	Timber obtained under any other mode other than forest lease	2.5
D	Any other forest produce not being a timber or Tendu leaves	2.5
E	Scarp	1
F	Parking Lot	2
G	Toll Plaza	2
H	Mining & Quarrying	2
I	Tendu Leaves	5
J	Minerals	1
K	Bullion & Jewellery	1
L	Sale of Motor Vehicle	1
M	Sale in cash of any goods(other than bullion)	1
N	Providing of any service (other than Ch-XVII-B)	1
O	Tour Program Package	5
P	LRS – Educational Loan – Financial Institution	0.5
Q	LRS-other purposes – Liberalized Remittance Scheme	5
R	Sale of Goods	0.1
T	LRS – Education or Medical Treatment not covered under Code P	5
Note: TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Notes:

1)	The above list covers most of the sections applicable for domestic transactions
2)	Section-206CC	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates, namely:- (i) at twice the rate specified in the relevant provision of this Act; or (ii) at the rate of five per cent. The provisions of this section shall not apply to a non-resident who does not have permanent establishment in India.
3)	Section-206CCA	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, where tax is required to be collected at source under the provisions of Chapter XVII-BB, on any sum or amount received by a person (hereafter referred to as collectee) from a specified person, the tax shall be collected at the higher of the following two rates, namely:- (i) at twice the rate specified in the relevant provision of the Act; or (ii) at the rate of five per cent. If the provisions of section 206CC is applicable to a specified person, in addition to the provisions of this section, the tax shall be collected at higher of the two rates provided in this section and in section 206CC. For the purposes of this section “specified person” means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be collected, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in each of these two previous years. Provided that the specified person shall not include a non resident who does not have a permanent establishment in India.

Income Tax Dept. issued Updated TDS Rate Chart for FY 2024-25 & AY 2025-26

Income Tax Department has released an updated TDS Rate Chart for the Financial Year 2024-25 (Assessment Year 2025-26).

Income Tax Department’s TDS Rates Chart 2024-25 Download

TDS Rate Chart for FY 2024-25 (AY 2025-26)

TDS, an acronym for “Tax Deducted at Source,” is a mechanism the government employs to gather income tax upfront as you earn rather than waiting to file your annual tax return. As a small business owner, when you make certain payments like salaries, rent, or contractor fees, you must withhold a portion of the amount as TDS and remit it to the government.

TDS Rate Chart for FY 2024-25 (AY 2025-26)

Section	Nature of Payment	Threshold	TDS Rate (with PAN)	TDS Rate (without PAN)
194C	Payments to Contractors and Subcontractors, Advertising	Single payment > Rs. 30,000 or Aggregate > Rs. 1,00,000	1% (Individual/HUF) 2% (Others)	5% (Individual/HUF) 20% (Others)
194-I (a)	Rent on Land, Building, Furniture & Fittings	Rs. 2,40,000 per annum	10%	20%
194-I (b)	Rent on Plant & Machinery	Rs. 2,40,000 per annum	2%	20%
194J	Professional/Technical Fees	Rs. 30,000	10%	20%
194H	Commission/Brokerage (other than lottery)	Rs. 15,000	5%	20%
194Q	Payments for the purchase of goods	Rs. 50,00,000	0.1%	5%
192	Salary	As per income tax slabs	Slab Rates	Slab Rates
192A	Premature withdrawal of PF	Rs. 50,000	10%	20% (Usually higher)
193	Interest on Securities	Bonds – 10,000 Other Securities – No Limit	10%	20%
194	Dividends	Rs. 5000	10%	20%
194A	Interest (other than on securities)	Rs. 40,000 Rs. 50,000 for senior citizens Rs. 5,000 from friends/relatives	10%	20%
194B	Winnings from lottery, games, etc.	Rs. 10,000	30%	30%
194BA	Income from online games	Nil	30%	30%
194BB	Winnings from horse races	Rs. 10,000	30%	30%
194D	Insurance Commission	Rs. 20,000	Individuals – 5% Companies – 10%	20%
194E	Payment to non-resident sportsmen/sports association	No threshold	20%	20%
194EE	Payments in respect of deposits under NSS	Rs. 2500	10%	20%
194F	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	No threshold	20%	20%
194G	Commission/brokerage on lotteries	Rs. 15,000	5%	20%
194IA	Sale of Immovable Property	Rs. 50,00,000	1%	20%
194IB	Rent payment that is made by an individual or HUF not covered under payment 194I (No Business/No Audit Cases)	50,000 per month	5%	20%
194IC	Payment under Joint Development Agreements (JDA) to Individual/HUF	No threshold	10%	20%
194K	Payment of dividends by mutual Funds	Rs. 5000	10%	20%
194LA	Compensation on acquisition of certain immovable property	Rs. 2,50,000	10%	20%
194M	Certain payments by Individuals/HUF where they are not liable to deduct TDS under Sections 194C, 194H, and 194J	Rs. 50,00,000	5%	20%
194N	In case cash withdrawal over a certain amount takes place from the bank	ITR Filers – Rs. 1 Crore ITR Non-Filers – Rs. 20,00,000	2%	20%
194-O	Amount paid for the sale of products/services by e-commerce service providers via their digital platform	Rs. 5,00,000	1%	5%
194R	Benefits/perquisites from business or profession	Rs. 20,000	10%	20%
194S	Payment for transfer of Virtual Digital Assets	Rs. 10,000 (specified person) Rs. 50,000 (others)	1%	1%

TDS Rate on Salary for FY 2024-25

The Tax Deducted at Source Rate Chart for the financial year 2023-24 provides a comprehensive overview of the applicable rates for various types of transactions.

TDS Section List	Nature of Payment	Threshold (₹)	For Individual / HUF	For Others
192	Payment made as salaries	₹ 2,50,000	Slab Rates	Slab Rates
192A	Early withdrawal of EPF (Employee Provident Fund)	₹ 50,000	10%	10% OR 20% without PAN
193	Tax deduction at source on interest earned on securities	₹ 10,000	10%	10%
194	Distribution of dividends	₹ 5,000	10%	10%
194A	Interest from banks or post offices on deposits	₹ 40,000 ₹ 50,000 (For senior citizens)	10%	10%
194A	Interest from sources other than securities	₹ 5,000	10%	10%
194B	Winnings of lotteries, puzzles, or games	Aggregate of ₹ 10,000	30%	30%
194BA	Winnings from online Games	–	30%	30%x`
194BB	Winnings of horse races	₹ 10,000	30%	30%
194C	Payments made to contractors or sub-contractors one time	₹ 30,000	1%	2%
194C	Payments made to contractors or sub-contractors on an aggregate basis	₹ 1,00,000	1%	2%
194D	Commission paid on insurance sales to domestic companies	₹ 15,000	Not Applicable	10%
194D	Commission paid on insurance sales to non-domestic companies	₹ 15,000	5%	Not Applicable
194DA	Maturity of life insurance policy	₹ 1,00,000	5%	5%
194EE	Payment received from the National Savings Scheme (NSS) by individuals	₹ 2500	10%	10%
194F	Repurchase of units by UTI (Unit Trust of India) or any mutual fund	No Limit	20%	20%
194G	Payments or commission made on the sale of lottery tickets	₹ 15,000	5%	5%
194H	Commission or brokerage fees	₹ 15,000	5%	5%
194I	Rent paid for land, building, or furniture	₹ 2,40,000	10%	10%
194I	Rent paid for plant and machinery	₹ 2,40,000	2%	2%
194IA	Payment for the transfer of immovable property excluding agricultural land	₹ 50,00,000	1%	1%
194IB	Rent payment made by an individual or HUF not covered under section 194I	₹ 50,000 (per month)	5%	Not Applicable
194IC	Payments made under a Joint Development Agreement (JDA) to individuals or HUF	No Limit	10%	10%
194J	Fees paid for professional and technical services	₹ 30,000	10%	10%
194J	Royalty paid for the sale, distribution, or exhibition of cinematographic films	₹ 30,000	2%	2%
194K	Income received from units of a mutual fund, such as dividends	₹ 5,000	10%	10%
194LA	Compensation payment for acquiring certain immovable property	₹ 2,50,000	10%	10%
194LB	Interest payment on infrastructure bonds to Non-Resident Indians	Not Applicable	5%	5%
194LBA(1)	Distribution of certain income by a business trust to its unit holders	Not Applicable	10%	10%
194LD	Interest payment on rupee-denominated bonds, municipal debt security, and government securities	Not Applicable	5%	5%
194M	Payments made for contracts, brokerage, commission, or professional fees (excluding sections 194C, 194H, 194J)	₹ 50,00,000	5%	5%
194N	Cash withdrawal exceeding a specified amount from the bank, with filed ITR	₹ 1,00,00,000	2%	2%
194N	Cash withdrawal from a bank without filing ITR	₹ 20,00,000	2%	2%
194O	Amount received for the sale of products/services by e-commerce service providers through digital platforms	₹ 5,00,000	1%	1%
194Q	Payments made for the purchase of goods	₹ 50,00,000	0.10%	0.10%
194S	TDS on the payment of cryptocurrencies or other virtual assets	Not Applicable	1%	1%
206AA	TDS applicable in case of non-availability of PAN	Not Applicable	At a higher rate than: The rate specified by the act 20% The currently applicable rate	At a higher rate than: The rate specified by the act 20% The currently applicable rate
206AB	TDS on non-filers of Income Tax Return	Not Applicable	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate

Important TDS Updates in Budget 2023

Section 194BA – Introduction of TDS on income from online gaming.
Section 196A – Non-residents earning income from mutual funds in India can provide a Tax Residency Certificate starting April 1st, 2023, to avail the TDS benefit as per the rate specified in the tax treaty, instead of the standard 20% rate.
Section 192A – TDS rate on PF withdrawal for employees without PAN reduced to 20% from the maximum marginal rate.
Section 193 – No exemption from TDS on interest from listed debentures. TDS must be deducted on interest earned from such specified securities.
Section 194N – Increased TDS threshold for cash withdrawal by co-operative societies. From April 1st, 2023, TDS will be deducted on cash withdrawals exceeding Rs 3 crore, up from the previous limit of Rs 1 crore.

Important Points for TDS Deduction

Deduction: TDS is deducted by the payer (deductor) at the time of making certain specified payments to the payee (deductee). The deductor is responsible for deducting the applicable TDS amount from the payment and remitting it to the government.
Applicable Payments: TDS is deducted from various types of payments such as salaries, interest, dividends, rent, professional fees, commission, contractual payments, lottery winnings, and more.
TDS Rates: The TDS rates are specified by the government and vary depending on the nature of the payment and the status of the deductee.
- TDS Rates are higher for companies than for Individuals
- TDS Rates are higher for foreign companies than domestic companies
- TDS is charged at a higher rate when PAN is not submitted.
Threshold Limits: TDS is applicable when the payment exceeds a specified threshold limit. The threshold is based on the aggregate of yearly payments to be made.
- Example, the threshold for TDS on professional fees is 30,000. If a payment of Rs 40,000 is made by hospital to a doctor in two installments of Rs 20000 each, then no TDS is to be deducted in first installment, while TDS on whole 40,000 should be deducted on second installment.
TDS Calculation: TDS is calculated on the value of goods and services. No TDS is to be deducted on GST component
TDS Certificate: After deducting TDS, the deductor needs to issue a TDS certificate to the deductee as proof of tax deduction. This certificate contains details such as the deductor’s PAN, deductee’s PAN, TDS amount, and other relevant information.
TDS Deposit: The deductor is required to deposit the TDS amount with the government before 7^th of the subsequent month.
TDS Return: The deductor is also obligated to furnish periodic TDS returns with the tax authorities.

Summary: Important TDS Section List FY 2024-25

Here is the list of important TDS sections which will serve as a handy reference, providing you with the necessary information to fulfill your TDS obligations.

TDS Section	TDS Rate	Nature of Payment	Limit
194C	1% to Individual / HUF2% to other entities	Payment made to Contractors	Rs 30,000/ Year
194J	10%	Professional fees	Rs 30,000/ Year
194Q	0.1%	Purchase of goods	50 lakhs
194H	5%	Commission and Brokerage	Rs 15,000
194I	10% on Land/ Building2% on plant and machinery	Rent	Rs 2,40,000

Latest TDS Rate Chart for FY 2023-24 (AY 2024-25)

Before we get into the TDS section chart let’s have a quick look at the most frequent payments along with their rate of TDS rate and sections.

What is TDS Rate Chart for FY 2023-24?

The Tax Deducted at Source Rate Chart for the financial year 2023-24 provides a comprehensive overview of the applicable rates for various types of transactions.

TDS Section List	Nature of Payment	Threshold (₹)	For Individual / HUF	For Others
192	Payment made as salaries	₹ 2,50,000	Slab Rates	Slab Rates
192A	Early withdrawal of EPF (Employee Provident Fund)	₹ 50,000	10%	10%
193	Tax deduction at source on interest earned on securities	₹ 10,000	10%	10%
194	Distribution of dividends	₹ 5,000	10%	10%
194A	Interest from banks or post offices on deposits	₹ 40,000 ₹ 50,000 (For senior citizens)	10%	10%
194A	Interest from sources other than securities	₹ 5,000	10%	10%
194B	Winnings of lotteries, puzzles, or games	Aggregate of ₹ 10,000	30%	30%
194BA	Winnings from online Games	–	30%	30%x`
194BB	Winnings of horse races	₹ 10,000	30%	30%
194C	Payments made to contractors or sub-contractors one time	₹ 30,000	1%	2%
194C	Payments made to contractors or sub-contractors on an aggregate basis	₹ 1,00,000	1%	2%
194D	Commission paid on insurance sales to domestic companies	₹ 15,000	Not Applicable	10%
194D	Commission paid on insurance sales to non-domestic companies	₹ 15,000	5%	Not Applicable
194DA	Maturity of life insurance policy	₹ 1,00,000	5%	5%
194EE	Payment received from the National Savings Scheme (NSS) by individuals	₹ 2500	10%	10%
194F	Repurchase of units by UTI (Unit Trust of India) or any mutual fund	No Limit	20%	20%
194G	Payments or commission made on the sale of lottery tickets	₹ 15,000	5%	5%
194H	Commission or brokerage fees	₹ 15,000	5%	5%
194I	Rent paid for land, building, or furniture	₹ 2,40,000	10%	10%
194I	Rent paid for plant and machinery	₹ 2,40,000	2%	2%
194IA	Payment for the transfer of immovable property excluding agricultural land	₹ 50,00,000	1%	1%
194IB	Rent payment made by an individual or HUF not covered under section 194I	₹ 50,000 (per month)	5%	Not Applicable
194IC	Payments made under a Joint Development Agreement (JDA) to individuals or HUF	No Limit	10%	10%
194J	Fees paid for professional and technical services	₹ 30,000	10%	10%
194J	Royalty paid for the sale, distribution, or exhibition of cinematographic films	₹ 30,000	2%	2%
194K	Income received from units of a mutual fund, such as dividends	₹ 5,000	10%	10%
194LA	Compensation payment for acquiring certain immovable property	₹ 2,50,000	10%	10%
194LB	Interest payment on infrastructure bonds to Non-Resident Indians	Not Applicable	5%	5%
194LBA(1)	Distribution of certain income by a business trust to its unit holders	Not Applicable	10%	10%
194LD	Interest payment on rupee-denominated bonds, municipal debt security, and government securities	Not Applicable	5%	5%
194M	Payments made for contracts, brokerage, commission, or professional fees (excluding sections 194C, 194H, 194J)	₹ 50,00,000	5%	5%
194N	Cash withdrawal exceeding a specified amount from the bank, with filed ITR	₹ 1,00,00,000	2%	2%
194N	Cash withdrawal from a bank without filing ITR	₹ 20,00,000	2%	2%
194O	Amount received for the sale of products/services by e-commerce service providers through digital platforms	₹ 5,00,000	1%	1%
194Q	Payments made for the purchase of goods	₹ 50,00,000	0.10%	0.10%
194S	TDS on the payment of cryptocurrencies or other virtual assets	Not Applicable	1%	1%
206AA	TDS applicable in case of non-availability of PAN	Not Applicable	At a higher rate than: The rate specified by the act 20% The currently applicable rate	At a higher rate than: The rate specified by the act 20% The currently applicable rate
206AB	TDS on non-filers of Income Tax Return	Not Applicable	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate	The higher of: 5% Twice the rate mentioned in the provision The currently applicable rate

Important TDS Updates in Budget 2023

Section 194BA – Introduction of TDS on income from online gaming.
Section 196A – Non-residents earning income from mutual funds in India can provide a Tax Residency Certificate starting April 1st, 2023, to avail the TDS benefit as per the rate specified in the tax treaty, instead of the standard 20% rate.
Section 192A – TDS rate on PF withdrawal for employees without PAN reduced to 20% from the maximum marginal rate.
Section 193 – No exemption from TDS on interest from listed debentures. TDS must be deducted on interest earned from such specified securities.
Section 194N – Increased TDS threshold for cash withdrawal by co-operative societies. From April 1st, 2023, TDS will be deducted on cash withdrawals exceeding Rs 3 crore, up from the previous limit of Rs 1 crore.

What is TDS Chart?

Important Points for TDS Deduction

Deduction: TDS is deducted by the payer (deductor) at the time of making certain specified payments to the payee (deductee). The deductor is responsible for deducting the applicable TDS amount from the payment and remitting it to the government.
Applicable payments: TDS is deducted from various types of payments such as salaries, interest, dividends, rent, professional fees, commission, contractual payments, lottery winnings, and more.
TDS Rates: The TDS rates are specified by the government and vary depending on the nature of the payment and the status of the deductee.
- TDS Rates are higher for companies than for Individuals
- TDS Rates are higher for foreign companies than domestic companies
- TDS is charged at a higher rate when PAN is not submitted.
Threshold Limits: TDS is applicable when the payment exceeds a specified threshold limit. The threshold is based on the aggregate of yearly payments to be made.
- Example, the threshold for TDS on professional fees is 30,000. If a payment of Rs 40,000 is made by hospital to a doctor in two installments of Rs 20000 each, then no TDS is to be deducted in first installment, while TDS on whole 40,000 should be deducted on second installment.
TDS Calculation: TDS is calculated on the value of goods and services. No TDS is to be deducted on GST component
TDS Certificate: After deducting TDS, the deductor needs to issue a TDS certificate to the deductee as proof of tax deduction. This certificate contains details such as the deductor’s PAN, deductee’s PAN, TDS amount, and other relevant information.
TDS Deposit: The deductor is required to deposit the TDS amount with the government before 7^th of the subsequent month.
TDS Return: The deductor is also obligated to furnish periodic TDS returns with the tax authorities.

Summary: Important TDS Section List FY 2023-24

Here is the list of important TDS sections which will serve as a handy reference, providing you with the necessary information to fulfill your TDS obligations.

TDS Section	TDS Rate	Nature of Payment	Limit
194C	1% to Individual / HUF2% to other entities	Payment made to Contractors	Rs 30,000/ Year
194J	10%	Professional fees	Rs 30,000/ Year
194Q	0.1%	Purchase of goods	50 lakhs
194H	5%	Commission and Brokerage	Rs 15,000
194I	10% on Land/ Building2% on plant and machinery	Rent	Rs 2,40,000

Updated TDS Rate Chart for FY 2024-25 & AY 2025-26 and FAQ

TDS Rate Chart for FY 2024-25 AND AY 2025-26 and FAQ: Everything You Need to Know: TDS is a tax introduced by the Income Tax Department of India to reduce tax evasion. It is applicable to various payments such as contractor payments, salary, and commission. The TDS rates are predetermined by the Government under the Income Tax Act. The blog shares the latest TDS rate chart for the Financial Year 2024-25 and Assessment Year 2025-26 to assist in error-free TDS calculation and payment.

TDS Rate Chart for FY 2024-25

Section	Nature of Payment	Threshold (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	– TDS on interest on securities***	Rs. 10,000	10%	10%
194	Payment of dividend	Rs. 5,000	10%	10%
194A	Interest issued by banks or post offices on deposits	Rs. 40,000 Rs. 50,000 (For senior citizens)	10%	10%
194A	Interest by others apart from on securities	Rs. 5,000	10%	10%
194B	Amounts that someone has won through lotteries, puzzles, or games	Aggregate of Rs. 10,000**	30%	30%
194BB	Amounts that someone has won from horse races	Rs. 10,000	30%	30%
194C	Payments to contractor or sub-contractor – Single Payments	Rs. 30,000	1%	2%
194C	Payments to contractor/sub-contractor – Aggregate Payments	Rs. 1,00,000	1%	2%
194D	Payment of insurance commission to domestic companies	Rs. 15,000	NA	10%
194D	Payment of insurance commission to companies other than domestic ones	Rs. 15,000	5%	NA
194DA	Maturity of Life Insurance Policy	Rs. 1,00,000	5%	5%
194EE	Payment of an amount standing to the credit of an individual under NSS (National Savings Scheme)	Rs. 2500	10%	10%
194F	Payment of repurchase of unit by UTI (Unit Trust of India) or any mutual fund	No Limit	20%	20%
194G	Payments or 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	Payment for transfer of immovable property other than agricultural land	Rs. 50,00,000	1%	1%
194IB	Rent payment that is made by an individual or HUF not covered under payment 194I	Rs. 50,000 (per month)	5%	NA
194IC	Payment that are made under Joint Development Agreement (JDA) to Individual/HUF	No Limit	10%	10%
194J	Fees paid for professional services	Rs. 30,000	10%	10%
194J	Amount paid for technical services	Rs. 30,000	2%	2%
194J	Amounts paid as royalty for sale/distribution/exhibition of cinematographic films	Rs. 30,000	2%	2%
194K	Payment of income for units of a mutual fund, for example- dividends	Rs. 5,000	10%	10%
194LA	Payment made for compensation for acquiring certain immovable property	Rs. 2,50,000	10%	10%
194LB	Payment of interest on infrastructure bonds to Non-Resident Indians	NA	5%	5%
194LBA(1)	Certain income distributed by a business trust among its unit holder	NA	10%	10%
194LD	Payment of interest on rupee-denominated bonds, municipal debt security, and government securities	NA	5%	5%
194M	Amounts paid for contract, brokerage, commission or professional fee (other than 194C, 194H, 194J)	Rs. 50,00,000	5%	5%
194N	In case cash withdrawal over a certain amount takes place from the bank, and ITR is filed	Rs. 1,00,00,000	2%	2%
194N	In case cash withdrawal takes place from a bank and one does not file ITR	Rs. 20,00,000	2%	2%
194O	Amount paid for the sale of products/services by e-commerce service providers via their digital platform	Rs. 5,00,000	1%	1%
194Q	Payments made for the purchase of goods	Rs. 50,00,000	0.10%	0.10%
194S	TDS on the payment of any crypto or other virtual asset	NA	1%	1%
206AA	TDS for non-availability of PAN	NA	At a rate higher ofSpecified rate as per the act20%Rate in force	20%
206AB	TDS on non-filers of Income tax return	NA	Rate higher of:5%Twice the mentioned rate in provisionRate in force

*Applicable TDS rate for EPF withdrawals without a PAN number is now 20%, from the previous 30%

** Essentially means there is no limit

*** From FY 2023-24, interest on debentures issued by listed companies is also includedUpdated TDS Rate Chart for FY 2024-25/AY 2025-26

FAQ on TDS rates

1. Is TDS mandatory for companies?

Yes, the deduction of tax at source (TDS) on salary is compulsory under section 192 of the Income Tax act. An employer who pays wages to his/her employee must deduct TDS from the salary if the total income exceeds a certain threshold.

2. What is the TDS rates for contractors?

TDS Rate for Contractors is 1% in case the payment is made to an individual or HUF and 2% for others.

3. What is the TDS rate on salary?

TDS rate on salary means that tax has been deducted by the employer at the time of depositing the salary into the employee’s account.

TDS Rate Chart for FY 2023-24 (AY 2024-25): Budget 2023 Updates and New Provisions

Tax deduction at source (TDS) means collecting tax on income in the form of salary, rent, asset sales, dividends, etc., by requiring the payer to collect income tax due on such income while crediting/paying to the payee and deposit the same to the government on payee’s behalf. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.

Budget 2023 updates –

Section 194BA – Introduction of TDS on income from online gaming
Section 196A – Starting April 1st, 2023, non-residents earning income from mutual funds in India can provide a Tax Residency Certificate to avail the benefit of TDS as per rate given in tax treaty, instead of 20%.
Section 192A – TDS rate reduced to 20% from maximum marginal rate on PF withdrawal for employees who do not have PAN
Section 193 – No exemption from TDS on interest from listed debentures. Therefore, tax has to be deducted on interest on such specified securities.
Section 194N – TDS threshold has been increased on cash withdrawal by by co-operative societies. Starting April 1st, 2023, tax will be deducted on cash withdrawals by co-operative societies if the amount exceeds Rs 3 crore, instead of the previous limit of Rs 1 crore.

Budget 2022 updates –

New Section 194S- A person is liable for Tax Deduction at Source (TDS) at 1% at the time of payment of the transfer of virtual digital assets.
Sale of immovable property under Section 194-IA- It is proposed to amend the amount on which TDS should be deducted. The person buying the property should deduct tax at 1% on the sum paid/credited or the stamp duty value of such property, whichever is higher.
New Section 194R- TDS at 10% should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident for carrying out any business or profession by such resident.

TDS Rate Charts for the FY 2023-24

Section	Deductee*	Nature of transaction	Threshold Limit (Rs)	TDS Rate
192	R, NR	Payment of salary	Basic exemption limit of employee	Normal Slab Rates
192A	R, NR	Premature withdrawal from EPF	50,000	10% Budget 2023: TDS rate for EPF withdrawals without a PAN number is now 20%, from the previous maximum marginal rate
193	R	Interest on securities	Debentures- 5,000 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000 Other securities- No limit	10% Budget 2023: Exemption of TDS on interest from listed debentures has been removed. Therefore, tax has to be deducted on interest on such specified securities.
194	R	Payment of any dividend	5,000	10%
194A	R	Interest from other than interest from securities (from deposits with banks/post office/co-operative society)	Senior Citizens- 50,000 Others- 40,000	10%
194A	R	Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives	5,000	10%
194B	R, NR, FC	Income from lottery winnings, card games, crossword puzzles, and other games of any type	Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 Online Gamine- Refer 194BA	30%
194BA	R, NR, FC	Income from online games	Nil	30%
194BB	R, NR, FC	Income from horse race winnings	10,000 Aggregate winnings during a financial year not single transaction	30%
194C	R	Payment to contractor/sub-contractor:-	Single transaction- 30,000 Aggregate transactions- 1,00,000
		a) Individuals/HUF		1%
		b) Other than Individuals/HU		2%
194D	R	Insurance commission to:
		a) Domestic Companies	15,000	10%
		b) Other than companies	15,000	5%
194DA	R	Income for the insurance pay-out, while payment of any sum in respect of a life insurance policy.	1,00,000	5%
194E	NR, FC	Payment to non-resident sportsmen/sports association	No limit	20% *This rate shall be increased by applicable surcharge and 4% cess
194EE	R, NR	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	2,500	10%
194F	R, NR	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	No limit	20%
194G	R, NR, FC	Payments, commission, etc., on the sale of lottery tickets	15,000	5%
194H	R	Commission or brokerage	15,000	5%
194-I	R	Rent:
		194-I(a) Rent on plant and machinery	2,40,000	2%
		194-I(b) Rent on land/building/furniture/fitting	2,40,000	10%
194-IA	R	Payment in consideration of transfer of certain immovable property other than agricultural land.	50,00,000	1%
194-IB	R	Rent payment by an individual or HUF not covered u/s. 194-I	50,000 per month	5%
194-IC	R	Payment under Joint Development Agreements (JDA) to Individual/HUF	No limit	10
194J	R	Any sum paid by way of fee for professional services	30,000	10%
194J	R	Any sum paid by way of remuneration/fee/commission to a director	30,000	10%
194J	R	Any sum paid for not carrying out any activity concerning any business;	30,000	10%
194J	R	Any sum paid for not sharing any know-how, patent, copyright, etc.	30,000	10%
194J	R	Any sum paid as a fee for technical services	30,000	2%
194J	R	Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films	30,000	2%
194J	R	Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.	30,000	2%
194K	R	Payment of any income for units of a mutual fund, for example, dividend	No limit	10%
194LA	R	Payment in respect of compensation on acquiring certain immovable property	2,50,000	10%
194LB	NR, FC	Payment of interest on infrastructure debt fund to Non-Resident	No limit	5% *This rate shall be increased by applicable surcharge and 4% cess
194LC	NR, FC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds	No limit	5%
194LC	NR, FC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC	No limit	4%
194LD	NR, FC	Payment of interest on bond (rupee-denominated) to FII or a QFI	No limit	5%
194LBA(1)	R	Certain income distributed by a business trust to its unitholder	No limit	10%
194LBA(2)	NR, FC	Interest income of a business trust from SPV distribution to its unitholders	No limit	5%
194LBA(2)	NR, FC	Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders	No limit	10%
194LBA(3)	NR	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	30%
194LBA(3)	FC	Rental income payment of assets owned by the business trust to the unitholders of such business trust	No limit	40%
194LBB	R, NR	Certain income paid to a unitholder in respect of units of an investment fund	No limit	10%
194LBB	FC	Certain income paid to a unitholder in respect of units of an investment fund	No limit	40%
194LBC	R	Income from investment in securitisation fund received to an individual and HUF	No limit	25%
194LBC	R	Income from investment in securitisation fund received to a domestic company	No limit	10%
194LBC	FC	Income from investment in securitisation fund received to a foreign company	No limit	40%
194LBC	NR	Income from investment in securitisation fund received to NRI	No limit	10%
194M	R	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	50,00,000	5%
194N	R, NR	Cash withdrawal exceeding a certain amount	Co-operative society: 3 Crore Others: 1 crore	2%
194N	R, NR	Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired	– 20 lakh to 1 crore -1 crore	2% 5% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore
194O	R	Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	5,00,000	1% 5% in case PAN is not furnished
194P	R	Payment of pension or interest to specified senior citizens of age 75 years or more	Basic exemption limit of senior citizens or super senior citizens	Normal tax slab rates
194Q	R	Payments for the purchase of goods	50,00,000	0.10%
194R	R	Perquisite or benefit to a business or profession	20,000	10%
194S	R	TDS on the transfer of virtual digital assets	Specified Persons- 50,000 Others- 10,000	1%
195	NR	Income on investments made by NRI citizen	No limit	20%
195	NR	Income by way of LTCG referred to in section 115E in the case of NRI	No limit	10%
195	NR, FC	Income by way of LTCG under section 112(1)(c)(iii)	No limit	10%
195	NR, FC	Income by way of LTCG under section 112A	No limit	10%
195	NR, FC	Income by way of STCG under section 111A	No limit	15%
195	NR, FC	Any other income by way of LTCG	No limit	20%
195	NR, FC	Interest payable on money borrowed by the government or Indian concern in foreign currency	No limit	20%
195	NR, FC	Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A	No limit	10%
195	NR	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	No limit	10%
195	FC	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976	No limit	50%
195	FC	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976	No limit	10%
195	NR	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	No limit	10%
195	FC	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976	No limit	50%
195	FC	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered after 31st March 1976	No limit	10%
195	NR	Any other income	No limit	30%
195	FC	Any other income	No limit	40%
196B	NR, FC	Income (including LTCG) from units of an offshore fund	No limit	10%
196C	NR, FC	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	No limit	10%
196D	NR, FC	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	No limit	20%
206AB	R	Payment to non-filers, i.e. those who have not filed their income tax return in the last year Budget 2023: Non filers do not include: – People who are not required to file their ITRs – NRs who do not have a PE in India	No limit	– 2 times the rate given in the Income Tax Act or Finance Act or – 5%, whichever is higher
206AA	R, NR, FC	TDS rate in case of Non availability of PAN	No limit	Rates specified above or 20%, whichever is higher

*”R” denotes Resident,
“FC” denotes Foreign company, and
“NR” denotes Non-Resident.

Note:

The Normal slab rates for FY 2023-24 for individuals and HUF have changed under the new tax regime.
Applicable surcharge and health and education cess shall be deducted in addition to the TDS rates deducted for NRI deductees.
In the above TDS rate chart, the ‘Resident’ payee under the column ‘TDS deducted’ includes domestic companies.
All TDS amendments introduced in Budget 2023 have been included in the TDS chart above.

Union Budget 2023 New TDS Provisions

Section 194BA – TDS on online gaming

Starting from April 1, 2023, TDS will be deducted on income earned from online gaming. If you win money, the online gaming platform giving you the winnings will deduct 30% TDS on the net winnings. TDS will be deducted when you withdraw the winnings from your account. In case you do not withdraw the winnings by the end of the financial year, then the tax will be deducted on the unwithdrawn amount lying in your account by the end of financial year.

Section 196A – Reduced TDS rate as per tax treaty

When a non-resident earned income from mutual funds in India, the TDS rate was 20%. However, from April 1, 2023, the non-resident can choose to pay a lower tax rate given in the tax treaty by providing a tax residency certificate.

Section 192A – Relaxation for employees without PAN

Starting from April 1, 2023, if an employee does not furnish PAN (Permanent Account Number), they will receive their provident fund balance after a 20% tax deduction. Earlier, tax was deducted at maximum marginal rate (MMR) which would be as high as 42.74%.

Section 193 – Tax deduction on interest from specified securities

Before April 1, 2023, individuals often forgot to report the interest income they earned from specified securities in their income tax returns because TDS was not deducted. Now, starting from April 1, 2023, tax will be deducted from the interest earned on listed securities in dematerialized form. This change will ensure accurate reporting of income in ITR and allow the government to collect appropriate taxes.

Section 194N – Increased TDS threshold for cooperative societies

From April 1, 2023, if a co-operative society withdraws cash, TDS will be applicable when the withdrawal amount exceeds Rs. 3 Crore. This threshold was previously Rs. 1 Crore.

Section 194R – Clarification on TDS deductions for benefits or perquisites

In the 2023 budget, it was clarified that TDS should be deducted on benefits or perquisites, whether they are in cash, in kind, or a combination of both. This rule also applies to Section 28(iv).

New Section 155(20) – Credit of TDS in the year of income reporting

If a taxpayer reports income on an accrual basis in one year but the tax on that income is deducted in the following financial year, it can cause mismatch with tax credits. From October 1, 2023, taxpayers can apply for the tax credit in the financial year in which the income is declared in their tax return. The application must be made within two years of the financial year in which the tax credit is reflected.

Overview of TDS Rate Chart for the FY 2023-24

Section	Nature of transaction	TDS Rate
192	Payment of salary	Normal Slab Rates
192A	Premature withdrawal from EPF	With PAN: 10% Without PAN: 20%
193	Interest on securities	10%
194	Payment of any dividend	10%
194A	Interest other than interest from securities (from deposits with banks/post office/co-operative society)Interest from banks/post office/co-operative society	10%
194B	Income from lottery winnings, card games, crossword puzzles etc.	30%
194BA	Income from online games	30%
194BB	Income from horse race winnings	30%
194C	Payment to contractor/sub-contractor:-
	a) Individuals/HUF	1%
	b) Other than Individuals/HU	2%
194D	Insurance commission to:
	a) Domestic Companies	10%
	b) Other than companies	5%
194DA	Insurance pay-out in respect of a life insurance policy	5%
194E	Payment to non-resident sportsmen/sports association	20% + surcharge + 4% cess
194EE	Payment of amount standing to the credit of a person under National Savings Scheme (NSS)	10%
194F	Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund	20%
194G	Payments, commission, etc., on the sale of lottery tickets	5%
194H	Commission or brokerage	5%
194-I	Rent:
	194-I(a) Rent on plant and machinery	2%
	194-I(b) Rent on land/building/furniture/fitting	10%
194-IA	Payment in consideration of transfer of certain immovable property other than agricultural land.	1%
194-IB	Rent payment by an individual or HUF not covered u/s. 194-I	5%
194-IC	Payment under Joint Development Agreements (JDA) to Individual/HUF	10
194J	Any sum paid by way of fee for professional services	10%
194J	Any sum paid by way of remuneration/fee/commission to a director	10%
194J	Any sum paid for not carrying out any activity concerning any business;	10%
194J	Any sum paid for not sharing any know-how, patent, copyright, etc.	10%
194J	Any sum paid as a fee for technical services	2%
194J	Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films	2%
194J	Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center.	2%
194K	Payment of any income for units of a mutual fund, for example, dividend	10%
194LA	Payment in respect of compensation on acquiring certain immovable property	10%
194LB	Payment of interest on infrastructure debt fund to Non-Resident	5% + surcharge + 4% cess
194LC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds	5%
194LC	Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC	4%
194LD	Payment of interest on bond (rupee-denominated) to FII or a QFI	5%
194LBA(1)	Certain income distributed by a business trust to its unitholder	10%
194LBA(2)	Interest income of a business trust from SPV distribution to its unitholders	5%
194LBA(2)	Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders	10%
194LBA(3)	Rental income payment of assets owned by the business trust to the unitholders of such business trust	30%
194LBA(3)	Rental income payment of assets owned by the business trust to the unitholders of such business trust	40%
194LBB	Certain income paid to a unitholder in respect of units of an investment fund	10%
194LBB	Certain income paid to a unitholder in respect of units of an investment fund	40%
194LBC	Income from investment in securitisation fund received to an individual and HUF	25%
194LBC	Income from investment in securitisation fund received to a domestic company	10%
194LBC	Income from investment in securitisation fund received to a foreign company	40%
194LBC	Income from investment in securitisation fund received to NRI	10%
194M	Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J	5%
194N	Cash withdrawal from a banking company, co-operative society engaged in the business of banking or a post office:	2%
	Filed ITR during the last three years and cash withdrawal exceeds Rs 3 crore	2%
	In case person has not filed ITR for the last three years – total cash withdrawn is more than ₹20 lacs and up to ₹3 Crore in a FY – total cash withdrawn is more than ₹3 Crore is a financial year	– 2% – 5%
194O	Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform.	1% 5% in case PAN is not furnished
194P	Payment of pension or interest to specified senior citizens of age 75 years or more	Normal tax slab rates
194Q	Payments for the purchase of goods	0.10%
194R	Perquisite or benefit to a business or profession	10%
194S	TDS on the transfer of virtual digital assets	1%
195	Income on investments made by NRI citizen	20%
195	Income by way of LTCG referred to in section 115E in the case of NRI	10%
195	Income by way of LTCG under section 112(1)(c)(iii)	10%
195	Income by way of LTCG under section 112A	10%
195	Income by way of STCG under section 111A	15%
195	Any other income by way of LTCG	20%
195	Interest payable on money borrowed by the government or Indian concern in foreign currency	20%
195	Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A	10%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy	10%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered in between 31st March 1961 and 1st April 1976	50%
195	Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy If the agreement for such royalty payment is entered after 31st March 1976	10%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy	10%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976	50%
195	Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy If the agreement for such payment is entered after 31st March 1976	10%
195	Any other income	30%
195	Any other income	40%
196B	Income (including LTCG) from units of an offshore fund	10%
196C	Income (including LTCG) from foreign currency bonds or GDR of an Indian company	10%
196D	Income (excluding dividend and capital gain) from Foreign Institutional Investors.	20%
206AB	Payment to non-filers, i.e. those who have not filed their income tax return in the last year Budget 2023: Non filers do not include: – People who are not required to file their ITRs – NRs who do not have a PE in India	– 2 times the rate given in the Income Tax Act or Finance Act or – 5%, whichever is higher
206AA	TDS rate in case of Non availability of PAN	Rates specified above or 20%, whichever is higher

TDS on cash withdrawal in excess of Rs 1 crore

Budget 2023: For co-operative societies, the threshold limit for annual cash withdrawals has been increased to ₹ 3 crores.

Budget 2020: The threshold limit for TDS under Section 194N is reduced to Rs 20 lakh for taxpayers who have not filed their income tax returns for past three years.

TDS shall be deducted at prescribed rates if cash is withdrawn in excess of Rs 20 lakh during the financial year by the taxpayer.

Let’s discuss Section 194N in detail:

What is Section 194N?

Section 194N is applicable on more than Rs 1 crore cash withdrawals
from the bank account during a financial year. It will apply to the withdrawal of all the sums of money or an aggregate of sums from a particular bank in a financial year. The section will apply to withdrawals made by any taxpayer, including:

An individual
A Hindu Undivided Family (HUF)
A company
A partnership firm or an LLP
An Association of Person (AOPs) or Body of Individuals (BOIs)

But it shall not apply if payment is made to-

The Government
Any bank (private or public sector)
A co-operative bank
A post-office
Business correspondents of a banking company
White Label ATM operators of any Bank
Specified trader or commission agents operating under the Agriculture Produce Market Committee (APMC) vide Notification No. 70/2019-Income Tax Dated 20th September, 2019.
An authorized dealer or agent/sub-agent of its franchise,
A RBI licensed Full-Fledge Money Changer (FFMC) or any agent from its franchise subject to conditions as per Notification No. 80/2019-Income Tax dated 15th October, 2019.
Any other person notified by the Government of India

How to calculate the threshold limit?

The payer shall deduct tax while making payment to any individual in cash from the individual’s bank account on the amount over Rs 1 crore.

The limit of Rs 1 crore in a financial year is with respect to per bank or post office account and not per the taxpayer’s account.

For example, if a person has three bank accounts with three different banks, he can withdraw cash of Rs 1 crore * 3 banks, i.e. Rs 3 crore without any TDS.

The cash withdrawal made by any taxpayer from the bank accounts maintained by such taxpayer (recipient) will only attract TDS under Section 194N.
For instance, if a bank makes a cash payment of more than Rs 1 crore in a FY to its account holder (i.e. any taxpayer) from the account maintained by such taxpayer, then the bank will have to deduct TDS.

In case the taxpayer issues a bearer cheque to a third party, over Rs 1 crore in a financial year, the recipient of the cash is not the account holder but a third party. In such a case, the payment is not made by the bank to the account holder. In the above situation, there is an ambiguity that whether such bearer cheque given to any person (like vendor) to collect payment from the bank will be covered under section 194N? Whether the bank is liable to deduct tax on the account holder’s funds in respect of the bearer cheque issued to a third party?

Separately, in the case of business payments, payment made through a bearer cheque would not be allowed as an expenditure under section 40(A)(3) of the Income Tax Act. Any payment exceeding Rs 10,000 per day (in a single transaction or in aggregate) is not allowed as business expenditure.

The provision of Section 194N will be applied to the payments made on or after 1 September 2019. But the limit of Rs 1 crore will apply to the cash payments/withdrawals made during FY 2019-20.

Why is Section 194N introduced?

To discourage cash transactions in the country and promote the digital economy, ‘Section 194N – TDS on cash withdrawals over and above Rs 1 crore’ has been introduced through the Finance Bill, 2019.

Who will deduct TDS under Section 194N?

The person (payer) making the cash payment will have to deduct TDS under Section 194N. Here is the list of such persons:

Any bank (private or public sector)
A co-operative bank
A post office

There are certain categories of persons (payee) to whom the provision of this section will not apply. They are listed below:

Any government body
Any bank, including co-operative banks
Any business correspondent of a banking company (including co-operative banks)
Any white label ATM operator of any bank (including co-operative banks)
Trader of APMC paying to the farmers.
Any other person notified by the government

What is the point of TDS under Section 194N?

The payer should deduct TDS while making the cash payment over and above Rs 1 crore in a financial year to the payee. If the payee withdraws a sum of money at regular intervals, the payer will have to deduct TDS from the amount once the total sum withdrawn exceeds Rs 1 crore in a financial year.

Further, the tax will be deducted on the amount exceeding Rs 1 crore.
For example, if a person withdraws Rs 99 lakh in aggregate in the financial year and next time, an amount of Rs 1,50,000 is withdrawn, the TDS liability is only on the excess amount of Rs 50,000.

Rate of TDS under Section 194N

The payer will have to deduct TDS at the rate of 2% on the cash payments/withdrawals of more than Rs 1 crore in a financial year under Section 194N.
Thus, in the above example, TDS would be on Rs 50,000 at 2%, i.e. Rs 1,000.

If the individual receiving the money has not filed an income tax return for three years immediately preceding the year, the tax deduction limit is reduced to Rs 20 lakh.

The TDS will be deducted at:
-2% on the cash payments/withdrawals of more than Rs 20 lakh and up to Rs 1 crore
-5% for withdrawal exceeding Rs 1 crore

Points to remember

The recipient of cash cannot furnish Form No. 15G/15H to the bank and cannot apply for a lower deduction certificate u/s 197.
While calculating three years immediately preceding the years, if the date of return u/s 139(1) has not expired, then that assessment year is not to be considered.

Illustrations

Example 1

Mr. Raj has made the following withdrawals during the financial year 2020-21. He has not filed his ITR for the financial year-2017-18, 2018- 19, 2019-20 and that the due date for filing of return for these years has expired.

Date	Amount of Withdrawal (Rs)	Aggregate amount withdrawn up to the given date (Rs)	Rate	Computation	Tax to be deducted (Rs)
01/04/2020	14 lakh	14 lakh	–	–	–
21/07/2020	26 lakh	40 lakh	2%	(40 lakh -20 lakhs) x 2%	40,000
25/08/2020	35 lakh	75 lakh	2%	35 lakh x 2%	70,000
04/09/2020	35 lakh	1.10 crore	2% and 5%	(25 lakh x 2%) + (10 lakh x 5%)	1,00,000
18/10/2020	50 lakh	1.6 crore	5%	50 lakh x 5%	2,50,000

Section 194N is applicable when an amount is withdrawn from one or more accounts maintained with the same bank.

Example 2

Mr. Raj maintains a savings and current account with XYZ bank. His transactions during the FY 2020-21 are as follows:

Date of cash withdrawn	Withdrawal from the saving account (in Rs)	Withdrawal from the current account (in Rs)
01-06-2020	5,00,000	15,00,000
15-07-2020	1,00,000	15,00,000
30-07-2020	2,00,000	20,00,000
01-10-2020	50,000	40,00,000
01-11-2020	1,50,000	10,00,000
Total	10,00,000	1,00,00,000
Tax to be deducted	Rs 20,000 (10,00,000+1,00,00,000-1,00,00,000)*2%

If there are multiple bank accounts, tax deduction limit shall be based on the individual banks.

Example 3

Mr. Raj has withdrawn cash from the following banks during the financial year–

Bank	Total cash withdrawn during the FY 2020-21 (in Rs)
Axis Bank	₹60 lakh
SBI Bank	₹50 lakh
ICICI Bank	₹10 lakh

In the above example, No bank is required to deduct TDS under Section 194N as the limit of Rs 1 crore is not exhausted in any of the banks.

However, if Mr Raj withdraws cash of more than Rs 1 crore from SBI bank, then SBI bank is liable to deduct TDS at 2% or 5%, as the case may be.

Read more at: View TDS on Cash Withdrawal

TDS, TCS Rate Chart FY: 2023-24 (AY: 2024-25)

TDS RATE CHART FY: 2023-24 (AY: 2024-25)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		Rs.	TDS Rate (%)
192	Salaries	–	Avg	–
192A	Premature withdrawal from EPF	50000	10	–
193	Interest on Securities	10000	10	10
194	Dividends	5000	10	10
194A	Interest (Banks)	40000	10	10
194A	Interest (Others)	5000	10	10
194A	Senior Citizen	50000	10	–
194B	Winning from Lotteries	10000	30	30
194BA	Winnings from online games	–	30	30
194BB	Winnings from Horse Race	10000	30	30
194BP	Lotteries/crossword puzzles-made in kind/cash not suffice to meet the tax liability and paid before	10000	30	30
194C	Contractor – Single Transaction	30000	1	2
194C	Contractor – During the F.Y.	1 Lakh	1	2
194C	Transporter (44AE) declaration with PAN	–	–	–
194D	Insurance Commission (15G-15H allowed)	15000	5	10
194DA	Life insurance Policy	1 Lakh	1	1
194EE	NSS	2500	10	10
194F	Repurchase Units by MFs	–	20	20
194G	Commission – Lottery	15000	5	5
194H	Commission / Brokerage	15000	5	5
194I(a)	Rent of Plant / Machinery / Equipment	2.40 Lakh	2	2
194I(b)	Rent of Land Building & Furniture	2.40 Lakh	10	10
194IA	Transfer of certain immovable property other than agriculture land	50 Lakh	1	1
194IC	Payment under Specified agreement applicable for F.Y: 2017-18 onwards	–	10	10
194J (a)	Fees-tech srvcs, call centre, royalty for sale etc.	30000	2	2
194J (b)	Fee for professional service or royalty etc.	30000	10	10
194K	Payment of dividend by mutual Funds	5000	10	10
194LA	Compensation on transfer of certain immovable property other than agriculture land	2.50Lakh	10	10
194LA	Immovable Property (TDS exempted under RFCTLARR Act (wef 01.04.2017)	–	–	–
194LA	Immovable Property	2.50Lakh	10	10
194LB	Income by way of interest from infrastructure debt fund(non-resident)	–	5	5
194LBA	Certain income from units of a business trust (applicable from 01.10.2014)	–	10	10
194LBA	Certain income from units of a business trust to non-resident (applicable from 01.10.2014)	–	5	5
194LBB	Income in respect of investment of investment fund	–	10% for residents, 30% for non-residents	10% for residents, 40% for non-residents
194LBC	Income in respect of investment in securitization trust	–	30% for residents, 40% for non-residents, 25% for individual & HUF	30% for residents, 40% for non-residents, 25% for individual & HUF
194LC	Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan/long term infrastructure bond ‘from outside India (applicable from July 1, 2012)	–	5	5
194LD	Interest on certain bonds and Govt. Securities (from 01.06.2013)		5	5
194M	Payment to commission, brokerage etc. by individual & HUF	50 Lakh	5	5
194N	Cash withdrawal in excess of 1 crore during the previous year from 1 or more account with a bank or co-operative society (wef 01.09.2019)	1 Cr	2	2
194NF	Payment of certain amounts in cash to non-filers	2000000	2	2
194NF	Payment of certain amounts in cash to non-filers	10000000	5	5
194O	TDS on e-commerce participants	5 Lakh	1%(01.10.2020)	1% (01.10.2020)
194P	TDS in case of Specified Senior Citizen		Not Applicable	Rates in Force
194Q	TDS on Purchase of Goods exceeding Rs. 50 Lakhs (Applicable From 01-July-2021)	In Excess of Rs. 50 Lakhs	0.1	0.1
194R	Benefits or perquisites of business or profession	20000	10	10
194RP	Benefits or perquisites of business or profession where such benefit is provided in kind or where part in cash is not sufficient to meet tax liability and tax required to be deducted is paid before such benefit is released	20000	10	10
194S	Payment of consideration for transfer of virtual digital asset by persons other than specified persons	10000	1	1
194SP	Payment for transfer of virtual digital asset where payment is in kind or in exchange of another virtual digital asset and tax required to be deducted is paid before such payment is released	10000	1	1
Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)

Notes:

1)	The above list covers most of the sections applicable for domestic transactions
2)	Section – 206AA	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account Number to the person responsible for deducting such tax (i.e. deductor), failing which tax shall be deducted at the higher of the following rates, namely:- (i) at the rate specified in the relevant provision of this Act; or (ii) at the rate or rates in force; or (iii) at the rate of twenty percent: Provided that where the tax is required to be deducted under section 194-O, the provisions of clause (iii) shall apply as if for the words “twenty percent”, the words “five percent” had been substituted. Provided further that where the tax is required to be deducted under section 194Q, the provisions of clause (iii) shall apply as if for the words “twenty percent”, the words “five percent” had been substituted.
3)	Section – 206AB	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, where tax is required to be deducted at source under the provisions of Chapter XVIIB, other than sections 192, 192A, 194B, 194BB, 194LBC or 194N on any sum or income or amount paid, or payable or credited, by a person to a specified person, the tax shall be deducted at the higher of the following rates, namely:–– (i) at twice the rate specified in the relevant provision of the Act; or (ii) at twice the rate or rates in force; or (iii) at the rate of five per cent. If the provisions of section 206AA is applicable to a specified person, in addition to the provision of this section, the tax shall be deducted at higher of the two rates provided in this section and in section 206AA. For the purposes of this section “specified person” means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in each of these two previous years Provided that the specified person shall not include a non-resident who does not have a permanent establishment in India.

TDS RATE CHART (FOREIGN) FY: 2023-24 (AY: 2024-25)

Section	Nature of Payment	Threshold	Indv / HUF	Others
		RS.	Existing TDS Rates (%)
195	Payment to Non-residents	–	0	0
194E	Non-resident Sportsman or Sports Assn	–	20	20
196A	Foreign Company being unit holder in Mutual Fund	–	20	20
196B	Units held by Off-shore Fund	–	10	5
196C	Income from Foreign Currency Bonds	–	5	5
196D	Income of FII on Securities	–	20	20
196DA	Income of specified fund from securities	–	10	10
194LB	Interest from infrastr. debt fund payable to non-resident	–	5	5
194LC	Interest from specified company payable to non-resident	–	5	5
194LD	Interest on certain bonds and govt securities	–	5	5
194LBA	Certain income from units of a business trust	–	5	5
194LBB	Income on units of Investment Fund	–	30	40
194LBC	Income in respect of investment in securitization trust	–	30	40
194N	Payment of certain amounts in cash	–	2	2
194LBA(a)	Income referred to in section 10(23FC)(a) from units of a business trust	–	10	10
194LBA(b)	Income referred to in section 10(23FC)(b) from units of a business trust	–	5	5
194NF	Payment of certain amounts in cash to non-filers	–	1	1
194LBA(c)	Income referred to in section 10(23FCA) from units of a business trust	–	30	30
192A	Payment against EPF Scheme	30000	10	10
*Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)*

TCS RATE CHART FY: TDS / TCS Rate Chart FY: 2023-24 (AY: 2024-25)

Section	Nature of Payment	TCS Rate %
206CE	Scarp	1
206CI	Tendu Leaves	5
206CB	Timber obtained under a forest lease or other mode	2.5
206CD	Any other forest produce not being a timber or tendu leaves	2.5
206CA	Alcoholic Liquor for human consumption & Tendu leaves	1
206CF	Parking Lot	2
206CG	Toll Plaza	2
206CH	Mining & Quarrying	2
206CJ	Minerals	1
206CL	Sale of Motor Vehicle	1
206CK	Bullion & Jewellery	1
206CM	Sale in cash of any goods(other than bullion)	1
206CN	Providing of any service (other than Ch-XVII-B)	1
206CQ	LRS-other purposes – Liberalized Remittance Scheme	5% (10% for non-PAN or Aadhar)
206CO	Tour Program Package	5% (10% for non-PAN or Aadhar)
206CR	Sale of Goods	0.1% (1% for non-PAN or Aadhar)
206CC	Timber obtained under any other mode other than forest lease	2.5
206CP	LRS – Educational Loan – Financial Institution	0.5
Note: TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Notes:

1)	The above list covers most of the sections applicable for domestic transactions
2)	Section-206CC	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates, namely:- (i) at twice the rate specified in the relevant provision of this Act; or (ii) at the rate of five per cent. The provisions of this section shall not apply to a non-resident who does not have permanent establishment in India.
3)	Section-206CCA	Notwithstanding anything contained in any other provisions of the Income Tax Act-1961, where tax is required to be collected at source under the provisions of Chapter XVII-BB, on any sum or amount received by a person (hereafter referred to as collectee) from a specified person, the tax shall be collected at the higher of the following two rates, namely:- (i) at twice the rate specified in the relevant provision of the Act; or (ii) at the rate of five per cent. If the provisions of section 206CC is applicable to a specified person, in addition to the provisions of this section, the tax shall be collected at higher of the two rates provided in this section and in section 206CC. For the purposes of this section “specified person” means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be collected, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in each of these two previous years:Provided that the specified person shall not include a non resident who does not have a permanent establishment in India.

TDS deduction on interest income and how to avoid it – All you need to know

Any one having a bank account earns some interest on their deposits and this particular income is taxable. Anyone earning an interest income from their bank accounts must know that tax is to be deducted at the time of payment or credit of interest (to any account by whatever name called), whichever is earlier, as per section 194A.

The provisions of tax deducted at source (TDS) presently apply to several payments like salary, interest, commission, brokerage, professional fees, royalty, etc. However, no tax is required to be deducted if aggregate amount of interest credited or paid to the payee in respect of time deposit during the financial year doesn’t exceed RS 40,000. The threshold is Rs 50,000 for senior citizens.

A major respite that taxpayers are eligible for is that if their annual taxable income is less than the tax exemption threshold, they can avoid TDS on incomes such as interest and rent by submitting form 15G or 15H to the appropriate person or organisation.

Forms 15G and 15H come into play when a taxpayer’s interest income in under the limit and want to avoid paying TDS. People under 60 are required to submit Form 15G while those above 60 years of age are needed to submit Form 15H.

The taxpayer who receives declaration in Form No 15G/15H shall be required to upload details of such declarations on quarterly basis on the e-filing site (www.incometax.gov.in) under his digital signature within:

15 days from the end of first, second and third quarter
30 days from the end of fourth quarter.

Important Points to Note

Declaration in Form No. 15G/15H can be made only by an individual resident in India.
Declaration in Form No. 15G/15H can be made, if the annual interest does not exceed the exemption limit (i.e. Rs 2,50,000 or Rs 3,00,000 or Rs 5,00,000, as the case may be).

This condition is not applicable in case of a senior citizen i.e. a resident senior citizen can furnish declaration in form 15H even if annual interest likely to be paid to him exceeds the exemption limit of Rs 2,50,000 or Rs 5,00,000, as the case may be, provided the tax payable on his total income after considering the rebate under section 87A is nil.

The tax payable on total income of the year should be “Nil”.

Income Tax department’s big Announces Latest TDS Rates Chart for FY 2023-24 (AY 2024-25)

Rates for deduction of tax at source Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered.

Latest TDS Rates Chart for FY 2023-24 (AY 2024-25)Based on the above Budget 2023 changes, I have prepared the latest TDS Rates Chart for FY 2023-24 (AY 2024-25).

Section	For Payment of	Threshold limit	TDS Rate %
192	Salary Income	Income Tax Slab	Slab rates (Based on old or new tax regimes)
192 A	EPF – Premature withdrawal	Rs 50,000	10% (If no PAN, then @20%)
193	Interest on Securities	Rs. 2,500	10%
194	Dividend	Rs 5,000	10%
194 A	Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit (Interest other than “Interest on securities” )	Rs. 40,000 (Rs 50,000 for Senior Citzens)	10%
194 A	Interest other than “Interest on securities” (Other Than Bank Deposit/Post Office Deposit/Banking Co-Society Deposit)	Rs. 5,000	10%
194 B	Winnings from lotteries, crossword puzzles, card games and other games of any sort (Aggregate winnings during FY and excludes online gaming).	Rs. 10,000	30%
194 B	Winnings from online games	Nil	30%
194 BB	Winnings from horse races (Aggregate winnings during FY)	Rs. 10,000	30%
194 D	Payment of Insurance Commission (Form 15G/H can be submitted)	Rs. 15,000	5% (Individuals) 10% (Companies)
194DA	Payment in respect of Life Insurance Policy	Rs 1,00,000	5%
194E	Payment to non-resident sportsmen/sports association	–	20%
194 EE	Payment of NSS Deposits	Rs 2,500	10%
194 G	Commission on the Sale of lottery tickets	Rs 15,000	5%
194 H	Commission or Brokerage	Rs 15,000	5%
194 IA	Rent of Plant & Machinery	Rs. 2,40,000	2%
194 IB	Rent of Land or building or furniture or fitting	Rs 2,40,000	10%
194 IA	Payment on transfer of certain immovable property other than agricultural land	Rs. 50 lakh	1% (TDS is to be deducted at the rate of 1% of such sum paid or credited to the resident or the stamp duty value of the such property, whichever is higher.)
194 IB	Payment of rent by individual or HUF not liable to tax audit	Rs.50,000 per month	5%
194IC	Payment of monetary consideration under Joint Development Agreements	–	10%
194J	Fees for professional or technical services	Rs 30,000	2% (for technical services) (or) 10% (payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;)
194LA	Payment of compensation on acquisition of certain immovable property	Rs 2,50,000	10%
194 LB	Interest from Infrastructure Bond to NRI	NA	5%
194 M	Payment of commission (not being insurance commission), brokerage, contractual fee, or professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.	Rs.50,00,000	5%
194N	Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office:	> Rs 1cr (if the person withdrawing the cash has filed income tax return for any or all three previous AYs.). > Rs.20 lakh (if the person withdrawing the cash has not filed ITR for any of the preceding three AYs.) > Rs.3 Cr for cooperative banks	2% and 5% (cash withdrawals exceeding Rs.1 Cr if the person withdrawing the cash has not filed ITR for any of the preceding three AYs.)
194Q	Purchase of goods (applicable w.e.f 01.07.2021)	Rs 50 lakh	0.10%
195	Payment of any other sum to a Non-resident (NRI)	–	20% (Income in respect of investment made by a Non-resident Indian Citizen). 10% (Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen, Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112, Income by way of long-term capital gains as referred to in Section 112A). 15% (Income by way of short-term capital gains referred to in Section 111A) 20% (Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A, Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)) 30% on any other income
206AB	TDS on non-filers of ITR at higher rates (applicable w.e.f 01.07.2021)	–	Higher of – 5% – Twice the rate in act – Twice the rate or rate in force
194P	TDS on Senior Citizen above 75 Years (No ITR filing cases)	–	Slab Rates
206AA	TDS rate in case of Non-availability of PAN	–	Higher of – As per act Twice the rate or rate in force 20%
194R	TDS on benefit or perquisite of a business or profession	Rs.20,000	10%
194S	TDS on payment for Virtual Digital Assets	“Specified Person” Payer– 50,000 Other Payers – 10,000	1%

All about to Know About TDS Challan – 280, 281 & 282

Tax Deducted At Source (TDS) is one of the method of collecting the tax from the source of the income. Therefore, an individual or business entity liable to make payments such as salary, interests etc., will collect the applicable tax before making the payment. It is defined based on a certain percentage of the full payment.

Furthermore, the person collecting the tax using the TDS concept will have to deposit the amount with the Income Tax Department. The TDS challan is used to deposit the income tax to the account of the Central Government. Let us understand the TDS challan, the different types and usage procedures.

What is a TDS Challan?

TDS Challan is used to deposit the Tax Deducted At Source or the Tax Collected At Source with the Government. The Government of India introduced the income tax TDS challan to reduce human error and facilitate the online transactions for the TDS deposit, collection and refund process. There are three most important challans: Challan no. 280,281, and 282.

Challan 280 comes into use for depositing the income tax.
Challan 281 is used for depositing TDS (Tax Deducted At Source) and TCS (Tax Collected At Source).
Challan 282 is used for depositing wealth tax, security tax, gift tax, etc.

TDS Challan 280

The challan 280 is used by the taxpayers to make the respective income tax payments online or offline. The online form is available on the official website of the Income Tax Department. The taxpayers can use it to make payments such as the Advance Tax, Regular Assessment Tax, Surcharge, Tax on Distributed Profits or Income and Self-Assessment Tax. However, it does not apply to salaried individuals whose taxes are deducted at the source.

The challan 280 is also available online. The respective taxpayers must fill in the details and use the form to pay the income tax further online or offline.

Online Method Of Using The Challan 280

The entire tax-paying process becomes hassle-free using the challan 280 online method. Here is a detail about the steps that need to be followed.

Log on to the official website of the Income Tax Department and choose Challan No. 280.
Choose the Income Tax Other Than Companies option if the taxpayer is an individual.
Provide the necessary details such as assessment year, PAN, address, email ID and mobile number.
Choose the type of tax: Advance Tax, Self-Assessment Tax, Tax on Regular Assessment, Tax on Distributed Profit or Income.
Choose the respective bank for making the TDS online payment.
Click on proceed to provide the income tax amount and other bank details to make the payment successfully.
The acknowledgement will be made available to the taxpayer on their respective email ID.

Offline Method of using Challan 280

If the taxpayer is not comfortable making the income tax payment using the online method, they can always choose to complete the process offline. Here is a detail about the steps:

Download the challan 280 form online from the official website of the Income Tax Department. TDS challan download is a simple process and does not require much time.
Fill in the details such as PAN, address, assessment year, email-ID, mobile number, etc.,
Visit the bank directly with this filled form and the payable income tax amount and process the payment.

Based on Section 80C of the Income Tax Act, 1961, a taxpayer can claim upto ₹1.5 lakhs as a tax deduction. For example, when you purchase life insurance policies, the premium you pay and the payouts you receive will be applicable for a tax deduction and exemption benefit. Insurance providers have been offering a range of life insurance online solutions to make the purchase and customisation simple and hassle-free.

TDS Challan 281

TDS Challan is the TDS deposit challan used for depositing the TDS or the TCS by the corporates or non-corporate entities. The taxpayers can process the payment through offline or online methods. Here are a few important pointers regarding the TDS challan payment.

Accumulate the TDS amount and segregate it depending on the payment type and the deductee.
Calculate the applicable interest, if any.
Prepare the TDS challan 281.
Ensure to provide the correct TAN (Tax Deduction and Collection Account Number).
Deposit the payment online or offline.
On successful processing of the payments, the Challan Identification Number (CIN) information will be provided to the taxpayer.

The steps required to make the payments based on TDS challan 281 are as follows.

Visit the official website of the Income Tax Department to make the payment for challan 281 online.
Select challan number 281.
Provide the necessary details such as name, assessment year, etc.,
Provide the correct Tax Deduction Account Number.
Choose the type and mode of payment and make the required transactions using the online net banking facility.

TDS Challan 282

The challan 282 is used to deposit the gift tax, expenditure tax, estate tax, and other types of miscellaneous taxes. The respective forms based on the type of tax are available online. Therefore, the taxpayer has to visit the Income Tax Department’s official website, choose the appropriate form, provide the necessary details, and make the payments accordingly.

How to Check Status of TDS Challan Online?

Once you have made the necessary TDS challan payments, you can check the TDS challan status online at any time.

Visit the official website – Tax Information Network of Income Tax Department, TIN NSDL portal.
Click on the ‘Services’ tab.
Further, choose the OLTAS (Online Tax Accounting System) option.
On the left-hand corner, choose the ‘Challan Status Inquiry’ tab.
You will be redirected to a page that provides the option for taxpayers and banks to view the status.
Choose the respective option and provide the details regarding your challan, such as the CIN, to track the status of TDS challan.

TDS Rate Chart For Financial Year 2023-2024 Assessment Year 2024-2025

TDS stands for Tax Deducted at Source. Tax deduction at source (TDS) means collecting tax on income in the form of salary, rent, asset sales, dividends, etc., by requiring the payer to collect income tax due on such income while crediting/paying to the payee and deposit the same to the government on payee’s behalf. Below you’ll find the TDS rate chart, which summarises all the TDS provisions of the Income Tax Act.

Section	Nature of Payment	Threshold Limt (Rs)	TDS Rate (%)
192	Payment of salary	Basic Exemption limit	Normal Slab Rate
192A	Premature EPF Withdrawal	50,000	10% without a PAN number is now 20%
193	Intrest on securities	10,000	10%
194	Payment of any Dividend	5,000	10%
194A	Interest other than “Interest on securities”	40,000 50,000 (for senior citizen)	10%
194A	Interest other than “Interest on securities”u/s 193	5,000	10%
194B	Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort	10,000	30%
194BA	Income from online game	NA	30%
194BB	Income from horse races	10,000	30%
194C	Payment to contractor/sub-contractor (HUF/Individuals)	Single contractor payment 30,000 Aggregate contractor payment 1,00,000	1%
194C	Payment to contractor/sub-contractor (Others)	Single contractor payment 30,000 Aggregate contractor payment 1,00,000	2%
194D	Insurance Commission (Domestic companies)	15,000	10%
194D	Insurance Commission (Other than companies)	15,000	5%
194DA	Payment in Respect of life Insurance policy	1,00,000	5%
194E	Payment to Non-resident sportsmen/sports association	NA	20%
194EE	Payment in Respect of depostite under national saving scheme	2,500	10%
194F	Payment of account of repurchase of unity by Mutual fund or Unit trust of india	NA	20%
194G	Commission, etc., on sale of lottery tickets	15,000	5%
194H	Commission or brokerage	15,000	5%
194-I	Ren Plant & machinery	2,40,000	2%
194-I	Rent – Land or building and Furniture or fitting	2,40,000	10%
194-IA	Payment for transfer of immovable property other than agriculture land	50,00,000	1%
194-IB	Payment of Rent by Individual or HUF not liable to tax audit	50,000	5%
194-IC	Payment thet are made under joint development agreement (JDA) to Individua/HUF	NA	10%
194J	Fees for professional or technical services	30,000	10%
194J	Amount paid towards fees for technical services	30,000	2%
194J	Amount paid as royalty for sale	30,000	2%
194J	Amount paid by way of fee for Professional service	30,000	10%
194K	Income in respect of units payable to resident person, ecample-dividends	NA	10%
194LA	Payment of compensation on acquisition of certain immovable property.	2,50,000	10%
194LB	Payment on intrest on infrastructure bond to Non-resident Indians.	NA	5%
194LC	Payment of intrest by an Indian company or a business trust in respect of money borrowed in foreign currency under a loan agreemenet or by way a issue of long-term bonds	NA	5% or 4%
194LD	Payment of intrest on rupee denominated bond of an indian company or government securities to a foreign institutional investor or a qualified foreign investor	NA	5%
194LBA(1)	Certain income distributed by a business trust among its unit holder	NA	10%
194LBB	Investment fund paying an income to a unit holder	NA	10% Foreign company 40%
194LBC	Income in respect of investment made in a securitisation trust	NA	Individual or HUF -25% Domestic company or NRI -10% Foreign company -40%
194M	Payments by Individual/HUF not liable to deduct TDS under section 194C,194H, and 194j	50,00,000	5%
194N	Cash withdrawal exceeding a certain amount	Co-operative society 3crore other 1crore	2%
194N	Cash withdrawal for those persons who have not filed ITR for three previous years immediately preceding the previous year	If exceeds Rs. 20 If exceeds Rs. 1crore	2% 5%
194O	Payment by the e-commerce operator to e-commerce participant	5,00,000	1% Without pan 5%
194P	Deduction of tax by specified bank in case of senior citizen having age of 75 or more	Basic exemption limit	Normat tax slab rates
194R	Perquisite or benefite to a business or profession	20,000	10%
194S	Payment on transfer of Virtual digital asset	Specified person 50,000 other – 10,000	1%
195	Income in respect of investment made by a non-resident indian Citizen	NA	20%
195	Income by way of long-term capital gains referred to in section 115E in case of non-resident indian citizen	NA	10%
195	Income by way of long-term capital gains referred to in sub-clause (3) of clause (c) of sub-section (1) of section 112	NA	10%
195	Income by way of long-term capital gains referred to in Section 112A	NA	10%
195	Income by way of long-term capital gains referred to in Section 111A	NA	15%
195	Any other income by way of long term-term capital gain	NA	20%
196B	Income from units to an offshore fund	NA	10%
196C	Income from foreign currency bonds or GDR of an indian company	NA	10%
196D	Income from foreign institution investor from securities	NA	20%

Important is it to file TDS on crypto transactions?

Tax Deducted at Source (TDS) is a crucial taxation mechanism that ensures that taxes are collected from the source of income. It acts as an advance tax that is deducted by the payer while making payments such as salaries, rent, or professional fees. TDS helps in the efficient and timely collection of taxes, which in turn contributes to the nation’s revenue.

With the introduction of the 2022 budget in India, crypto holders are now subject to a 1% TDS and 30% on all crypto gains. However, it’s not enough to merely deduct TDS; filing it correctly is also essential. The deductor must issue a TDS certificate to the deductee.

It’s vital to stay aware of changes made to tax laws and regulations with every new budget, as they impact TDS filing. By being aware of these changes and ensuring correct filing, individuals can avoid penalties and legal issues. Ultimately, this contributes to maintaining compliance with tax laws and regulations and fosters the country’s economic growth.

Here are some tips on how to file your TDS post Budget:

When filing TDS, it’s essential to first determine which form to use. Two common forms are Form 26Q and Form 26QE. Form 26Q is used to file TDS details on payments made other than salary. It includes information on the total amount paid during the quarter and the TDS amount deducted. This form must be submitted quarterly.

On the other hand, Form 26QE is used to deposit the tax deducted on any VDAs. This form requires the tax deducted under Section 194S to be paid to the central government within 30 days from the end of the month when the deduction is made. Challan-cum-statement can be made in Form 26QE electronically for this kind of deduction.

It’s important to note that any taxpayer paying taxes may have TDS deducted by the payee in certain cases. Proper filing of TDS on the appropriate form is crucial to avoid penalties or legal issues. By submitting these forms accurately and timely, taxpayers can help maintain compliance with tax laws and regulations.

After the budget, the next step in filing TDS is collecting necessary details such as the PAN and other formalities. Ensuring the accuracy of these details is crucial to avoiding errors during TDS filing. Therefore, it’s advisable to double-check before submitting any documents.

The final step involves submitting the TDS form to the government, which can be done independently or with the help of a crypto tax expert. It’s important to file the form correctly and on time to avoid any legal or financial consequences.

Individuals can successfully navigate the TDS filing process by following the correct procedures and seeking professional advice when needed.

Summarising,when filing your TDS after the Budget, these are several important tips to keep in mind:

Firstly, ensure you have collected the relevant TDS certificates by filing

Form 26Q or Form 26QE. Next, verify that the information provided in these certificates matches your records.

To accurately calculate your total taxable income for the financial year, you should include all sources of income. Take advantage of all eligible deductions and exemptions to reduce your tax liability, ensuring you claim them appropriately. Finally, pay any remaining tax liability, if applicable, and thoroughly verify your ITR.

By following these general tips and staying up-to-date with the latest TDS guidelines, you can successfully file your TDS and remain compliant with tax laws and regulations.

Please be aware that there are late filing fees under Section 234E, which entail a daily fine of 200 until the return is filed. This penalty must be paid every day until the total fine equals the TDS amount or date of filing TDS return.

TDS Rules Change: Big news! These people will no longer have to pay TDS, know what else will change

Many rules will change in the new financial year 2023-24 starting from April 1. Many rules related to income tax are also going to change in the new financial year. These changes were proposed in the Union General Budget presented on February 1.

If the income is less than seven lakhs, then no TDS

Salaried people are going to be benefitted under the new tax regime from April. For such people, now TDS deduction can be reduced. Such taxpayers, whose taxable income is less than seven lakh rupees and they opt for the new tax regime, then they will not be charged any TDS. For this additional exemption has been given under section 87A of the Income Tax Act.

Only capital gain up to Rs 10 crore is exempt

The benefits available under Section 54 and 54F of the Income Tax Act will be reduced from the new financial year. From April 1, only capital gains up to Rs 10 crore will be exempt under these Acts. Capital gain above this will be taxed at the rate of 20 per cent with the benefit of indexation.

From April 1, more capital gains tax will have to be paid on the profit made from the sale of the property. Along with this, short-term capital gains tax will now be levied on capital gains arising from transfer, redemption or maturity of market, liquid debentures. The new tax system of income tax will be the default tax system for the financial year 2023-24.

If the annual insurance premium exceeds five lakhs, then tax on its income
If the annual premium of a new life insurance policy issued on or after April 1 is more than five lakh rupees, tax will have to be paid on the income received from it. This rule will not apply to policies issued till March 1.

Only six digit hallmark jewelry will be sold

After March 31, jewelery bearing the four-digit Hallmark Unique Identification (HUID) will not be sold as Hallmark. From April 1, only hallmarked jewelery with six digits will be sold. Apart from this, there is sure to be a change in the price of LPG cylinder from April 1.

New TDS rules from April 1, 2023

Union Budget 2023 proposed several changes in Tax Deducted at Source (TDS) rules that will come into effect from the new financial year starting April 1, 2023. In its “Highlights of Finance Bill, 2023”, the Income Tax Department recently shared the list of such TDS rules that were proposed to change in Budget 2023.

1. TDS on winning from online gaming has been proposed without any threshold benefit. The tax will be deducted either upon withdrawal or at the end of the financial year.

2. The exemption from TDS available on interest payments on listed debenture has been proposed to be removed.

3. If the recipient of EPF withdrawal does not provide his PAN, then TDS on the withdrawal will be 20%, instead of the maximum marginal rate.

4. Sections 206AB and 206CCA have been amended to exclude certain persons from the scope who are not required to file a return of income and are notified by the government.

5. For certain income paid to non-residents or foreign companies, TDS will be deducted at a rate of 20% or the rate specified in a tax treaty, whichever is lower. This relief will be available if the payee provides a tax residency certificate.

6. Section 155 has been amended to solve a TDS mismatch problem. “When a taxpayer reports income using the accrual method, it may be taxed before the TDS is deducted. It causes a TDS mismatch and prevents the taxpayer from claiming TDS credit. The amendment in section 155 allows taxpayers to apply to the assessing Officer within two years of the financial year in which the tax was withheld,” the Income Tax Department says.

“The Assessing Officer will then amend the assessment to allow the taxpayer to claim TDS credit. Section 244A is also amended to provide that the interest on refund arising out of the above rectification shall be for the period from the date of the application to the date on which the refund is granted,” it adds.

Recent Amendments In TDS And Tax Regime And Its Ambiguities

Online gaming: Union Budget of 2023 has introduced several provisions related to tax deduction at source (TDS), aiming to strengthen the country’s tax collection mechanism.

However, these provisions have raised ambiguities, particularly in relation to the online gaming industry.

The industry has welcomed the government’s move to recognise the sector and provide clarity.

The government’s attempt to tax the booming industry has resulted in confusion regarding the applicability of TDS provisions and the determination of taxable income due to multiple regime changes instead of a single change.

As a result, online gaming companies are grappling with compliance challenges, and industry experts are calling for clarity on the matter.

This article will delve into the complexities surrounding the TDS provisions and the challenges faced by the online gaming industry in India.

Deep-Dive Into Recent Amendments In TDS And Tax Regime

The recent amendments in relation to taxation and TDS of the online gaming industry can be summarized in the following manner:

Section 194B of the Income Tax Act currently requires TDS to be made on from online gaming, among other industries on winnings exceeding Rs 10,000
The existing provisions of section 194B are proposed to be amended to provide that the TDS shall be on the amount or the aggregate amount exceeding Rs 10,000 in a financial year. This will be effective 1 April 2023
A new section 194BA is proposed with effect from 1 July 2023, to provide for TDS on net winnings from online games computed in a prescribed manner

A recent paper by a leading law firm Lakshmikumaran & Sridharan delves deep into the impact of the new withholding tax provisions on the online gaming industry.

In this white paper, it is detailed out with illustrations — the practical issues that would arise for the users, as well as, the online gaming platforms, due to the mismatch in the implementation dates for new TDS provisions.

Types of TDS

As per the ITA or Income Tax Act, any individual earning above a certain threshold is required to deduct tax at source as TDS (Tax Deducted at Source) . The Income Tax Department has prescribed certain rates as per which TDS is deducted for differently salaried individuals. The person or company that makes a payment after deducting tax as TDS is known as the ‘deductor’. The company or individual receiving the payment with TDS is referred to as the ‘deductee.’

The deductor is responsible to ensure they subtract TDS from the deductee’s salary if the latter is eligible for TDS. This amount is then deposited with the Government. Irrespective of how one is paid – cheque, credit, cash – and is linked to the PAN card of the deductee and deductor. Your employer is required to deduct TDS as per the applicable income tax slab rates. Typically, banks deduct TDS at 10%. In cases where the deductee’s PAN information is not available, an employer may deduct TDS at 20%

Places where TDS is deducted are:

• Salary
• Amount that is kept under LIC
• Bank Interest
• Deemed Dividend
• Brokerage or Commission
• Commission payments
• Compensation on an immovable property that is acquired
• Contractor payments
• Insurance Commission
• Interest on securities
• Interest other than the interest on securities
• Payment of rent
• Remuneration that is paid to a director of a company
• Immovable property that is transferred
• The awards won from games such as crossword puzzles, cards, or lottery.

Do note that as per the Income Tax Act, individuals who pay rent or make payments to professionals like lawyers and doctors are not required to deduct TDS. TDS is once again not applicable if the person behind the payment is an individual or HUF whose books, in one way or another, are not required to be audited.

If an individual submits their investment proofs (to claim tax deductions) to their employer and their gross taxable income is under the taxable limit – they are not required to pay TDS. In the case of one’s bank, simply submitting Form 15H and Form 15G to your bank will allow you to prove that your total taxable income is below the TDS threshold. No tax will be deducted when you receive interest on your income. In case, these forms and investment proof are not submitted to the respective parties in advance, a TDS return can be filed to claim your tax returns.

When is TDS due for depositing with the Government?

TDS is required to be deposited to the government by the 7th of each subsequent month post deduction. Take for example, that you deduct TDS towards a payment in May. It must be deposited to the government by the 7th of June. There are some exceptions to his rule.

One exception is that when TDS is deducted in March, it is due for depositing with the government by April 30th. Another exception is TDS deducted on purchasing property or paying rent. In these cases, the due date for deposition is an additional 30 days from the last day of the month in which the tax was deducted. TDS must be deposited on the government portal using the Challan ITNS-281.

What is TDS Return?

TDS is one form of tax paid in advance. The idea behind it is that it is periodically deposited with the government and the responsibility for doing so rests with the deductor. For those whose tax has been deducted – the deductee – the gross amount must be reclaimed as a tax refund after each deductee files their Income Tax Returns around the end of the financial year. This is known as one’s TDS return. However, it is not just filed once a year but mandatorily has to be filed quarterly.

When filing TDS returns, various details need to be provided such as the amount of TDS deducted, PAN of deductee, TAN, type of payment, etc. There are different forms for TDS returns depending on the purpose of the TDS. Here are all the types of TDS return forms:

Form	Transaction	Due dates
Form 24Q	TDS on Company or Individual’s salary	Q1: July 31stQ2: October 31stQ3: January 31stQ4: May 31st
Form 27Q	TDS on all payments made to any Indian non-residents excluding salaries	Q1: July 31stQ2: October 31stQ3: January 31stQ4: May 31st
Form 26QB	TDS on property sale made	30 days from the last day of the month during which TDS was deducted
Form 26QC	TDS on rent paid	30 days from the last day of the month during which TDS was deducted
Form 26Q TDS	TDS on all payments excluding salaries	Q1: July 31stQ2: October 31stQ3: January 31stQ4: May 31st

What is Form 26AS?

It is essential to understand how TDS and your PAN are linked. Deductions of TDS are linked to PAN in the case of the deductor as well as the deductee. If any part of your income has TDS charged on it, you are required to go through Form 26AS for Tax Credit. This form is an integrated tax statement that is provided to all individuals who have PAN. All TDS is linked up with an individual’s PAN. So, this form states the details of TDS on income by different deductors. It does not matter whether these payments are part of your salary, or interest that you earn. All the TDS that is connected to your PAN is disclosed here. Form 26AS also has a record of the income tax that has been paid by you directly, whether it is self-assessment tax or advance tax. This is precisely why it is so essential for you to enter your PAN details correctly, whenever your income is subjected to TDS.

Form	Certificate for	Issued Each	Due date
Form 16	TDS on salary	Year	31st May
Form 16A	TDS on any non-salary expenses	Quarter	15 days from last day to file returns
Form 16B	TDS on property sale	Transaction	15 days from last day to file returns
Form 16C	TDS on rent paid	Transaction	15 days from last day to file returns

What is a TDS certificate?

Since we know what TDS returns are for, it’s important to note that they are only applicable when a TDS certificate was issued. A TDS certificate must be issued by the deductor towards the deductee as proof of tax deducted. Here are all TDS certificates issued by the deductor towards the deductee depending on the type of TDS deducted.

Applicable TDS rates for different types of payments

TDS is only applicable if payment exceeds a certain level – H2

The Income Tax Act, 1961 has prescribed a threshold limit for tax deduction at source. If the payment is below the threshold, there is no requirement for deducting TDS. Below are a few types and their applicable threshold as per the Income tax website. [2] This table will help you learn about threshold limits and understand how tax deductions at source work.

Type of Payment	Section	Threshold (Above)
Salaries	192	Rs. 2.5 lakh for individuals Rs. 3 lakh for senior citizens Rs. 5 lakh for super senior citizens
Provident fund balance	192A	Rs. 50,000
Interest paid on debentures	193	Rs. 5,000 in a financial year
Interest from banks	194A	Rs. 40,000 in a financial year
Senior Citizen Savings Scheme	194A	Rs. 40,000 in a financial year
Lottery prize, crosswords and horse races	194B, 194BB	Rs. 10,000 in a financial year
Sum payable under a life insurance policy	194DA	Rs. 1,00,000 in a financial year
Payment of rent	194-I	Rs. 2,40,000 in a financial year
Fee for professional services	194J	Rs. 30,000 in a financial year

The income tax department has started notifying taxpayers through SMS. The SMS states the amount that has been deducted as TDS against the taxpayer’s PAN. The taxpayers can themselves cross-check the information that the SMS provides on TDS with the information provided on their payslips to ensure that they are matching.

Are there any times when TDS is not applicable?

Yes, there are times when TDS is not applicable. As stated above, TDS is not deducted for an individual or HUF whose books are not required to be audited, unless they pay rent of above Rs 50,000 per month. TDS is also only applied above a certain level.

TDS on eligible transactions are deducted only in the instance that the payment amount crosses the appropriate threshold level. There will be no deduction of TDS if the value does not surpass the specified limit. Different types of payments have different threshold levels that are specific to them. For example, no TDS is applicable on the interest one receives on fixed deposits from a single bank if the total amount does not cross Rs 10,000 per year from that bank.

Tax liability when TDS has already been applied

TDS from salaries are based on the income tax slab that is applicable for a person. For other types of incomes, TDS rates are specified and range from 10% to 20%. These rates are not calculated based on an individual’s total income. This is why people suffer a TDS in some cases on their receipts.

A person’s actual tax liability is calculated on their total taxable income. Based on taxes calculated, an individual can apply for credit on the deducted TDS on different receipts. You have to subtract the TDS from the actual tax liability to calculate the amount you have to pay to the income tax department. You might even get a refund.

Income Tax Alert: Filing TDS return for FY 2022-23?

Today 31/01/2023 Due Date to file the TDS Statement for Quarter-3 of FY 2022-23 From tomorrow late filing fee u/s 234E Rs.200 per day is applicable (Late fee shall not exceed the amount of TDS)

Usually, if the income earned by you exceeds a specified limit, then tax is deducted by the payer of the income. Once the tax is deducted, then the payer of income is required to deposit the same against your PAN to the government. The payer of the tax, i.e., you or the bank or your employer, is also required to file a TDS return of the tax deducted and deposited.

LATE FILING FEES AND PENALTY FOR FAILURE TO FURNISH/DELAY IN FURNISHING THE TDS/TCS STATEMENTS

He shall obtain Tax Deduction Account Number or Tax Collection Account Number (as the case may be) and quote the same in all the documents pertaining to TDS/TCS.
He shall deduct/collect the tax at source at the applicable rate.
He shall pay the tax deducted/collected by him to the credit of the Government.
He shall file the periodic TDS/TCS statements, i.e., TDS/TCS return.
He shall issue the TDS/TCS certificate in respect of tax deducted/collected by him.

Due Dates for filing of TDS/TCS return

The due dates for filing of TDS/TCS return for different quarters of Financial Year 2022- 23 are as follows:

Quarter ending	Due date for filing of TDS return (Both for Government and other Deductor)	Due date for filing of TCS return
30th June 2022	31st July 2022	15th July 2022
30th September 2022	31st October 2022	15th October 2022
31st December 2022	31st January 2023	15th January 2023
31st March 2023	31th May 2023	15th May 2023

Basic provisions

A person who fails to file the TDS/TCS return or does not file the TDS/TCS return by the due dates prescribed in this regard has to pay late filing fees as provided under section 234E and apart from late filing fees he shall be liable to pay penalty under section 271H. In this part you can gain knowledge about the provisions of section 234E and section 271H.

Late filing fees under section 234E

As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.

TDS/TCS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.

Illustration

The quarterly statement of TDS i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Kapoor on 4-4-2023. Tax deducted at source during the quarter amounted to Rs. 8,40,000. What will be the amount of late filing fees to be paid by him for delay in filing the TDS return?

The due date for filing of TDS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2022 is 31st July, 2022. The return is filed on 4th April, 2023, thus there is a delay of 247 days as computed below:

*Particulars*	*Days*
August 2022	31
September 2022	30
October 2022	31
November 2022	30
December 2022	31
January 2023	31
February 2023	28
March 2023	31
April 2023	4
*Total*	247

From the above computation it can be observed that there is a delay of 247 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 247 days the late filing fees will come to Rs. 49,400.

Illustration

The quarterly statement of TDS i.e. TDS return for the second quarter of the year 2022-23 is filed by Essem Ltd. on 4-4-2023. Tax deducted at source during the quarter amounted to Rs. 8,400. What will be the amount of late filing fees to be paid by the company for delay in filing the TDS return?

The due date of filing the TDS return for the second quarter of the year 2022-23 i.e. July 2022 to September 2022 is 31th October, 2022. The return is filed on 4th April, 2023, thus there is a delay of 155 days as computed below:

*Particulars*	*Days*
November 2022	30
December 2022	31
January 2023	31
February 2023	28
March 2023	31
April 2023	4
Total	155

From the above computation it can be observed that there is a delay of 155 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 155 days the late filing fees will come to Rs. 31,000. However, the late filing fees cannot exceed the amount of tax deducted at source. TDS for the quarter is Rs. 8,400 and hence late filing fees shall be Rs. 8,400.

Illustration

The quarterly statement of tax collected at source i.e. TCS return for the first quarter of the year 2022-23 is filed by Mr. Krunal on 4-8-2022. Tax collected at source during the quarter amounted to Rs. 84,000. What will be the amount of late filing fees to be paid by him for delay in filing the TCS return?

In case of Non-Government deductor, the due date of filing the TCS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2023 is 15th July, 2022. The return is filed on 4th August, 2022, thus there is a delay of 20 days as computed below:

*Particulars*	*Days*
July 2022	16
August 2022	4
Total	20

From the above computation it can be observed that there is a delay of 20 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 20 days the late filing fees will come to Rs. 4,000.

Illustration

The quarterly statement of tax collected at source i.e. TCS return for the second quarter of the year 2022-23 is filed by Mr. Raja on 4-12-2022. Tax collected at source during the quarter amounted to Rs. 2,520. What will be the amount of late filing fees to be paid by him for delay in filing the TCS return?

The due date of filing the TCS return for the second quarter of the year 2022-23 i.e. July 2022 to September 2022 is 15th October, 2022. The return is filed on 4th December, 2022, thus there is a delay of 50 days as computed below:

*Particulars*	*Days*
October 2022	16
November 2022	30
December 2022	4
Total	50

From the above computation it can be observed that there is a delay of 50 days. Late filing fees under section 234E will be charged at Rs. 200 per day, thus for 50 days the late filing fees will come to Rs. 10,000. However, the late filing fees cannot exceed the amount of tax collected at source. TCS during the quarter amounts to Rs. 2,520 and hence, late filing fees shall be Rs. 2,520.

Illustration

The quarterly statement of Tax deducted at source i.e. TDS return for the last quarter of the year 2022-23 is not filed by Mr. Raj till 31st May, 2023. Can he file the TDS return of last quarter of the year 2022-23 after 31st May, 2023 without payment of any late filing fees?

The due date of filing the TDS return for the last quarter of the year 2022-23 i.e. January 2023 to March 2023 is 31st May, 2023. The return is not filed till 31st May, 2023 and hence late filing fees under section 234E of Rs. 200 per day of default will be levied. TDS return cannot be filed without payment of late filing fees as discussed above. In other words, the late filing fees shall be deposited before filing the TDS return. Hence, in this case, Mr. Raj cannot file the TDS return without payment of late filing fees of Rs. 200 per day.

Computation of fee under Section 234E at the time of processing of TDS/TCS statement

Section 200A of the Income-tax Act provides for processing of TDS statements for determining the amount payable or refundable to the deductor. Provisions of Section 200A has been amended by the Finance Act, 2015 so as to enable computation of fee payable under section 234E at the time of processing of TDS statements.

As the mechanism of TCS statement is similar to TDS statement, a new section 206CB has been inserted by Finance Act, 2015 to provide for processing of TCS statements on the lines of existing provisions for processing of TDS statement contained in section 200A of the Income-Tax Act. The new section 206CB also provides for mechanism for computation of fee payable under section 234E at the time of processing of TCS statement.

Penalty under section 271H

As per section 271H, where a person fails to file the statement of tax deducted/collect at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then assessing officer may direct such person to pay penalty under section 271H. Minimum penalty can be levied of Rs. 10,000 which can go upto Rs. 1,00,000. Penalty under section 271H will be in addition to late filing fees prescribed under section 234E.

Apart from delay in filing of TDS/TCS return, section 271H also covers cases of filing incorrect TDS/TCS return. Penalty under section 271H can also be levied if the deductor/collector files an incorrect TDS/TCS return. In other words, minimum penalty of Rs. 10,000 and maximum penalty of upto Rs. 1,00,000 can be levied if the deductor/collector files an incorrect TDS/TCS return.

No penalty will be levied under section 271H for the failure to file the TDS/TCS return, if the person proves that after paying tax deducted/collected by him, along with the late- filing fee and interest (if any), to the credit of the Central Government, he had filed the TDS/TCS return before the expiry of a period of one year from the due date of filing the TDS/TCS return. In other words, no penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied:

The tax deducted/collected at source is paid to the credit of the Government.
Late filing fees and interest (if any) is paid to the credit of the Government.
The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf.

It should be noted that the above relaxation is applicable only in case of penalty levied under section 271H for delay in filing the TDS/TCS return and not in case of filing incorrect TDS/TCS statement.

Apart from above relaxation, in following two cases the taxpayer can get relief from penalty under section 271H:

Under section 273A(4) the Principal Commissioner of Income-tax or Commissioner of Income-tax has power to waive or reduce the penalty levied under the Income-tax Act. Penalty can be waived or reduced by the Commissioner of Income-tax if the conditions specified in section 273A(4) in this regard are satisfied.
Apart from shelter of section 273A(4), section 273B also provides immunity from penalty in genuine cases. As per section 273B, penalty under section 271H will not be levied if the taxpayer proves that there was a reasonable cause for failure.

Illustration

The quarterly statement of tax deducted at source i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Krunal on 4-4-2023. Tax deducted at source during the quarter amounted to Rs. 84,000. Before filing the TDS return he has paid the TDS, interest and late filing fees to the credit of the Government. Will he be liable to penalty under section 271H for delay in filing the TDS return?

Penalty under section 271H can be levied for delay in filing the TDS return. In this case, the due date of filing the TDS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2022 is 31st July, 2022. The return is filed on 4th April, 2023, thus there is a delay of 247 days (i.e. less than a year). As per section 271H(3) no penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied :

The tax deducted/collected at source is paid to the credit of the Government.
Late filing fees and interest (if any) is paid to the credit of the Government.
The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf.

In the present case, all the aforesaid conditions are satisfied because the delay in filing the TDS return is of less than 1 year and interest and late filing fees are paid before filing the TDS return, thus penalty under section 271H will not be levied.

The same provision as discussed above will apply in case of delay in filing the statement of tax collected at source i.e. TCS return.

Illustration

The quarterly statement of tax deducted at source i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Rahul on 20-8-2023. Tax deducted at source during the quarter amounted to Rs. 1,84,000. Before filing the TDS return he has paid the TDS, interest and late filing fees to the credit of the Government. Will he be liable to penalty under section 271H for delay in filing the TDS return?

** Penalty under section 271H can be levied for delay in filing the TDS return. The due date of filing the TDS return for the first quarter of the year 2022-23 i.e. April 2022 to June 2022 is 31st July, 2022. The return is filed on 20th Aug., 2023, thus there is a delay of 385 days (i.e. more than a year). As per section 271H(3) no penalty under section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied

The tax deducted/collected at source is paid to the credit of the Government.
Late filing fees and interest (if any) is paid to the credit of the Government.
The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf.

In the above case, the delay is of more than 1 year and hence the above immunity will not be available. Thus, the Assessing Officer can levy penalty under section 271H. Minimum penalty of Rs. 10,000 and maximum penalty of Rs. 1,00,000 can be levied by the Assessing Officer. However, Mr. Rahul has following two remedies to get relief from penalty:

He can apply to Principal Commissioner of Income-tax or Commissioner of Income-tax under section 273A(4) to seek relief from penalty
He can seek relief under section 273B by proving that there was a reasonable cause for failure.

The same provision as discussed above will apply in case of delay in filing the statement of tax collected at source i.e. TCS return.

Illustration

The quarterly statement of tax deducted at source i.e. TDS return for the first quarter of the year 2022-23 is filed by Mr. Sharma on 10-7-2022. The particulars of the tax deducted at source as mentioned in TDS return are incorrect. Will he be liable to pay penalty under section 271H for delay in filing the TDS return and for furnishing the inaccurate particulars in the return?

Penalty under section 271H can be levied for following defaults:

Delay in filing the TDS/TCS quarterly statement i.e. TDS/TCS quarterly return.
Furnishing incorrect TDS/TCS quarterly statement i.e. TDS/TCS quarterly return.

In the present case Mr. Sharma has filed an incorrect TDS return and hence he shall be held liable to pay penalty under section 271H. Minimum penalty of Rs. 10,000 and maximum penalty of up to Rs. 1,00,000 can be levied. Mr. Sharma will have no remedy under Section 271H(3) to claim relief from penalty for furnishing of inaccurate particulars in the return. However, the taxpayer can seek relief in the following way:

He can apply to Principal Commissioner of Income-tax or Commissioner of Income-tax under section 273A(4) to grant relief from penalty.
He can seek relief under section 273B by proving that there was a reasonable cause for failure.

The same provision as discussed above will apply in case of delay in filing the statement of tax collected at source i.e. TCS return.

MCQ ON LATE FILING FEES AND PENALTY FOR FAILURE TO FURNISH/DELAY IN FURNISHING THE TDS/TCS STATEMENTS

Q1.As per section , a person who fails to file the TDS/TCS return on or before the due date prescribed in this regard is liable to pay a specific amount as late filing fees.

(a) 234E (b) 271C

Correct answer : (a) Justification of correct answer :

As per section 234E, a person who fails to file the TDS/TCS return on or before the due date prescribed in this regard is liable to pay a specific amount as late filing fees.

Thus, option (a) is the correct option.

Q2.As per section 234E, late filing fees will be levied at Rs. 200 for every day during which the failure continues. However, the amount of late filing fees shall not exceed the amount of TDS/TCS.

(a) True (b) False

Correct answer : (a) Justification of correct answer :

As per section 234E, where a person fails to file the TDS/TCS return on or before the

due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS/TCS.

Thus, the statement given in the question is true and hence, option (a) is the correct option.

Tax assistant siphons off Rs 263 cr on fake TDS deduction with seniors’ login credentials

An Enforcement Directorate investigation has found that a mid-level income tax employee was able to access the computers of his superiors and create phoney tax deducted at source (TDS) refunds totaling millions of dollars.

In the money laundering investigation, the CBI has attached more than 30 properties in Maharashtra and Karnataka, totaling almost Rs 70 crore. It has seized 32 plots that were purchased using money taken from the government in the shape of TDS refunds totaling Rs 263 crore, TOI reported.

Tanaji Mandal Adhikari, a senior tax assistant, had earned the trust of his superiors, including the commissioner, to obtain their login information.

He would instruct his assistants to submit false TDS claims to the IT department, which he would then illegally clear by logging into senior officers’ accounts.

According to an ED’s press release, senior I.T. assistant Adhikari would deposit the stolen money into the bank account of a company called SB Enterprises that was under the control of a man by the name of Bhushan Patil after using his assistants to steal millions in fictitious TDS refunds.

In a year starting in November 2019, Adhikari manufactured a total of 12 fraudulent TDS refunds totaling Rs 263 crore that were credited to SB Enterprises’ account, according to an ED investigation. Refunds were given in relation to claims that were listed as pending from the assessment years 2007–2008 and 2008–2009.

The money was then transferred to shell companies and other accounts owned by Patil and his friends.

The properties seized are land in Lonavla, Khandala, Karjat, Pune, and Udupi, as well as apartments in Panvel and Mumbai and three luxury vehicles (BMW X7, Mercedes GLS400d, Audi Q7). These properties are registered in the names of Bhushan Patil, Rajesh Shetty, Sarika Shetty, Kriti Verma, and other associates of Adhikari.

With the new Rs 70 crore attachment and the earlier Rs 96 crore bank account freezing by the ED, assets and bank balances totaling Rs 166 crore have been frozen or attached. Adhikari was found out when the bank where the return money was being put raised an alert.

He and his friends are the subject of an ongoing corruption investigation by the CBI. The ED then filed a money laundering complaint as well.

According to sources, Adhikari’s friends set up phoney businesses and opened bank accounts in their names.

On Adhikari’s orders, the accused will submit TDS claims to I-T. After opening the accounts of his seniors on his computer with their login information, he would remove it from the office.

The CBI filed a FIR in the money laundering case after receiving a written complaint about it from the additional director general (vigilance)-CBDT.

IT rule changed: Big news for taxpayer! Income Tax Department changed the rules for claiming TDS, check rules immediately

The Income Tax Department has allowed non-resident taxpayers who do not have a Permanent Account Number (PAN) to manually fill Form 10F till March 31, 2023. This will reduce the burden of this exercise required for TDS exemption for non-resident taxpayers and they will be able to claim a lower TDS (Tax Deducted at Source) rate. The Central Board of Direct Taxes (CBDT) in July made it mandatory for non-resident taxpayers to electronically file Form 10F to claim the benefit of lower TDS.

However, taxpayers were facing problems in filing the form electronically as the income tax portal was not allowing taxpayers who do not have PAN to file 10F. CBDT said in a notification that to overcome the problems of such taxpayers, it has been decided that those taxpayers who do not have PAN are exempted from filling 10F electronically till March 31, 2023. Such taxpayers are not required to have Permanent Account Number under the relevant provision of the Income Tax Act.

Also read 📚 : CBDT gives big relief to NRI customers, allows manual filling of forms to avoid TDS

What do experts say

According to the notification issued on December 12, “Taxpayers of such category will be able to fill 10F by hand till March 31, 2023, in the same way as they were doing before the notification issued in July.” Sandeep Jhunjhunwala, tax partner, Andersen LLP, said, “The exemption from the CBDT notification will reduce the compliance burden for NRIs, which they were facing for filing Form 10F electronically. He said that but this exemption is only till March 31, 2023, so when this process becomes digital again, it will be interesting to see how the NRIs will deal with it.

Electronic filing was made mandatory in July

In July 2022, the CBDT issued an order saying that if non-resident taxpayers want to avail the benefit of lower TDS, they will have to fill Form 10F electronically as well. However, in this way such taxpayers who do not have PAN card will not be able to fill the form.

Also read 📚 : PAN card is not necessary to claim TDS, which taxpayers have been exempted by the Income Tax Department

How Can Senior Citizens Avoid TDS on Fixed Deposit?

Fixed Deposits have been considered the safest type of investment for long. It comes at a fixed interest rate that ensures assured returns and power of compounding. Additionally, this investment option also features a flexible tenure, which adds to the benefits of investors.

Interest earned on an FD shall attract TDS (Tax Deducted at Source) at 10%. The TDS on Fixed Deposit for senior citizens has been fixed at 10%, if their annual income from such investment is more than Rs.50,000. However, if you are a senior citizen, you must know that there are provisions that allow you to avoid this TDS.

Read on to know more.

Ways for Senior Citizens to Avoid TDS on FD?

Your bank deducts interest income on FDs before submitting the corpus in your bank account. However, you can avoid this taxation if your annual salary is less than Rs.2.5 Lakhs. There are different ways to avail this exemption, such as:

1.Form 15G

Form 15H is a self-declaration form that you can submit to the bank requesting exemption of income tax on Fixed Deposit interest because your income is less than the basic exemption limit.

It is necessary to provide PAN for this purpose. Furthermore, some banks allow you to submit these forms online via their websites. In this regard, note that you need to submit this at the beginning of the financial year for a hassle-free exemption process.

At the same time, senior citizens can file Form 15H even if their interest income exceeds the basic tax exemption limit. This is because their taxable income after necessary deductions stays below the exemption limit.

2. Form 12BBA

Senior citizens aged 75 and above seeking exemption from filing income tax can fill out and submit form 12BBA to their respective banks from this year.

This exemption is available to senior citizens who only receive pension and interest from fixed deposits. Furthermore, all senior citizens are eligible for this exemption. The only condition is that the pension and interest income should be deposited in the same bank.

About Form 12BBA

Apart from Form 15H, TDS on Fixed Deposit for senior citizens is also eligible for exemption by filling out the Form 12BBA. This is a comprehensive form that will request information on tax deductions to be claimed under sections 80C to 80U, tax rebates claimed under section 87A that reduce taxable income below the Rs.5 Lakhs exemption and overall income from pension and fixed deposit (FD) interest.

According to the Central Board of Direct Taxes (CBDT), once the form is submitted, the bank will compute the taxpayer’s total income after deducting tax deductions and rebates under Section 87A and deduct tax on the derived income based on slab rates. Furthermore, to ensure that senior citizens have no difficulty filling out the form, the CBDT has directed banks to assist eligible seniors in properly filling out the form.

In this regard, the bank will file the Income-Tax Return (ITR) on behalf of the senior citizen taxpayer.

Besides, submitting Form 12BBA will also save senior citizens the trouble of obtaining a refund on tax deducted at source (TDS) on FD interest. According to IT laws, 10% TDS is deducted on interest income exceeding Rs.50,000 earned by a senior citizen. For taxpayers in the 5% and 10% tax brackets, the 10% TDS will result in a higher tax outgo than his/her tax slab.

Points to Remember Regarding TDS on Fixed Deposit for Senior Citizens

Here are a few crucial points to keep in mind regarding taxation of FD interest income for citizens above the age of 60:

In the case of fixed deposit investments, all individual residents 60 years of age or older qualify as senior citizens.
According to section 194A of the Income Tax Act, TDS on FD cannot be deducted in the case of deposits held by senior citizens if the earnings do not exceed Rs.50,000 during the fiscal year.
TDS on fixed deposits for senior citizens is deducted when the interest is credited, not when the FD matures. So, if you have a three-year FD investment, TDS on FD interest will be deducted at the end of each year and not at the end of the third year.
The tax deduction rate for resident Indians is 10%, or 20% if you have not provided PAN.
NRIs have to pay TDS on Fixed Deposits at the rate of 30%.

Knowing the above-mentioned pointers will help you gain more insight into the working of TDS on FDs. At the same time, before investing in this investment instrument, consider conducting thorough research. In this regard, you can resort to platforms like Bajaj MARKETS. This is a diversified marketplace featuring various Fixed Deposit offers by banks and financial institutions. You can draw a comparison between them and choose an account that best suits your needs.

There are two major ways through which you can obtain exemption of TDS on Fixed Deposit for senior citizens. Additionally, if your annual interest income is less than Rs.50,000, you become exempt from TDS.

Section	Present	Proposed
193 – Interest onsecurities	NIL	10,000
194A – Interest other thanInterest on securities	(i) 50,000/- for seniorcitizen;(ii) 40,000/- in case ofotherswhen payer is bank,cooperative society andpost office(iii) 5,000/- in othercases	(i) 1,00,000/- for seniorcitizen(ii) 50,000/- in case ofotherswhen payer is bank, cooperativesociety and postoffice(iii) 10,000/- in other cases
194 – Dividend, for an individual shareholder	5,000	10,000
194K – Income in respect of units of a mutual fund	5,000	10,000
194B – Winningsfrom lottery, crossword puzzle Etc. &194BB – Winnings from horse race	Aggregate of amountsexceeding 10,000/-during the financial year	10,000/- in respect of asingle transaction
194D – Insurance commission	15,000	20,000
194G – Income by way ofcommission, prize etc. on lottery tickets	15,000	20,000
194H – Commission orbrokerage	15,000	20,000
194-I – Rent	2,40,000 (in a financial year)	6,00,000 (in a financial year)
194J – Fee for professional or technical services	30,000	50,000
194LA – Income by way of enhanced compensation	2,50,000	5,00,000
206C(1G) – Remittance under LRS and overseastour program package	7,00,000	10,00,000

Rates for deduct of tax at source

How to pay Tax Deducted/Collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

Note:-

Credit for tax payments

TDS RATE CHART FY 2025-26 (AY 2026-27)

TCS RATE CHART FY: 2025-26 (AY: 2026-27)

Collection Codes under section 206C

Rates for deduct of tax at source

How to pay Tax Deducted/Collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

Note:-

Credit for tax payments

TDS RATE CHART FY 2025-26 (AY 2026-27)

TCS RATE CHART FY: 2025-26 (AY: 2026-27)

Collection Codes under section 206C

TDS Rates in India

TDS Rate Charts for the FY 2023-24 and FY 2024-25

Union Budget 2024 New TDS Provisions

Section 194T – Payments to partners of firms

Overview of TDS Rate Chart for the FY 2023-24 and FY 2024-25

TDS Rates Applicable on Non Resident Indian (Other than a Company)

TDS Rate Charts Where the Company is a Domestic Company

TDS Rates Where the Company is Not a Domestic Company

FAQs

1. What is Tax Deducted at Source (TDS)?

2. What are the significant changes in TDS rates as per the Budget 2024?

3. How does the TDS on salary work for the Financial Year 2024-2025?

4. What are the TDS rates for interest on securities and dividends?

5. Are there any changes in TDS rates for FY 2024 25 for online gaming winnings?

6. How has the TDS rate for rent payments changed?

7. What is the TDS rates for FY 2024 25 for payments made by e-commerce operators to participants?

8. Are there any penalties for not furnishing a Permanent Account Number (PAN) to the deductor?

9. What is the TDS rate for winnings from lotteries or crossword puzzles?

10. How does the new tax regime affect TDS deductions?

11. What is the latest TDS rate chart for FY 2025?

12. Why is the latest TDS rate chart for FY 2025 important?

13. Where can I find the TDS new rate chart 2025?

14. How do I know if the TDS chart 2025 applies to me?

TDS Rate Chart for FY 2024-25 (AY 2025-2026)

TDS Rates Chart for Resident Indians

Income Tax TDS Rates Applicable for NRIs

TDS Rates for a Domestic Company

TDS Rates Where the Company is Not a Domestic Company

Budget 2024 Updates

TDS Rates

Below is table of Revised TDS rates applicable from 1 October 2024:

Complete TDS Rates Chart applicable for F.Y. 2024-25 & AY 2025-26 with changes

How to pay Tax Deducted/Collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

Important amendments introduced vide the Finance Act, 2023 –

Section 193 – Interest on Securities –

Section 194B – Winning from lottery/ crossword puzzle –

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

Section 194 N – Payments of certain amounts in cash (i.e. cash withdrawals) –

TDS Rate Chart for FY 2023-24 (AY 2024-25) with TDS Section List

What is TDS Rate Chart for FY 2023-24?

Important TDS Updates in Budget 2023

What is TDS Chart?

Important Points for TDS Deduction

Summary: Important TDS Section List FY 2023-24

TDS RATE CHART FY: 2024-25 (AY: 2025-26)

TDS RATE CHART (FOREIGN) FY: 2024-25 (AY: 2025-26)

TCS RATE CHART FY: TDS / TCS Rate Chart FY: 2024-25 (AY: 2025-26)Collection Codes under section 206C

TDS Rate Chart for FY 2024-25 (AY 2025-26)

Important TDS Updates in Budget 2023

Important Points for TDS Deduction

Summary: Important TDS Section List FY 2024-25

What is TDS Rate Chart for FY 2023-24?

Important TDS Updates in Budget 2023

What is TDS Chart?

Important Points for TDS Deduction

Summary: Important TDS Section List FY 2023-24

TDS Rate Chart for FY 2024-25

FAQ on TDS rates

1. Is TDS mandatory for companies?

2. What is the TDS rates for contractors?

3. What is the TDS rate on salary?

TDS Rate Charts for the FY 2023-24

Union Budget 2023 New TDS Provisions

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

TCS RATE CHART FY: TDS / TCS Rate Chart FY: 2024-25 (AY: 2025-26)
Collection Codes under section 206C